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2. Petitioner's Expert Report
Petitioner submitted an expert report15 (the report) by Dr.
Clark Chandler,16 which opined that it was an abuse of discretion
for respondent to have determined that petitioner should have
received a 15-percent commission [gross profit spread].17
Respondent objected to the admission of the report. We allowed
the report into evidence, subject to respondent's objection.
However, we advised the parties that they could address the issue
of the report's admissibility on brief.
We found the report to be of no help to petitioner's case.
Specifically, the report utilized information not in respondent's
possession and did not accept as true credible allegations and
inferences that may support the Secretary's position. Moreover,
the report equivocated while purporting to form a conclusion ("It
is impossible for me to verify the reasonableness of the IE's
[International Examiner] conclusions."). The role of an expert
is to assist the trier of fact to understand the evidence or to
15 Dr. Clark Chandler prepared a report entitled "ASAT,
Inc., an Economic Evaluation of the International Examiner's
Methodology and Resulting Adjustment."
16 Dr. Chandler is an economist with Economic Consulting
Services. The parties stipulated that Dr. Chandler is an expert
in the area of intercompany pricing under sec. 482. Dr. Chandler
received his Ph.D. degrees from the University of Michigan in
1977 and 1978. He has previously testified in numerous cases
before this Court as an expert witness in intercompany pricing.
17 Dr. Chandler also referred to the gross profit spread as
a "commission".
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