CBP Finds 6 Importers Evaded AD/CVD Duties on Wooden Cabinets From China
CBP has found that six companies evaded antidumping and countervailing duty orders on wooden cabinets and vanities from China, according to a notice dated Oct. 6 and released Nov. 16. Uni-Tile & Marble, Durian Kitchen Depot, Kingway Construction, Lonlas Building Supply, Maika'i Cabinet & Stone and Top Kitchen Cabinet were found to have evaded the AD and CVD orders by transshipping through Malaysia.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
The investigation followed an October 2021 allegation by American Kitchen Cabinets Alliance (AKC). CBP found the evidence provided by AKC reasonably suggested that the importers were evading the orders and transshipping through Malaysian firms LLWF Cabinets and Stone, MSW Building Supply and South Wales Furniture. CBP announced the investigation and imposed interim measures in March (see 2203290035).
In December 2021, CBP received import and export data that showed wooden cabinets and vanities shipped from China regularly matched the tariff codes of cabinets shipped from Malaysia to the U.S. The redacted trade data showed that at least one of the importers brought more cabinets into Malaysia from China than was eventually shipped to the U.S. and directly refutes the evidence presented in Uni-Tile’s and Kingway’s request for information (RFI) responses.
In its March preliminary finding, CBP announced that it had evidence that South Wales was simply a corporate shell that transshipped Chinese-origin cabinets. CBP continued to investigate the company and found evidence suggested that South Wales began operating following the AD and CVD orders and that shipment lag times likely corresponded to the time needed to repackage Chinese-origin cabinets and “re-export” the cabinets to the U.S. Of the accused importers, only Kingway made statements relating to the quality and cost of production of Malaysia versus China, but without supporting evidence, CBP found those statements to be "unsubstantiated assertions" lacking reliability.
After reviewing the record evidence, including that large volumes of Malaysian cabinet sales were to the six importers, combined with no record evidence of cabinet production in Malaysia, CBP concluded that the importers entered cabinets from China, via transshipment through Malaysia, into the customs territory of the U.S. through evasion. Additionally, CBP found that information submitted by Uni-Tile and Kingway in their RFI responses was "patently false."
CBP will suspend the entries subject to this investigation until instructed to liquidate. For entries previously extended in accordance with the interim measures, CBP will rate-adjust and change those entries to type 03 and continue suspension. It will also evaluate the importers’ continuous bonds and may require single transaction bonds. CBP or other agencies may pursue additional enforcement actions or penalties as appropriate. CBP also is extending the period for liquidating each unliquidated entry of merchandise that entered before Dec. 3, 2021.