Federal Circuit - “Default” antidumping duty applies; company withdrew information supporting company-specific order 

June 24: The U.S. Court of Appeals for the Federal Circuit today affirmed the findings of the U.S. Court of International Trade that a “default” country-wide antidumping duty order (and not a company-specific order) applies with respect to laminated woven sacks imported from China because the company had withdrawn critical information from the record. AMS Associates, Inc. v. United States, 2012-1688 (Fed. Cir. June 24, 2013)

Read today’s decision: AMS Associates [PDF 119 KB]

Summary

The U.S. Commerce Department found that certain laminated woven sacks were being imported into the United States from China at less than fair value, and thus issued an order imposing an antidumping duty on entries of such merchandise into the United States.


The antidumping duty order applied to a manufacturer of laminated woven sacks in China. Because that company had shown that it was not subject to control by the Chinese government, Commerce assigned a company-specific rate (and not the “default” country-wide rate that otherwise applied to such merchandise imported from China).


Subsequently, Commerce initiated a review of the dumping duty for a defined period. In that proceeding, Commerce considered the company’s eligibility for a company-specific rate for the period and published its preliminary results that were favorable to the company. However, the company withdrew from the proceeding and removed its confidential information from the record.


Commerce concluded that because the company had stopped cooperating and had removed information, the record no longer contained enough verifiable information to prove that the company was not subject to Chinese government control. Commerce therefore assigned the default China-wide rate for the review period.


A U.S. affiliate of the company sought judicial review of Commerce’s order before the U.S. Court of International Trade, which sustained the application of the China-wide rate to the company.


On appeal, the Federal Circuit today concluded that Commerce’s decision to apply the China-wide “default” rate to the company was supported by substantial evidence and did not violate any law.



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