Federal investigators are still looking into the possibility of transshipping quartz surfaces fabricated in China to eight importers in the United States via Thailand.
High unfair trade duties on Chinese quartz surfaces were the subject of “reasonable suspicion that the importers may have engaged in evasion,” according to U.S. Customs and Border Protection (CBP).
The federal government declared last month that it will carry out the investigation and, until then, limit the fulfillment of the import procedure on shipments that were made subsequent to the initial accusations.
The federal Enforce and Protection Act (EAPA) was invoked in response to official complaints filed by Cambria Company LLC, a US maker of quartz surfaces.
The CBP aggregated the allegations into two lawsuits even though they are all focused on avoiding the roughly 300% to 400% penalties imposed by the 2019 U.S. International Trade Commission action on Chinese quartz surfaces.
In one case, U.S. Atlanta International Inc. in Buford, Ga.; Global Source & Supply Inc. in Cary, N.C.; Cosmos Granite (East) LLC in Raleigh, N.C.; and Cosmos Granite (West) LLC in Kent, Wash., are the four U.S. importers involved with Elite Stonetech, a firm established in Thailand.
Evidence from CBP’s preliminary inquiry cast doubt on Elite Stonetech’s involvement in the production of the disputed quartz surfaces. The agency questioned whether the surfaces factory existed and underlined the timing of shipments and the apparent substantial ownership of the company by Chinese quartz makers.
The other case involved shipments to four additional U.S. importers, namely Broadcreek Marketing Associates Inc. of Cerritos, Calif.; Dorado Surfaces LLC of Denver; Kingka Cabinet Inc. of East Brunswick, N.J.; and Multistone Enterprises Inc. of Savannah, Ga., made by Thailand-based Thai Summit Stone Co. Ltd. (TSS). Among other things, the TSS investigation focused on the timing of shipments and ownership by Chinese quartz makers.
In both situations, CBP also asked for a packet of data from each importer, which included, among other things, payment and shipping records; a list of raw materials (which included receipts of materials and invoices the manufacturers received); an inventory (complete with pictures) of all production equipment and machinery; and a list of the personnel of the manufacturers.
Dorado Surfaces, Global Source, Cosmos East, Broadcreek Marketing, and Kingka Cabinet were the five out of the eight businesses that partially or fully complied with CBP’s request. The federal office concluded, however, that none of them provided enough details to link imported materials to Thai manufacture.
The first step taken by CBP is to put off finalization, or defer liquidation, of surfaces received after particular dates that are particular to each case. This implies that following the federal agency’s final decisions, the importers may be charged the high Chinese quartz surface tariffs on such commodities in addition to any other fines and fees.