CBP Concludes Ribest Ribbons & Bows and TriMar Ribbon Evaded AD/CVD

CBP said no AD/CVD were collected on the merchandise at the time of entry, according to a July 11 notice about the proceeding under the Enforce and Protect Act, or EAPA.

CBP also will suspend the entries subject to this investigation until instructed to liquidate these entries, the agency said. CBP will rate adjust and change entries to Type 03, and it will continue to suspend these entries until instructed to liquidate. CBP also plans to evaluate importers' continuous bonds in accordance with CBP policies, and it may require single transaction bonds as appropriate.

CBP launched its investigation on Oct. 29, 2024, after it received allegations that Ribest USA and TriMar had imported woven ribbon from China that had been transshipped through India. On that date, CBP suspended the liquidation of each unliquidated entry of covered merchandise that entered on or after Oct. 29, 2024.

In February, the agency sent requests for information to Ribest India and the importers asking for information on Ribest India's shipments to importers as well as Ribest India's production capabilities. Ribest India initially responded but then said on April 29 that it wouldn't participate in CBP's verification of Ribest India's manufacturing facility. During this time, Ribest USA told CBP that it entrusted its broker to handle all customs-related issues, per CBP's July 11 notice.

Meanwhile, TriMar and TriMar Ribbon, acting as the importers, submitted limited entry documentation (CBP entry summary form, cargo release results, export invoices and packing lists, importer security information, cargo receipt bill of lading and arrival notice) on Jan. 24, "well after the CBP deadline," CBP said.

Because of the late arrival of TriMar's submission, CBP didn't have time to fully analyze the type of products shipped, the agency said. Meanwhile, export invoices showed that TriMar purchased several types of ribbon from Ribest India, but those invoices didn't have any information on raw material purchases, company details or any evidence supporting that Ribest India manufactured the ribbons. As a result, CBP issued a notice of initiation and interim measures under EAPA on Feb. 3.

TriMar sent written arguments to CBP on May 30, saying, among other things, that it has not been involved in an alleged transshipment scheme and that Ribest India operates a large ribbon manufacturing facility in India.

But CBP countered, saying, "TriMar argues it is an innocent party who was acting in good faith. But under the EAPA, CBP needs only determine, with substantial evidence, that evasion occurred regardless of the importer’s state of mind."

The agency later continued, "The adverse inference in this case is that all the woven ribbon that Ribest India exported during the [period of investigation (POI)] is of Chinese origin. As such, once the inference has been applied to the woven ribbon, that inference remains regardless of the woven ribbon’s change in geographic location or ownership. Therefore, the inference would necessarily impact downstream importers."

CBP also said, "because Ribest India refused to participate in verification and both Ribest India and Ribest USA did not reply to the SRFI [supplemental request for information], CBP finds that neither Ribest India nor Ribest USA cooperated and complied with CBP’s investigation to the best of their abilities. .... Without this requested information CBP lacks information to contradict the Alleger’s Allegations that Ribest India is transshipping Chinese woven ribbon through India."