U.S. Customs and Border Protection (CBP) under the Enforce and Protect Act of 2015 (EAPA) recently notified on the initiation of an investigation and adoption of interim measures against Diamond Tools Technology (DTT), finding that there is a “reasonable suspicion” that DTT is evading the antidumping duty order on Diamond Sawblades from China by transshipping Chinese sawblades to the United States through Thailand. Wiley Rein represents the Diamond Sawblades Manufacturers’ Coalition (DSMC), an ad hoc coalition of U.S. manufacturers, that submitted the allegation that led to this investigation.

As part of its investigation, CBP officials earlier this summer traveled to DTT’s facility in Thailand, where the agency encountered refusals by company officials to inspect certain areas of the facility, denials on the existence of certain areas, sawblades that did not appear to be packaged in the facility, and contradictions on how much the facility can produce. This visit, coupled with DSMC’s earlier allegations, led CBP to find a “reasonable suspicion” of evasion of the antidumping order against Chinese sawblades, and impose interim measures against DTT’s imports. Specifically, DTT’s entries from Thailand have been affected as follows:

  • Entries are rated-adjusted to reflect that they are indeed subject to the antidumping order;
  • Cash deposits are owed on these entries;
  • Entries are now made as “live entries,” meaning that entry documents and duties are required before CBP can release the merchandise into the U.S. market;
  • Entries whose documents do not comport with requirements under the interim measures must be refiled;
  • Liquidation is suspended on entries dated March 22, 2017 and on;
  • To the extent possible, liquidated entries will be reliquidated at the adjusted rate; and
  • The continuous bond applying to DTT’s entries is being evaluated for sufficiency.

This investigation covers entries made from March 1, 2016 through the pendency of the investigation. The development of this case, as CBP’s recently issued first affirmative determination of evasion on steel wire garment hangers, signals a critical step towards the effective enforcement of antidumping and countervailing duty orders, protecting American industries and American jobs from unfair trade.

CBP is expected to deliver its final determination in early 2018.