CBP Announces EAPA Investigation/Consolidation on Cast Iron Soil Pipe and Fittings From China

CBP has opened an Enforce and Protect Act investigation on whether Muller Import and U.S. Castings evaded antidumping and countervailing duty orders on cast iron soil pipe from China and has imposed interim measures, it said in a notice released April 21. CBP is also investigating whether Muller evaded separate AD/CVD orders on cast iron soil pipe fittings from China.

The investigation was initiated Dec. 22 following three allegations by the Cast Iron Soil Pipe Institute (CISPI). Two allegations suggested the two companies, with the cooperation of Bengal Iron, transshipped Chinese-origin cast iron soil pipe through India and entered the merchandise into the U.S. as a product of India to evade the AD/CVD orders. The third allegation suggested that Muller engaged in the same transshipment scheme with fittings.

CISPI alleged that prior to the orders on cast iron soil pipe from China, U.S. Castings imported merchandise described as “cast iron valve boxes” from Bengal in India. Beginning in August 2021, U.S. Castings received several shipments from Bengal of products described as "cast iron hubless pipes" in various sizes, which CISPI said matched the description and fell within the scope of the cast iron soil pipe Orders.

Photographs of pipes and fittings in the U.S., allegedly from Bengal Iron Corp., show the markings on the pipe differ considerably from those Bengal shows on its website for the merchandise it produces. According to CISPI, the products are also marked with a trade name owned by Chinese company Terrifour (Dalian) Trading. CISPI claimed Bengal received a shipment of a wide variety of Chinese cast iron soil pipe and cast iron soil pipe fittings from Terrifour in 2020, citing Indian import records.

Terrifour is affiliated with, or possibly controls, Muller, CISPI said. Muller was registered as a company in the U.S. after Commerce began its AD/CVD investigations on soil pipe and fittings, it said. Muller's founder also founded another company using one of Terrifour's trademarks, CISPI said. The institute also alleged that U.S. Castings is affiliated with Orange Golden, a Chinese exporter of soil pipe and fittings, and that Orange Golden has a history of selling to Bengal.

CBP said reasonable suspicion existed that both importers imported covered merchandise into the U.S. through evasion by means of transshipment through India and failure to declare the subject merchandise as of Chinese origin. The agency imposed interim measures and will suspend the liquidation of each unliquidated entry of covered merchandise that entered on or after Dec. 22, the date of the initiation of the investigation.

CBP also will extend the period for liquidating each entry of such covered merchandise that entered before that date and 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. Finally, CBP will require live entry and reject any entry summaries that do not comply with live entry, and require refiling of entries that are within the entry summary rejection period. It also may evaluate the importers’ continuous bonds to determine their sufficiency.

Muller, U.S. Castings and CISPI did not respond to requests for comment.