CBP Announces EAPA Investigation, Interim Measures on Quartz Surface Products From China
CBP is taking action against US Atlanta International, Global Source & Supply, Cosmos Granite (East) Marble and Cosmos Granite (West) over allegedly evading antidumping and countervailing duties on quartz surface products (QSP) from China.
The agency found “reasonable suspicion” that the companies had been entering QSP from China by transshipment via Thailand, which would be a violation of the Enforce and Protect Act, according to a notice of an investigation initiation issued June 17 and released last week.
The Trade Remedy Law Enforcement Directorate within CBP’s Office of Trade initiated the investigation March 11 following an allegation submitted by Cambria Company, a U.S. producer of quartz surface products. Cambria said Elite Stonetech, the company in Thailand, was linked to Chinese QSP producer Kung Fu Stone based in the Xiamen province of China. A Chinese national also has a 49% stake in Elite Stonetech, which is the maximum allowable foreign ownership to avoid prohibitions and restrictions applicable to majority foreign-owned companies under Thai law, and the company was formed just two months after the publication of the AD/CVD Orders on QSP from China, according to CBP’s summary of the allegations.
“Based on the totality of evidence on the record, CBP finds there is reasonable suspicion that the Importers entries of QSP from Elite Stonetech were not produced in Thailand,” CBP said. “This is supported by the Allegations establishing that no such operating factory existed in July 2023, well before the company’s official dissolution later that year, and that Elite Stonetech shipped artificial stone to the United States in 2018 before it even became a legal company in Thailand.”
CBP also noted that Global Source submitted "incomplete" information when asked to provide CF-28 responses about its imports from Elite Stonetech, while US Atlanta and Cosmos West didn't provide any CF-28 responses about their imports from Elite Stonetech.
CBP said it will suspend the liquidation of each unliquidated entry that entered on or after March 11, the date of the initiation of the investigation; extend the period for liquidating each unliquidated entry of such covered merchandise that entered before that date; and may take additional measures, including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. CBP will require live entry and reject any entry summaries that don't comply with live entry procedures as well as evaluate the importer's continuous bonds to determine sufficiency.
The agency also said duty rates for all four importers "are the 'China-Wide Entity' for A-570-084-000 and C-570-085-000, if the Department of Commerce has not determined that a separate rate would apply to that entry."
In response to CBP's finding, Luke Meisner, a partner with Schagrin Associates representing Cambria, said: "We look forward to reviewing the evidence that Customs gathers as part of this EAPA allegation and appreciate the agency’s efforts to tackle the widespread evasion of the AD/CVD orders on quartz surface products from China.”
The owners of US Atlanta, Cosmos East and Cosmos West weren't immediately available for comment.