US Seeks Nearly $200 Million in Unpaid AD From German Exporter
The U.S. said Jan. 24 at the Court of International Trade that it was seeking more than $193 million in unpaid antidumping duties from German company Koehler Oberkirch, formerly known as Papierfabrik August Koehler (U.S. v. Koehler Oberkirch GmbH, CIT # 24-00014).
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DOJ alleged Koehler Oberkirch owed $193,631,642.08 for 1,462 entries of lightweight thermal paper that arrived in the U.S. between 2009 and 2011.
During a 2010-11 administrative review, the Commerce Department determined Kohler Oberkirch engaged in transshipping by concealing reportable home market sales, which the company later admitted was “substantially correct,” DOJ said. Commerce gave it, and CIT and the U.S. Court of Appeals for the Federal Circuit affirmed, a 75.36% dumping rate.
Koehler Oberkirch sought a further hearing before the U.S. Supreme Court, but was denied, DOJ said.
CBP liquidated or reliquidated some of Kohler Oberkirch’s entries at the 75.36% rate, granting lower rates for others from the time frame in response to protests by the company. For each entry, Commerce issued the company a bill for duties still owed, DOJ said.
Every month since, Commerce has reminded Kohler Oberkirch of its payments due, it said.
In 2021, the company “underwent what it publicly called a ‘spin-off,’” DOJ said. Certain of its assets and liabilities were transferred to a new company called Kohler Oberkirch SE, which maintains the same address as the former company and initially had the same management, it said. Neither company has listed the antidumping duty debt to Commerce in its liabilities or anywhere else in its public records, DOJ said.
“As a direct result of the ‘spin-off,’ Koehler now lacks assets sufficient to pay its debts to Customs,” it said.
Koehler Oberkirch hasn't made any payments due to CBP, DOJ said. As an apparent successor, Koehler Oberkirch Paper SE is liable for Koehler Oberkirch’s duties, it said. Further, it alleged the spin-off was primarily motivated to conceal its debt and defraud Commerce.
DOJ said it seeks a jury trial.