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qKeywords : two names
name 1 : US Cabinet Depot , on behalf of BGI Group Inc.
name 2 : Steven Xu , or knows as , Xu Zhen
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BGI Group Inc., doing business as U.S. Cabinet Depot
What Happened
The U.S. Customs and Border Protection is investigating BGI Group Inc., doing business as U.S. Cabinet Depot, for allegedly evading antidumping and countervailing duties on wooden cabinets and vanities imported from China by transshipping the products through Cambodia, then falsely designating Cambodia as the cabinetry's country of origin.
Company Introduction
https://www.cabinet.trade/importer-bgi-group-inc-doing-business-as-u-s-cabinet-depot/
Offical Confirmation on Transhippment
Here is the address link :
U.S. Customs Agency Takes Action Against Evasion of AD/CVD Duties on Wooden Cabinets and Vanities.
The Kitchen Cabinet Manufacturers Association ("KCMA") is pleased to announce that the U.S. Customs and Border Protection agency ("Customs") has preliminarily determined that the U.S. importer BGI Group Inc. ("BGI") has evaded the antidumping and countervailing duties ("AD/CVD") on wooden cabinets and vanities and component parts thereof from China.
Customs has been conducting this investigation for 90 days after KCMA's trade counsel, Schagrin Associates, filed an allegation under the Enforce and Protect Act requesting that Customs look into potential evasion by BGI. As part of its determination, Customs found that BGI, which does business under the name "U.S. Cabinet Depot," evaded the AD/CVD duties by importing wooden cabinets and vanities that were made in Chine but transshipped through Cambodia and falsely designated as having a country of origin of Cambodia. Since April 21, 2020, imports of Chinese wooden cabinets and vanities have been covered by AD/CVD orders and are subject to duties of up to roughly 300%. Customs will issue a more detailed memorandum explaining its initial determination of evasion within five business days. Following this initial determination, Customs has seven months to continue its investigation and collect additional information before issuing a final determination as to evasion.
An investigation by the Trade Remedy Law Enforcement Directorate within CBP’s Office of Trade found "that the allegation reasonably suggests that BGI is evading AD/CVD orders A-570-106 and C-570-107, respectively, by importing Chinese origin WCV into the United States that had been transshipped through Cambodia and failing to declare the merchandise as subject to the applicable AD/CVD orders." Documentation submitted by AKCA included aggregate U.S. import data, individual shipment data sourced from Panjiva, and a sworn affidavit.
According to the affidavit and documentation, the owners of Gaomi City Haitian Wooden Ware Co., Ltd. and Xuzhou Longyuan Wood Industry Co., the Chinese companies that "actually manufactured" the cabinetry, established Cambodia Golden Coast Wood Products Co., Ltd. the Cambodian company instead credited as the manufacturer. It's claimed also that an owner of BGI may own stakes in the Chinese entities.
The allegations also state the RTA cabinetry components, including the doors, drawer fronts and face frames, are manufactured and individually packaged in China, then sent to Golden Coast, where they are combined and repackaged with the carcass of the cabinet, before being shipped to the United States.
Even if Golden Coast did perform some processing, the claim states, the products still fall under the scope of the order which includes “wooden components required to assemble a cabinet or vanity (including drawer faces and doors)” as well as “parts.”
"This is a huge win for our industry and the American workforce," said Betsy Natz, CEO of KCMA. "Our association's mission is to make sure the strong, unified voice of our members is heard. The filing of this allegation is one of the many ways that KCMA is working with Customs and other law enforcement agencies to hold responsible any foreign producers and U.S. importers that attempt to evade payment of the AD/CVD duties."
Background Information
Mr. Xu is the founder and president of US Cabinet Depot, which has created a miracle of Chinese entrepreneurship in the cabinetry industry in the United States with 120% annual sales growth among hundreds of competitors in the RTA (Ready to Assembly) cabinetry industry since its inception in 2012.
The company is currently setting up distribution centers in New York, Chicago, Los Angeles, Houston and Miami to expand the successful Atlanta model to the entire United States.
Information to be confirmed :
(US Sole Proprietorship) Liaocheng Michael Cabinets Co.
Mr. Xu Zhen
Address: No.6, Weiyi Road, Phoenix Industrial Park, Liaocheng City, Shandong Province
Postcode：252000
Tel: 0635-2991702
Fax：0635-2991713
Mobile：13516352447
E-mail: [email protected]
Other Investigations
https://www.cabinet.trade/are-they-tranship-kitchen-cabinet-to-u-s/
https://www.cabinet.trade/breaking-news-cnc-associates-under-investigation/
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