Mittal Steel Roman v. United States , 32 Ct. Int'l Trade 42 ( 2008 )


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  •                             Slip Op. 08 - 3
    UNITED STATES COURT OF INTERNATIONAL TRADE
    - - - - - - - - - - - - - - - - - - - -x
    MITTAL STEEL ROMAN and SC SILCOTUB     :
    S.A.,
    :
    Plaintiffs,
    :
    v.
    :
    THE UNITED STATES OF AMERICA,
    :         Consolidated
    Defendant,             Court No. 06-00173
    :
    -and-
    :
    UNITED STATES STEEL CORPORATION,
    :
    Intervenor-Defendant.
    :
    - - - - - - - - - - - - - - - - - - - -x
    Memorandum & Order
    [Final sunset-review determination of U.S. Interna-
    tional Trade Commission affirmed; action dismissed.]
    Decided: January 11, 2008
    Arent Fox LLP (John M. Gurley, Nancy A. Noonan and Diana
    Dimitriuk-Quaia) for the plaintiffs.
    James M. Lyons, General Counsel, Andrea C. Casson,
    Assistant General Counsel for Litigation, and Rhonda M. Hughes,
    U.S. International Trade Commission, for the defendant.
    Skadden, Arps, Slate, Meagher &              Flom LLP (Robert     E.
    Lighthizer, John J. Mangan, James C.              Hecht and Stephen    P.
    Vaughn) for the intervenor-defendant.
    AQUILINO, Senior Judge:         This action consolidates com-
    plaints   filed   on   behalf   of   the    above-encaptioned   plaintiff
    Consolidated
    Court No. 06-00173                                                                       Page 2
    Romanian enterprises.             Each contests the final determination of
    a five-year review conducted by the U.S. International Trade
    Commission        (“ITC”)        pursuant      to     
    19 U.S.C. §1675
    (c)      that
    revocation       of     the    antidumping-duty          order        on    small    diameter
    carbon     and    alloy       seamless    standard,        line,      and    pressure     pipe
    (“CASSLP”) from their country of origin would be likely to lead
    to continuation or recurrence of material injury to an industry
    in the United States within a reasonably foreseeable time.                                 See
    USITC Pub. 3850, p. 1 (April 2006)1.
    I
    This determination was by operation of the law when
    three      commissioners        were     counted    in     its    favor      and    an   equal
    number in the negative.                See 
    19 U.S.C. §1677
    (11).                    Of the six
    commissioners, four exercised their discretion not to cumulate
    imports      from      Romania    with     imports       from    the       Czech    Republic,
    Japan, and South Africa, the other countries under review.                                  Of
    those four, only one made an affirmative determination as to
    Romania.         The    other    two     in   favor   were       by    commissioners       who
    1
    Referred to hereinafter as ITC record document (“R.Doc”)
    231.
    Consolidated
    Court No. 06-00173                                              Page 3
    cumulated imports from Romania with all of the other countries
    subject to the review, including the Czech Republic and South
    Africa.
    The plaintiffs contend that those two commissioners
    erred as a matter of law when they based their
    decision to maintain the order on Romania (and all of
    the subject countries) using cumulated data . . ..
    The Commission determined not to cumulate imports from
    Romania with any other subject country, as reflected
    by the decision of four of the Commissioners.
    Accordingly, [those two commissioners] should have
    made their injury determination on the same, un-
    cumulated basis.
    Plaintiffs’ Memorandum, p. 5.       Additionally, they claim that
    Commissioner   Aranoff’s   determination   that   revocation   of   the
    antidumping-duty order on CASSLP from Romania would be likely to
    lead to continuation or recurrence of material injury to the
    domestic industry is not supported by substantial evidence on
    the record.    See 
    id. at 6
    .      This contention relies upon the
    three commissioners counted in the negative, as well as upon
    perceived internal inconsistencies in the Aranoff determination
    itself.2
    2
    Given the quality of plaintiffs’ written submissions, as
    well as those in opposition, plaintiffs’ motion for oral
    argument can be, and it hereby is, denied.
    Consolidated
    Court No. 06-00173                                                        Page 4
    A
    The ITC is required to make a final determination of
    whether   a   domestic    industry    is    materially     injured,       or   is
    threatened with material injury, by reason of imports, or sales
    (or   likelihood     of    sales)    for     importation.          19     U.S.C.
    §1673d(b)(1).        Generally,     five    years   after    the        date   of
    publication     of   an   affirmative      determination    and    subsequent
    imposition of an antidumping-duty order, the Commission conducts
    a review to determine whether revocation of such order would be
    likely to lead to continuation or recurrence of dumping and
    material injury.     See 
    19 U.S.C. §1675
    (c)(1).          In conducting such
    a review, the ITC is required to take into account:
    (A) its prior injury determinations, including
    the volume, price effect, and impact of imports of the
    subject merchandise on the industry before the order
    was issued . . .,
    (B) whether any improvement in the state of the
    industry is related to the order . . .,
    (C) whether    the   industry   is  vulnerable                to
    material injury if the order is revoked . . ., and
    (D) in an antidumping proceeding under section
    1675(c) . . ., the findings of the administering
    authority regarding duty absorption under section
    1675(a)(4) . . ..
    19 U.S.C. §1675a(a)(1).      Additionally,
    Consolidated
    Court No. 06-00173                                                              Page 5
    the Commission may cumulatively assess the volume and
    effect of imports of the subject merchandise from all
    countries with respect to which . . . [5-year reviews]
    were initiated on the same day, if such imports would
    be likely to compete with each other and with domestic
    like products in the United States market.
    19 U.S.C. §1675a(a)(7).
    This court has exclusive jurisdiction over an action
    commenced to contest a resulting “sunset review” determination.
    
