Deosen Disappointed in ITC 'Anti-Dumping' Decision

PISCATAWAY, N.J. Deosen Biochemical Ltd. and Deosen USA Inc. issued a statement expressing disappointment in the International Trade Commission (ITC)'s final decision on the anti-dumping petition, which was filed in June 2012 against Chinese and Austrian producers of xanthan gum.

We at Deosen Biochemical, Ltd. and Deosen USA, Inc. are very disappointed with the recent announcement by the ITC of the decision that imports of Chinese xanthan gum constitute a threat of material injury to U.S. xanthan gum producers," said Deosen CEO Lawrence Herbolsheimer. We want to point out that the ITC accepted our arguments that the petitioners (CP Kelco) claims were invalid, agreeing with our assertion that past imports of Chinese xanthan gum were not a cause of material injury to the domestic industry. Rather, the ITC found that Chinese xanthan gum constituted merely a threat of future material injury."

Herbolsheimer added the company does not understand how the ITC arrived at its decision, and it also respectfully disagrees with the decision. He said Deosen believes the evidentiary record compiled by the ITC does not support such a conclusion, and the company will continue to argue its case with the hope that "a more reasonable judgment will prevail."

The ITC did not find evidence of material injury to the domestic U.S. industry from foreign-produced xanthan gum in the past, but it concluded there was a "threat" of injury in the future. This ruling includes the CPKelco facility in Wulian, China, which received an additional tariff rate of 71.71 percent, according to Herbolsheimer. He added that parties most negatively affected by this ruling include consumers in the United States who will have to pay more for products containing xanthan gum.