decision-memo-a533889 | Page 14

Barcode : 4259556-02 A-533-889 REV - Admin Review 12 / 13 / 19 - 5 / 31 / 21
The differential pricing analysis used in these preliminary results examines whether there exists a pattern of prices for comparable merchandise that differ significantly among purchasers , regions , or time periods . The analysis evaluates all U . S . sales by purchaser , region , and time period to determine whether a pattern of prices that differ significantly exists . If such a pattern is found , then the differential pricing analysis evaluates whether such differences can be taken into account when using the average-to-average method to calculate the weighted-average dumping margin . The analysis incorporates default group definitions for purchasers , regions , time periods , and comparable merchandise . Purchasers are based on the reported consolidated customer codes . Regions are defined using the reported destination code ( i . e ., ZIP code or state code ) and are grouped into regions based upon standard definitions published by the U . S . Census Bureau . Time periods are defined by the quarter within the POR based upon the reported date of sale . For purposes of analyzing sales transactions by purchaser , region , and time period , comparable merchandise is defined using the product control number and all characteristics of the U . S . sales , other than producer , region , and time period , that Commerce uses in making comparisons between EP or CEP and NV for the individual dumping margins .
In the first stage of the differential pricing analysis used here , the “ Cohen ’ s d test ” is applied . The Cohen ’ s d coefficient is a generally recognized statistical measure of the extent of the difference between the mean ( i . e ., weighted-average price ) of a test group and the mean ( i . e ., weighted-average price ) of a comparison group . First , for comparable merchandise , the Cohen ’ s d coefficient is calculated when the test and comparison groups of data for a particular purchaser , region , or time period each have at least two observations , and when the sales quantity for the comparison group accounts for at least five percent of the total sales quantity of the comparable merchandise . Then , the Cohen ’ s d coefficient is used to evaluate the extent to which the prices to the particular purchaser , region , or time period differ significantly from the prices of all other sales of comparable merchandise . The extent of these differences can be quantified by one of three fixed thresholds defined by the Cohen ’ s d test : small , medium , or large ( 0.2 , 0.5 , and 0.8 , respectively ). Of these thresholds , the large threshold provides the strongest indication that there is a significant difference between the mean of the test and comparison groups , while the small threshold provides the weakest indication that such a difference exists . For this analysis , the difference is considered significant , and the sales in the test group are found to pass the Cohen ’ s d test , if the calculated Cohen ’ s d coefficient is equal to or exceeds the large ( i . e ., 0.8 ) threshold .
Next , the “ ratio test ” assesses the extent of the significant price differences for all sales as measured by the Cohen ’ s d test . If the value of sales to purchasers , regions , and time periods that pass the Cohen ’ s d test account for 66 percent or more of the value of total sales , then the identified pattern of prices that differ significantly supports the consideration of the application of the average-to-transaction method to all sales as an alternative to the average-to-average method . If the value of sales to purchasers , regions , and time periods that pass the Cohen ’ s d test accounts for more than 33 percent and less than 66 percent of the value of total sales , then the results support consideration of the application of an average-to-transaction method to those sales identified as passing the Cohen ’ s d test as an alternative to the average-to-average method , and application of the average-to-average method to those sales identified as not passing the Cohen ’ s d test . If 33 percent or less of the value of total sales passes the Cohen ’ s d test , then the results of the Cohen ’ s d test do not support consideration of an alternative to the average-toaverage method .
14 Filed By : Kyle Clahane , Filed Date : 7 / 1 / 22 2:00 PM , Submission Status : Approved