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CAFC Rejects Commerce's Use of 'd' Test to Detect Masked Dumping

The U.S. Court of Appeals for the Federal Circuit on April 22 held that the Commerce Department may not use the Cohen's d test to detect targeted dumping where the "underlying data is not normally distributed, equally variable, and equally…

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and sufficiently numerous." Judges Sharon Prost, Richard Taranto and Raymond Chen said it's "unreasonable" for Commerce to use the d test on data sets that don't satisfy the statistical assumptions, adding that the agency's argument that the assumptions need not apply when using the test on the entire population of data as opposed to just samples "strains credulity." Remanding the antidumping duty investigation of utility-scale wind towers from Canada, the Federal Circuit also sent back Commerce's rejection of respondent Marmen's supplemental cost-reconciliation item meant to correct certain purchase information that hadn't been properly converted from U.S. dollars to Canadian dollars. However, the court sustained Commerce's decision to weight-average Marmen's reported steel plate costs.