Mid Continent Nail Corp. v. United States

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A 2011 petition alleged that imports of steel nails from the United Arab Emirates were being sold in the U.S. at less than fair value. The Department of Commerce initiated an antidumping investigation, determined that Precision was a mandatory respondent, and found that Precision had engaged in “targeted dumping,” with sales reflecting “export prices . . . that differ[ed] significantly among certain customers, regions, and time periods.” Commerce may calculate dumping margins using the average-to-average, the transaction-to-transaction, or the average-to transaction methods, 19 U.S.C. 1677f-1(d)(1)(A)(i)–(ii). The average-transaction methodology results in higher margins because sales at non-dumped prices are given a value of zero and only sales at dumped prices are aggregated. Commerce historically applied the Limiting Regulation, under which, use of the average-transaction methodology required explanation of why the other two methodologies fail to sufficiently account for dumping. In 2008, Commerce withdrew the Limiting Regulation. Commerce acknowledged that the repeal required prior notice and public comment, but “waive[d] the requirement,” invoking the “good cause” exception because the regulations were applicable to ongoing investigations. In calculating Precision’s dumping margin three years later, Commerce applied the average-to-transaction methodology. The Trade Court held that Commerce had violated the Administrative Procedure Act by withdrawing the regulation without providing notice and opportunity for comment. On remand, Commerce redetermined Precision’s duty by applying the withdrawn regulation and found that no duty was owing. The Trade Court and Federal Circuit affirmed. View "Mid Continent Nail Corp. v. United States" on Justia Law