CIT Finds Bearings AD Review Results Unlawful but Denies Challenge

Italian producer/exporter Schaeffler Italia S.R.L. (with Schaeffler Group USA Inc.) failed at the Court of International Trade in an attempt to overturn the final results of the May 2007 -- April 2008 AD administrative review of ball bearings from Italy, in which the International Trade Administration assigned it a 15.10% AD duty rate based solely on the margin results of SKF Industrie S.p.A./Somecat S.p.A, the only other respondent in the review.

The court stated that the ITA is required to calculate individual margins for each respondent except when “large numbers of exports or producers” make it impracticable, and then, an average margin must be based on “a reasonable number of exporters and producers.” The CIT accordingly found the ITA’s failure to review both bearings respondents, and its use of a single company’s margin for both firms, to be “contrary to law.” However, the court also found that Schaeffler had lost the right to contest the results because it withdrew its request for “voluntary respondent” status prior to the final results of review and thereby lost standing to sue over the final review results. Therefore, the court declined to overturn the final results of review.

(Slip Op. 11-73, dated 06/22/11)