Cambria announced in a press release that the and Border Protection agency (Customs) has preliminarily determined that fifteen U.S. importers have evaded the antidumping and countervailing duties (AD/CVD) on quartz surface products from China.
As part of its recent determination regarding evasion, Customs found that fifteen importers evaded the AD/CVD duties on Chinese imports by importing quartz surface products that were made in China and then transshipped through Malaysia before entering the United States without payment of the duties.
Customs is conducting its investigation pursuant to the Enforce and Protect Act (“EAPA”). Many U.S. importers know when they are purchasing transshipped Chinese merchandise and, as a result, that they are engaging in illegal evasion. However, EAPA does not have a knowledge requirement for Customs to find that evasion is taking place. In fact, one of the importers identified as participating in the evasion scheme has claimed to Customs that it never had any contact with the Malaysian transshipment company and purchased the quartz surface products through a U.S. company that claimed to be a partner in the Malaysian company. To avoid getting caught up in evasion schemes, U.S. companies need to be aware that any low-priced quartz surface products imported from Malaysia or other third countries may be Chinese merchandise. The purchase of this low-priced merchandise may ultimately subject U.S. companies to liability for payment of the AD/CVD duties.
Customs will issue a more detailed memorandum explaining its initial determination of evasion. Following this initial determination, Customs has seven months to continue its investigation and determine appropriate penalties.
Read the full press release here.