CBP Announces EAPA Investigation, Interim Measures on Glycine From China
CBP announced an Enforce and Protect Act investigation on whether Shari Pharmachem USA evaded the antidumping and countervailing duty orders on glycine from China. The agency said it found reasonable suspicion existed that the importers had transshipped Chinese-origin xanthan gum through India, necessitating the imposition of interim measures.
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The announcement, dated Feb. 14, followed an October 2023 allegation by Geo Specialty Chemicals, which claimed that importer Shari Pharmachem was evading the AD and CVD orders.
GEO alleged that Shari Pharmachem transshipped Chinese-origin glycine through Indian company Global Merchants, CBP said. GEO provided trade data that identified shipments of glycine from China to Global Merchants of India and shipments of glycine from Global Merchants to the U.S., with matching batch numbers.
GEO also provided evidence that Global Merchandise doesn't produce glycine at its facilities in India. GEO got information from private investigators that showed there was "no indication" of glycine manufacturing equipment. GEO also provided "documentation" that shows Global Merchants sourced glycine from China.
CBP found that the allegation reasonably suggested evasion by Shari Pharmachem and initiated an investigation in November 2023, issuing a CBP Form 28 (CF28) questionnaire to the importer. The importer did not file a timely response for two of the three entries that were investigated. It did provide a response for one entry, but only provided a CBP Form 7501, an invoice and a packing list, all of which pertained to a different entry.
Since the importer failed to file proper CF28 responses, CBP found "reasonable suspicion" that the glycine entered was in violation of the AD/CVD orders at the time of entry.
The agency enacted interim measures. The agency said it will suspend the liquidation of each unliquidated entry that entered on or after Nov. 9, 2023, the date of the initiation of the investigation, extend the period for liquidating each unliquidated entry of such covered merchandise that entered before that date, and may take additional measures including requiring a single transaction bond or additional security or the posting of a cash deposit with respect to such covered merchandise. CBP will require live entry and reject any entry summaries that don't comply with live entry procedures as well as evaluate Shari Pharmachem's continuous bonds to determine sufficiency.
CBP previously found evasion by three importers for evading orders on Chinese-origin glycine (see 2401190046). Shari Pharmachem and Global Merchants didn't respond to our request for comment.