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Keywords

plaintifftariffdumping

plaintifftariff

Related Cases

General Housewares Corp. v. U.S., 16 C.I.T. 24, 783 F.Supp. 1408, 13 ITRD 2356

Facts

The case arose from actions contesting the ITA's Final Determination of Sales at Less Than Fair Value regarding porcelain-on-steel cooking ware from Mexico. TRES and Cinsa, the plaintiffs, argued that the ITA's use of the official exchange rate at the time of sale inflated their dumping margins, as they received more pesos due to the peso's depreciation when converting dollars to pesos 90 days later. The ITA maintained that the conversion was appropriate and that inflation in Mexico would offset the gains from the delayed conversion.

The issues in action No. 87–01–00022 concern a business practice of TRES and Cinsa (and apparently of other manufacturers and exporters in Mexico) which grew out of that country's foreign-exchange-control laws.

Issue

Did the ITA err in its determination to convert dollars to pesos at the official rate on the date of sale, despite the subsequent depreciation of the peso?

Rule

The ITA is required to make a fair comparison between foreign-market value and U.S. price, and it must convert foreign currency into U.S. currency according to the provisions of the Tariff Act of 1930, as amended.

In determining the existence and amount of any difference between the United States price and the fair value or foreign market value for the purposes of this part or of the Act, any necessary conversion of a foreign currency into its equivalent in United States currency shall be made in accordance with the provisions of section 522 of the Tariff Act of 1930, as amended (31 U.S.C. 372): (1) As of the date of purchase or agreement to purchase, if the purchase price is an element of the comparison.

Analysis

The court found that the ITA's decision to use the official exchange rate on the date of sale was supported by substantial evidence. The ITA argued that allowing for the foreign exchange gains without adjusting for inflation would overstate the return to Mexican producers. The court agreed that the ITA's reliance on the official rate was consistent with its regulatory obligations and that the plaintiffs did not demonstrate that the margins were inflated due to factors beyond their control.

The ITA rejected a free-rate approach, stating that '[f]irms must convert their foreign exchange to Mexican pesos at the official exchange rate. Therefore, we converted at the certified official rate in effect on the date of sale.'

Conclusion

The court dismissed the actions contesting the ITA's determination, affirming that the agency's methodology was appropriate and supported by the record.

Dismissed.

Who won?

The United States prevailed in the case, as the court upheld the ITA's determination and dismissed the plaintiffs' actions.

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