Commerce Flips Position, Rejects Bid for CEP Offset in Korean Pipe AD Case

The Commerce Department flipped its position in an antidumping duty case, finding that a constructed export price offset was not warranted for AD respondents Husteel and Hyundai in the 2019-20 AD review of circular welded non-alloy steel pipe from South Korea. Issuing its remand results Oct. 31 at the Court of International Trade, the agency said its per unit analysis showed the home market level of trade is "not at a more advanced stage of distribution than the" level of trade of the constructed export price level of either respondent (Wheatland Tube v. U.S., CIT # 22-00160).

The statute requires that a constructed export price offset be granted only when normal value is set at a level of trade that "constitutes a more advanced stage of distribution than the level of trade of the constructed export price." In the review, Commerce originally granted the constructed export price offset, even though neither company gave an adequate quantitative analysis to back their claims for the offset, since Commerce failed to give either exporter a chance to remedy deficiencies in their analyses.

The trade court remanded this result, telling Commerce it should give Husteel and Hyundai notice of their deficiencies and a chance to remedy them (see 2308030038). The agency did just that, ultimately finding that a constructed export price offset wasn't warranted. Commerce said its "per-unit analysis" establishes that the home market level of trade "is not at a more advanced stage of distribution" than the level of trade of the constructed export price level of trade of either respondent, adding that neither company gave enough evidence from their books and records "linking expenses to specific selling activities."

The result of the analysis raised the dumping rates for the respondents. Husteel saw its margin rise from 1.97% to 2.42%, while Hyundai's mark increased from 4.07% to 4.95%. Both Nexteel's and exporter SeAH Steel's rates rose from 3.21% to 3.91%.

Hyundai submitted comments on Commerce's draft remand, arguing the statute "does not require a quantitative analysis" and noting the agency has historically used qualitative evidence in setting levels of trade, including a "simple" selling functions chart.