CBP Reverses Evasion Finding on 4 Importers' Hardwood Plywood on Remand at CIT

CBP reversed its finding that four importers evaded the antidumping and countervailing duty orders on hardwood plywood from China on remand at the Court of International Trade. Submitting its remand results on March 20, CBP said that since the Commerce Department reversed its covered merchandise scope decision in a separate trade court case, the importers' goods no longer constitute "covered merchandise" and thus did not evade the AD/CVD orders (Far East American v. United States, CIT Consol. # 22-00213).

In the underlying Enforce and Protect Act investigation, CBP said that importers Far East American, Liberty Woods International, American Pacific Plywood and InterGlobal Forest evaded the orders after making a scope referral to Commerce. In a separate CIT case, Commerce reversed course on its scope decision, finding under protest that hardwood plywood made by Vietnamese manufacturer Finewood using Chinese two-ply and exported to the U.S. is outside the scope of the orders (see 2308220033).

The U.S. asked for a voluntary remand in the present suit to consider the reversed scope decision, along with the U.S. Court of Appeals for the Federal Circuit's ruling in Royal Brush Manufacturing v. U.S., in which the court said that failure to provide parties with the confidential information in an EAPA case is a due process violation (see 2310230022).

On remand, CBP reversed its finding and said, for this reason, it doesn't need to address the implications of the Royal Brush holding. "As DOC determined that plywood made in Vietnam using Chinese two-ply is not subject to an AD or CVD order, no covered merchandise was entered into the customs territory of the United States through material false statements or material omissions," the brief said.