In this antidumping case, the issue was whether the Department of Commerce properly used the import price of aniline in India in its dumping investigation of sulfanilic acid from the People Republic of China. Because China is a non-market economy, Commerce estimates the foreign market value of goods subject to a dumping investigation based on the cost of certain factors of production in a similar market economy. In this case, Commerce chose India as a substitute for China.
Aniline is a raw material used in the production of sulfanilic acid.
The tariff, however, is waived when the aniline is used in the production of sulfanilic acid exported from India. Commerce used the lower aniline prices paid by exporters in its attempt to arrive at a Chinese foreign market value. The U.S. industry objected stating that Commerce should have used the higher domestic price. The Federal Circuit reiterated that the dumping law gives Commerce wide discretion in the valuation of the factors of production used to calculate foreign market value. Where the best information available requires Commerce to make an analogy to the market experience in the home market, it may do so.