UKCG Disputes U.S. Commerce Department Finding In Antidumping Circumvention Case

WASHINGTON, Aug. 2, 2012 /PRNewswire/ -- On July 31, 2012, the U.S. Department of Commerce issued its final determination regarding circumvention of the antidumping duty order on Small Diameter Graphite Electrodes from China.  This decision follows the preliminary determination issued on May 30, 2012.  In the final determination, the Commerce Department upheld most of the findings that it had made in the preliminary determination and found that small diameter electrodes produced in the UKCG plant in England are considered to be "Chinese" for the purpose of the dumping case.  According to Jeffrey Neeley, a partner in Barnes, Richardson & Colburn, who represented UKCG before the agency, "This determination is in direct contradiction to the ruling of the authorities of the United Kingdom, who examined the same imports of inputs from China and the transformation of the product in England, and concluded that the electrodes must be labeled as product of the United Kingdom."  According to Neeley, under almost identical circumstances and under U.S. customs law, U.S. Customs and Border Protection reached the same conclusion as the UK authorities.  In addition, UKCG had pointed out to Commerce that the Petitioners in this case had specifically excluded the very same type of rods imported into the U.K. from the scope of the case.  Despite these facts and argument, Commerce found in favor of the domestic industry.

Mr. Keith McGhee, Managing Director of UKCG notes that: "This review by Commerce has never been about illegal transshipments of goods.  Instead, it is a dispute regarding U.S. legal standards, the proper role of international obligations under U.S. law, the relevance of facts found by other agencies, and the earlier actions of domestic companies that belie their present positions.  UKCG is deeply disappointed that the Commerce Department chose not to take into account the facts before it and instead ignored all major evidence that contradicted the domestic industry's story as being 'irrelevant,'   including the findings of the British Government."

As a company, UKCG issued a statement noting that it "thanks the British Government and the European Union for their sustained and ongoing support during a long and turbulent period for The UK Carbon & Graphite Company Ltd that has affected the reputable company's trade with its valued small diameter graphite electrode customers within the USA.  We greatly appreciate the continued support and understanding of our US customers who have reassured UKCG each step of the way with actions and communicative words of encouragement.  We can assure all our customers that UKCG will be working within the legal framework (as UKCG have always done without falter) and now within the terms of this latest determination to find the best ways to continue to supply our customers with the historical integrity of our company and its renowned high quality graphite products. 

UKCG will assess all of its options with its lawyers, and with the governments of the United Kingdom and the European Union to ensure that UKCG's UK exports avoid unwarranted protectionism and that the best possible trading relationship of high quality graphite products with our valued US and Global customers continues without compromise."

SOURCE UKCG