U.S. Customs and Border Protection (CBP) has issued final determinations under the Enforce and Protect Act (EAPA), confirming duty evasion in thermal paper imports routed through Malaysia.
The findings follow an investigation launched by petitions from the Paper Receipts Converting Association (PRCA).
CBP found evidence that multiple U.S. importers falsely declared Malaysian origin for thermal paper actually produced in China, Germany, Japan, and South Korea. Malaysian suppliers Wingle Industrial and Kooka Paper were also cited for lacking facilities to manufacture or coat thermal paper, confirming the transshipment scheme.
Companies identified in the investigation include Lollicup USA Inc., Lifeguard Gloves (DuroSafe Inc.), FAV Holdings LLC, Direct Marketing USA, E Merchant Supplies, Top Traders Inc., Quality Paper Distributors Inc., Strong Medical (Strong Manufacturers), and Vesta Global Trading (Vesta STL LLC).
To enforce compliance, CBP announced several measures:
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Suspension of liquidation and reclassification of impacted entries
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Mandatory “live” entry duties before release of goods
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Stricter financial safeguards, including single-transaction bonds
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Tighter controls to prevent future violations
The Paper Receipts Converting Association (PRCA), a trade group representing U.S. paper receipt manufacturers, called the ruling a significant step in ensuring fair trade. “By confirming the scope and scale of this evasion, CBP is protecting American jobs, supporting fair competition, and ensuring that trade laws are enforced as intended,” said Mike Rapier, PRCA President and President of the Domtar POS Business Unit.
PRCA said it will continue working with federal authorities to ensure compliance and safeguard U.S. manufacturers against unfair trade practices.
