Commerce Drops Cost-Based PMS Adjustment at CIT, Cuts Dumping Rate for Pipe Exporter
The Commerce Department dropped its use of a cost-based particular market situation adjustment in an antidumping duty review for exporter Garg Tube on remand at the Court of International Trade, decreasing the company's dumping rate from 13.90% to 8.42% if the remand results are sustained. The agency said that because of the U.S. Court of Appeals for the Federal Circuit's holding in Hyundai Steel v. U.S., which found such an adjustment illegal under the 2015 Trade Preferences Extension Act (see 2108050070), it no longer was able to make the adjustment in the 2018-19 administrative review of the AD order on welded carbon steel standard pipes and tubes from India (Garg Tube Export v. U.S., CIT # 21-00169).
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Under Hyundai Steel, Commerce is allowed to make such an adjustment only when normal value is based on constructed value. Since all of Garg Tube's U.S. sales were compared to a normal value based on home market sales, the agency said it couldn't legally make the cost-based PMS adjustment concerning the cost of hot-rolled coil.