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The Department of Commerce (the Department) proposes to modify two regulations pertaining to price adjustments in antidumping duty proceedings, 19 CFR 351.102(b)(38) and 19 CFR 351.401(c). It is the Department's current practice to not grant price adjustments where the terms and conditions were not established and known to the customer at the time of sale (sometimes referred to as determining the legitimacy of a price adjustment) because of the potential for manipulation of the dumping margin through so-called after-the-fact adjustments. It is the Departments position that the current language of the regulations, in conjunction with the preambulatory language accompanying the 1997 rulemaking, allows the Department discretion to not accept certain after-the-fact rebates. However, in a recent opinion the Court of International Trade held that the language of the regulations did not afford the Department the discretion to not accept certain rebates.The Department proposes to modify 19 CFR 102(b)(38) to refine the definition of price adjustment and proposes to modify 19 CFR 351.401(c) to refine the circumstances under which the Department will accept certain price adjustments. These modifications, if adopted, are intended to clarify--if clarification is necessary--that the Department generally will not consider a price adjustment that reduces or eliminates a dumping margin unless the party claiming such price adjustment demonstrates, to the satisfaction of the Department, through documentation that the terms and conditions of the adjustment were established and known to the customer at the time of sale. The Department believes this change will help align the language of the regulations with the Department's current interpretation and practice, and thus there should be a minimal impact on parties that are currently subject to this longstanding interpretation and practice.