    28 U.S.C. §1581
    (c).         And     it     shall      hold     unlawful     any
    determination, finding, or conclusion unsupported by substantial
    evidence on the record, or otherwise not in accordance with law.
    19   U.S.C.     §1516a(b)(1)(B)(i).            Substantial     evidence    is    “such
    relevant evidence as a reasonable mind might accept as adequate
    to support a conclusion.”           Nippon Steel Corp. v. United States,
    
    337 F.3d 1373
    , 1379 (Fed.Cir. 2003), quoting Consol. Edison Co.
    v. NLRB, 
    305 U.S. 197
    , 229 (1938).                In addition, the underlying
    determination      must   show    that    the    agency      has    “examine[d]   the
    relevant data and articulate[d] a satisfactory explanation for
    its action including a rational connection between the facts
    found and the choice made.”             Motor Vehicle Mfrs. Ass’n v. State
    Farm    Mut.    Auto.   Ins.     Co.,    
    463 U.S. 29
    ,    43    (1983)(internal
    quotation marks deleted).
    Consolidated
    Court No. 06-00173                                                                   Page 6
    Even       if     the    court       could     draw      “two   inconsistent
    conclusions from the evidence does not prevent an administrative
    agency’s finding from being supported by substantial evidence.”
    Consolo v. Fed. Mar. Comm’n, 
    383 U.S. 607
    , 620 (1966).                             That is,
    determinations can be affirmed so long as they are reasonable
    and supported by the record as a whole, even if there is some
    evidence that detracts from the agency’s conclusions.                                 E.g.,
    Olympia   Indus.,       Inc.    v.    United      States,       
    22 CIT 387
    ,    389, 
    7 F.Supp.2d 997
    ,       1000     (1998),      citing      Atlantic       Sugar,     Ltd.    v.
    United States, 
    744 F.2d 1556
    , 1563 (Fed.Cir. 1984).
    B
    The        plaintiffs       contend          that        “the   Commission’s
    affirmative decision as to Romania was an error as a matter of
    law   because     it    did    not    reflect      the     actual      decision     of    the
    Commission”,       and,        additionally,          it     is       “unsupported         by
    substantial evidence on the record because it was based in part
    on cumulated data, which included data from countries for which
    the   Commission        made    negative         determinations.”            Plaintiffs’
    Memorandum, pp. 10-11.               This position derives from plaintiffs’
    reading of 19 U.S.C. §1675a(a)(7), supra, that the “decision on
    cumulation is the decision of the ‘Commission’”.                             Id. at 12.
    Consolidated
    Court No. 06-00173                                                          Page 7
    They argue that, because a majority of the commissioners, and
    thus the ITC as a whole, made a negative determination as to the
    Czech       Republic     and   South   Africa,   and    the   determination    of
    Commissioners Koplan and Lane with regard to Romania included
    cumulated data from those other two countries,
    the Commission failed to act in accordance with law
    when it robotically tallied the votes and made an
    affirmative   determination as to   Romania  without
    reviewing the contradictions between the individual
    Commissioner’s decisions.
    Id. at 16.
    C
    In accordance with 19 U.S.C. §1675a(a)(7), supra, the
    record reflects findings that all reviews were initiated on May
    2, 20053 and
    that the subject imports of small diameter CASSLP . . .
    from the Czech Republic, Japan, Romania, and South
    Africa are fungible with each other and with the
    domestic like product, that there will likely be a
    reasonable overlap of geographic markets and channels
    of distribution if the orders are revoked, and that
    the subject imports would be simultaneously present.
    R.Doc       231    at   14.    Also,   considering     each   group   of   subject
    imports, there was no finding that those imports from the Czech
    3
    See R.Doc 231 at 9.
    Consolidated
    Court No. 06-00173                                                          Page 8
    Republic, Japan, Romania, and South Africa would likely have no
    discernible     adverse    impact    on   the    domestic    industry       if   the
    antidumping-duty order were revoked.             See id. at 10-13.          Hence,
    there was discretion to exercise the authority to cumulate the
    subject imports during the instant review.4
    Ugine-Savoie Imphy v. United States, 
    26 CIT 851
    , 
    248 F.Supp.2d 1208
       (2002),     dealt   with    facts     similar    to    those
    presented here.       In that matter, five commissioners found that
    they had discretion to cumulate.            However, as in the action at
    bar, a majority declined to cumulate imports from France, the
    imports at issue in that action, with imports from Brazil and
    India.      Commissioner Bragg, on the other hand, did cumulate
    Brazilian, French, and Indian imports for purposes of the review
    and   became    one   of   the    three   tie    votes    not   to    revoke     the
    antidumping-duty order.          The plaintiffs in Ugine argued that the
    commissioner      abused   her     discretion     because,      by    cumulating,
    France was unfairly penalized for the failure of Brazil and
    India to participate in the sunset review.
    4
    See R.Doc 231 at pages 15 through 18 for discussion of
    other considerations that led four of the commissioners to
    decline to exercise their discretion to cumulate subject imports
    from Romania with the Czech Republic, Japan, and South Africa.
    Consolidated
    Court No. 06-00173                                                     Page 9
    The plaintiffs at bar attempt to distinguish Ugine,
    contending that in that action,
    since the determination by Commissioners Miller and
    Hillman[] was that revocation of the orders from
    France, individually, and India/Brazil, cumulated,
    would cause a continuation or recurrence of material
    injury to the domestic industry, Commissioner Bragg’s
    decision    that  those  countries’   imports  would,
    cumulatively, also cause a continuation or recurrence
    of material injury to the domestic industry, was
    consistent.
    Plaintiffs’ Memorandum, p. 14.        While this point is well-taken,
    the court’s opinion in Ugine is clear and not so limiting as to
    be inapplicable in the facts presented herein, to wit:
    . . . Commissioner Bragg did not abuse her discretion
    by cumulating imports . . . because the requirements
    of § 1675a(a)(7) were met. There is no exception for
    cumulation in the statute based on non-participation
    in the sunset reviews. There is an express exception
    to cumulation under the adverse impact provision, and
    the Court declines to create an implied exception for
    non-participation when Congress clearly delineated the
    exceptions it intended under the Statute.
    26 CIT at 866-67, 
    248 F.Supp.2d at 1223
    .
    The Court of Appeals for the Federal Circuit (“CAFC”)
    addressed   similar   circumstances    in   Corus   Group   PLC   v.   Int’l
    Trade Comm’n, 
    352 F.3d 1351
     (2003).         In that case, the domestic
    industries in the underlying agency determination were defined
    Consolidated
    Court No. 06-00173                                                                Page 10
    by    four    of    the   six   commissioners         as   tin-mill     products        and,
    separately, certain carbon flat-rolled steel.                           Three of them
    made a negative injury determination with regard to the tin-
    mill-product        imports,       while    the   fourth      reached     the    opposite
    result.        The remaining two commissioners defined the domestic
    industry as one industry, encompassing both tin-mill products
    and     flat-rolled        steel,     and     both     made     affirmative        injury
    determinations.            Thus,    the    “Commission      reported      that     it    was
    evenly divided as to whether increased importation of tin mill
    products       caused     serious     injury.”        
    352 F.3d at 1355
    .         The
    appellants contended before the CAFC that the votes of those
    commissioners        who     did    not     analyze    tin-mill       products      as     a
    separate category could not be counted in the affirmative and
    that the Commission’s vote should properly have been reported as
    a 3-1 determination of no serious injury.                   See 
    id. at 1360
    .
    The CAFC found “no merit to this argument.”                       
    Id.
          It
    noted        that    those      two       commissioners       “specifically         voted
    affirmatively with regard to tin mill products[, and that] . . .
    neither commissioner objected when the Commission tallied their
    votes as affirmative”.              
    Id. at 1360-61
    .         Additionally, the CAFC
    went on to state that, having
    Consolidated
    Court No. 06-00173                                                  Page 11
    reached this conclusion, we are not “compelled . . .
    to probe the mental processes” of the commissioners
    any further to determine whether their votes were
    properly   counted    as    affirmative   despite   those
    commissioners’ different underlying reasoning.       Voss
    [Int’l Corp. v. United States, 67 CCPA 96, 102], 628
    F.2d   [1328,]   1332    [(1980)]   (holding   that   the
    Commission     properly      recorded    a     non-voting
    commissioner’s vote as an abstention rather than as a
    dissent); cf. Pub. Serv. Comm’n v. Fed. Power Comm’n,
    
