CP Kelco Commends U.S. Customs and Border Protection for Determination in Xanthan Gum Anti-Dumping Case
ATLANTA (June 18, 2024) – CP Kelco, a global leader of nature-based ingredient solutions, commends U.S. Customs and Border Protection (CBP) for their diligent investigation and subsequent determination of evasion in Enforce and Protect Act (EAPA) Case 7814. CBP’s findings confirm that Texas United Chemical Company, LLC (TUCC) engaged in activities to evade anti-dumping duties on xanthan gum imported from the People’s Republic of China.
CBP’s investigation revealed substantial evidence of evasion, specifically finding that TUCC imported Chinese-origin xanthan gum transshipped through Turkey and falsely declared it as Turkish-origin to avoid applicable anti-dumping duties. This determination underscores the commitment of U.S. authorities to uphold fair trade practices and protect American businesses from Chinese-produced xanthan gum sold below fair market value.
Key Elements Identified by CBP:
- Misrepresentation of Country of Origin: TUCC provided a Chinese country of origin certificate for the xanthan gum it imported from Neu Kimya, despite declaring it as Turkish-origin product;
- False Documentation: TUCC acknowledged that all the xanthan gum it imported from Neu Kimya was, in fact, Chinese-origin product. This was supported by the provision of a packing list and commercial invoice indicating the merchandise was first shipped from China to Turkey;
- False Certificates of Analysis (COA): Email correspondence between Neu Kimya and TUCC disclosed an offer of either a “transit COA” or a Turkish COA, suggesting awareness of the true origin of the merchandise;
- Lack of Production Capacity in Turkey: A finding made by the U.S. International Trade Commission and an affidavit in the allegation confirmed that Turkey does not have any production capacity for xanthan gum, further indicating the false nature of the Turkish-origin claims;
- Non-Cooperation with CBP Investigation: Neu Kimya failed to respond to CBP’s request for information, leading to the application of adverse inferences against the company.
As a result of the determination of evasion, CBP will take appropriate actions, including the suspension of liquidation of all entries imported by TUCC that are subject to the investigation and the evaluation of TUCC’s continuous bond.
CP Kelco remains committed to supporting the enforcement of U.S. trade laws and regulations.
CBP’s official notice can be accessed here.
CBP’s Notice of Determination as to Evasion for TUCC can be accessed here.
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About CP Kelco
CP Kelco is a nature-based ingredient solutions company with approximately 90 years of experience working with food, beverage, consumer and industrial product manufacturers worldwide. What sets us apart:
- Unlocking Nature-Powered Success®. Apply ingredient innovation and problem- solving to develop customized solutions that leverage our regional insights and meet manufacturers’ goals to address consumer needs and preferences.
- Unique Portfolio. Produce extensive range of high-quality, plant-based and fermentation-derived ingredients to formulate tailored solutions.
- Technical Excellence. Offer strong collaboration with a global team of scientists and applications experts, leveraging our regional state-of-the art R&D facilities.
- Sustainability. Committed to providing responsibly sourced and produced ingredients.
- Market Insights. Understand market and consumer trends to help customers create relevant and innovative products.
Our key product lines include citrus fiber, pectin, gellan gum, xanthan gum, carrageenan, fermentation-derived cellulose, diutan gum, refined locust bean gum and microparticulated whey protein concentrate. Learn more at cpkelco.com.