CBP Takes Up EAPA Investigations Into 11 Xanthan Gum Importers

CBP will investigate a total of 11 xanthan gum importers in two separate proceedings based on allegations from CP Kelco, the agency said in notices dated Aug. 12 posted by CBP on Sept. 25. CP Kelco's allegations claimed that the imports were transshipped through Malaysia or India to evade antidumping order A-570-985 on xanthan gum from China. Among other things, CP Kelco noted that "xanthan gum is only produced in Austria, France, the United States, and China."

The first investigation involves: Ascension Chemicals LLC; Dr. Bronner' s Magic Soaps; Tdale Manufacturing & Distributing, Inc.; UMD Solutions, LLC; Western Energy & Technologies; Crude Chem Technology LLC; and Glob Energy Corporation. Here, the seven importers were alleged to have imported xanthan gum from China while claiming it to be of Indian origin, CBP said. Within its allegation, CP Kelco provided information about "the large and rising volumes of imports into India from China of the category of merchandise including xanthan gum; the very low volumes of such merchandise imported into India from other known xanthan gum producing countries; and the history of attempted circumvention of the xanthan gum AD order by various Chinese companies," the agency said.

In response to requests for more information about "sale, production, and factory documentation," each of the companies provided inadequate answers. CBP "determined that reasonable suspicion exists that the xanthan gum that the Importers imported into the United States from India, was in fact manufactured in China," it said. "Each importers' failure to submit any information to CBP demonstrating that the merchandise was produced in India, combined with the information provided by" CP Kelco and other sources, is the basis for CBP's finding, it said.

The second investigation involves Cementing Products Inc.; Global Envirotech Industries LLC; Kerui Group US, LLC; and Kerui Petroleum Equipment. CBP similarly sought more information from the importers and found the answers lacking. CBP said it will implement interim measures, including rate adjustments and suspended liquidation for unliquidated entries under investigation. CBP will also review the continuous bonds of the importers "to determine their sufficiency, among other measures, as needed."