CBP Investigating Possible Glycine AD Duty Evasion

CBP is examining the possible transshipment of glycine from China in order to evade antidumping duties, the agency said a notice of initiation of investigation. The notice follows an allegation of evasion filed under CBP's Enforce and Protect Act process. Due to evidence creating a "reasonable suspicion" of evasion, "CBP has imposed interim measures," it said.

Salvi Chemical Industries filed the underlying allegation in September of 2018, CBP said. "Salvi alleges that Newtrend USA evaded AD order A-570-836 on glycine from China by transshipping Chinese-origin glycine through Thailand, and upon customs entry into the United States, declared the merchandise as a product of Thailand and not subject to the AD order," the agency said. Salvi provided documents to show "Newtrend Thailand is not a bona fide producer of Thai-origin glycine and, instead, sources Chinese-origin glycine for transshipment through Thailand to the United States, claiming Thailand as the country of origin." The Thailand company doesn't have access to enough of the major raw materials necessary to produce glycine, Salvi said in its allegation.

CBP sought to corroborate the information through a site visit in Thailand, but Newtrend Thailand officials didn't allow CBP to "review any purchase, production, shipping or sales documentation during the visit," the agency said. As a result, "CBP was unable to corroborate various claims of production capacity and actual production on the record from a 2017 CBP protest filed by Newtrend USA (claiming GSP preference), 2018 CF28 responses from Newtrend USA, 2018 questionnaire responses filed by Newtrend Thailand in Commerce’s ongoing AD investigation of glycine from Thailand, and statements made by Newtrend Thailand officials at the CBP onsite visit," the agency said.

CBP will require "live entry" for all future Newtrend USA imports, it said. The agency will also "reject any entry summaries that do not comply with live entry, and require refiling of entries that are within the entry summary rejection period; suspend the liquidation for any entry that has entered on or after October 16, 2018, the date of initiation of this investigation; and extend the period for liquidation for all unliquidated entries that entered before that date."