Giambrone & Partners is dealing with an Anti-dumping Duty Petition and a Countervailing Duty Petition involving the Mattress Industry Sector

Giambrone & Partners is handling a complex matter involving a number of companies exporting to the USA in an anti-dumping action involving a number of countries worldwide, following an anti-dumping investigation conducted by the US International Trade Commission in connection with the Italian, Spanish and USA markets.

Vincenzo Senatore, Senior Partner, who leads the anti-dumping case commented “It should be noted that an anti-dumping process attempts to strike a balance between protecting domestic producers and promoting fair trade practices” Vincenzo further commented “it can sometimes inevitably lead to tensions and disputes between trading countries, as the determination of dumping and the injury allegedly caused can be contentious and is subjective.”

The commercial practice of dumping refers to “unfair competition” in two areas, one is where excess products produced in one country are exported to another market and sold at a considerably lower price than in the country in which they were produced. The other is where products are sold below the cost of production.

Both practices have the effect of undermining the markets and creating unfair competition. The World Trade Organisation (WTO) permits certain actions to be taken against the practice of dumping in a set of measures taken by governments of member countries to counteract the damaging effects on international trade. 

Anti-dumping measures can also include countervailing duties where the importing country attempts to level the playing field and prevent unfair competition. The duty imposed is designed to offset the advantage gained by the subsidised foreign producers, thereby making the cost of the imported goods closer to their true market value. This is intended to protect domestic industries from being undercut by unfairly subsidised foreign competition.

The process for determining whether countervailing duties should be imposed involves an investigation by the importing country's authorities, such as customs or trade agencies. A complaint can be filed by an industry in the country receiving imports that believe it is being harmed or undermined by the imported goods. The authority investigating then commences an evidence-gathering exercise to determine if, a) it is actually occurring and b) there is injury to a domestic market due to the dumped goods. If confirmed, a dumping margin is determined – the difference between the price of the goods in the exporter’s home market and the price to the importing country. The authority then assesses the actual damage to the importer’s market share and a decision is made as to the percentage of trade levies that should be applied to off-set the resulting unfair competition affecting the importer’s industry sector.

If the unfair competition is arrived at through subsidies provided by the government of the country that produces the products, the authority assesses the extent of the subsidy provided by the foreign government and the impact it has on the domestic industry. If it is established that the subsidy is causing material harm to the domestic industry, the importing country may decide to levy countervailing duties on the subsidised imports.

Giambrone & Partners commercial lawyers are well placed to assist in cooperation with their US partners, in defending anti-dumping legal actions as they have wide-ranging multi-jurisdictional capacity under one roof which eliminates misconceptions and confusions and considerably shortens the time taken to conclude the entire process. Our lawyers’ language capacities are also of substantial assistance.

Vincenzo Senatore has several years of post-qualification experience in Civil and Common law. Vincenzo has broad experience in UK and international cross-border transactions across a variety of industry sectors as well as international corporate and criminal law. Vincenzo is a formidable litigator with a demonstrable history of bringing successful transactions to successful conclusions, providing legal support to partners and delivering strategic advice to diverse clientele.

After completing his studies as Erasmus student at the Paris-Lodron Universität of Salzburg (A), Vincenzo graduated at the University of Naples “Federico II” (IT) and moved to the USA to gain his Master of Laws (LLM) in International Business Transactions and Trade Law at the Catholic University of America, Columbus School of Law, Washington DC.

Vincenzo has worked in the USA where, during his fellowship at the prestigious Stanford Center for Biomedical and Ethics (Stanford University), specialised in intellectual property related to human embryonic stem cells. His research was published in the prestigious peer reviewed scientific journal Nature Biotech. During that time, he passed the first test (MPRE) to become a California attorney and also became Notary Public for the State of California.

Vincenzo’s professional activities have encompassed, amongst others, being on the scientific organizer committee for the Association Internationale des Jeunes Avocats for conferences on Anglo-American Law and as speaker in webinars, lectures and conferences organised by the British Chamber of Commerce (IT), CUA, Columbus School of Law, Washington DC (USA), Lockey Stem Cells Building Research, Stanford University (USA), SKKU School of Business (Republic of Korea), and the Naples Bar Associations, as expert in Civil and Common law arena.

Should you like to know more about how to deal with unfair competition where products are being sold under market value please contact us at clientservices@giambronelaw.com or click here.