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Recent CIT Decision on Flexibility to Address Masked Dumping Relevant in Separate Suit, US Says

A recent Court of International Trade decision reviewing the Commerce Department's differential pricing methodology under Loper Bright Enterprises v. Raimondo is relevant to resolve a nearly identical claim in a separate case, the U.S. told the trade court in a notice of supplemental authority (Shanghai Tainai Bearing Co. v. United States, CIT # 24-00025).

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In November, CIT held in Garg Tube Export v. U.S. that Congress gave Commerce wide latitude to examine "masked" dumping (see 2411150027). In the decision, the trade court said that, in light of Loper Bright, administrative exhaustion is no longer required to challenge the differential pricing analysis, but that engaging in analysis of the relevant statute leads to the conclusion that Commerce has broad authority to conduct its differential pricing analysis (see 2411150027).

In a separate case against the 2021-22 review of the antidumping duty order on antifriction bearings from China, exporters led by Shanghai Tainai Bearing Co. similarly challenged the differential pricing analysis (see 2408130063). Following Garg Tube, the U.S. said the plaintiff in that action raised the "same argument" that Loper Bright called into question in a prior approval of the analysis method.

"In the context of considering whether plaintiff exhausted its administrative remedies, the Court in Garg Tube addressed plaintiff’s argument and held that 'Congress afforded flexibility to Commerce under 19 U.S.C. § 1677f-1(d)(B) by inserting the phrase ‘differ significantly,'' and, thus, concluded that 'Loper Bright affects no material issue' in the case," the government said.