Federal Circuit - Remand of ADD determination of circular welded non-alloy steel pipe from Mexico 

May 29:  The U.S. Court of Appeals for the Federal Circuit today vacated and remanded a decision of the trade court that, in turn, had sustained the Commerce Department’s antidumping determination with respect to imports of circular welded non-alloy steel pipe from Mexico. Mueller Comercial de Mexico v. United States, 2013-1391 (Fed. Cir. May 29, 2014)

Read the Federal Circuit decision [PDF 135 KB]

Summary

The antidumping duty (ADD) rate for this exporter of pipe from Mexico was based on the difference between the “normal value” (typically, the home / domestic market price) and the “export price” of the goods sold in the United States. However, the exporter’s data alone could not be used to determine whether its home market sales were below the cost of production for the goods.


The Commerce Department requested data from two of the exporter’s primary suppliers, in order to calculate the cost of production for the subject merchandise. One supplier did not provide product-specific cost data that would enable Commerce to calculate that supplier’s cost of production for each product, failing to account for different costs based on nominal pipe size and pipe wall thickness. Therefore, Commerce did not have sufficient information to calculate the ADD rate for the exporter and had to rely on an option to secure date that could be used as a substitute.


The U.S. Court of International Trade found that Commerce’s application of the facts available was reasonable and sustained Commerce’s final results.


Today, the Federal Circuit vacated and remanded the case. The Federal Circuit found that, given the missing data, the rationale used by Commerce in its calculation of the ADD rate was not supported by substantial evidence.



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