The anti-dumping law incorporates two basic principles concerning the importance of accuracy. First, the statute requires that the Commerce Department verify the accuracy of all information submitted during an anti-dumping investigation.

Second, if the necessary information either is not submitted or cannot be verified, the statute authorizes the Commerce Department to use the 'facts available' (previously known as 'best information available') instead of the missing or inaccurate information.

The terms 'facts available' and 'best information available' are somewhat misleading. In fact, where 'wilful non-cooperation' is shown, the statutory provision authorizes the Commerce Department to use the worst possible information, at least from the perspective of the foreign company. This is known as 'adverse facts available'. Most often, the 'facts' available are simply the allegations made by the petitioner. In other cases, the information may be adverse inferences drawn by the Commerce Department to inflate the dumping margins. There have been a number of court cases in which foreign companies have challenged the Commerce Department's harsh use of the facts available provision to punish foreign companies. The United States courts have generally upheld the Commerce Department's discretion to use an adverse inference in the application of the 'facts available' provision, provided the Commerce Department has in fact requested the necessary information and given the foreign company an adequate opportunity to respond. The courts have held that the United States Congress intended the Commerce Department to use the provision to compel foreign companies to cooperate with the investigations, and to force them to provide accurate information.

Although the statute sets forth these basic principles, neither the statute nor the regulations define in any detail what is meant by 'verification'. The Commerce Department, rather than codify its practice in regulations, has consciously chosen instead to develop its policies about verification on a case-by-case basis, reacting to the particular facts of each case. The Commerce Department's policies have therefore emerged rather slowly, as the various cases have been decided.

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