Commerce Dept. Confirms TKS Should Face Hefty Antidumping Duties
Rosenberg, Jim, Editor & Publisher
The U.S. Commerce Department's International Trade Administration has confirmed its preliminary finding of two years ago that Japanese makers of large newspaper printing presses should be subject to anti-dumping duties.
As reported in the Federal Register late last week, the department determined that, "had the antidumping duty order not been revoked in the 2002 Sunset Review, revocation of the antidumping duty order on LNPP from Japan would have likely led to continuation or recurrence of dumping."
A lawyer for TKS and a spokesman for Goss had no comment on the determination.
The decision follows the reopening of an investigation of Tokyo Kikai Seisakusho Ltd. after Goss International Corp. demonstrated in a 2003 lawsuit that TKS sold equipment at less than fair value.
The lawsuit was brought after Goss successfully petitioned the Commerce Department to examine the U.S. sales practices of two German and two Japanese competitors. The department found that those competitors had dumped presses in this country; the U.S. International Trade Commission subsequently found that the dumping had harmed Goss; and antidumping duties were imposed.
The duties eventually expired after the government was satisfied that no further dumping had occurred. But evidence from Goss' suit showed that TKS had misled the government during its review prior to the duties' expiry.
Commerce Department reconsideration was sidetracked from Washington to New York when TKS took the matter before the U.S. Court of International Trade. That court disallowed reconsideration, but a federal appeals court said otherwise last June and the review proceeded.
It is now again up to the International Trade Commission to impose antidumping duties, which the Commerce Department calculated at almost 52% against TKS.
Duties are imposed on imports of pertinent goods from another country on behalf of the same U.S. industry. In the case of large newspaper presses, Goss was the U.S. industry, and the Japanese industry also included Mitsubishi Heavy Industries and another company on both of which the department calculated higher duties. Mitsubishi's sale to the Washington Post sparked Goss' initial petition in the mid-1990s but the sale later was exempted from penalty upon request by Goss. Mitsubishi sales in this country did not resume until after they were no longer subject to antidumping duties. The other Japanese manufacturer has had no U.S. sales.
Goss had sued the same four overseas competitors originally investigated by the Commerce Department. Three of those press makers settled before going to trial. The law under which Goss brought the suit was later revoked by Congress after the World Trade Organization determined that the nature of its penalty provisions contravened U.S. treaty obligations.
The U.S. District Court verdict, damages of which were trebled by law to almost $32 million, was upheld on appeal. But, after awaiting a determination by the World Trade Organization, Japan enacted its Special Measures Act - so-called clawback legislation that allows it to compensate TKS for the loss in U.S. court by claiming an equal amount from Goss' Japanese interests. …