Federal Circuit Reverses Post-Sale Adjustment CIT Ruling in Antidumping Case
The U.S. Court of Appeals for the Federal Circuit in a July 20 ruling found that the Commerce Department's initial post-sale price adjustment based on a late delivery penalty in an antidumping case was properly supported. The appellate court reversed a Court of International Trade decision which found that Commerce should have adjusted the price by the entirety of the exporter's penalty payment and not just one-third of it, as Commerce originally did.
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The majority at the Federal Circuit held that since the customer of the large diameter welded pipe was not aware of the methodology which would determine the amount of the penalty to be paid, Commerce was justified in not adjusting the sale by the amount of the entire penalty. Judge Timothy Dyk, in a dissenting opinion, backed CIT's finding, claiming that Commerce's decision to not adjust the sales price by the amount of the penalty that the exporter actually paid lacked substantial evidence.