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China Garment Hangers: Prelim AD Circumvention by 2 Vietnam Cos.

The International Trade Administration has issued an affirmative preliminary determination that garment hangers exported by two Vietnamese companies, Angang Clothes Rack Manufacture Co., Ltd. and Quyky Yanglei International Co., Ltd.,are circumventing the antidumping duty order on steel wire garment hangers from China (A-570-918).

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ITA Prelim Finds Hangers Further Assembled in Vietnam Before U.S. Export

The ITA preliminarily determines that circumvention of the order is occurring by reason of exports of semi-finished garment hangers from China imported by, or sold to, Angang and Quyky, and which subsequently undergo further assembly in Vietnam before exportation to the U.S., with the help of their affiliated Chinese companies, Shaoxing Gangyuan Metal Manufactured Co., Ltd. and Shanghai Ruishan Metal Products Co., Ltd. and Zhejiang Taizhou Hongda Metal Products Co., Ltd., respectively.

Liquidation Suspended on Entries by Angang/Quyky on/after July 16, 2010

The ITA will instruct U.S. Customs and Border Protection to suspend liquidation on all1 entries of garment hangers produced and/or exported by Angang or Quyky with a time of entry on or after July 16, 2010, the date of the initiation of this inquiry.

China-Wide Cash Deposit Rate for Angang/Quyky Entries On/After July 16, 2010

The ITA will also instruct CBP to require a cash deposit at the China-wide entity rate of 187.25% on all unliquidated entries of garment hangers produced and/or exported by Angang or Quyky with a time of entry on or after July 16, 2010.

1ITA preliminarily found all of the garment hangers produced and/or exported by Quyky have circumvented the Order because Quyky failed to provide ITA with any information, thus ITA is unable to distinguish between its imports or purchase of semi-finished garment hangers from China for purposes other than assembly into merchandise covered by the order.

According to the ITA, it also appears that Angang’s garment hangers are commingled prior to export to the U.S. As Angang has not demonstrated that there is a way for CBP to distinguish between the garment hangers preliminarily found to be circumventing the order and the garment hangers which Angang self-produces, the ITA has preliminarily determined that all garment hangers produced and/or exported by Angang are also circumventing the order.

(See ITA notice for more information, including the scope of the order, etc.

See ITT's Online Archives or 07/23/10 news, 10072334, for BP summary of the initiation of these anticircumvention inquiries.)

Contact -- Irene Gorelik (202) 482-2615

(FR Pub 05/10/11, ITA Case No. A-570-918)