CBP Initial Determination Malaysia Transshipping February 2022 | Page 3

from warehouse for consumption , from October 13 , 2020 , through the pendency of this investigation . ⁹

Initiation

On November 3 and December 3 , 2021 , the Trade Remedy Law Enforcement Directorate ( TRLED ), within CBP ’ s Office of Trade , initiated investigations under EAPA ¹⁰ as a result of the Allegations submitted by Cambria regarding the evasion of AD / CVD duties by the Importers . ¹¹ Cambria alleged that the Importers entered Chinese-origin QSP into the United States that were transshipped through Malaysia and falsely entered as Malaysian-origin merchandise to evade the

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Orders .

TRLED will initiate an investigation if it determines that “{ t } he information provided in the allegation ... reasonably suggests that the covered merchandise has been entered for consumption into the customs territory of the United States through evasion .” ¹³ Evasion is defined as “ the entry of covered merchandise into the customs territory of the United States for consumption by means of any document or electronically transmitted data or information , written or oral statement , or act that is material and false , or any omission that is material , and that results in any cash deposit or other security or any amount of applicable antidumping or countervailing duties being reduced or not being applied with respect to the covered merchandise .” ¹⁴ Thus , the allegation must reasonably suggest not only that merchandise covered by an AD and / or CVD order was entered into the United States by the importer alleged to be evading , but that such entry was made by a material false statement or act , or material omission , that resulted in the reduction or avoidance of applicable AD and / or CVD cash deposits or other security .

In assessing the claims made and evidence provided in the Allegations , TRLED found that the information provided suggests that the Importers are evading the Orders , by importing Chinese origin QSP into the United States that had been transshipped through Malaysia and failing to declare the merchandise as subject to the Orders . The evasion schemes described by Cambria in the Allegations involve several exporters in Malaysia , Ever Stone World Sdn . Bhd . ( Ever Stone ) and MSW Building Supply Sdn . Bhd . ( MSW ), and its affiliates LLWF Cabinets and Stone ( LLWF ), Monthong Building Supply Sdn . Bhd . ( Monthong ), MSI Building Supply Sdn . Bhd . ( MSI ), and South Wales Furniture Sdn . Bhd . ( South Wales ), ( collectively , the MSW Companies ), and the Importers . ¹⁵ Specifically , Cambria claimed that the Importers were involved in one of two transshipment schemes . In the first scheme , Cambria contended that Colorquartz , Cumberland , Kat , Nomadic , and Opaly import QSP manufactured in China without

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See 19 CFR 165.22 ( when CBP consolidates multiple allegations into a single investigation , as we have done here , the date on which CBP receives the first of such allegations will be used to calculate the period of investigation ).

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See Memorandum , “ Initiation of Consolidated Investigation for EAPA Case 7657 ,” dated November 3 , 2021 ( November 3 Initiation Memorandum ); and Memorandum , “ Initiation of Investigation for EAPA Case 7657 : Nio Kitchen Depot Inc .,” December 3 , 2021 ( December 3 Initiation Memorandum ) ( collectively , Initiation Memoranda ).

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See , generally , the Allegations .

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Id .

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See 19 CFR 165.15 ( b ).

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See 19 CFR 165.1 .

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See , e . g ., November 3 Initiation Memorandum at 2 and 3 ; and December 3 Initiation Memorandum at 2 .

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