Greek Exporter Challenges Switch to 'Punitive' AFA Rate Despite No Change in Data

The Commerce Department erred when it switched its zero percent dumping margin for Greek exporter Corinth Pipeworks Pipe Industry (CPW) to a 41.04% dumping rate despite the fact that the data was "entirely unchanged," the exporter told the Court of International Trade in a March 31 complaint. CPW also contested Commerce's use of adverse facts available despite the fact that it fully cooperated in the antidumping duty review and the agency's failure to conduct a verification, virtual or otherwise (Corinth Pipeworks Pipe Industry v. United States, CIT #22-00063).

The case contests the final results in the 2019-2020 administrative review of the ADD order on large diameter welded pipe from Greece. CPW said that in the review Commerce relied on the exporter's reported costs in the preliminary results, ending at a zero percent dumping margin. Then, without any change in the data, either via a request from Commerce or any on-site or virtual verification of the data "which might have resulted in revisions to the data," Commerce switched to a 41.04% dumping margin.

The agency did so since CPW allegedly failed to provide cost reconciliation information "in the form and manner requested" by Commerce. However, "Commerce gave no indication in its Preliminary Results that the cost data submitted by CPW and on which Commerce relied for its preliminary margin calculation were not sufficient for the Final Results as well," the complaint said. The agency hit CPW with AFA over the discrepancy -- a move the exporter claims is unsupported by evidence since it gave the agency all the data it requested.

CPW also contested Commerce's failure to conduct verification. In the review, the agency did not visit CPW's facilities to conduct verification, citing COVID-19 travel concerns, nor did it conduct virtual verification or issue a letter in lieu of verification, the exporter said. Doing so deprived the company of a meaningful chance to address alleged deficiencies cited as the basis for the "punitive" AFA rate, the complaint said.