Jiaxing Bros. Fastener Co. v. United States, No. 15-1161 (Fed. Cir. 2016)
Annotate this CaseIn antidumping proceedings involving nonmarket economy countries, such as China, the Tariff Act requires the Department of Commerce to calculate normal value of the subject merchandise based on surrogate values offered in a comparable market economy, 19 U.S.C. 1677b(c)(1). Commerce calculates the surrogate values by valuing certain “factors of production” used in producing the merchandise in a comparable market economy, essentially creating a hypothetical normal value for the merchandise that is uninfluenced by the nonmarket economy. In review of an anti-dumping duty order on certain steel threaded rod from China, Commerce selected Thailand as the surrogate country for China to value certain factors of production in calculating normal value for the subject merchandise. The Court of International Trade and the Federal Circuit affirmed, finding the decision in accordance with law, not arbitrary or capricious, and supported by substantial evidence. The court rejected an argument that Commerce was bound by its past practice of using India as a surrogate.
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