EAPA Cons. Case 7357: Notice of Determination as to Evasion

WASHINGTON—On October 26, U.S. Customs and Border Protection (CBP) issued its determination as to evasion against N&M Hangers LLC (N&M); Direco International LLC (Direco); PNJ Import, Inc. (PNJ Import); LGA Trading Inc. (LGA); Chunghwa Prince Group Corporation (Chunghwa); WHL International Inc. (WHL); Wah Hing Lee Investment, Inc. (Wah Hing Lee); SK Supply Corp. (SK Supply); KS Supply; and Leco Supply (Leco) (collectively, the Importers) in its Enforce and Protect Act (EAPA) investigation, EAPA Case 7357, into the evasion of antidumping and countervailing duty (AD/CVD) orders for steel wire hangers from Vietnam. CBP found substantial evidence that the Importers evaded AD/CVD orders A-552-812 and C-552-813 by misrepresenting the country of origin as Laos. The Importers did not declare that the merchandise was subject to AD/CVD orders upon entry, and no cash deposits were collected on the merchandise. As a result, the Importers evaded a significant amount of antidumping duties owed to the U.S. Government.

In light of CBP’s determination that the Importers entered covered merchandise into the customs territory of the United States through evasion, and pursuant to its authorities under EAPA, CBP will continue to:

• Suspend liquidation of unliquidated entries already suspended under this investigation;
• Rate adjust and change to Entry Type 03 entries subject to this investigation and suspend liquidation;
• Reject any entry summaries and require a re-file for those entries that are within the entry summary reject period;
• Require “live” entry for all imports of steel wire hangers meeting the evasion criteria, requiring the importer to submit proper documentation and all duties prior to release of the merchandise; and
• Require single transaction bonds, as appropriate, and evaluate the sufficiency of the importer’s continuous bonds.

These actions do not preclude CBP from taking additional enforcement measures as it determines appropriate under its EAPA or other legal authorities, which include pursuing civil penalties or investigations into criminal violations.

For additional information on CBP and EAPA, please visit EAPA Trade Enforcement page. If you suspect an importer of duty evasion, CBP encourages you to submit an allegation through our online portal.

Follow CBP Office of Trade on Twitter @CBPTradeGov.