CIT Orders ITA to Reconsider Zeroing, Currency Value in Brazil Orange Juice AD Review

The Court of International Trade remanded part of the International Trade Administration’s final results of the 2008-09 administrative review of the antidumping duty order on certain orange juice from Brazil (A-351-840), in order for the ITA to reconsider its decision to include currency translation when calculating Brazilian plaintiff Fischer S.A. Comercio, Industria and Agricultura’s constructed value, and to reconsider its decision to apply zeroing methodology. However, CIT rejected Fischer’s other challenges of the ITA’s constructed value corporation.

Amounts in Constructed Value Calc Must Be “Incurred and Realized”

Specifically, CIT agreed with Fischer’s argument that, as the currency translations from U.S. dollars to Brazilian reals were only to comply with Brazilian accounting law, and the money was never actually converted, then adjustment of constructed value for currency translation violates the statute. According to CIT, 19 USC 1677(b)(e)(2)(A) requires that the ITA include in constructed value (the method of deriving the home or third-country sales baseline used to determine AD rates when a company does not sell in its home country or a third-country market) only actual amounts incurred and realized, and as Fischer’s currency translation was not realized, CIT remanded the issue to the ITA.

CIT also remanded the ITA’s use of zeroing in order to comply with the precedent established in recent Court of Appeals for the Federal Circuit decisions.

(CIT Slip Op. 12-59, dated 04/30/12, public version posted 05/30/12, Judge Goldberg)