Xanthan anti-dumping charges apply to China, not Austria

by Jeff Gelski
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WASHINGTON – The U.S. International Trade Commission on June 20 determined imports of xanthan gum from China threaten a U.S. industry with material injury, but the commission also determined the U.S. industry is neither injured materially nor threatened with material injury by imports of xanthan gum from Austria.

The U.S. Department of Commerce now will issue anti-dumping duty orders on imports of xanthan gum from China. No anti-dumping duties will be imposed on xanthan gum imports from Austria.

“Jungbunzlauer is very pleased with this result and views it as a confirmation that Jungbunzlauer conducts its business in a fair manner,” said Jungbunzlauer, a global supplier of xanthan gum. Jungbunzlauer Austria AG is based in Vienna, Austria.

Atlanta-based C.P. Kelco originally filed a dumping petition on June 5, 2012. Xanthan gums function as hydrophilic colloids to thicken and stabilize emulsions, foams and suspensions, according to C.P. Kelco, which offers the Keltrol xanthan gum brand for food and personal care applications. Food applications include salad dressings and whipped foams. Xanthan gum also has been used in gluten-free baked foods.

The U.S. Department of Commerce on May 29 announced affirmative final determinations in the anti-dumping duty investigations of xanthan gum from Austria and China. According to the Department of Commerce, dumping occurs when a foreign company sells a product in the United States at less than fair value.

The U.S. International Trade Commission by a vote of 4-2 upheld the anti-dumping duties on China. In the China investigation, mandatory respondents Neimenggu Fufeng Biotechnologies Co., Ltd. (also known as Inner Mongolia Fufeng Biotechnologies Co., Ltd.) received a final dumping margin of 15.09% from the Department of Commerce while Deoson Biochemical Ltd. received a margin of 128.32%. Four other exporters qualified for a rate of 71.71% while all other producers/exporters from China received the China-wide final dumping margin of 154.07%.

The U.S. International Trade Commission by a vote of 6-0 ruled against anti-dumping duties on Austria.

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