Opinion ID: 766090
Heading Depth: 3
Heading Rank: 3

Heading: The Home Market Discounts

Text: 21 In the Final Results, Commerce determined that NTN's reported home market discounts would be treated as indirect selling expenses, not direct adjustments to price, because they were not reported on a sale-specific basis. See Final Results, 60 Fed. Reg. at 10,934. In NSK I, the Court of International Trade held that Commerce erroneously treated the home market discounts as indirect selling expenses. See NSK I, 969 F. Supp. at 46. The court reasoned that they are direct selling expenses because they represent expenses related to particular sales of in-scope merchandise. Id. However, the court concluded that they are not entitled to a direct adjustment because of [NTN's] failure to tie them to specific transactions . . . . Id. Consequently, Commerce denied NTN a direct adjustment to FMV in its Remand Results and this denial was subsequently affirmed by the Court of International Trade in NSK II. 22 NTN argues on appeal that its home market discounts can be traced directly to specific transactions through its internal accounting system of product classification and recording of discounts. Accordingly, NTN maintains that its reported home market discounts were not pooled or distortive and thus should have qualified for a direct adjustment to FMV. 23 We hold that there was no legal or factual error in Commerce's determination that NTN's reported home market discounts do not qualify for a direct adjustment to FMV. NTN's home market discounts were reported on an allocable, not transaction specific, basis. However, as Commerce explained, [a]llocated price adjustments have the effect of distorting individual prices by diluting the discounts or rebates received on some sales, inflating them on other sales, and attributing them to still other sales that did not actually receive any at all. Final Results, 60 Fed. Reg. at 10,929. As demonstrated by NTN's responses to Commerce, substantial evidence supports not only Commerce's finding that NTN's reported home market discounts were reported on a product and customer specific basis, but also Commerce's implicit finding that NTN's reporting method was not equivalent to transaction specific reporting. 24