EU: Anti-dumping calculation change sparks court ruling
A change in methodology calculating anti-dumping duties levied on a South Korean fibre manufacturer has led to these tariffs being struck down at the European Court of Justice.
Its Court of First Instance has ruled the European Commission and the European Union (EU) Council of Ministers broke EU anti-dumping procedures by switching mathematical formulae between the 'input' to the 'residual' method when assessing whether Huvis Corp was dumping cut-priced polyester staple fibres on EU markets.
Huvis argued at the court that this was unfair, because such switch are only allowed under EU law through a "change in circumstances", not occurring in this case.
Ministers eventually imposed a duty of 5.7% in 2005 on Huvis and other South Korean manufacturers, which the company later challenged because of the calculation change.
The Commission and council argued because of South Korean invoicing practice, the 'input' method was "was no longer appropriate".
But the court has ruled: "Such an assertion is not sufficient to justify the use of a different method."
It scrapped Huvis' duties as illegal and told the council to pay 70% of the company's costs.
By Keith Nuthall.
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