    543 F.2d 757
    , 777 (D.C.Cir.1974)(holding that “in each
    instance, what counted in the definition of agency
    action was the vote rather than the individual view”
    of each member of the Federal Power Commission).
    Accordingly, the Commission did not err in counting
    the votes as to tin mill products as a 3-3 tie.
    
    Id. at 1361
    .        Again, although the specific facts differ herein,
    Corus Group cannot be discounted.
    In U.S. Steel Group v. United States, 
    96 F.3d 1352
    ,
    1359-62 (Fed.Cir. 1996), domestic steel producers challenged the
    ITC’s     negative    injury   determinations.      In   that    case,   two
    commissioners engaged in one-step analysis, others took a two-
    step approach, and one commissioner did not specify his type of
    analysis.     The domestic producers contended that “there should
    be   a     single     methodology,     applicable   to    each     of    the
    commissioners, for determining whether a domestic industry is
    injured”.     
    96 F.3d at 1361
    .       The CAFC opined, however, that the
    “statute on its face compels no such uniform methodology” and
    Consolidated
    Court No. 06-00173                                                   Page 12
    went on to make clear that the
    invitation to employ such diversity in methodologies
    is inherent in the statutes themselves, given the
    variety of the considerations to be undertaken and the
    lack of any Congressionally mandated procedure or
    methodology for assessment of the statutory tests.
    This court has no independent authority to tell
    the Commission how to do its job. We can only direct
    the Commission to follow the dictates of its statutory
    mandate.   So long as the Commission’s analysis does
    not violate any statute and is not otherwise arbitrary
    and capricious, the Commission may perform its duties
    in the way it believes most suitable.
    
