U.S. Customs and Border Protection has determined that there is a reasonable suspicion that two importers are evading the antidumping duty order on xanthan gum from China by transshipping Chinese-origin xanthan gum through Malaysia. CBP finds that there is a history of xanthan gum being transshipped through Malaysia and trade data showing shipments of xanthan gum from China through Malaysia to the U.S. In addition, several sources of information show that xanthan gum is not produced in Malaysia.
As a result of its determination, CBP is imposing the following interim measures.
- suspending liquidation of each unliquidated entry of subject goods that entered on or after June 22, 2022, and extending the liquidation period for subject goods entered before that date
- requiring live entry, meaning the importer must submit proper import documentation and duties prior to the release of its goods; rejecting any entry summaries that do not comply; and requiring refiling of entries within the entry summary rejection period
- if necessary, requiring a single transaction bond or additional security or the posting of a cash deposit with respect to subject goods
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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