Steptoe Trade Team Successfully Challenges Commerce Department Dumping Margin Calculations

Victory favors client SKF
July 12, 2010

(July 12, 2010, Washington, DC) — On July 8, the Court of International Trade (CIT) affirmed Steptoe’s challenge of the Department of Commerce's calculation methodology in a long-running anti-dumping case against client SKF. This victory resulted in significant savings for client SKF. During its annual review of antidumping duties on ball bearings from France, Germany, Italy, the UK, and Japan, Commerce incorrectly calculated the dumping margin for SKF’s German company, SKF GmbH. Last week’s ruling affirmed that the correct margin should be 1.97 percent rather than the 4.15 percent originally calculated for SKF GmbH for the period from May 1, 2006 to April 30, 2007. In the ruling, the judge also ordered Customs to release any monies held to cover the higher duties.

Steptoe challenged the margin imposed by Commerce because the department effectively punished SKF because of a late response of one of the company's suppliers. During the department's administrative review of anti-dumping duties on ball bearings from France, Germany, Italy, Japan, and the UK, the department used adverse facts available to calculate the margin because the data provided by one of SKF's suppliers was submitted three days late. However, the supplier was not an SKF company and SKF had no way to compel the company to make a timely submission. Generally, the rates found in adverse facts available determinations are much higher.

“We are extremely pleased with this outstanding result, which will save SKF a sizeable sum,” said Herbert C. Shelley, partner, Steptoe & Johnson LLP. “This is just one of many important victories Steptoe’s trade team has won at the CIT challenging rulings by the Commerce Department and the US International Trade Commission.”

In addition to Mr. Shelley, the Steptoe team included Alice Kipel and Laura Ardito.

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