News & Insights  |  Press Releases

Related Professionals

Practice Areas


Patricia O'Connell
Senior Communications Manager

U.S. Diamond Sawblades Industry Vows to Fight Fraudulent Circumvention of the Antidumping Duty Orders on China and Korea

December 14, 2009

Today, counsel for U.S. producers of diamond sawblades announced that they have identified certain Chinese producers of diamond sawblades that are marketing their products as free of antidumping duties (or eligible for reduced duties) through a variety of fraudulent schemes that could land importers in hot water for customs fraud violations. Diamond sawblades, diamond segments and diamond sawblade cores from China are currently subject to antidumping duties of up to 164 percent. Korean sawblades, cores and segments are also subject to duties of up to 26 percent.

“We are aware that certain producers in China are attempting to illegally circumvent the antidumping duty order,” said Daniel B. Pickard, a partner in Wiley Rein’s International Trade Practice and counsel U.S. diamond sawblades industry.  “The U.S. industry is committed to ensuring that circumvention is prevented, and that fraudulent importations are prosecuted to the fullest extent of the law. Importers should be aware that some exporters are misrepresenting the applicable duty rates, or even encouraging importers to defraud the government.”

Information presented to the U.S. Bureau of Customs and Border Protection strongly indicates that Chinese producers of diamond sawblades are engaged in a variety of schemes aimed at misleading importers and other purchasers as to the magnitude of the duties involved, or attempting to convince importers to commit customs fraud in order to avoid them. Under Customs' enforcement procedures, it is importers, rather than exporters, who must pay all duties, including any fines and penalties that arise from antidumping duty circumvention on the part of foreign producers and exporters.

One prevalent scheme includes misinforming potential importers that the Chinese producer or exporter’s antidumping duty rate is far lower than it actually is, potentially subjecting the importer to large and unforeseen duty liabilities. In other instances, Chinese producers and exporters are encouraging importers to commit both classification and valuation fraud by importing the merchandise under inappropriate tariff provisions, or altering invoices and Customs documentation to reflect a price lower than the price at which the merchandise is actually being sold. Such fraud subjects importers to potential criminal penalties, including fines and jail time, and civil penalties of up to twice the value of the lost duties. 

“We urge purchasers dealing with producers in China and Korea to be aware of these schemes, and not to simply take a supplier’s word that duties don’t apply or can easily be avoided. Circumvention is illegal and can expose purchasers to significant civil and criminal penalties. The U.S. Government has determined that Chinese and Korean diamond sawblades are being sold at dumped prices and threaten material injury to the U.S. producers. We are going to take all appropriate steps to make sure that the antidumping orders are fully enforced.” said Pickard.