CBP's Trade Remedy and Law Enforcement Directorate is investigating several new cases of alleged antidumping duty evasion under the Enforce and Protect Act (EAPA) evasion enforcement process (see 1608190014), CBP said in an Aug. 17 news release. The agency announced new investigations into possible evasion of AD duty orders on wooden bedroom furniture (WBF) and steel wire hangers. CBP also announced an investigation into alleged evasion of a diamond sawblades AD order. The Diamond Sawblades Manufacturers' Coalition, which filed the allegation, previously announced the investigation (see 1706280035).
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
A recent Court of International Trade decision reaffirms the right of importers to use tariff engineering to obtain lower duty rates, customs lawyers said after the Aug. 9 decision was released publicly on Aug. 16. The addition of stripped-down seats to a Ford Transit Connect cargo van and their removal immediately after importation constitutes “legitimate tariff engineering” to obtain a lower duty rate applicable to passenger vehicles, CIT said.
The addition of seats to a cargo van and their removal immediately after importation constitutes “legitimate tariff engineering” to obtain a lower duty rate applicable to passenger vehicles, said the Court of International Trade in an Aug. 9 decision that was released the evening of Aug. 16. Tariff classification is determined based on an article’s condition at the time of importation, and the steps Ford took to manufacture its Ford Transit Connect vans after importation are irrelevant to the classification analysis, CIT said.
A coalition of domestic manufacturers filed a petition on Aug. 16 with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on stainless steel flanges from China and India. Commerce will now decide whether to begin AD/CVD investigations on stainless steel flanges that could eventually result in the assessment of AD/CV duties. The coalition that requested the duties, known as the Coalition of American Flange Producers, includes as individual members Maass Flange Corporation and Core Pipe Products.
The U.S. government filed a federal court complaint on Aug. 10 alleging a Florida importer of wooden bedroom furniture sought to evade antidumping duties and customs fees by misclassifying and undervaluing its furniture imports. Blue Furniture Solutions evaded “millions of dollars” in duties and fees by classifying its wooden bedroom furniture as metal and office furniture to avoid a 216.01% antidumping duty rate, and stating false values of its imports on entry documentation.
A surety is on the hook for $2.2 million in uncollected duties even though the underlying bonds had missing information and errors, the Court of International Trade said in a decision issued Aug. 10. Hartford Fire Insurance argued the bonds violated customs regulations and were not enforceable contracts, but the court found those errors didn’t invalidate them, especially given that Hartford accepted premiums and submitted the bonds to CBP.
North Pacific Paper Company filed a petition with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on uncoated groundwood paper from Canada. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.
Chapter 11 bankruptcy does not protect importers from Section 592 penalty claims filed by the government at the Court of International Trade, CIT said in a decision issued Aug. 10. While judicial claims are generally paused during bankruptcy to give the debtor a chance to repay debts or reorganize, Section 592 penalty claims are exempt from those protections because they are meant to protect public welfare and serve a public policy purpose, CIT said.
Customs brokerages, law firms, and other members of the trade community are angling to secure eligibility of distilled spirits for substitution drawback under new regulations set to take effect Feb. 24, industry sources said in recent interviews. On that date, simplified substitution drawback enacted through the Trade Facilitation and Trade Enforcement Act will take effect, generally enabling substitution drawback to cover imports and exports with the same eight-digit HTS or Schedule B number. But questions surround whether CBP will deem distilled spirit exports eligible for substitution, due to the agency’s historical drawback treatment regarding alcohol-related excise taxes and technical classifications of U.S. production facilities.
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on cast iron soil pipe fittings from China (A-570-062/C-570-063). The agency will determine whether imports of Chinese soil pipe fittings are being sold in the U.S. at less than fair value or are illegally subsidized. The CV duty investigation covers entries Jan. 1, 2016, through Dec. 31, 2016. The AD duty investigation covers entries Jan. 1, 2017, through June 30, 2017.