    Id. at 1362
    .       In the light of this reasoning, this court cannot
    and therefore does not conclude that the exercise of discretion
    to cumulate per 19 U.S.C. §1675a(a)(7) by Commissioners Koplan
    and   Lane   was   not   in   accordance   with   law,   and   therefore   the
    findings based on the cumulated data are not unsupported by
    substantial evidence on the record.
    D
    The   plaintiffs    contend   that    Commissioner    Aranoff’s
    decision on the
    volume, price effects, and impact             of imports from
    Romania on the domestic industry is           not supported by
    substantial evidence on the record,            particularly in
    view of the lack of vulnerability             of the domestic
    industry.
    Consolidated
    Court No. 06-00173                                                    Page 13
    Plaintiffs’    Memorandum,    p.   2.      They   offer   two    arguments   to
    support their position: first, the commissioner’s findings are
    contradicted    by    those   of    Commissioners     Okun,      Hillman     and
    Pearson.      Secondly,   they     contend   that   her    findings   contain
    internal inconsistencies that render her volume, price-effect,
    and   likely-impact    determinations        unsupported    by    substantial
    evidence on the record.5
    (1)
    The plaintiffs state that Commissioner Aranoff
    found that the likely volume of imports of pipe from
    Romania would be significant if the order was revoked.
    . . .    The dissenting views of Commissioners Okun,
    Hillman,   and   Pearson   explicitly  lay   out   the
    substantial evidence on the record that discredits
    [this] conclusion.
    Id. at 20 (citations omitted); that she
    found that “the subject imports from Romania . . .
    would be likely to have significant depressing or
    suppressing effects on the prices of the domestic like
    product in the reasonably foreseeable future if the
    5
    See Plaintiffs’ Memorandum, pp. 20-28. Additionally, the
    plaintiffs request that, “[i]n the event of a remand . . . the
    Court should also instruct the Commission to reconsider this
    decision based on the entry of Romania into the European Union”.
    Id. at 18.    But this request is not of consequence given the
    discussion hereinafter.
    Consolidated
    Court No. 06-00173                                                Page 14
    antidumping order were revoked.”    . . .      [Yet a]s
    explained by Commissioners Okun, Hillman, and Pearson,
    in these reviews, subject imports from Romania
    undersold domestic product in every available
    price comparison. Notwithstanding the consistent
    underselling by subject imports from Romania,
    U.S. prices have increased over the period of
    review. . . . Nor has the underselling by subject
    imports from Romania had any price suppressing
    effect.
    Id. at 24 (citation omitted); and that Commissioner Aranoff’s
    decision that revocation of the antidumping duty order
    on small diameter CASSLP . . . from Romania would
    negatively   impact    the   domestic    industry  was
    unsupported by substantial evidence on the record,
    particularly in view of the lack of vulnerability of
    the domestic industry. . . . [Whereas] Commissioners
    Okun, Hillman, and Pearson [] explained:
    In line with our findings regarding the likely
    volume and price effects of subject imports from
    Romania, we find that subject imports would not
    be likely to have a significant adverse impact on
    the domestic industry’s output, sales, market
    share, profits, or return on investment, if the
    order were revoked.    As demand is projected to
    remain strong, the small volume of subject
    imports that would be likely upon revocation
    would not be likely to have a significant adverse
    impact on the domestic industry.
    Id. at 26-27.
    Even accepting these assertions does not necessarily
    govern   consideration     of      whether   another     commissioner’s
    determination   is   unsupported   by   substantial    evidence   on   the
    Consolidated
    Court No. 06-00173                                                  Page 15
    record.     In U.S. Steel Group v. United States, for example, the
    CAFC confirmed the
    indisputable proposition that each commissioner is
    free to attach different weight to factual information
    bearing on, and determinate of, the many statutory
    tests; and that commissioners may ultimately reach
    different factual conclusions on the same record.
    
