ELR Citation: ELR 20020
No(s). 07-1059 (U.S. Jan 26, 2009)

The U.S. Supreme Court held that the Tariff Act's antidumping duties on foreign merchandise sold in the United States at less than its fair value apply to imports of low enriched uranium obtained by domestic utilities in return for cash and unenriched uranium delivered to a foreign enricher. Section 731 of the Tariff Act (19 U.S.C. §1673) addresses foreign merchandise sold in the United States but does not touch international sales of services. Although the parties' contracts call these transactions "sales" of uranium enrichment services, the U.S. Commerce Department determined they were sales of foreign merchandise subject to the antidumping provision. The Department's interpretation reflects a permissible interpretation and application of §731. Where a domestic buyer's cash and an untracked, fungible commodity are exchanged with a foreign contractor for a substantially transformed version of the same commodity, the Commerce Department may reasonably treat the transaction as the sale of a good under §1673. Justice Souter delivered the opinion for a unanimous Court.