U.S. Customs Agency Takes Action Against Evasion of AD/CVD Duties on Wooden Cabinets and Vanities.
The Kitchen Cabinet Manufacturers Association ("KCMA") is pleased to announce that the U.S. Customs and Border Protection agency ("Customs") has preliminarily determined that the U.S. importer BGI Group Inc. ("BGI") has evaded the antidumping and countervailing duties ("AD/CVD") on wooden cabinets and vanities and component parts thereof from China.
Customs has been conducting this investigation for 90 days after KCMA's trade counsel, Schagrin Associates, filed an allegation under the Enforce and Protect Act requesting that Customs look into potential evasion by BGI. As part of its determination, Customs found that BGI, which does business under the name "U.S. Cabinet Depot," evaded the AD/CVD duties by importing wooden cabinets and vanities that were made in Chine but transshipped through Cambodia and falsely designated as having a country of origin of Cambodia. Since April 21, 2020, imports of Chinese wooden cabinets and vanities have been covered by AD/CVD orders and are subject to duties of up to roughly 300%. Customs will issue a more detailed memorandum explaining its initial determination of evasion within five business days. Following this initial determination, Customs has seven months to continue its investigation and collect additional information before issuing a final determination as to evasion.
"This is a huge win for our industry and the American workforce," said Betsy Natz, CEO of KCMA. "Our association's mission is to make sure the strong, unified voice of our members is heard. The filing of this allegation is one of the many ways that KCMA is working with Customs and other law enforcement agencies to hold responsible any foreign producers and U.S. importers that attempt to evade payment of the AD/CVD duties."