State r overrule the decision of the customs service

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Reference no: EM132161147

Eager Ltd in State P receives a wide variety of government assistance from the State P government (including tax breaks, low interest financing, and technical assistance) that State P offers to all domestic enterprises within its territory to assist in helping its local businesses improve export performance. Increased subsidies are paid if export volumes increase. Eager Ltd manufactures mobile phones that it recently began to sell in State R.

Fone Pty Ltd in State R manufactures similar mobile phones and it has begun to lose a lot of its market share to Eager. State P and State R are both WTO member States.

Fone Pty Ltd would like State R to impose a countervailing duty to offset the subsidies received by Eager from State P, and Fone Pty Ltd has asked the State R Customs Service (which is responsible for imposing such duties) to do so.

After making an investigation, the Customs Service refused to impose any duties. Fone Pty Ltd has appealed to a Court in State R against this decision.

Should the Court in State R overrule the decision of the Customs Service? Explain citing any case authority you think may be relevant.

Reference no: EM132161147

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