U.S. Customs and Border Protection has determined that there is a reasonable suspicion that an importer is evading the antidumping duty order on xanthan gum from China by transshipping it through India.
As a result of its determination, CBP is imposing the following interim measures.
- suspending liquidation of entries made after May 15 and extending the liquidation period for covered goods entered before that date
- requiring live entry for imports of xanthan gum, meaning the importer must submit proper import documentation and duties prior to the release of its goods
- reviewing the importer’s continuous bonds and requiring a single transaction bond for its entries if deemed necessary
Under the Enforce and Protect Act any interested party, including competing importers and federal government agencies, may submit allegations that AD/CV duties are being evaded; e.g., by misrepresenting the goods’ true country of origin, submitting false or incorrect shipping and entry documentation, or misreporting the goods’ physical characteristics. CBP has broad authority to investigate these claims and can impose initial remedial measures that could interrupt a supply chain in as little as 90 days. Any final determination of evasion may be met with not only AD/CV duties but also other enforcement measures such as civil or criminal investigations.
For more information on AD/CV duty evasion, please contact attorney Kristen Smith at (202) 730-4965 or via email.
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