CBP Finds AD/CVD Evasion by Cast Iron Soil Pipe Importer Besttn
CBP has levied actions against Besttn Industry of South El Monte, California, for working with Kingway Pipe of China to evade antidumping and countervailing duties on cast iron soil pipe fittings and cast iron soil pipes from China.
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In its determination issued May 29, CBP said the agency will suspend or continue to suspend the entries covered by this investigation, until instructed to liquidate. It also will rate adjust and change to type 03 those entries previously extended in accordance with interim measures, and continue suspension until instructed to liquidate these entries. CBP will continue to evaluate Besttn’s continuous bonds in accordance with agency policies, it said.
CBP also will apply the Kingway China specific rate where there's a Kingway China specific AD rate and/or CVD rate for which Kingway China is the exporter or the manufacturer, and apply the China all-others rate where there's no Kingway China specific AD rate and/or CVD rate. And it will revalue Besttn’s cast iron soil pipe entries by an increased 91.6183% and Besttn’s cast iron soil pipe fittings entries by an increased 95.7704%.
According to CBP’s notice of determination, Kingway Pipe used Besttn to evade AD/CVD duties, with Besttn transshipping the products through Malaysia. This action resulted in no cash deposits being applied to the merchandise at the time of entry. Additionally, Besttn had undervalued the cast iron soil pipe fittings by 95.7704%, as well as undervalued the cast iron soil pipes by 91.6183%.
CBP issued these actions after the Cast Iron Soil Pipe Institute had filed two inquiries under the Enforce and Protect Act (EAPA) in April 2023 seeking to examine whether Besttn evaded AD/CVD duties on the two products.
The agency found that Besttn and Kingway USA appeared to share the same CEO and concluded that Besttn may have been set up to serve as a corporate front for Kingway’s operations in the U.S. CBP also found that Besttn imported shipments of the product from United Metal Industries, which didn’t appear to have established production facilities in Malaysia.