EAPA Case 8042: Allied Food Products Inc. (Notice of Initiation of Investigation and Interim Measures, February 20, 2025)

Notification of Initiation and Interim Measures in EAPA Case 8042 – Xanthan Gum

WASHINGTON— On February 20, 2025, CBP issued the notice of investigation and interim measures as to evasion for EAPA case 8042 based on an allegation filed by CP Kelco U.S., Inc. against U.S. importer Allied Food Products, Inc. (“Allied Food”) for evasion of AD order A-570-985 on xanthan gum from China. Specifically, record evidence shows that Allied Food entered Chinese-origin xanthan gum into the United States that was transshipped through India. CBP has determined there is reasonable suspicion of evasion of AD duties by Allied Food and, therefore, CBP issued a formal notice of investigation as to evasion and has taken enforcement actions. In light of CBP’s findings, CBP will:

• Require “live” entry for all imports of xanthan gum, meaning Allied Food must submit proper import documentation and duties prior to the release of its merchandise;
• Suspend or extend liquidation of Allied Food’s entries of mattresses without final computation or determination of duties (liquidation), 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.

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