Opinion ID: 761512
Heading Depth: 2
Heading Rank: 3

Heading: Selling, General and Administrative (SG & A) Expenses

Text: 22 SG & A expenses is a ratio of general expenses to the cost of manufacturing. See MagCorp I, 938 F.Supp. at 898. MagCorp alleges that Commerce's treatment of SG & A expenses was improper because the reselling costs incurred by third-country resellers were not included. As a result, argues MagCorp, Commerce did not compare the product at a similar point in the chain of commerce to the USP for the product, which did include the third-country resellers' expenses. 23 The Court of International Trade relied on statutory language in rejecting MagCorp's argument. See id. at 904. Subsection 1677b(e)(1)(B) requires the inclusion in the USP of 24 an amount for general expenses and profit equal to that usually reflected in sales of merchandise of the same general class or kind as the merchandise under consideration which are made by producers in the country of exportation, in the usual wholesale quantities and in the ordinary course of trade. 25 19 U.S.C. § 1677b(e)(1)(B). This language supports Commerce's position that the statutory amount for general expenses and profit is limited to sales made by producers in the country of exportation. MagCorp I, 938 F.Supp. at 904. On the other hand, MagCorp cites to Commerce's own Antidumping Manual to support its position that third-country reseller expenses should be included in the SG & A calculation. However, the section of the Antidumping Manual cited by MagCorp clearly refers to merchandise exported from market economies. See International Trade Admin., U.S. Dep't of Commerce, Antidumping Manual: Import Administration 52 (1994). Because MagCorp's position is not supported by the language of the statute or by Commerce's Antidumping Manual, we affirm the judgment of the Court of International Trade affirming Commerce's determination on the issue of SG & A expenses.