CBP Conducts EAPA Investigation on Castings Supplier Thompson Aluminum Casting
CBP has launched an investigation under the Enforce and Protect Act (EAPA) on Thompson Aluminum Casting Company Inc.’s alleged evasion of antidumping and countervailing duties by importing magnesium metal from China via Turkey.
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As a result of this investigation, the agency said it's requiring “live” entry for all of Thompson's imports of magnesium metal from Turkey, which means that the Cleveland-based company must submit proper import documentation and duties prior to the release of its merchandise. CBP is also suspending or extending liquidation of Thompson’s entries of magnesium metal without final computation or determination of duties (liquidation), as appropriate.
CBP launched its investigation following an allegation by Trinity Metals, which had filed an EAPA allegation on March 6 claiming that the specific magnesium alloy that Thompson imports is Chinese-origin AZ91E, covered by the scope of the AD order, and that it transships the product through Turkey by Tigemer Danismanlik Ve Dis Ticaret.
The agency assessed the merits of Trinity’s allegation and determined that the provided evidence, which included bill of lading data and official U.S. import data, indicated that Thompson may have declared the magnesium as being of Turkish origin.
In response to CBP's investigation, Arent Fox partner John Gurley, one of the attorneys representing Thompson, told International Trade Today that “Thompson Aluminum Casting is vigorously defending itself in this investigation. We think the allegations are meritless and look forward to the CBP’s final report.” According to Thompson's website, the company supplies castings to the aerospace and defense industries.
According to CBP's report, Thompson responded twice to CBP’s requests and provided invoices as well as photos of the exterior and interior of the production facility provided by Thompson.
In CBP’s documentation about the investigation, the agency said it noticed discrepancies between the photographs and information found via research.
“Since (1) it is not clear what company owns the factory from the photographs Thompson provided for entries -6638 and -2954, (2) the photographs provided with these entries indicate limited Mg [magnesium] production capacity, and (3) the Importer failed to provide [purchase orders] or invoices documenting any transactions between Supplier N and Supplier 1, these photographs do not support Thompson’s claim that Supplier 1 manufactured the merchandise in these entries,” CBP said. “Further, the information provided about Supplier 1 (including the certificate attesting that Supplier 1 is qualified to smelter various metals) do not demonstrate that Supplier 1 has capacity to produce Mg ingots of the alloy AZ91E. Therefore, the information Thompson provided in its CF-28 responses cannot substantiate its claim that Supplier 1 produced some of the Mg ingots Thompson imported.”