US sets preliminary duties on food additive from China, Austria

WASHINGTON Fri Jan 4, 2013 1:37pm EST

WASHINGTON Jan 4 (Reuters) - The U.S. Commerce Department on Friday said it had set preliminary duties ranging up to 154 percent on imports of a food additive and thickening agent from China and Austria to offset what it said were unfairly low prices.

The ruling is a victory for CP Kelco, a family-owned Atlanta-based company which filed a petition last year asking for anti-dumping duties on Xanthan gum from the two countries.

Xanthan gum is used as a thickening agent in products like salad dressing and cosmetics.

The United States imported $25 million of the good from Austria and $64 million from China in 2011.

The Commerce Department set a preliminary duty of 17.18 percent on imports from Austria and duties ranging from 21.69 to 154.07 percent on imports from China.

The department will issue final duty determinations in May.