Navigator foresees return of 22.7 million euros after legal victory in the US
The Portuguese papermaker won a dispute with the US paper sales tax. A drop from 37.34% to 1.63% gives the right to return the difference.
Navigator won a legal battle over the paper sales tax that had been applied to it in the US. The paper company reduced this rate, from 37.34% to 1.63%, and is expected to be reimbursed from 25.7 million dollars (22.7 million euros), an amount paid in excess.
“Navigator Company S.A. hereby informs that in relation to the anti-dumping process on the final rate to be applied to the sale of certain paper products in the USA for the first period under review, the US Court of International Trade has confirmed the rate of 1.63% proposed by the Department of Commerce at the beginning of 2020,” the paper company said in a statement sent to CMVM.
The initial calculation of the U.S. Department of Commerce indicated a rate of 37.34%. However, Navigator has challenged this rate in court before the U.S. Commerce Court and the Department of Commerce has initially voluntarily agreed to review the rate to 1.75%. The court ruled against it in November, lowering it to 1.63%, a figure that confirmed in court this Tuesday.
Today, Navigator is announcing the amount it expects to be returned to it as a result of the court decision, which can still be appealed by either side within 60 days. “If no appeal is made, and the decision becomes final, the Company expects to receive a reimbursement of the excess amounts deposited, estimated at 25.7 million euros.”
For the Portuguese company, this is a major victory, saying that “since the first hour, the Company has questioned the rate applicable to the sales of some of its uncoated paper products in the USA, using the legal means at its disposal to rebut the rates applied” and that “this decision has confirmed the reasonability of its claims.”
