WASHINGTON - Judge Lisa Wang of the U.S. Court of International Trade (CIT) issued a public version of the judgement in which she partially overturned  and partially upheld a U.S. Customs and Border Protection (CBP) ruling against Scioto Valley Woodworking, Inc. d/b/a Valleywood Cabinetry under the Enforce and Protect Act.

The Kitchen Cabinet Manufacturers Association (KCMA) announced the issuance on Dec. 19. The case involves allegations that Valleywood evaded antidumping and countervailing duties on orders of wood cabinets, vanities, and components from China by transshipping through its afflliate Alno Industry SDN BHD in Malaysia. 

For background, on Jan. 31, 2023, Customs reached a final affirmative EAPA determination against Valleywood, the U.S. importer. Their affirmative determination was based on evidence including Alno's undisclosed warehouse facility which contained finished cabinets from both China and Malaysia that were packaged identically and ready for shipment. On March 15, 2023, Valleywood appealed the decision, and on June 12 Customs’ Office of Rulings and Regulations (ORR) reversed the evasion determination, stating Alno had the ability to produce the cabinetry in Malaysia, and that there was "no evidence" of transshipment. The law firm of Schagrin Associates filed a complaint on behalf of the American Kitchen Cabinet Alliance challenging ORR's final negative determination. 

In the opinion and order, originally issued Oct. 31, 2024, Judge Wang rebuked ORR for overlooking evidence in making its decision, including the extent of Scioto and Alno's operational control by China-based Haiyan Group, the undisclosed warehouse and its contents, and previous admissions of transshipment. While the ruling upheld ORR's decision not to apply adverse interferences against Alno, it also directed Customs to revisit the findings on remand.  (Read the public version of Judge Wang's ruling.)

KCMA stated, "The evasion activity that is taking place remains deeply troubling. Antidumping and countervailing duty orders are designed to create a fair competitive landscape for domestic producers so they can compete on a level playing field with imports, but Malaysia has become a hub for transshipment schemes involving Chinese goods subject to U.S. duties. This blatant evasion undermines the critical relief these trade orders are meant to provide to domestic industries."