CBP Finds Xanthan Gum Importers Evaded AD Order

CBP found seven xanthan gum importers to have used evasion to escape antidumping duties, the agency said in a newly released final determination. The finding, dated March 9, followed allegations filed by CP Kelco that claimed that the imports were transshipped through Malaysia or India to evade antidumping order A-570-985 on xanthan gum from China (see 1910040037). The agency will continue to suspend liquidation and require AD duty cash deposits on the companies' entries due to the final determination, CBP said.

The investigation involved: 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.

Some of the importers argued that there was no reduction or avoidance of duties because “the merchandise was manufactured and exported from China by 'Fufeng' entities for which the cash deposit rate has been 0.00 percent,” CBP said. But those claims seem to rely upon information from Import Genius, a company that compiles public shipping information. “The importers were required by CBP to provide documentation demonstrating the actual manufacturer and exporter of the specific merchandise in question, and cannot instead base its identification of manufacturer and exporter for entries on guesses derived from shipment information of a third party source,” it said.

Due to the gaps in the required manufacturer information, CBP applied adverse inferences, it said. Based on the evidence, CBP determined that xanthan gum entered by the importers “during the period of investigation was of Chinese origin and transshipped through India,” it said. As a result of the determination, “CBP will continue to require live entry, which requires that the importers post the applicable cash deposits prior to the release,” it said. “Finally, CBP will evaluate the continuous bond of the importer in accordance with CBP’s policies, and may require single transaction bonds as appropriate.”