Commerce Failed to Account for CIT's Order Regarding CVD Respondent's Profit Ratio, Exporters Argue

The Commerce Department again failed to adhere to the Court of International Trade's order concerning the agency's phosphate rock benefit calculations regarding countervailing duty respondent JSC Apatit's mining rights, exporter Phosagro and its affiliate, Apatit, argued in remand comments at the trade court. The companies said that the remand results, which didn't make any changes to its position in the CVD investigation of phosphate fertilizers from Russia, ignored the court's mandate regarding Commerce's use of Apatit's Profit Before Tax figure in its profit ratio instead of its Gross Profit Figure (The Mosaic Co. v. United States, CIT # 21-00117).

"Put simply, employing Profit Before Tax results in an inaccurately calculated margin, contrary to Commerce’s statutory mandate," the brief said. The agency's explanation "still does not provide a meaningful justification" and merely says there is no evidence showing certain financial items in that figure solely relate to phosphate rock production. "But, notwithstanding its long-winded discussion, Commerce once again refuses to address commercial realities and fails to provide reasoning for its methodology supported by substantial evidence," the brief said.

In their comments, the exporters also encouraged the court to uphold Commerce's use of Apatit's reported cost of production. The companies said the agency addressed all of The Mosaic Co.'s objections to the use of this data, as ordered by the court.