Opinion ID: 761512
Heading Depth: 2
Heading Rank: 5

Heading: By-Product Credits

Text: 28 Chlorine and potassium chloride are produced as a result of the magnesium production process, and AVISMA and SMW use or sell portions of these by-products. See id. at 899. Based on these facts, Commerce reduced the cost of manufacture of the Russian magnesium accordingly. See id. MagCorp argues that Commerce overstated the value of these credits because it deducted the value of the by-products after processing without properly accounting for the by-product processing costs. MagCorp argues that the cost of processing, marketing, distributing and selling the by-products should be deducted from the by-product credits. However, as the Court of International Trade noted, Commerce allocated the by-product costs to factory overhead, eliminating the need to account for these costs separately. See id. at 900. We agree with the Court of International Trade that Commerce's treatment of by-product costs as part of factory overhead is a reasonable interpretation of 19 U.S.C. § 1677b(c). As the discussion of factory overhead in the previous section points out, factory overhead encompasses many different factors and does not require an item-by-item accounting. 29 Further, MagCorp argues that AVISMA has already received credit for a portion of its by-products in another investigation. As no evidence exists to support this allegation, it was properly rejected by Commerce. Therefore, we affirm the judgment of the Court of International Trade affirming Commerce's determination regarding by-product credits. 30