Court Ruling Impacts Antidumping Duties on Xanthan Gum From China
Estimated reading time: 3–5 minutes
Date: 2026-05-12
On May 12, 2026, a significant legal decision was made by the U.S. Court of International Trade (CIT). The case involved xanthan gum imported from the People’s Republic of China. This decision is important because it changes how some Chinese companies are charged for selling xanthan gum in the United States.
Background:
The U.S. Department of Commerce had looked into the sale of xanthan gum from China. They wanted to ensure that the gum was not being sold in the U.S. at unfairly low prices. This process is called an “antidumping duty review.” The review covered the period from July 1, 2020, to June 30, 2021. At first, the Commerce Department found that companies like Fufeng Biotechnologies and Meihua Group were selling xanthan gum at a dumping margin of 17.36 percent.
Fufeng Biotechnologies and Meihua Group did not agree with this finding. They went to court, challenging the way the Commerce Department calculated their costs, especially related to energy and coal.
Court Decisions:
In December 2024, the CIT asked the Commerce Department to explain their calculations better. They wanted more details about how energy costs were valued and why a certain code was used for coal. The Commerce Department responded in May 2025, but the court was only partly satisfied. They agreed with some of the Commerce Department’s methods but not all.
Finally, in April 2026, the Commerce Department changed their methods. They used a different code for coal, which significantly lowered the dumping margin for Fufeng Biotechnologies and Meihua Group. Instead of a 17.36 percent margin, the companies now have a 0.00 percent margin.
Implications:
This decision means that these companies are no longer considered to be dumping xanthan gum into the U.S. market at unfair prices. The CIT’s decision is final unless appealed. However, for now, the companies will not have to pay extra duties based on a 17.36 percent margin.
Current Actions:
The Commerce Department has said they will not change the cash deposit rates for these companies because there are newer reviews with different results. Also, due to a court order, certain entries of xanthan gum from these companies are not allowed to be finalized, or “liquidated,” until the appeals process is settled.
This ongoing legal situation highlights how complex international trade can be. Companies and governments must carefully navigate rules and laws to ensure fair trading practices.
Legal Disclaimer
This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
