November 12, 2009
In an article titled, “Chinese Allegedly Evading US Graphite Electrode Duties,” partner David Hartquist
was quoted. The article discusses the investigation by domestic producers of small-diameter graphite electrodes, which is exploring whether China is circumventing an anti-dumping order by shipping material to South Korea that is then labeled the country of origin.
David says "the producers were tipped off by the highly unusual number of these exports coming from Korea." The article identifies potential schemes for the investigation. "We have seen these sorts of schemes before, many of which may amount to customs fraud. We have found both Customs and Commerce to be proactive in their enforcement efforts to preserve the integrity of U.S. anti-dumping laws," David said.
The producer, exporter and importer can all be held liable. "It could take several forms and depends on what the investigation finds," David said. "Typically, importers have a long-term relationship with producers and would know if they produced electrodes. Exporters could be found responsible for fraud and it could also go back to the producers in China, which are the starting point in the chain."