Soon after it issues its initiation notice, the Commerce Department will send to all interested parties a proposed model-match hierarchy. Such proposal will consist of a several-page list of important physical characteristics of the product at issue. The physical characteristics will be arranged in a hierarchy of importance (as defined by the Commerce Department). The Commerce Department will invite parties to submit comments on the model-match hierarchy.

 

Although the Commerce Department's invitation will occur very early in the process, and usually before much analysis can be done, the company should try to take advantage of the opportunity. Often, how the Commerce Department establishes the model-match hierarchy has a big impact on the dumping margin calculation. (The only exception is if the foreign exporter sold identical products (models) in the United States and comparison (home or third country) markets, and, in cases where costs are being examined, if the comparison market sales of the identical product were made at an above-cost price. In this situation, the dumping calculation will result in identical matches and therefore the model-match hierarchy becomes less important.)

 

To take advantage of the Commerce Department's invitation, the company needs to examine three questions: (1) does the Commerce Department's list omit an important physical characteristic; (2) does the Commerce Department's hierarchy of physical characteristics correctly reflect the relative importance of each physical characteristic; and (3) are any of the individual physical characteristics listed too broadly defined and more appropriately split into several sub-categories.

 

The company should submit any comments by the deadline given by the Commerce Department. Before submitting any changes, however, the company should undertake a quick examination (if possible) as to whether the changes would help or hurt the dumping margin calculation for the company.

 

Source: Business Guide to Trade Remedies in the United States: Anti-dumping, countervailing and safeguards legislation practices and procedures