CBP Announces EAPA Investigation, and Interim Measures on Steel Grating From China
CBP announced that it has initiated and consolidated two Enforce and Protect Act investigations on whether Double L Group, LLC (Double L) and Manufacturing Network Inc. (MNI) evaded antidumping and countervailing duty orders on Chinese-origin steel grating, according to a notice dated Oct. 26. The investigations were launched on July 21, following allegations by Hog Slat that Double L and MNI misclassified imported steel grating as non-covered merchandise.
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The orders cover steel grating (commonly referred to as "bar grating"), that consisters of "two or more pieces of steel, including load–bearing pieces and cross pieces, joined by any assembly process, regardless of: (1) size or shape; (2) method of manufacture; (3) metallurgy (carbon, alloy, or stainless); (4) the profile of the bars; and (5) whether or not they are galvanized, painted, coated, clad or plated." In a recent scope ruling, Commerce found steel grating used as flooring to be covered merchandise. Commerce found that flooring components and pig farrowing crate components not made of steel grating were non-covered merchandise.
Hog Slat claimed that the importers entered steel grating from China either as stand-alone products or as components of swine products such as farrowing crates, which Hog Slat argues satisfies the plain language scope of the orders. MNI’s website indicates it offers agricultural products such as hog equipment and cast iron flooring, tri-bar flooring and farrowing crates that include tri-bar flooring in its finished form. Double L’s website lists numerous products related to poultry and swine production for sale, including swine flooring. Hog Slat submitted an affidavit claiming that the importers’ current U.S. pricing for tri-bar flooring is not feasible without AD/CVD evasion.
Double L submitted a timely but incomplete response to CBP's information request that contained "multiple discrepancies," according to CBP. Double L also provided limited entry documentation and did not provide requested proofs of payment. In contrast, MNI provided complete answers and supporting documentation. However, examination of physical characteristics of MNI’s tri-step creep floor revealed that the items are consistent with covered steel grating because they are composed of parallel galvanized round bars (tri-bar) connected by welded crossbars.
CBP concluded that reasonable suspicion existed that both importers misclassified steel grating as non-covered merchandise that should have been subject to AD/CVD orders. CBP then imposed interim measures that suspended the liquidation of each entry that entered after July 21, extended the period for liquidating subject merchandise that entered before that date, and may take additional measures, including requiring a single transaction bond or additional security or the posting of a cash deposit. In addition, CBP will require live entry, requiring cash deposits to be posted prior to release of merchandise from CBP custody and will reject any entry summaries that do not comply with live entry procedures. CBP also will evaluate both importers’ continuous bonds.