M&M News and Products Jun/Jul 2018

June 28th, 2020 by Nathan Hobbs

Trade

Aluminum Door Threshold Importer Faces Sanctions

U.S.Customs and Border Protection (CBP) ruled recently that a company importing aluminum door thresh-olds from China could be evading the U.S. government’s antidumping (AD) and countervailing duty (CVD) orders on extrusions from that country.

On May 17, CBP announced interim measures against Columbia Aluminum Products following an investigation into violations of the Enforce and Protect Act.

In January 2018, Endura Products, which makes door components, filed an allegation claiming that Columbia was evading the AD/CVD orders on aluminum extrusions. Endura said it provided evidence that Columbia was importing extruded aluminum door thresholds from China and improperly classifying them as “wall plates” to avoid duties. According to the evidence presented by Endura, Columbia began importing substantial volumes of “wall plates” in place of door thresh-olds from one of its regular Chinese suppliers, but Columbia neither advertised nor appeared to sell products called “wall plates.”

Endura also alleged that Columbia was evading duties by importing mate-rial subject to the AD/CVD orders on aluminum extrusions that was trans-shipped through Vietnam. Around the same time Columbia started importing substantial volumes of “wall plates” from China, Columbia began importing significant quantities of door thresholds from a supplier in Vietnam, Houztek Architectural Products.

CBP found that there is reasonable suspicion of evasion, and it imposed interim measures on Columbia. These include rate-adjusting unliquidated entries of merchandise and requiring “live entry” for all future imports, meaning that all entry documents and duties must be provided before cargo is released by CBP. CBP is also rejecting unliquidated entry summaries submitted prior to its notice, suspending liquidation for any unliquidated entry that entered on or after the date of initiation of the investigation, and extending the period for liquidation for all unliquidated entries.

“We are pleased with CBP’s decision, which is a critical step in addressing the unfair practices we have seen from our competitors,” said Bruce Procton, president of Endura. “We are heartened by the administration’s aggressive efforts to address this type of rampant cheating and evasion.”

Earnings

Huttig Reports Strong First Quarter

Huttig Building Products Inc., a leading domestic distributor of millwork, building materials and wood products, reported that net sales in the first quarter of 2018 were $198 million, which was $22.3 million, or 13 percent, higher than the first quarter of 2017.

The company says the increase in net sales was primarily attributed to an 8 percent increase in new residential construction activity.

Millwork product sales increased 4 percent in the first quarter of 2018 to $95.3 million, compared to $91.9 million in the first quarter of 2017. Building products sales increased 26 percent in the first quarter of 2018 to $85.5 million, compared to $68.1 million in the first quarter of 2017, primarily attributed to higher sales of the Huttig-Grip product line. Wood product sales increased 10 percent in the first quarter of 2018 to $17.2 million, compared to $15.7 million in the first quarter of 2017.

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