    96 F.3d at 1362
    .        And in Metallverken Nederland B.V. v. United
    States, 
    13 CIT 1013
    , 
    728 F.Supp. 730
     (1989), where the court was
    urged to “negate a commissioner’s determination based upon the
    findings of the dissenting commissioners,” it responded that
    Congress’ expectation that commissioners would file
    concurring and dissenting opinions stating their
    findings of fact and conclusions of law “would be
    pointless   if   the existence    of  differing   views
    precluded    courts   from     sustaining    Commission
    determinations.”
    13 CIT at 1017, 
    728 F.Supp. at 734
    , quoting Citrosuco Paulista,
    S.A. v. United States, 
    12 CIT 1196
    , 1210-11, 
    704 F.Supp. 1075
    ,
    1089 (1988).         See also Matsushita Elec. Indus. Co. v. United
    States, 
    750 F.2d 927
    , 936 (Fed.Cir. 1984)(evidence of record
    which     detracts    from   evidence   supporting     ITC’s   decision   is
    neither surprising nor persuasive).
    Given the agency record at bar, in the light of the
    foregoing    caselaw,    this   court   cannot   set   aside   Commissioner
    Consolidated
    Court No. 06-00173                                                   Page 16
    Aranoff’s     determination    merely     because   other     commissioners
    developed different views thereof.
    (2)
    In a five-year review, the ITC must determine whether
    revocation of an antidumping-duty order “would be likely to lead
    to   continuation     or   recurrence    of   material   injury   within     a
    reasonably foreseeable time.”           19 U.S.C. §1675a(a)(1).       Under
    this standard, the agency
    must decide the likely impact in the reasonably
    foreseeable future of an important change in the
    status quo -- the revocation or termination of a
    proceeding and the elimination of its restraining
    effects on volumes and prices of imports.
    Uruguay Round Agreements Act Statement of Administrative Action,
    H.R. Rep. No. 103-316, vol. 1, p. 884.              Commissioner Aranoff
    considered    the   likely    volume,    price   effect,    and   impact    of
    imports of the subject merchandise on the industry if the orders
    were   revoked   or    the   suspended    investigation     terminated     and
    determined that,
    based on evidence on the record, [] producers in
    Romania will ship significant volumes of small
    diameter CASSLLP . . . into the U.S. market if the
    antidumping duty order is revoked. Accordingly, . . .
    the likely volume of imports of small diameter CASSLP
    . . . from Romania into the United States would be
    Consolidated
    Court No. 06-00173                                                     Page 17
    significant in the reasonably foreseeable future if
    the antidumping duty order were revoked.
    R.Doc 231 at 66; and, with regard to price effect, that, as the
    likely volume will be significant in that reasonably foreseeable
    future, the
    subject imports from Romania would be likely to have
    significant depressing or suppressing effects on the
    prices of the domestic like product in the reasonably
    foreseeable future if the antidumping duty order were
    revoked.
    Id.   at   68;   and,   with   regard   to    the   likely   impact   of   those
    imports, that,
    although demand is projected to remain strong, the
    likely substantial volume and price effects of the
    subject imports from Romania would be sufficient to
    have a significant negative impact on the production,
    shipments,   sales,    market   share,   employment,   and
    revenues of the domestic industry, despite its lack of
    vulnerability.     This reduction in the industry’s
    production,   shipments,    sales,   market   share,   and
    revenues   would    adversely    affect   the   industry’s
    profitability and ability to raise capital and
    maintain necessary capital investments.
    Id. at 69.
    The plaintiffs are of the view that “portions of the
    Commissioner’s      determination       are   unsupported     by   substantial
    evidence on the record.”         Plaintiffs’ Memorandum, p. 20.            They
    Consolidated
    Court No. 06-00173                                                    Page 18
    claim it contains “flaws” and accordingly pray that the court
    remand
    with instructions to provide specific cites to record
    evidence regarding Commissioner Aranoff’s findings on
    likely volume, price effect, and impact on the
    domestic industry in the event that the subject order
    is revoked, and if that is not possible, to enter a
    negative determination for Romania[.]
    Id. at 29.
    (a)
    The plaintiffs posit “internal inconsistencies” that
    render the commissioner’s volume determination unsupported by
    substantial evidence on the record.             Id. at 21.     Specifically,
    they   question    her    consideration    of   historical     data   and   her
    finding with regard to the duration of higher prices in western
    Europe and Japan.        They argue that the focus on such data
