Selection of Thailand as surrogate country for China, antidumping review

Selection of Thailand as surrogate country for China

The U.S. Court of Appeals for the Federal Circuit today affirmed a decision of the U.S. Court of International Trade that in turn had affirmed a U.S. Commerce Department determination to select Thailand as the surrogate country for China in the second administrative review of an antidumping duty order on certain steel threaded rod from China.

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The Federal Circuit held that Commerce’s decision to use surrogate values from Thailand to value certain factors of production in calculating normal value for the subject merchandise was in accordance with law, was not arbitrary or capricious, and was supported by substantial evidence. 

The case is: Jiaxing Brother Fastener Co., Ltd. v. United States, No. 2015-1161 (Fed. Cir. April 21, 2016). Read the Federal Circuit’s decision [PDF 160 KB]

Summary

In antidumping proceedings involving nonmarket economy countries—such as China—the Tariff Act requires the Commerce Department to calculate normal value of the subject merchandise based on surrogate values offered in a comparable market economy. Commerce ultimately selected Thailand as the most appropriate market economy to act as the surrogate country to China. 

The Chinese manufacturer appealed to the trade court, and asserted that Commerce erred in selecting Thailand as the primary surrogate country over India and the Philippines. The trade court agreed with Commerce’s determination, and today the Federal Circuit affirmed.

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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