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Commerce Drops PMS Adjustment to Sales-Below-Cost Test in CIT Case

The Commerce Department dropped its particular market situation adjustment for the sales-below-cost test on remand at the Court of International Trade in an antidumping duty case on forged steel fluid end blocks from Germany, resulting in a zero percent AD rate for respondent BGH Edelstahl Siegen, if the rate is sustained (Ellwood City Forge Co., et al. v. United States, CIT # 21-00077).

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Commerce said in the underlying investigation that a PMS existed in Germany, distorting the costs of electricity and ferrochrome. After the investigation concluded, the U.S. Court of Appeals for the Federal Circuit in Hyundai Steel v. U.S. ruled that PMS adjustments were only meant to apply to constructed value and not the cost of production value when calculating normal value (see 2112100039). The trade court then remanded the present action for compliance with the appellate court's ruling (see 2211090067).

On remand, Commerce instead made a PMS adjustment for the calculation of constructed value. The AD petitioner, the FEB Fair Trade Coalition, argued in comments to Commerce that the move "incorrectly" limits the options for applying PMS adjustments, claiming that the agency can adjust dumping calculations "where the comparison is price-to-price." Commerce acknowledged the petitioner's statutory claims, but said that the present case was not the proper place to discuss them.