    ignores her prior acknowledgement that Silcotub was
    only purchased by the Tenaris Group in 2004, and the
    testimony    of    Silcotub’s   representatives   that
    Silcotub’s   production   is  being   refocused toward
    higher-value-added non-subject merchandise, as well as
    making significant marketing changes.
    Id.    But 19 U.S.C. §1675a(a)(1)(A) calls for commissioners to
    take     into   account    the   “impact   of   imports   of    the   subject
    merchandise on the industry before the order was issued”, and
    Consolidated
    Court No. 06-00173                                                            Page 19
    the plaintiffs acknowledge that there are no historical data yet
    for     that    company’s        purported    new    production     and    marketing
    strategy.
    Ergo,    Commissioner     Aranoff’s      consideration       of     such
    data, while acknowledging Silcotub’s announced strategic change,
    was part of her statutory mandate.
    The   plaintiffs      take    issue    with   the    commissioner’s
    conclusion that higher prices for CASSLP in western Europe and
    Japan will not provide an incentive for Romanian producers to
    continue to serve those markets rather than the United States
    and also with her discussion of other evidence on the record.
    See id. at 22.         But she concluded that there was “no evidence to
    suggest European or Asian prices are likely to stay above U.S.
    prices for the reasonably foreseeable future”, R.Doc 231 at 65,
    which    appears       to   be   reasonable,    considering     that      prices   for
    subject pipe had only “recently been higher in western Europe
    and parts of Asia,” and “the price differences between U.S. and
    western European markets narrowed              . . . during 2005.”          Id.    Cf.
    Turner Broad. Sys., Inc. v. FCC, 
    520 U.S. 180
    , 211 (1997) (if
    the   determination         is   reasonable    and   supported     by     substantial
    evidence       on    the     record,    summary      judgment      is     appropriate
    Consolidated
    Court No. 06-00173                                                      Page 20
    regardless of whether the evidence is in conflict); Metallverken
    Nederland B.V. v. United States, 13 CIT at 1017, 
    728 F.Supp. at 734
     (1989).
    (b)
    The   plaintiffs   contest       Commissioner   Aranoff’s    view
    that
    the subject imports from Romania would be likely to
    have significant depressing or suppressing effects on
    the prices of the domestic like product in the
    reasonably foreseeable future if the antidumping duty
    order were revoked[,]
    R.Doc   231    at   68,   claiming   it   is    unsupported   by    substantial
    evidence on the record.          Plaintiffs’ Memorandum, p. 24.            They
    purport to view the evidence on the record as showing that U.S.
    prices increased during the period of review, even with the
    underselling of the Romanian imports at issue, and claim this
    circumstance should negate the commissioner’s finding.
    Although finding that “Romanian imports, which have
    been    underselling      domestic   merchandise     during   the    period   of
    review, are not currently having price depressing or suppressing
    effects”, the commissioner also noted that
    improvements in the condition of the U.S. industry are
    to be expected following the imposition of an
    antidumping order, . . . [which] can be evidence of
    Consolidated
    Court No. 06-00173                                                           Page 21
    the effectiveness of the discipline imposed by an
    order.   Notwithstanding the discipline imposed by the
    order . . ., those imports continued to undersell the
    U.S. product by significant margins.[]    There is no
    evidence to suggest that such underselling would not
    continue in the event of revocation of the antidumping
    duty order.
    R.Doc 231 at 67 (footnote omitted).                    Hence, she concludes that
    the subject imports are likely to have such an effect if the
    antidumping-duty order were revoked, given “these likely volumes
    and likely levels of underselling”.                
    Id.
    On     its        face,    this    is    clear     reasoning     by   the
    commissioner, based upon substantial evidence, with regard to
    the   price     effects        of     subject      Romanian     imports     if   the
    antidumping-duty order were to be revoked.                    Cf. Acciai Speciali
    Terni,    S.P.A.        v.     United        States,     
    19 CIT 1051
    ,     1061
    (1995)(“Pricing changes may be delayed or may occur in part due
    to other factors”).
    (c)
    The plaintiffs assert that Commissioner Aranoff’s view
    that revocation of the antidumping-duty order on CASSLP from
    Romania   would     negatively         impact      the    domestic    industry     is
    unsupported by substantial evidence on the record in light of
    her   finding   that         “the    domestic      industry    is    not   currently
    Consolidated
    Court No. 06-00173                                                  Page 22
