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ITA Refining Methodology Used to Address Hidden or Masked Dumping

Friday, May 09, 2014
Sandler, Travis & Rosenberg Trade Report

The International Trade Administration is seeking public comment no later than June 23 on the differential pricing analysis it is developing to determine when it may be appropriate to use an alternative price comparison method in antidumping duty proceedings. The ITA is working to refine this analysis to help address potentially hidden or masked dumping that can occur when the standard comparison method is used.

Certain criteria must be satisfied for the ITA to use the average-to-transaction method (comparing export or constructed export prices of individual transactions with the weighted-average normal value) as an alternative to the standard average-to-average method (comparing weighted-average export or constructed export prices to weighted-average normal values). In particular, if the ITA finds that there is a pattern of export or constructed export prices for comparable merchandise that differ significantly among purchasers, regions or time periods and explains why such differences cannot be taken into account using the average-to-average method,then the average-to-transaction method may be applied.

In the past the ITA satisfied these criteria through the use of its targeted dumping analysis, but the agency’s targeted dumping regulations were withdrawn in December 2008. In the meantime the ITA has used the so-called Nails test to determine when to apply an alternative comparison method in situations where targeted dumping is alleged.

However, the ITA is developing a new approach to make such determinations – the differential pricing analysis. This analysis would be conducted in each segment of an AD duty proceeding and evaluate all purchasers, regions and time periods to determine if there is a pattern of export or constructed export prices for comparable merchandise that differ significantly. If such a pattern is found, the ITA would examine whether using only the average-to-average method could appropriately account for such differences or whether an alternative comparison method would yield a meaningful difference in the weighted-average dumping margin (i.e., at least 25% higher or across the de minimis threshold).

After obtaining some experience with this approach, the ITA is seeking public comments to further develop and/or refine it. To assist commenters, the ITA has made available on its Web site SAS programs it uses to conduct its differential pricing analysis.

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