Saturday, September 15, 2012

Tariff Backdating May Bring Constitutional Battle



Eberhardt’s Tire & Automotive is your complete auto repair specialist. Call us for any need. We are here to service your vehicle with the up most care and concern.
Eberhardt’s Tire & Automotive
2335 E Orangethorpe Ave.
Fullerton Ca. 92831

Even though the mortal damage has long been done, the Wall Street Journal revealed that former GPX International Tire Corp. management continues to battle against the tariffs that put the company out of business.

According to the Aug. 26 story by Brent Kendall, a provision in the tariff law passed by Congress and signed into law this past March may, in fact, be unconstitutional. And that factor may bring the entire question of whether the U.S. government can even levy so-called punitive countervailing duties – the kind that put GPX International out of business.

The recent tariff law effectively permits the U.S. government to impose higher tariffs on goods from state-controlled economies that subsidize exports to the U.S. The legislation was drafted and presented in reaction to the December 2011 federal appeals court ruling that the U.S. Commerce Department did not have the power to levy punitive countervailing duties, effectively tossing out a series of duties – some as high as 210% – it placed on China-produced OTR and ag tires imported into the U.S.

Those added duties, placed on the products in 2008, severely damaged the U.S.’s small OTR and ag tire market, and led to the bankruptcy and eventual dismantling of GPX International.

One problem, though: “Congress made part of the law retroactive,” Kendall wrote. “The bill granted the Commerce Department new authority to levy tariffs and backdate them to 2006 – even though the court had ruled the agency didn't possess that authority at the time.”

Back-dating the effective scope of a law is believed to be unconstitutional, and it has changed the entire case, Bryan Ganz, once a part of GPX International’s executive group, told Kendall.

"We think this case should be shocking to everyone," Ganz told the WSJ. "Once Congress retroactively changed the law, the whole complexion of this case changed.”

According to the WSJ article, the Constitution says that Congress and the states can't enact ex post facto laws, that is laws after the fact – they cannot legislate against something that has already happened. But over the years, the Supreme Court has been rather soft on that point, and has “been particularly deferential to retroactive laws on civil matters such as national economic policy,” Kendall wrote.

While GPX International no longer exists and Ganz claimed his pockets are empty, Ganz’s lawyers are working with Chinese tiremakers and China’s government to pursue a constitutionality challenge to the federal law.  



brakes, alignments, shocks, struts, oil change service, batteries, tires, clutches, drivability problems, windshields, cv boots, 30/60/90 service, alternators, radiators, air conditioning, ball Joints, tune ups, fan belts, radiator hoses, power steering, rear ends, engines, transmissions, upolstery, bearings, dash board lights, check engine air pressure, oil


anaheim, fullerton, villa park, brea, placentia, la Habra, orange, santa ana, garden grove, anaheim hills, yorba linda, whitter, orange county,




No comments:

Post a Comment