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CIT Orders ITA to "Reconsider" Using 3rd Party Costs in Bearings AD Reviews

The Court of International Trade has issued new remand instructions in the May 2005-April 2006 AD duty administrative review of ball bearings and parts thereof from France, Germany, Italy, Japan, Singapore, and the United Kingdom, following an earlier decision by the Court of Appeals for the Federal Circuit that permitted the use of third-party costs for the first time under the order but required an explanation of the approach from the International Trade Administration.

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The CIT instructed the ITA to reconsider its decision regarding third party costs and address the two concerns raised by SKF USA Inc. and its foreign affiliates: 1) that under the new method an overseas exporter “could not change its pricing to avoid dumping because it could have no knowledge of its unaffiliated supplier’s actual production costs,” and 2) that the ITA would “apply an adverse inference if the unaffiliated supplier failed to provide cost data.”

See ITT’s Online Archives 11012022 for summary of CAFC decision permitting the use of third-party costs but requiring an explanation of the methodology from the ITA.

(Slip Op. 11-126, dated 10/14/11)