CBP Rules Against CNC in Wooden Cabinets Tariff Evasion Case
CNC evaded antidumping and countervailing duty orders on wooden cabinets and vanities from China by transshipping them through Malaysia and falsely declaring them to be of Malaysian origin, CBP said in a Jan. 31 Enforce and Protect Act determination.
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The case was initiated in May 2021 (see 2105060009), following a November 2020 EAPA allegation by MasterBrand Cabinets. The allegation was based on evidence that Bagus Timber, a manufacturer/exporter in Malaysia, was used to transship cabinets from China and falsely claim manufacture in Malaysia.
In its determination, CBP emphasized its inability to confirm a factory capable of making the accused merchandise. Bank statements by MasterBrand had irregularities and missing information as well as inconsistencies on the location of Bagus's factory. CBP noted that "images of the addresses claimed by the Supplier do not include any large buildings that resemble a factory building." MasterBrand provided evidence that there are no facilities in Malaysia with the production capacity to create volumes that Bagus was claiming it created. When asked, Bagus failed to provide email communication records with CNC or produce itineraries for supposed visits by CNC personnel, CBP said.
CNC argued that its due process rights had been violated when Bagus was not allowed to make a written submission. CBP's determination concluded that "because the Importer is the subject of EAPA investigations, not the foreign supplier, the supplier is not allowed to submit a written argument; therefore, the Importer’s and the Supplier’s due process was not violated."