LIQ 4; PRO 1
OT:RR:CTF:EPDR
HQ H302741 HvB
Center Director, Consumer Products and Mass Merchandising CEE
U.S. Customs and Border Protection
Los Angeles Service Port
301 E. Ocean Blvd.
Long Beach, CA 90802
Attn: Christina Laurin, Assistant Director, CPMM CEE
MaryAlice Gustafson, Supervisory Import Specialist
Re: Further Review of Protest Number 2704-2018-101051; Drawn Stainless Steel Sinks from the People’s Republic of China; Antidumping Order A-570-983
Dear Port Director:
The following is our decision regarding the Application for Further Review (“AFR”) of Protest Number 2704-2018-101051, dated June 20, 2018, that was filed on behalf of Emodern Decor Inc. (“Emodern Decor”). Emodern Decor contests the assessment of antidumping duties on sinks that it imported from the People’s Republic of China (“PRC”).
FACTS:
On December 21, 2015, Emodern Decor entered stainless steel sinks under entry number xxx-xxxxx369. The exporter of the sinks is Guangdong Dongyuan Kitchenware Industrial Co., Ltd. (“Dongyuan”). The sinks are subject to antidumping duty (“ADD”) order A-570-983. See Drawn Stainless Steel Sinks from the People’s Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order, 78 Fed. Reg. 21,592 (Apr. 13, 2013). In addition, the sinks are subject to countervailing duty (“CVD) order C-570-984-004, which Emodern Décor does not contest. ACE records indicate that liquidation of the entry was first suspended on January 9, 2016, and that the importer and surety were each notified. Guang Dong Gaoming Country Foming Cast Factory (“Guang Dong”) is named as the manufacturer of the sinks.
Upon our request and in support of its argument that the entry should be liquidated under the company specific rate for the exporter Dongyuan, Emodern Décor provided the Bill of Lading for the entry under protest. The Bill of Lading describes Guangdong Dongyuan Kitchenware Industrial Co., Ltd. (“Dongyuan”) as Shipper/Exporter and states that Dongyuan shipped 96 packages of merchandise to Emodern Décor, which included 1,718 stainless steel sinks. Furthermore, the Bill of Lading corresponds with the entry summary documentation, which includes a commercial invoice and packing list. These documents were also issued by Dongyuan. Each document indicates that Dongyuan sold 1,718 sinks to Emodern Décor, in addition to other items not at issue in this protest.
On June 23, 2017, Commerce published the final results of its administrative review of entries stainless steel sinks from the PRC for the April 1, 2015 – March 31, 2016, period of review. See Drawn Stainless Steel Sinks from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2015–2016 82 Fed. Reg. 28,639 (June 23, 2017). As a result of this review Commerce assigned to Dongyuan a separate 1.80% weighted average dumping margin but noted that it intended “to issue appropriate assessment instructions directly to CBP in the next 15 days after publication of this administrative review.” (Id. at 28,640.) In addition, Commerce stated that it had calculated specific importer/customer specific per-unit duty assessment rates based in accordance with 19 C.F.R. § 341.212(b)(1).
On July 12, 2017, Commerce issued non-public Message 7193306 to CBP, with liquidation instructions for ADD order A-570-983, for sinks that were entered between April 1, 2015, and March 31, 2016, and exported by Dongyuan and imported by Emodern Décor, among other firms. Paragraph 1 of this message sets forth specific importer/customer liquidation instructions for entries of sinks that were exported by Dongyuan. Commerce instructed CBP to assess final antidumping liability equal to the per-unit amounts for entries that were “exported by [Dongyuan] (A-570-983-025), imported by or sold to (as indicated on the commercial invoice or Customs documentation) the firms listed below.” Emodern Décor is listed underneath Paragraph 1. Commerce also assigned a PRC-wide rate to exports of drawn stainless steel sinks exported by Dongyuan and not imported or sold to an entity named in paragraph 1. See Message 7193306 (July 12, 2017).
