Federal Government Launches Investigation Into International MSG Smuggling Ring
Published Date: 1/14/2025
Notice
Summary
The U.S. Department of Commerce is stepping in to check if certain monosodium glutamate (MSG) products linked to China are dodging import rules by being routed through Malaysia. This move affects importers and could lead to new duties or enforcement actions starting January 14, 2025. Everyone involved can share their thoughts as Commerce digs deeper into this trade twist.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
Commerce Will Review Malaysia MSG Referral
If you import or produce monosodium glutamate (MSG) linked to China and finished in Malaysia, the U.S. Department of Commerce will decide whether that merchandise is covered by the antidumping duty (AD) order. Commerce will address U.S. Customs and Border Protection's covered merchandise referral as part of an ongoing circumvention inquiry, and intends to notify CBP based on its final determination; the notice is applicable January 14, 2025 and the preliminary circumvention determination deadline is January 17, 2025.
Suspension of Liquidation and Cash Deposits Continue
If entries of MSG are already under suspension in this proceeding, U.S. Customs and Border Protection should continue to suspend liquidation and collect cash deposits for estimated antidumping duties that would apply if the product is determined to be covered by the Order. This instruction remains in effect as part of the ongoing circumvention inquiry (applicable January 14, 2025).
Scope Includes Blended MSG at 15% Threshold
The AD Order on MSG covers MSG in any physical form and includes products blended with other ingredients when the resulting mix contains 15 percent or more MSG by dry weight. The notice lists relevant HTSUS subheadings and chemical identifiers to clarify which products are within the Order's scope.
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