Wiley reports that U.S. Customs and Border Protection Announces Interim Measures to Combat Duty Evasion in Trade Case on Low-Speed Personal Transportation Vehicles from China

WASHINGTON, March 30, 2026 /PRNewswire/ -- U.S. Customs and Border Protection (CBP) announced today that it is implementing interim measures under the Enforce and Protect Act (EAPA) to address duty evasion by importers of Chinese golf carts, personal transportation vehicles, low-speed vehicles, and light utility vehicles (collectively, LSPTVs). CBP's interim measures apply to many of the largest importers of Chinese LSPTVs, including ICON EV LLC, Denago EV Corporation, Marxon Energy Inc, HDK Plastic Factory, Ltd. (U.S.A.), Aero Import LLC, Tao Motor Inc, Transvolt Inc., Veloz Powersports Inc., No Speed Limit Inc., Baike Inc., Alltrack Trading Inc., and GoLabs Inc. These importers cover many of the largest U.S. brands of Chinese LSPTVs, including the Denago and Evolution brands.

As part of its determination, CBP finds that there is reasonable suspicion that these companies are unlawfully evading payment of significant antidumping duties (AD) and countervailing duties (CVD) through various evasion and circumvention schemes. As a result, CBP is implementing interim measures that will extend and suspend liquidation of unliquidated entries of LSPTVs entered by these companies. CBP will also reject entries made by these companies on or after December 30, 2025, and require them to refile those entries as subject to the AD/CVD duties. CBP will further require live entry of such imports going forward at the applicable AD/CVD rates.

These interim measures are critical steps in curbing rampant duty evasion by Chinese producers of LSTPVs. In June 2024, the American Personal Transportation Vehicle Manufacturers Coalition, which is comprised of the two leading U.S. manufacturers of LSPTVs – Club Car, LLC and Textron Specialized Vehicles Inc., which manufactures E-Z-GO® and Cushman® vehicles – filed AD/CVD petitions seeking trade relief from surging import volumes of unfairly traded Chinese LSPTVs. Throughout the pendency of that investigation, Chinese producers and their U.S. importers began flagrantly evading the preliminary trade relief imposed. And after the U.S. Department of Commerce published its AD/CVD orders in August 2025, the circumvention and evasion efforts of these same companies increased further. This has greatly limited the relief that should be afforded to the domestic industry by the AD/CVD orders

Under the orders, imports of LSPTVs from China are subject to significant AD/CVD duties. Antidumping duties range from 119% to 478%, and countervailing duties range between 31% and 679%. However, through the evasion and circumvention schemes that CBP is investigating, many Chinese LSPTVs have not been paying duties when they are entered into the United States.

CBP's announcement comes after the Coalition submitted several EAPA allegations to CBP. EAPA is a key trade enforcement mechanism that allows domestic manufacturers and other interested parties to inform CBP when importers are evading duties, which robs the United States of tariff revenue and prevents the trade relief intended by AD/CVD orders from taking effect.

"We are grateful that CBP is imposing these interim measures and addressing the widespread duty evasion that remains ongoing regarding these AD/CVD orders," said Robert E. DeFrancesco, counsel to the Coalition and a partner in the International Trade Practice at Wiley Rein LLP. "We hope that CBP continues to strongly enforce these much-needed orders, ensuring that members of the domestic industry receive the intended protection from unfair trade practices."

"E Z GO believes fair competition only works when everyone plays by the same rules," said Adam Harris, Senior Vice President and General Manager of E Z GO. "Today's action addresses clear concerns that certain imported vehicles are avoiding duties required under U.S. law. That kind of behavior hurts customers and dealers and undermines American manufacturers who do the right thing by investing in safety, quality, and compliance. We support Customs and Border Protection's enforcement efforts and expect a swift, transparent process that holds violators accountable and protects a fair marketplace."

"Club Car supports U.S. Customs and Border Protection's decision to open an EAPA investigation into the evasion of imported cars and assemblies that have entered the U.S. marketplace," said Craig Scanlon, Club Car's Chief Executive Officer. "For too long, unfairly traded and unsafe cars and assemblies have undercut American manufacturers and threatened American jobs. We believe strong enforcement of U.S. trade laws is essential to protecting families, workers, and businesses. Club Car remains committed to U.S. manufacturing and fair competition."

With interim measures in place, CBP will continue investigating duty evasion by Denago, Evolution, ICON, and the rest of the importers listed above. CBP will likely issue its final determination as to evasion for these companies near the end of 2026. The Coalition will continue to participate in these proceedings and looks forward to the results of CBP's investigation. The Coalition will also continue to monitor foreign manufacturers and U.S. importers for evidence of illegal duty evasion, absorption, transshipment or circumvention, all of which are illegal under the U.S. trade laws.

For more information, please contact:

Robert E. DeFrancesco, III
[email protected]
202-719-7473

Derick G. Holt
[email protected]
202-719-7479

SOURCE Wiley Rein LLP