Global Trade Alert

On August 25, 2016, the International Trade Administration (ITA) of the U.S. Department of Commerce published in the Federal Register a proposed rule to modify the method by which ITA calculated 'normal value' in antidumping (AD) investigations. More specifically, the proposed change concerns the use of constructed value or third-country sales for purposes of determining normal value in cases where the exporting country does not constitute a viable market. This modification would specify that, where the exporting country does not constitute a viable market, ITA will normally calculate normal value based upon constructed value. Attorneys observe that this modification would invert the preexisting order of preference in which, when the exporting country does not constitute a viable market, ITA normally calculates normal value based on sales in a viable third country. The ITA proposes to make this rulemaking effective for segments of antidumping duty proceedings initiated on or after 30 days following the date of publication of the final rule. It invites parties to comment on this proposed rule and the proposed effective date. Further, any party may submit comments expressing its disagreement with the proposal and may propose an alternative approach. It is difficult to know whether this change would tend to favor petitioners or respondents, or which countries might be most affected by it, without seeing its application with respect to specific exports from specific countries.