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CBP Initiates AD Evasion Investigation on Quartz Countertops From China

CBP began a formal investigation of 10 companies for allegedly evading antidumping duty and countervailing duty orders by importing Chinese quartz countertops. In the Enforce and Protect Act investigation, CBP will consider whether Big D, Colorquartz, Cumberland, Durian, Flowery Stone, Kat, Kingway, Nio, Nomadic and Opal evaded AD order A-570-084 and CVD order C-570-085 by transshipping Chinese quartz countertops through Malaysia.

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The investigation follows EAPA allegations by Cambria filed in July that described two "schemes" to evade import duties. In the first, Cambria alleged that five importers falsely claim that Malaysian company Ever Stone produces goods locally, though evidence indicates that Ever Stone "likely does not have the capability" to produce the materials in question. In a similar alleged scheme, Cambria claims that five additional importers are falsely claiming that a second Malaysian firm, MSW, is moving quartz products through various other companies in order to hide their Chinese origin. Based on this evidence, CBP has determined that there is reasonable suspicion of evasion of AD/CVD by the importers. The period of investigation is October 2020 through February 2022.

In a similar case regarding quartz countertops, CBP ruled against Simpli Home earlier this month based on allegations also brought by Cambria (see 2202040053) .