CBP Announces EAPA Investigation, Interim Measures on Quartz Surface Products From China
CBP announced an Enforce and Protect Act investigation and said it has reasonable suspicion that Kings Marble and Granite, Musa Stone Import, and KMG Marble and Granite evaded the antidumping and countervailing duty orders on quartz surface products from China. The agency said this finding made the enactment of interim measures necessary.
The initiation notice, dated March 11, followed an allegation from Cambria Company, a U.S. producer of quartz surface products, which said that the importers were violating the AD/CVD orders. The product in question appeared to be made by a Chinese manufacturer and the most likely point of transshipment is Vietnam, Cambria said.
CBP said there is evidence that the three companies are related to each other. KMG and Kings "appear to be affiliated" as they are located close together, and Musa Stone is owned by someone who appears to be from the same family as the owners of the other two companies, CBP said.
CBP issued Form 28 requests for information to all three companies concerning their entries from Vietnam, Thailand and the Philippines. KMG provided most of the information required but failed to provide certain items and failed to substantiate that its products were from Vietnam.
Kings also submitted a response and provided "a sales contract, commercial invoice, packing list, bill of lading, two proofs of payment and several photographs" but failed to provide several items and didn't explain its failure to do so, CBP said. Kings did not provide documentation indicating where the marble originated and therefore, CBP was not able to verify where the production of the products occurred and how it should be classified, the agency said.
While Musa Stone was able to provide information that showed certain items were not entered through evasion, it did not provide documents relating to its entry from Thailand. As a result, there is reasonable suspicion that Musa Stone participated in evasion, CBP said.
The agency said it will suspend the liquidation of each unliquidated entry that entered on or after Dec. 4, 2023, 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 importers didn't respond to our requests for comment.