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Steel Exporter Signs Off on Remand Results Scrapping PMS in Sales-Below-Cost Test in AD Case

Turkish steel exporter Borusan Mannesmann Boru Sanayi ve Ticaret said the Commerce Department correctly complied with the Court of International Trade's instructions to drop any adjustment to cost of production based on a particular market situation in the sales-below-cost test in an antidumping duty administrative review. In May 19 comments on Commerce's final remand results, Borusan also said that the agency properly adhered to court instructions by weighing the record evidence applicable to the reduction of Borusan's constructed export price by Section 232 duties paid.

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Commerce had originally applied the PMS adjustment in a below cost test for Borusan Mannesmann during its 2017-18 review on Turkish circular welded pipe (see 2104200051). CIT in February remanded the final results, telling Commerce that it can’t apply PMS adjustments in that situation; PMS adjustments are only permissible when calculating normal value based on constructed value, as opposed to when calculating normal value based on home market sales, CIT said, according to Commerce. The agency subsequently released its remand results on April 19.

In the remand redetermination, Commerce also reversed its decision to apply an adjustment to Borusan’s export prices for Section 232 duties paid by Borusan. While CIT had upheld Commerce’s ability to adjust for Section 232 tariffs in its February decision, the trade court took exception with Commerce’s application of adverse facts available (AFA) in applying the adjustment for Borusan. After another look at evidence provided by Borusan, Commerce determined that the single shipment on which Section 232 tariffs were paid had not been sold by the end of the period of review.