The Commerce Department is beginning a trio of scope inquiries in conjunction with three CBP Enforce and Protect Act antidumping and countervailing duty evasion investigations, it said. Commerce will determine whether merchandise imported by LM Supply is subject to AD/CV duties on hydrofluorocarbon blends from China (A-570-028), and in particular whether the scope exemption for Choice R-421A is limited only to merchandise licensed by the rights holder and carrying certain trademarks. The agency will also rule on whether certain merchandise imported by Aspects Furniture International -- a desk/console table with drawers, a credenza/trunk storage/cabinet with a minibar, a console/custom dresser and a bed bench base -- are covered by antidumping duties on wooden bedroom furniture from China (A-570-890). In its third inquiry, Commerce will determine whether sawblades laser welded in Thailand before being imported by Diamond Tools Technology are subject to antidumping duties on diamond sawblades from China (A-570-900). Domestic manufacturers and producers allege all three importers are evading AD duties (see 1712050037 and 1708170024).
CBP scheduled a March 9 workshop to go over the processes involved in antidumping or countervailing duty evasion allegations under the Enforce and Protect Act (see 1608190014), CBP said in an event flyer. "CBP has led more than 10 foreign on-site verifications of alleged manufacturing facilities throughout Asia, coupled with numerous domestic visits and cargo examinations to investigate allegations of transshipment, misclassification, erroneous duty rates, among other types of evasion of antidumping and countervailing duty orders," the agency said in another notice. "The goal of this workshop is to provide parties who are filing EAPA allegations, or defending against them, with greater insight into the investigatory process, pinpointing areas of success at targeting evasion. We will discuss various examples of successful allegations and highlight the types of information that can be used to support an allegation. In addition to being able to engage with CBP leadership responsible for leading these EAPA investigations, participants will also hear from counsel who are representing parties and learn about their experiences with these new proceedings." The agency held a similar event last year (see 1702280015).
The Treasury Department published its fall 2017 regulatory agenda for CBP. The agenda doesn't include any new rulemakings involving trade. Previously listed rulemakings, including a proposal to update to the (a)(1)(A) list of records required for the entry of merchandise and changes to drawback regulations, continue to be on the agenda. The Department of Homeland Security also issued its regulatory agenda (see 1712150011).
International Trade Today is providing readers with some of the top stories for Dec. 4-8 in case they were missed.
CBP issued the following releases on commercial trade and related matters:
No administrative appeal was filed in response to CBP's only final determination under an Enforce and Protect Act proceeding, an agency spokesman said. CBP's sole final determination so far found that Eastern Trading NY evaded antidumping duties on garment hangers (see 1708170027). Parties involved in an EAPA investigation may seek an administrative review during the 30 days following a final determination.
The Commerce Department is beginning an anti-circumvention inquiry based on allegations that Diamond Tools and its affiliates are importing diamond sawblades of Chinese origin that have undergone minor processing in Thailand and declaring them not subject to antidumping duties, in circumvention of the antidumping duty order of diamond sawblades from China (A-570-900). The Diamond Sawblades Manufacturers' Coalition alleges Diamond Tools is importing cores and segments made in China into Thailand, then joining them in a minor welding operation before exporting them to the U.S. CBP recently found a “reasonable suspicion” that the same sawblades are evading AD duties in an ongoing Enforce and Protect Act investigation (see 1709250035). If Commerce finds circumvention in its preliminary results, it will impose cash deposits under the AD duty order on diamond sawblades from China on Bosun Tools Co., Ltd., Hebei Jikai Group and Wuhan Wanbang Laser Diamond Tools Co., Ltd. Commerce said it could expand to other Thai companies as well. The agency intends to issue the final results of this inquiry by October 2018.
CBP requested input from the Commerce Department on whether merchandise at issue in an antidumping duty investigation falls within the scope of the AD order, CBP said in a Dec. 4 notice. The scope referral marks the first such request from CBP under the Enforce and Protect Act process. Choice Refrigerants filed the allegation over a patented refrigerant imported by LM Supply. Choice alleged that LM Supply entered the goods through evasion of an AD order on hydrofluorocarbon blends from China (A-570-028).
The Court of International Trade's Rules Advisory Committee is considering a "format" for transmitting business proprietary information from CBP to CIT related to Enforce and Protect Act (EAPA) investigations, said Justin Miller, Justice Department senior trial counsel, during a panel discussion at an Oct. 27 Case Western Reserve University Law School event on enforcement of customs laws. "Some of the items they've discussed is something similar to what we would see in an AD/CV proceeding," Miller said. There's been some concern about the treatment of confidential information within an EAPA proceeding (see 1703100012).
CBP is reviewing entries of oil country tubular goods (OCTG) imported by American Pacific Rubber (APAC) as part of a formal Enforce and Protect Act investigation, the agency said in an Oct. 23 notice to the company. The investigation stems from allegations submitted by Aztec Manufacturing Partnership that APAC evaded antidumping duties on the goods. "Because evidence establishes reasonable suspicion that APAC has entered merchandise into the United States through evasion, CBP has taken" interim measures against APAC, it said.