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CAFC Upholds AFA AD Rate for Inadequate Explanation of Revised Cost Data Submission

The U.S. Court of Appeals for the Federal Circuit recently upheld a lower court decision that found the Commerce Department correctly applied adverse facts available to a Mexican exporter after it submitted corrected cost data without adequate information in an antidumping duty administrative review.

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In a decision publicly released April 30 but decided weeks earlier, CAFC agreed with Commerce that the 40.52% AFA rate applied to Deacero in the 2014-15 AD duty administrative review on carbon and certain alloy steel wire rod from Mexico was justified, holding that the requirement that Commerce accept corrected data does not extend when those corrections are not adequately explained.

“Deacero’s ‘significant failing’ was not that it submitted corrected information; rather, it was that Deacero failed to timely notify Commerce of the nature and import of those corrections, and failed to adequately explain the corrections when given the opportunity to do so,” the Federal Circuit said.