CBP Finds Evasion by Aluminum Fence Importer
Aluminum extrusion fence parts from China imported by Fortress Iron don't meet the "finished goods kit" exception to antidumping and countervailing duty orders on aluminum extrusions from China and should have been declared subject to AD/CVD, CBP found in a recently released Enforce and Protect Act (EAPA) determination. The agency found substantial evidence that Fortress had evaded AD/CVD orders by importing fence components from Chinese suppliers that didn't meet the exclusion requirements while failing to declare those imports as subject to the orders.
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.
Fortress, which does business as Fortress Fence Products and Fortess Building Products, claimed the extruded aluminum fence parts imported during the period of investigation weren't covered by the scope of the orders because they were explicitly excluded as parts of “finished goods kits."
In deciding whether imported merchandise is a kit, CBP said that the key analysis is how the items are entered and whether the parts are capable of being assembled into a fence without further processing such as cutting or punching. "While it is conceivable that some entries might have contained an adequate assortment of items that could later be divvied up into a kit," CBP found that they weren't entered into the U.S. as such and several Fortress fence parts required further processing before assembly.
"The mere presence of an assortment of parts/components and associated items is not sufficient for the merchandise to be classified as a 'finished goods kit,'" the agency concluded. Entry documentation made no references to the number of "kits" or any other collection of all the parts necessary to fully assemble an imported product into a fence, CBP said.
Fortress further argued that CBP had, in the past, found its products were finished goods kits not subject to the orders. CBP responded that previous entries could be distinguished from the extrusions currently at issue and that previous actions aren't binding for the current investigation.
The investigation followed a September 2022 allegation by the Aluminum Extrusions Fair Trade Committee (AEFTC). The committee submitted evidence that Fortress' sales offers to customers were at prices "too low to reflect the substantial AD/CVD duties that would be applicable." AEFTC submitted evidence that Lowe's offered aluminum fence products sourced from Fortress at prices significantly below those sourced from domestic suppliers (see 2301270042).
After finding evasion, CBP said it will suspend the entries subject to this investigation until instructed to liquidate. For entries previously extended by the interim measures, CBP will rate-adjust and continue suspension. CBP also will evaluate Fortress’ continuous bonds and may require single transaction bonds as appropriate. CBP also will apply these actions to Fortress Fence Products, Fortress Building Products, and any additional [importer of record} IOR numbers relating to [unnamed businesses].
"The AEFTC is gratified by CBP’s final determination and hope[s] this signals to other importers that they can no longer claim that extrude[d] aluminum subassemblies like the fence parts at issue here are excluded from the scope of the orders," said Wiley's Robert DeFrancesco, who represents the AEFTC.
Fortress didn't immediately respond to a request for comment.