GDLSK

CIT RULES THAT CHINESE XANTHAN GUM PRODUCER SHOULD BE EXCLUDED FROM AD ORDER AFTER PROTRACTED LEGAL BATTLE

On September 17, 2018, the U.S. Court of International Trade (CIT) affirmed the U.S. Department of Commerce redetermination that Xanthan Gum exported by GDLSK clients Neimenggu Fufeng Biotechnologies Co., Ltd. (aka Inner Mongolia Fufeng Biotechnologies Co., Ltd.) and Shandong Fufeng Fermentation Co., Ltd. (collectively, Fufeng) was not dumped in the United States. As a result, the AD Order on Fufeng produced and exported Xanthan Gum will be revoked as to Fufeng.

Commerce in 2013 assigned a 12.90% antidumping duty margin for Xanthan Gum that Fufeng produced in China and exported to the United States.  Fufeng through GDLSK appealed to the CIT, which – in separate rulings issued in 2015, 2016, and 2017 – found that Commerce unlawfully used financial data from a Thai company to calculate Fufeng’s AD margin.

Commerce in July 2018 recalculated Fufeng’s AD margin at 0.00% using financial data from a different Thai company.  Because Fufeng was found not dumping, the CIT ruling excludes the company from the AD order.  This result was achieved through extensive efforts by GDLSK before both DOC and the CIT, over vigorous objections from the domestic Xanthan Gum producer who petitioned for the AD order.

This saga demonstrates that companies subject to AD liability can earn exclusion on appeal if they are represented by able counsel and remain committed for the long haul.  Turning a double-digit AD margin into an exclusion takes time, resources, and skill – but it can be done.  This message is especially important in our current protectionist climate where Commerce is assessing AD liability in myriad investigations.  If your company needs skilled counsel in AD proceedings or has questions about the Fufeng CIT victory, please contact GDLSK attorneys Ned Marshak or Brandon Petelin.

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