Ali quartz notice – U.S. Customs and Border Protection (“Customs”) has discovered a wide-ranging illegal evasion scheme involving a network of Chinese producers, international logistics companies, Malaysian companies.
U.S. importers all working together to evade antidumping and countervailing duty (“AD/CVD”) orders on Chinese quartz surface products. As a result of the investigation conducted by Customs under The Enforce and Protect Act (“EAPA”), importers will be required to pay duties in excess of 300% on the imported goods.
Customs discovered substantial evidence that the following importers illegally imported quartz surface products from China into the United States through misclassification and/or transshipment through Malaysia, attempting to avoid payment of existing AD/CVD duties:
- Artist Kitchen and Stone Inc.
- Big D LLC
- Bourbon Building Supply Inc.
- Cedar Trading Inc.
- Colorquartz New York Inc.
- Cumberland Cabinet and Design Inc.
- Durian Kitchen Depot Inc.
- Ever Raising Building Inc.
- Flowery Stone Inc.
- Green Mountains Trading Inc.
- Kat Specialties Inc.
- Kingway Construction Supplier Inc.
- MS Stone Co. Ltd.
- Nio Home Depot Inc.
- Nio Kitchen Depot Inc.
- Nomadic Barters Inc.
- Opaly USA LLC
- Star Home Plus Inc.
- White Swan Kitchen Depot Inc
Customs launched its investigation after Cambria Company LLC filed EAPA allegations with the agency on June 10, 2021, detailing the evasion scheme used by numerous importers. Following the consolidation of the allegations into a single case, Customs conducted a thorough and wide-ranging investigation that revealed the illegal activities of multiple Chinese producers and exporters, several Malaysian companies involved in transshipping merchandise, and numerous importers involved in this evasion scheme.
During the investigation, Customs discovered that a Chinese logistics company, Shenzhen Ark Cross-Border Logistics Co., Ltd. (the “Ark Trans Group”), was coordinating and controlling the activities of the Malaysian exporters under investigation as well as certain U.S. importers. After Customs began investigating Ark Trans Group members, some of them began changing the names of their importers and Malaysian exporters in order to avoid detection by Customs. In addition, in order to avoid being caught by Customs, Ark Trans increased the number of Chinese, Malaysian, and American companies involved in its evasion schemes.
Customs discovered that, in addition to illegal transshipment of merchandise through Malaysia, the Ark Tans Group was involved in merchandise misclassification in order to avoid payment of AD/CVD duties. Customs conducted lab tests on several U.S. importers associated with the Ende Ark Trans Group after they claimed to be importing “crushed glass products” or “aluminum hydroxide surface products.” These lab tests revealed that the importers had lied and misclassified their entries in order to avoid paying AD/CVD duties.
“This action by Customs will deal a devastating blow to a large network of companies operating in China, Malaysia, and the United States to evade payment of the AD/CVD duties,” said Kari Barber, Associate General Counsel of Cambria. “Custom’s strong enforcement of U.S. trade remedy laws will allow Cambria and other domestic producers to continue making investments in American manufacturing and American workers.”
“Customs went above and beyond in this investigation to hold accountable all parties involved in illegal evasion activities,” said Luke Meisner of the law firm of Schagrin Associates, Cambria’s legal counsel in this matter. “We hope that this action teaches the industry that crime does not pay.”
Cambria filed a complaint with the Department of Commerce and the United States International Trade Commission in April of 2018 alleging unfair trade of quartz surface products from China. Dumped and subsidized Chinese quartz imports harmed American industry and workers at the time, displacing over $1 billion in domestic product per year. Cambria’s successful petition resulted in US Customs levying up to 500% duties to halt the import of unfairly traded Chinese quartz into the US market.
While the AD/CVD duties have provided significant relief to Cambria and other US producers, Cambria has maintained its fight against dishonest companies that prioritize profits over American workers by concealing the true origin of their products. The announcement from Customs confirms that quartz surface products made in China are still subject to AD/CVD duties, even if they are further processed in a third country. Cambria continues to collaborate with Customs to identify and prosecute any foreign exporters and US importers who are evading AD/CVD duties through this or any other evasion scheme. If you suspect an importer of duty evasion, you can file a claim with Customs using their online portal.
Source: Cambria