NEW YORK The U.S. Court of International Trade (CIT) upheld a Commerce Department decision that U.K. Carbon & Graphite Co. Ltd. circumvented trade laws by using unfinished Chinese rod to ship small-diameter graphite electrodes into the United States through Britain.
The opinion, dated Aug. 29, relates to a petition filed in 2010 by domestic producers SGL Carbon LLC and Superior Graphite Co. that alleged the Derbyshire, England-based company was part of "an ongoing scheme to evade payment of anti-dumping duties."
Commerces International Trade Administration determined in June 2012 that U.K. Carbon & Graphites processing in Britain was minor and, therefore, the company had circumvented the order (amm.com, June 5, 2012).
In August 2012, after a final determination by Commerce (amm.com, Aug. 8, 2012), U.K. Carbon & Graphite Co. appealed the decision to the CIT (amm.com, Aug. 27, 2012).
"The appeal was due to a conflict between the law in the U.K. (and the European Union) as opposed to how the law is being interpreted in the United States," Jeffrey Neeley, an attorney at Barnes, Richardson & Colburn LLP and lead attorney for U.K. Carbon & Graphite, told AMM via e-mail. "(U.K. Carbon & Graphite) had argued that rods had been excluded from the case and that the U.S. Commerce Department had made various errors in calculating the value added in the U.K., including refusing to use actual costs of (U.K. Carbon & Graphite) but rather using surrogate costs."
U.K. Carbon & Graphite added that while the conflict in laws "should have been resolved differently," the companys "success with its business model will not be affected because the United States government has made clear that other products (including any exceeding 16 inches in diameter and any produced from non-Chinese rods) are not subject to the dumping order. Thus, (U.K. Carbon & Graphite) will continue to serve its customers as it has in the past with the same reliable service and quality."