According to CBP’s Automated Commercial Environment (“ACE”), CBP identified the protested entry as “deem liquidated” as entered on January 1, 2018. On February 9, 2018, CBP reliquidated the entry, which resulted in an increase of anti-dumping duties. CBP reliquidated the entry at the PRC-wide rate based on the manufacturer that Emodern Décor reported at entry: Guang Dong Gaoming Country Foming Cast Factory.
Emodern Décor protests the Port’s liquidation of its entries at the PRC-wide rate under A-570-983 based on the entry summary identifying Guang Dong Gaoming Country Foming Cast Factory as the manufacturer of the sinks. Emodern Décor argues that the sinks were manufactured and exported by Dongyuan, and thus, are entitled to receive Dongyuan’s separate rate.
According to Emodern Décor’s protest, the imported sinks were manufactured by Dongyuan. ACE reflects that the Manufacturer ID code (“MID”) for this entry, based upon the information that Emodern Décor provided at entry is CNGUADON3GUA, which stands for Guang Dong Gaoming Country Foming Cast Factory. We note that this MID code differs by one-digit with the MID code, CNGUADON03GUA, which is associated with Dongyuan.
ISSUE:
Whether the protested entry qualifies for the separate importer/customer specific ADD rate for entries exported by Dongyuan and imported by Emodern Décor.
LAW AND ANALYSIS:
We initially note that the instant protest was timely filed within 180 days from the date of re-liquidation. 19 U.S.C. § 1514(c)(3)(A). Additionally, further review is warranted because “the protest involves questions of law or fact which have not been ruled upon by the Commissioner of Customs or his designee, or by the Customs courts.” See 19 C.F.R. § 174.24(b). Specifically, we will examine the proper application of Commerce’s liquidation instructions and sufficiency of the provided documents to establish Dongyuan as the exporter from China. Accordingly, the criteria for further review is satisfied.
With regard to whether the Protestant has raised a protestable issue, generally, it is well settled that when assessing and collecting ADD, CBP merely follows Commerce’s instructions. See Mitsubishi Electronics America, Inc. v. United States, 44 F.3d 973, 977 (Fed. Cir. 1994). The courts have consistently held that CBP’s role in the antidumping process is simply to follow Commerce’s instructions in collecting deposits of estimated duties and in assessing antidumping duties, together with interest, at the time of liquidation. See Fujitsu Ten Corporation of America v. United States, 21 C.I.T. 104, 107 (1997); and American Hi-Fi International, Inc. v United States, 19 C.I.T. 1340, 1342-43 (1995). In Mitsubishi, the Court held that “CBP has a merely ministerial role in liquidating antidumping duties.” 44 F.3d at 977. Thus, CBP simply applies the antidumping duty rates determined by Commerce to entries of merchandise in accordance with Commerce’s liquidation instructions. Accordingly, CBP must follow Commerce’s instructions regarding the entry of sinks at issue in this case.
Emodern Décor contends that the reliquidation of its entry at the PRC-wide is incorrect. We agree. Emodern Décor has provided satisfactory evidence that its entry was exported by Dongyuan. As noted above, in support of its protest, Emodern Décor provided to our office a Bill of Lading to substantiate its claim that the merchandise was shipped and exported by Dongyuan. Upon review of the commercial invoice, packing list, and Bill of Lading, we agree with the protestant, and find that the merchandise was exported by Dongyuan. Thus, Emodern Décor’s entry qualifies for the separate rate assigned to sinks manufactured and exported by Dongyuan and imported by Emodern Décor per Message 7193306, dated July 12, 2017. The protested entry should be re-liquidated in accordance with the specific instructions applicable to “Importer or Customer: Emodern Décor Inc.,” as set forth under Paragraph 1.
HOLDING:
Emodern Décor’s protest is GRANTED. The entry should be reliquidated in accordance with the instructions set forth under Paragraph 1 of Commerce Message 7193306, dated July 12, 2017, applicable to sinks exported by Dongyuan and imported by Emodern Décor.
Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
For Yuliya A. Gulis, Director
Commercial & Trade Facilitation Division