CBP Announces EAPA Investigation, Interim Measures on Quartz Surface Products From China
CBP announced an Enforce and Protect Act investigation on whether LTT International Trading evaded antidumping and countervailing duty orders on quartz surface products from China, according to a recently released notice. CBP determined there was reasonable suspicion of evasion by LTT and imposed interim measures along with formal notice of initiation of the investigation.
The investigation followed an Oct. 17, 2022, allegation by Cambria Company, which said LTT acted as the importer of record for quartz surface product shipments from Taiwan that originated in China. Cambria pointed to shipping data showing LTT received numerous shipments from Taiwan with Cheng Jug Enterprise Co. as the listed manufacturer. Cambria noted that Google Maps views of the address listed for Cheng Jug on its website showed an apartment building and commercial storefront rather than a building that could serve as a quartz surface products production facility. Cheng Jug also exports mattresses and diamond sawblades to the U.S., both of which are covered by AD/CVD orders for Chinese-origin products.
CBP found the allegation reasonably suggested LTT may have entered covered merchandise into the U.S. and evaded the AD/CVD orders by declaring entries of Chinese-origin quartz surface products as Taiwanese origin. CBP then opened an investigation Nov. 7. LTT provided timely, but only partially translated, responses to CBP questionnaires. CBP granted an extension but said that as of Feb. 13, LTT still had not provided translations of questionnaire responses. LTT also failed to provide production records, raw materials purchasing invoices, records of raw materials usage, packing costs, and factory production records, including stamped time cards, payroll and work orders.
When investigating LTT's listed suppliers, CBP found at least one location was a commercial building and not a manufacturing facility. Some certificates of origin were misdated, including at least one stamped for export after its date of arrival in the U.S. LTT provided a narrative description of the quartz production process and photos of the production, but none of the photos identifies the facilities as belonging to Cheng Jug or any of its suppliers, the agency said.
CBP said it was unable to corroborate the importer’s claim its quartz surface products were manufactured in Taiwan and therefore found reasonable suspicion the imports were covered merchandise transshipped through Taiwan. CBP then imposed interim measures that suspended the liquidation of each unliquidated entry that entered on or after the date of the initiation of the investigation, extended the period for liquidating each unliquidated entry of such covered merchandise that entered before Nov. 7, and may take additional measures as the commissioner determines necessary, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. CBP also will require live entry for future shipments of quartz surface products imported by the LTT and will reject any entry summaries that do not comply with live entry, the agency said.
"We appreciate Customs taking this important first step in investigating Cambria’s allegation of evasion by LTT International Trading and look forward to examining the additional evidence that Customs will gather through its investigation," said Luke Meisner, attorney for Cambria.
LTT did not respond to requests for comment.