CBP Takes Additional EAPA Actions Against Louisiana-Based QSP Suppliers
CBP recently issued a final affirmative evasion finding in its Enforce and Protect Act investigation on New Orleans-based Musa Stone Import's and King’s Marble & Granite's alleged evasion of antidumping and countervailing duties stemming from transshipping Chinese-origin quartz surface products through Thailand and the Philippines.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
King's Marble & Granite is the alias for two entities: M. US A, referred to as "Kings" in CBP's decision, and KMGK.
As a result of the investigation, CBP levied actions against Musa Stone and KMGK. For those two entities, CBP will continue to suspend entries covered by the investigation until instructed to liquidate; rate adjust and change those entries to Type 03; and evaluate whether Musa Stone and KMGK’s continuous bonds are in accordance with CBP’s policies.
However, CBP cleared Kings of any alleged evasion of AD/CVD duties.
"Musa Stone and KMGK did not declare that the merchandise was subject to the AD/CVD Orders on entry and, as a result, no cash deposits were collected on the merchandise. Substantial evidence does not indicate that M. US A. Inc. dba Kings Marble and Granite (Kings) entered merchandise through evasion," CBP said in its final finding.
CBP first announced its EAPA investigation on these importers in March (see 2403180043). At the time, CBP launched its investigation on evidence that quartz surface products were likely being transshipped through Vietnam.
This latest set of actions by the agency is based on evidence that the importers allegedly transshipped Chinese-origin quartz surface products through Thailand and the Philippines.
CBP first began to look into the situation after Cambria Company, a Minneapolis area-based domestic producer of quartz surface products, alerted the agency on Aug. 10, 2023, Oct. 25, 2023, and Nov. 3, 2023, of the possible evasion of AD and CVD by Musa Stone, KMGK and KMGK’s U.S. affiliate, King’s Marble and Granite. Cambria asserted that the importers were importing Chinese-origin quartz surface products from Chinese exporter Zhangzhou Betop Import & Export Trade.
CBP subsequently initiated an EAPA investigation on Dec. 4, 2023, and requested information from all the parties named in the allegation. CBP also launched an EAPA investigation in March of this year after determining that Chinese-origin products may have been transshipped through Vietnam. Through that investigation, it was determined that some of the Vietnamese suppliers didn't transship Chinese-origin quartz surface products.
However, according to CBP, following the launch of its March 2024 investigation, Musa Stone, Siam Stone and an unnamed party didn't respond to CBP’s request for information or supplemental information, while King’s Marble gave written arguments asserting that it didn't enter Chinese-origin quartz surface products through evasion.
Furthermore, CBP is questioning whether building contractors Siam Stone and Badan Building Materials Corp. may have received merchandise from Chinese quartz surface product exporter Betop. Siam Stone has operations in Thailand, while Badan affiliates operate in the Philippines.
“Siam Stone did not respond to CBP’s RFI, Musa Stone did not respond to CBP’s supplemental RFI, and Musa Stone did not respond to CBP’s CF-28 concerning this entry,” CBP said. “CBP is applying adverse inferences against Siam Stone and Musa Stone for their failure to cooperate with these RFIs. Nevertheless, substantial evidence indicates that Musa Stone’s entry from Siam Stone contained Betop Stone’s Chinese-origin [quartz surface product] slabs that were transshipped through Thailand.”
As for allegedly importing Chinese-origin OSP from the Philippines, CBP said: “Chinese-origin [quartz surface product] slabs are covered by the scope of the AD/CVD Orders regardless of any cutting, edging, finishing, or fabrication performed in a third country such as the Philippines.”