EAPA Case 7889: JBS Trading LLC (Notice of Initiation of Investigation and Interim Measures, August 28, 2024)

EAPA Action: Notice of Initiation and Interim Measures for EAPA Case 7889 – Xanthan Gum from China 

WASHINGTON— On August 28, 2024, U.S. Customs and Border Protection (CBP) issued the notice of initiation of investigation and interim measures for EAPA case 7889, filed by CP Kelco U.S., Inc. against JBS Trading LLC (“JBS Trading”), for evasion of the applicable AD order A570-985 on xanthan gum from China. Specifically, the allegation suggested that JBS Trading imported China-origin xanthan gum into the United States that it undervalued at the time of entry, thereby failing to pay adequate cash deposits associated with the aforementioned AD order. CBP has determined that there is reasonable suspicion of evasion of AD/CVD duties by JBS Trading. 

In light of CBP’s findings, CBP will: 

• Require “live” entry for imports of xanthan gum by JBS Trading, meaning the importer must submit proper import documentation and duties prior to release of the merchandise; 
• Suspend or extend JBS Trading’s entries without final computation or determination of duties (liquidation), as appropriate; and 
• Review JBS Trading’s continuous bonds and require single transaction bonds for its entries, as appropriate. 

These actions do not preclude CBP from taking additional enforcement measures as it determines appropriate under its EAPA or other legal authorities, which include pursuing civil penalties or investigations into criminal violations. 

For additional information on CBP and EAPA, please visit the EAPA Homepage. If you suspect an importer of duty evasion, CBP encourages you to submit an allegation through our online portal.

Follow CBP Office of Trade on X @CBPTradeGov.