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Court Upholds Dumping Tax on Chinese Exporter

MANHATTAN (CN) - The U.S. Court of International Trade upheld duties of more than 258 percent on a company that imported goods from China at a less-than-fair value.

The Watanabe Group challenged the Department of Commerce's anti-dumping duty order on Chinese lined paper products.

Federal regulators had asked Watanabe to account for lined paper products that it produced or exported from China between 2007 and 2008.

Watanabe claimed that it had not exported any merchandise during that time period, that most of its shipments to enter the U.S. were non-subject merchandise, that any subject merchandise was shipped just prior to the timeframe in question, and that the date of entry was irrelevant.

Commerce agents told Watanabe that its merchandise had entered the U.S. market during the timeframe and that it evaluates subject merchandise based on entry, not sale.

When Watanabe stopped complying with the department's investigation, the Commerce Department determined that Watanabe was in violation for shipping goods that entered the U.S. market during the period of review.

Federal regulators deemed Watanabe as part of the China-wide entity because it had not fully complied with the investigation, and they applied adverse inferences in selecting anti-dumping duty rate of 258.21 percent.

Watanabe had asked the court to rescind the administrative review, claiming that the Commerce Department should not have reviewed based on the date of entry, that the department double-counted and that the adverse facts were unfair.

Judge Jane Restani found no merit in Watanabe's claims because the department has the discretion to apply a period of review over the entries, exports or sales of merchandise. Restani added that the Commerce Department can apply adverse facts to a party that fails to cooperate.


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