MINNEAPOLIS, MN -- On the heels of its affirmative decision finding tariff evasion by Simpli Home, U.S. Customs and Border Protection (“Customs”) has preliminarily determined that 13 U.S. importers have evaded the antidumping and countervailing duties (“AD/CVD”) on quartz surface products from China.
On January 25th, Customs found that Simpli Home was guilty of illegally transshipping Chinese quartz surface products through Vietnam to evade the payment of antidumping and countervailing duties. Less than a week later on February 1st, 2022, Customs determined that there is reasonable suspicion of evasion of AD/CVD duties on Chinese imports by 13 importers. These importers are suspected of importing quartz surface products that were made in China and then transshipped through Malaysia before entering the U.S. without payment of the duties. The 13 importers identified are:
● Artist Kitchen and Stone Inc.
● Big D LLC (doing business as Big M LLC)
● Colorquartz New York Inc.
● Cumberland Cabinet and Design Inc.
● Durian Kitchen Depot Inc.
● Flowery Stone Inc.
● Kat Specialties Inc.
● Kingway Construction Supplier Inc.
● MS Stone Co. Ltd.
● Nio Kitchen Depot Inc.
● Nio Home Depot Inc.
● Nomadic Barters Inc.
● Opaly USA LLC
Customs began its investigation after Cambria Company LLC, the leading U.S. producer of quartz surface products, submitted separate EAPA allegations to the agency on June 10th, 2021, that provided details of a common evasion scheme by the 13 U.S. importers in question. Customs consolidated Cambria’s EAPA allegations into a single case. In accordance with the Enforce and Protect Act (“EAPA”), Customs will be implementing the following interim measures:
· Extend liquidation of unliquidated entries that entered before the date of initiation, November 3rd, 2021;
· Suspend liquidation of unliquidated entries entered on or after the date of initiation, November 3rd, 2021, reject import documentation filed with Customs, and require a re-file for those entries that are within the relevant period;
· Require “live” entry for all imports of QSP from Malaysia and China, requiring the importers to submit proper documentation and pay all applicable duties prior to release of the merchandise; Customs will issue a more detailed memorandum explaining its initial determination of evasion. Following this initial determination, Customs has seven months to continue its investigation and determine appropriate penalties.