Opinion ID: 761512
Heading Depth: 2
Heading Rank: 6

Heading: Surrogate Values for Concentrated Carnallite

Text: 31 In calculating a surrogate price for Russian magnesium, Commerce used unprocessed, raw dolomite as a surrogate for the processed, concentrated carnallite used in magnesium production. See Final Determination, 60 Fed.Reg. at 16,449. Commerce used raw dolomite as the most appropriate surrogate for concentrated carnallite because these materials have a similar magnesium chloride content and a price for concentrated carnallite was not available in Brazil. See id. MagCorp does not challenge that raw dolomite is an appropriate substitute for raw carnallite, but does argue that the comparison to concentrated carnallite is inappropriate because it does not account for the cost incurred by Russian magnesium producers to process raw carnallite into concentrated carnallite. 32 The Court of International Trade rejected MagCorp's argument based on the language of 19 U.S.C. § 1677b(c)(2). See MagCorp I, 938 F.Supp. at 891-92. As noted above in the discussion of electric rates, this subsection requires Commerce to use the value of merchandise which is comparable to merchandise under investigation. Raw dolomite is comparable to processed carnallite for these purposes because both substances have similar magnesium levels. Moreover, whatever costs incurred in processing raw dolomite into a suitable form for magnesium production were included in the factory overhead for the Brazilian industry. Therefore, we affirm the judgment of the Court of International Trade affirming Commerce's determination regarding surrogate values for concentrated carnallite.