CIT Bans Cost Offset from Non-Subject Goods in China Chlorinated Isocyanurates AD Case

Following a second remand over the final results of the antidumping duty administrative review of chlorinated isocyanurates from China (used in pool chlorination), covering the period December 16, 2004 - May 31, 2006, domestic producers challenged the use of a by-product offset for chlorine gas, which effectively reduced the Chinese exporter’s costs and AD margin. The Court of International Trade upheld by-product offsets for chlorine gas recovered in the production of subject merchandise, but ruled against the use of a by-product offset for chlorine gas recovered during liquefaction of chlorine, since it derives from the production of non-subject merchandise and is not required in the production of subject merchandise. The CIT therefore remanded this aspect of the determination to the International Trade Administration for recalculation. (Slip Op. 11-41, dated 04/15/11)