    vulnerable to injury by reason of increased subject imports.”
    This is based in particular upon consideration that
    the industry did not experience any financial losses
    during the period of review.      Rather, the domestic
    industry was profitable in every year of the period of
    review and profits increased to very high levels.
    Plaintiffs’   Memorandum,   p.   26,   quoting   R.Doc   231   at   26   and
    referring to the separate views of Commissioner Aranoff, 
    id. at 68
     (“I join the Views of the Commission regarding the discussion
    of the domestic industry’s lack of vulnerability”).
    But Commissioner Aranoff cites the following evidence
    on the record in support of her ultimate determination that the
    revocation of the antidumping-duty order would negatively impact
    the domestic industry, to wit:
    [D]omestic producers’ . . . capacity significantly
    increased over the period of review.[] Production fol-
    lowed the same trend.[]  However, capacity utilization
    decreased over the period, albeit only slightly.[]
    U.S. shipments increased over the period of
    review[] and inventories declined.[]    Net sales in-
    creased over the period.[]     U.S. producers’ market
    share decreased from 2000 to 2004,[] as nonsubject
    imports gained market share.[]  However, domestic pro-
    ducers’ market share increased during the interim 2005
    period, as compared with the interim 2004 period.[]
    The number of production and related workers fell
    over the period,[] as did their hours worked.[]
    However, wages paid increased,[] as did productivity.[]
    Consolidated
    Court No. 06-00173                                        Page 23
    Both   capital    expenditures[]   and   research   and
    development expenses declined.[]
    I   concluded  above   that   revocation   of   the
    antidumping duty order with respect to Romania likely
    would lead to significant volumes of subject imports
    that would undersell the domestic like product and
    significantly depress or suppress U.S. prices.        In
    addition, although demand is projected to remain
    strong, the likely substantial volume and price
    effects of the subject imports from Romania would be
    sufficient to have a significant negative impact on
    the   production,  shipments,   sales,   market   share,
    employment, and revenues of the domestic industry,
    despite its lack of vulnerability. This reduction in
    the industry’s production, shipments, sales, market
    share, and revenues would adversely affect the
    industry’s profitability and ability to raise capital
    and maintain necessary capital investments.6
    R.Doc 231 at 68-69 (footnotes to supporting evidence on the
    record omitted).
    6
    Plaintiffs’ memorandum, pages 27-28, criticizes the final
    two sentences of this quotation as “conclusory . . . statements
    [that] do not meet the Court’s substantial evidence standard
    because they do not constitute cites to substantial evidence on
    the record.” They refer to Nippon Steel Corp. v. United States,
    29 CIT ___, 
    391 F.Supp.2d 1258
     (2005)(“Nippon V”), wherein the
    court reviewed a second remand determination in which, according
    to the plaintiffs, the ITC made “similar conclusory statements”.
    In Nippon V, the court found a lack of “substantial evidence to
    support [the Commission’s] conclusion” and remanded the matter
    yet again.   However, Nippon Steel Corp. v. United States, 
    494 F.3d 1371
    , 1381 (Fed.Cir. 2007), a reversal of that opinion, has
    since issued, holding that the CIT “erred in concluding that the
    Commission’s decision in the Second Remand Determination was not
    supported by substantial evidence”.
    Consolidated
    Court No. 06-00173                                                            Page 24
    Judicial     review      of   a    matter   like    this   has   led    to
    recognition that there is
    no inconsistency between the requirement that the
    factors indicating present injury be considered when
    examining threat and Congress’ statement that the
    absence of any indicia of present injury should not be
    considered conclusive that threat of injury does not
    exist.
    E.g., Rhone Poulenc, S.A. v. United States, 
    8 CIT 47
    , 52, 
    592 F.Supp. 1318
    ,    1323-24     (1984).         Therefore,      the   commissioner’s
    acceptance    that    the      domestic    U.S.    industry      is   not   currently
    vulnerable    does    not,     in   itself,      mandate    reconsideration.         A
    reviewing court must still find that the administrative record
    possesses substantial evidence in support of a point of view
    arguably inconsistent with this factor.                  The court finds that to
    be this case specifically at bar.
    II
    In    view   of    the    foregoing,        plaintiffs’     motion     for
    judgment on the agency record must be denied and this action
    dismissed.
    Decided:    New York, New York
    January 11, 2008
    /s/ Thomas J. Aquilino, Jr.
    Senior Judge
    

