CBP Initial Determination Malaysia Transshipping February 2022 | Seite 5

transshipment process . Specifically , [ person ] explained that the QSP is manufactured in China time to conduct an activity persons

and usually [ ]. 27 He further clarified that his “[ ]” in Malaysia [

activity

] the QSP cannot be traced back to China . 28 As a result , Cambria claimed this evidence demonstrates that the MSW Companies are likely engaged in transshipping Chinese-origin QSP through Malaysia to the United States .

Cambria noted that two importers ( i . e ., Durian and Nio ) are located at 17800 Castleton St ., Ste 665 , City of Industry , CA 91748 . 29 According to Cambria , Rikett Quartz Tile ( Rikett ), a quartz flooring manufacturing company owned by a Chinese parent company , and a company referred to as HXH Inc ., are also located at this same address . 30 Additionally , Cambria placed information on the record which indicates that Durian has an office in [ place ]. 31 Based on this information , Cambria contends that because Nio , as well as Durian , import QSP from the MSW Companies , both probably acted with full knowledge of its role in an evasion scheme to avoid paying AD / CVD duties on Chinese-origin QSP .

As additional evidence that transshipment is occurring , Cambria provided trade data from [ company

], a trade subscription service , for each of the Importers . According to these data , each of the Importers made numerous imports of products that are described as QSP and shipped from Ever Stone or the MSW Companies in Malaysia . 32 To further support its claim that shipments of QSP from Malaysia are numerous , Cambria provided United States International Trade Commission ’ s DataWeb ( DataWeb ) data . These data also indicated that U . S . imports of Malaysian QSP surged shortly after the preliminary imposition of AD / CVD duties on QSP from China in December 2018 .

33

Finally , Cambria explained that even if the Chinese-origin QSP is subject to minimal amounts of processing in Malaysia , the scope of the Orders cover a wide variety of possible third country alterations . 34 Moreover , because AD duties of Chinese-origin QSP are between 255.27 and 326.15 percent , and CVD duties between 45.32 and 190.99 percent , Cambria claimed that it is highly unlikely that the Importers properly designated their imports as subject to the Orders and paid combined duties of approximately 300 to 400 percent . 35 Given this evidence and the other

27

Id .

28

Id .

29

See Allegation 7658 at 5 ; and Allegation 7700 at 5 .

30

See Allegation 7658 at 9 and Exhibits 6 , and 7 ; and Allegation 7700 at 9-10 , and Exhibits 6 , and 7 .

31

See Allegation 7658 at 9-10 and Exhibit 5 ; and Allegation 7700 at 10 and Exhibit 5 .

32

See Allegation 7657 at Exhibit 4 ; Allegation 7658 at Exhibit 3 ; Allegation 7665 at Exhibit 5 ; Allegation 7666 at Exhibit 4 ; Allegation 7667 at Exhibit 3 ; Allegation 7668 at Exhibit 3 ; Allegation 7670 at Exhibit 3 ; Allegation 7671 at Exhibit 3 ; Allegation 7672 at Exhibit 3 ; and Allegation 7700 at Exhibit 3 .

33

See Allegation 7657 at 9-10 and Exhibit 10 ; Allegation 7658 at 10-11 and Exhibit 8 ; Allegation 7665 at 9-10 and Exhibit 10 ; Allegation 7666 at 8-9 and Exhibit 10 ; Allegation 7667 at 9-10 and Exhibit 11 ; Allegation 7668 at 8-9 and Exhibit 9 ; Allegation 7670 at 9-10 and Exhibit 5 ; Allegation 7671 at 9-10 and Exhibit 6 ; Allegation 7672 at 9- 10 and Exhibit 7 ; and Allegation 7700 at 10-11 and Exhibit 8 .

34

See Allegation 7657 at 10-11 ; Allegation 7658 at 11-12 ; Allegation 7665 at 10-11 ; Allegation 7666 at 10 ; Allegation 7667 at 11 ; Allegation 7668 at 10 ; Allegation 7670 at 10-11 ; Allegation 7671 at 10-11 ; Allegation 7672 at 10-11 ; and Allegation 7700 at 11-12 . See also the Orders , which list a variety of further processing to the QSP which would not render it outside the scope .

35

See Allegation 7657 at 10 ; Allegation 7658 at 12 ; Allegation 7665 at 10 ; Allegation 7666 at 10 ; Allegation 7667 at 10-11 ; Allegation 7668 at 10 ; Allegation 7670 at 11 ; Allegation 7671 at 11 ; Allegation 7672 at 11 ; and Allegation 7700 at 12 . See also the Orders .
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