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Commerce told to reconsider magnesium ruling

Keywords: Tags  Tianjin Magnesium, fraud, magnesium, CIT, appeals, Commerce, anti-dumping, Catherine Ngai


NEW YORK — The U.S. Court of International Trade (CIT) has remanded a case involving imports of pure magnesium from China back to the Commerce Department, which now must reconsider how it calculated certain production and economic inputs.

Commerce had issued producer Tianjin Magnesium International Co. Ltd. a weighted-average margin of zero in its final anti-dumping duty administrative review of imports from May 1, 2009, to April 30, 2010 (amm.com, Dec. 8, 2011). But petitioner U.S. Magnesium LLC claimed that while it submitted new factual information on the case that it alleged could indicate fraud, albeit 11 months later, Commerce chose to ignore it.

The Salt Lake City-based producer also said that Commerce’s classification of retort ovens was incorrect, and that surrogate values used in calculating financial ratios, labor rates and truck freight rates also were incorrect. U.S. Magnesium said that in the case of a nonmarket economy, such as China’s, Commerce must choose a comparable country for economic analysis—in this case, India.

The CIT ruled in favor of U.S. Magnesium, noting that even though the new evidence was provided after the deadline for submissions, cases of alleged fraud must be treated differently.

"Commerce abused its discretion because it failed to address prima facie evidence of fraud (U.S. Magnesium) raised while the record was still open," Senior Judge Nicholas Tsoucalas said in the court’s ruling. "Courts have clearly indicated that prima facie evidence of fraud is to be treated differently than other untimely submitted factual information, allowing and even ordering consideration of such evidence after the closure of administrative proceedings."

U.S. Magnesium also alleged that economic data supplied by trading platform Infobanc for the calculation of freight rates was flawed and had inconsistencies.

The CIT asked Commerce to adequately explain its rationale for selecting Infobanc in its calculations, as well as review its financial ratios and labor costs. Commerce also was told to reconsider its findings given U.S. Magnesium’s alleged fraud submission.

Remand results are due within 90 days.


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