NEW YORK The U.S. Court
of International Trade (CIT) has remanded a case involving
imports of pure magnesium from China back to the Commerce
Department, which now must reconsider how it calculated certain
production and economic inputs.
Commerce had issued producer
Tianjin Magnesium International Co. Ltd. a weighted-average
margin of zero in its final anti-dumping duty administrative
review of imports from May 1, 2009, to April 30, 2010 (
amm.com, Dec. 8, 2011). But petitioner U.S.
Magnesium LLC claimed that while it submitted new factual
information on the case that it alleged could indicate fraud,
albeit 11 months later, Commerce chose to ignore it.
The Salt Lake City-based
producer also said that Commerces classification of
retort ovens was incorrect, and that surrogate values used in
calculating financial ratios, labor rates and truck freight
rates also were incorrect. U.S. Magnesium said that in the case
of a nonmarket economy, such as Chinas, Commerce must
choose a comparable country for economic analysisin this
The CIT ruled in favor of U.S.
Magnesium, noting that even though the new evidence was
provided after the deadline for submissions, cases of alleged
fraud must be treated differently.
"Commerce abused its discretion
because it failed to address prima facie evidence of
fraud (U.S. Magnesium) raised while the record was still open,"
Senior Judge Nicholas Tsoucalas said in the courts
ruling. "Courts have clearly indicated that prima
facie evidence of fraud is to be treated differently than
other untimely submitted factual information, allowing and even
ordering consideration of such evidence after the closure of
U.S. Magnesium also alleged that
economic data supplied by trading platform Infobanc for the
calculation of freight rates was flawed and had
The CIT asked Commerce to
adequately explain its rationale for selecting Infobanc in its
calculations, as well as review its financial ratios and labor
costs. Commerce also was told to reconsider its findings given
U.S. Magnesiums alleged fraud submission.
Remand results are due within 90