Xanthan Gum Importer Facing EAPA Investigation

CBP will take a closer look at entries of imported xanthan gum brought in by A&A Pharmachem Inc. USA as part of an investigation under the Enforce and Protect Act, the agency said in a May 27 notice it posted on June 3. The investigation followed an allegation filed by CP Kelco, through Greenberg Trauring lawyer Matthew Kanna, that said A&A evaded antidumping duty order A-570-985 on xanthan gum from China, CBP said. CP Kelco is a domestic producer of the product.

CP Kelco's allegation said that A&A evades the duties by transshipping the goods through India, a country that the U.S. government has said in recent years doesn't produce xanthan gum. CBP issued requests for information on A&A entries in March and asked for supporting documentation about the goods. The responses by A&A included "several discrepancies," including a certificate of analysis that seemed to have been completed before the product was manufactured, CBP said. That agency said it also considered a previous EAPA finding of xanthan gum from China being transshipped through India during the same time period.

Based on that information, CBP found there is "reasonable suspicion" of evasion and it will require interim measures as a result, it said. That includes live entry requirements for future imports and suspending of liquidations for unliquidated entries since Feb. 19, CBP said. The agency also asked that participants in the case “provide a business confidential version and a public version with a public summary using the EAPA Case Management System.”