Document Info

Docket Number: Consol. 06-00173

Citation Numbers: 2008 CIT 3, 32 Ct. Int'l Trade 42

Judges: Aquilino

Filed Date: 1/11/2008

Precedential Status: Precedential

Modified Date: 8/6/2023

Authorities (16)

Matsushita Electric Industrial Co., Ltd. v. The United ... , 750 F.2d 927 ( 1984 )

Nippon Steel Corp. v. United States International Trade ... , 494 F.3d 1371 ( 2007 )

Atlantic Sugar, Ltd. v. The United States and Amstar ... , 744 F.2d 1556 ( 1984 )

corus-group-plc-corus-uk-ltd-corus-staal-bv-corus-packaging-plus-norway , 352 F.3d 1351 ( 2003 )

nippon-steel-corporation-v-united-states-v-bethlehem-steel-corporation , 337 F.3d 1373 ( 2003 )

united-states-steel-group-a-unit-of-usx-corporation-ak-steel-corporation , 96 F.3d 1352 ( 1996 )

Metallverken Nederland BV v. United States , 13 Ct. Int'l Trade 1013 ( 1989 )

Olympia Industrial, Inc. v. United States , 22 Ct. Int'l Trade 387 ( 1998 )

Citrosuco Paulista, SA v. United States , 12 Ct. Int'l Trade 1196 ( 1988 )

Nippon Steel Corp. v. United States , 29 Ct. Int'l Trade 695 ( 2005 )

Ugine-Savoie Imphy v. United States , 26 Ct. Int'l Trade 851 ( 2002 )

Rhone Poulenc, S.A. v. United States , 8 Ct. Int'l Trade 47 ( 1984 )

Consolidated Edison Co. v. National Labor Relations Board , 59 S. Ct. 206 ( 1938 )

Motor Vehicle Mfrs. Assn. of United States, Inc. v. State ... , 103 S. Ct. 2856 ( 1983 )

Consolo v. Federal Maritime Commission , 86 S. Ct. 1018 ( 1966 )

Turner Broadcasting System, Inc. v. Federal Communications ... , 117 S. Ct. 1174 ( 1997 )

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