U.S. Customs and Border Protection has determined that there is a reasonable suspicion that an importer evaded the antidumping duty order on xanthan gum from China by transshipping such goods through India. CBP cites evidence that xanthan gum is not produced in India and that the two supposed Indian suppliers in fact source xanthan gum from Chinese manufacturers.
As a result of this determination CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of xanthan gum entered by the named importer on or after Dec. 27, 2023, and extending the liquidation period for subject goods entered before that date
- if necessary, requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such goods
- requiring live entry, meaning the importer must submit proper import documentation and cash deposits prior to the release of its goods from CBP custody; rejecting any entry summaries that do not comply; and requiring refiling of entries within the entry summary rejection period
- possibly evaluate the importer’s continuous bonds to determine sufficiency
Under the Enforce and Protect Act any interested party, including competing importers and federal 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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