CAFC OKs Using 3rd-Party Data for Constructed Value in Bearings AD Case

In the May 2005--April 2006 AD review of ball bearings from Germany, for the first time under that order the ITA based an exporter’s constructed value¹ on cost data from unaffiliated third parties who had supplied some of the exporter’s finished product, rather than on the prices paid by the exporter to the third party suppliers. As well as challenging the ITA’s use of zeroing^2, SKF GmbH challenged the new CV method, arguing 1) that the change was unexplained; 2) that as a respondent it unfairly risked adverse rates since it could not compel the unrelated party to submit costs data and finally; 3) that it could not be sure to avoid dumping since it did not know the costs incurred by the third party supplier, who is also a competitor in the home market. The appeals court dismissed the zeroing challenge and confirmed that the ITA may use third-party production cost data (it does so in other AD orders), but also ruled that the ITA must provide explanations to address SKF’s other concerns. (See ITT’s Online Archives or 9/02/10 news, 10090215, for BP summary of latest AD duty rates for ball bearings.) (Appeal Number 2010-1128, dated January 7, 2011)