CIT Grants Commerce Voluntary Remand to Fix PMS Adjustment to Sales-Below-Cost Test
The Court of International Trade in a Feb. 3 order granted the Commerce Department's voluntary remand request to reconsider its decision to apply a cost-based particular market situation adjustment when calculating antidumping duty respondent Garg Tube Export's weighted-average dumping margin. The respondent consented to the motion in light of the U.S. Court of Appeals for the Federal Circuit's 2021 decision in Hyundai Steel Co. v. U.S., which found Commerce can't make a PMS adjustment to the sales-below-cost test (Garg Tube Export v. United States, CIT # 21-00169).
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The case concerns the 2018-19 administrative review of the antidumping duty order on welded carbon steel standard pipes and tubes from India. Garg Tube requested a stay in the case pending the result of Hyundai Steel, given that both actions dealt with the use of a PMS adjustment to the sales-below-cost test (see 2108050070).
After Hyundai Steel was decided and Commerce was barred from making this adjustment, the U.S. moved to voluntary remand the case to bring the AD review into compliance with controlling precedent. "Because Commerce applied a PMS adjustment to Garg Tube’s costs of production for purposes of the sales-below-cost test in the challenged review, we request that the Court remand this matter to Commerce so that Commerce may recalculate Garg Tube’s weighted-average dumping margin without making a cost-based PMS adjustment in light of Hyundai Steel," the brief said.