U.S. Determines Chinese Aluminum Companies Evaded AD/CVD Orders

U.S. Customs and Border Protection (CBP) has concluded its Enforce and Protect Act (EAPA) investigation into Sun Bright International Corp. and Fair Importing Corp. CBP’s investigation, which began in February 2018, determined that the Chinese companies evaded antidumping (AD) and countervailing duties (CVD) by importing aluminum extrusions into the U.S. from China by transshipment through Malaysia.

In a notice to Alan Price of the Aluminum Extrusions Fair Trade Committee
(AEFTC), Sun Bright International Corp. chairperson of the board Ping Lam and Fair Importing Corp. owner Jenny Hue Ho, CBP says it has substantial evidence that the companies did not declare that the merchandise was subject to AD/CVD orders and made no payments on the extrusions. Sun Bright produces aluminum profiles for curtainwalls, doors, windows and other uses.

The AEFTC submitted allegations against the two Chinese companies claiming that they evaded the duties by transshipment through Malaysia. It provided an email exchange between a Chinese freight forwarder and a foreign investor as evidence.

“[Qingdao ZHV International Logistics Co.] (ZHV) stated in the email exchange that it ships products from Foshan, China to Port Kelang, Malaysia, where it changes the container and then re-exports the product to third countries,” reads the notice. “As part of the email exchange, ZHV responded to the investigator’s request for examples of successful transshipments by providing a certificate of origin that indicated Malaysia as the country of origin for a shipment of covered merchandise. Using public manifest data, the AEFTC linked the certificate of origin to a shipment of aluminum extrusions exported by CK Aluminium from Port Kelang, Malaysia, and imported into the United States by ‘Sunbright Industry’ in New York.”

AEFTC alleged that CK Aluminum’s facility in Malaysia does not produce aluminum extrusions. CBP officials in Malaysia visited the facility and came to the same conclusion, finding “reasonable suspicion” that the companies evaded AD/CVD orders.

“Substantial evidence on the record of this investigation supports a determination that the importers’ entries of aluminum extrusions from their supplier, CK Aluminium, were made by material false statements or acts, and material omissions, that resulted in the avoidance of applicable cash deposits required under AD order A-570-967 and CVD order C-570-968. Specifically, the aluminum extrusions imported by the Importers, and declared to be of Malaysian origin, were actually Chinese-origin aluminum extrusions that were transshipped through Malaysia. The Importers did not declare that the merchandise was subject to the AD and CVD orders on aluminum extrusions from China upon entry and, as a result, no cash deposits were collected on the merchandise,” reads the notice’s final
determination of evasion.

Going forward, CBP will require the companies to pay the applicable cash deposits prior to releasing the extrusions into the U.S. market.

Briefly

Kuraray, holder of the Trosifol® and SentryGlas® trademarks, took legal action during glasstec 2018 when employees noticed product brochures from an Asian manufacturer making illegal use of the Trosifol SentryGlas trademark. After examining the case, Düsseldorf Regional Court issued an interim injunction for illegal use of the trademarks and against the offer for sale of possibly pirated products, on pain of a fine of up to 250,000 euros or, alternatively, imprisonment for up to six months in the event of a repeat offense, according to Kuraray. This injunction was also served on the Asian company during the fair.

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