CBP Finds Evidence of Evasion in Wooden Cabinets Case
An investigation by CBP into alleged evasion of countervailing duties and antidumping duties on wooden cabinets from China has found substantial evidence of evasion by two importers. In a final EAPA determination, CBP found that importers, Splendid Trading and Superior Granite and Marble, engaged in a scheme to transship Chinese wooden cabinets through Malaysia, announcing that it will continue to suspend liquidation and require cash deposits on entries from the two importers.
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The investigation (EAPA Consolidated Case 7607) followed a January 2021 allegation by MasterBrand Cabinets that Splendid and Superior were evading the AD/CVD orders. The allegation included claims that Malaysian supplier Grand Supremacy shipped covered merchandise to the U.S. importers during the period of investigation. The allegation also claimed that Chinese wood suppliers shared ownership and management elements with Grand Supremacy and that it began shipping cabinets to the U.S. in significant quantities shortly after provisional measures were imposed in the AD and CVD investigations.
The investigation found "commercial invoices from Chinese suppliers for kitchen cabinets, accessories, and components, certain production records as well as the lack of certain production records, import data, and information regarding affiliations supports a conclusion that the WCVs shipped by the Malaysian supplier to Splendid Trading and Superior were covered merchandise." Grand Supremacy reported in its RFI responses that it sourced a large number of kitchen cabinets, accessories and components from Chinese suppliers. Commercial invoices from Grand Supremacy affiliate Supree Fujian Wood show that it purchased component products included in the scope of the AD/CVD orders.
CBP acknowledges that "while some of the components may undergo further processing at Grand Supremacy, the scope of the AD/CVD orders explicitly covers components originating in China, even if they are further processed in a third country." Combined with lack of production documentation, the timing of Grand Supremecy's incorporation and lack of information on its startup operation, CBP found sufficient evidence to issue its determination.