CBP Investigating Glycine Antidumping Duty Evasion Allegation

CBP is looking into allegations of antidumping duty evasion by importers of glycine from Thailand and has imposed interim measures, the agency said in a recent Enforce and Protect Act notice of investigation. The notice, which is dated Oct. 26 but was posted by CBP Nov. 17, said Nutrawave, Sarille and Newtrend USA transshipped Thai-origin glycine through Indonesia, "falsely declaring the merchandise as a product of Indonesia and not subject to" AD order A-549-837. The allegations were filed by Geo Specialty Chemicals, which is represented by Thompson Hine lawyer David Schwartz.

The importers, which are represented by Randy Rucker and Carrie Bethea Connolly from Faegre Drinker, were subject to separate allegations, but CBP consolidated the cases. The three companies were said to have imported "Thai-origin glycine from PT Newtrend Nutrition Ingredient (“PTNNI”), the Indonesian affiliate of the Chinese Newtrend Group (“the Group”) before PTNNI began production and therefore, PTNNI could not have produced all the glycine it supplied," CBP said. The agency researched the allegations and found indications that PTNNI lacked the capacity to produce the glycine at the time in question.

Cargo exams and CF-28 responses from the importers also produced some discrepancies, it said. "None of the CF-28 responses provide any documentation for PTNNI’s purchase or use of" one of the inputs it claimed to use, CBP said. The allegations "clearly demonstrate that there are no known producers of intermediate glycine in Indonesia, and PTNNI’s affiliation with the Group suggests that it likely sources the intermediate glycine from Thailand," the agency said.

The evidence shows "there is reasonable suspicion of evasion via transshipment" and CBP imposed interim measures as a result. The measures include suspended liquidation of the unliquidated entries and an extension of the period for liquidating the entries, it said. CBP said it may also require "a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise."