CBP Finds AD Evasion by VY Industries on Nails From China
CBP issued an Enforce and Protect Act determination, finding VY Industries evaded antidumping duties by transshipping wire coated coil nails from China through India, according to a recent agency notice.
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The agency said that throughout the investigation, VY Industries failed to meet deadlines or respond to requests for information, claiming "the cost of hiring legal representation to adequately handle the case exceeded VY Industries' financial capacity." The company insisted that it maintains strict compliance with U.S. trade regulations, including collaboration with a customs broker, but CBP said that relying on a customs broker "does not absolve the importer of responsibility for ensuring full compliance with U.S. customs laws." The agency also said VY Industries didn't provide details on "how it verifies its customs processes or if they conduct audits to ensure that brokers are following regulations accurately."
Corus Fastening, a distributor of industrial nails, staples and "tools associated with their use," originally filed the complaint claiming that the importers were violating AD/CVD orders (see 2404010011). Corus provided photographs showing VY Industries' boxed nails labeled as "Made in China," despite being imported into the U.S. as Indian-origin products. Upon receipt of the allegation, CBP initiated an EAPA investigation in March and enacted interim measures against VY Industries.
CBP said it would suspend or continue to suspend the entries covered by this investigation, until instructed to liquidate. Also, for those entries previously extended in accordance with interim measures, CBP said it would rate adjust and change those entries to type 03 and continue suspension until instructed to liquidate the entries.
The agency also said it will continue to evaluate VY Industries' continuous bonds in accordance with agency policies. VY Industries didn't immediately comment on the ruling.