Chinese MSG sneaks U.S. duties via Malaysian detour factory
Published Date: 2/21/2025
Notice
Summary
The U.S. Department of Commerce says MSG made in Malaysia using Chinese ingredients is trying to dodge import rules meant for Chinese MSG. This means these products might face extra taxes like the original Chinese MSG does. Companies involved should watch for updates and get ready for possible changes starting February 21, 2025.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Malaysia MSG Now Subject to China AD Duties
If you import monosodium glutamate (MSG) finished in Malaysia that used glutamic acid made in China, Commerce preliminarily includes that product within the China antidumping duty order. For entries without an approved certification, Commerce intends to direct U.S. Customs and Border Protection (CBP) to suspend liquidation and require a cash deposit at the China-wide cash deposit rate of 56.54 percent for entries entered or withdrawn for consumption on or after May 15, 2024; this determination is applicable February 21, 2025.
Convert Non‑AD Entries and Pay Deposits
For unliquidated entries of MSG from Malaysia that were declared as non-antidumping (non-AD) entry types and entered during the suspension period, importers must file a Post Summary Correction with CBP to convert those entries to AD-type entries (e.g., type 01 to type 03) and report them using third-country case number A-557-992-000. Importers must pay cash deposits on those converted entries at the China-wide cash deposit rate under the Order.
Penalties and Consequences for False or Missing Certifications
If an importer or exporter fails to meet the certification or documentation requirements, Commerce intends to direct CBP to suspend liquidation of the entries and require posting of cash deposits at the China-wide rate. The certifications warn that false statements may lead to a de facto finding that the merchandise is within the scope of the order and note that U.S. law (including 18 U.S.C. 1001) imposes criminal sanctions for knowingly false statements. Importers may also be barred from participating in the certification process if requirements are not met.
Certification and Documentation Rules
Importers and exporters must complete and keep specific importer and exporter certifications to show MSG from Malaysia does not use Chinese-produced glutamic acid. Importer certifications must be completed, signed, and dated by the time the entry summary is filed; exporter certifications must be completed, signed, and dated by the time of shipment. For unliquidated entries from May 15, 2024 through the preliminary determination publication period, certifications should be completed and signed no later than April 7, 2025. Certifications and supporting documents must be uploaded into CBP's systems and retained for the later of five years after the latest entry date or three years after conclusion of any related U.S. litigation.
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