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CBP to Investigate 4 MSG Importers for Allegedly Evading Antidumping Duties

CBP is investigating whether four companies evaded antidumping duties when importing monosodium glutamate (MSG) from China or Indonesia, and is imposing interim measures in the form of suspension of liquidation and the collection of antidumping and countervailing duty cash deposits, among other things, according to a July 29 announcement.

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The four companies are Norwalk, California-based CPF Legacy or C. Pacific Foods; Maspeth, New York-based Handylee Enterprises (USA); Flushing, New York-based Highland USA International; and Tustin, California-based Jefi Enterprise (USA). CBP is conducting its investigation under the Enforce and Protect Act.

CBP said in documentation detailing the investigation that it initiated the EAPA investigation at the request of Ajinomoto Health & Nutrition North America. That company alleges that the four companies evaded AD by importing MSG from China and Indonesia, transshipping the goods through Malaysia and failing to declare the correct country of origin at the time of entry.

Ajinomoto supplied CBP with two exhibits of data that claim to show that the importers received MSG shipments from two Malaysian companies, Ajinoriki Msg (Malaysia) SDN BHD (Malaysia Ajinoriki) and/or Habita Food Industries SDN BHD (Habita Food). The data reflects shipments that arrived at the ports of Los Angeles-Long Beach; Savannah, Georgia; and Baltimore in May, September and October 2023.

According to CBP, Ajinomoto alleges that Malaysia Ajinoriki lacks the production capacity to manufacture large-scale amounts of MSG and instead repackages MSG from China and Indonesia before exporting it to the U.S. Ajinomoto claims this market insight in part because it had an affiliate in Malaysia that stopped producing MSG within the country in 2003.

Meanwhile, Habita Food is registered in Malaysia as a grocery wholesaler, not a manufacturer, according to the CBP filing.

In response to Ajinomoto’s allegations and CBP’s preliminary examination of whether the four companies evaded AD, CBP said it will conduct an investigation under EAPA to determine the extent of the alleged evasion.

CBP will do the following: extend the period for liquidation of unliquidated entries that entered before April 1, the date of initiation; suspend liquidation of unliquidated entries entered on or after April 1, which is the date of initiation and reject any entry summaries and require a refile for those entries that are within the entry summary reject period; and require “live” entry for all imports of MSG manufactured by Ajinoriki Msg (Malaysia) SDN BHD’s and/or Habita Food Industries SDN BHD, as well as require importers to submit proper documentation and all duties prior to release of the merchandise.

CBP said the AD rate is the “all others” rate for A-570-992-000 on MSG if Commerce has not determined a separate rate that would apply to that entry.

International Trade Today reached out to the four companies for comment.