Acciai Speciali Terni, S.p.A. v. United States

19 Ct. Int'l Trade 1051
CourtUnited States Court of International Trade
DecidedAugust 7, 1995
DocketConsolidated Court No. 94-07-00398
StatusPublished

This text of 19 Ct. Int'l Trade 1051 (Acciai Speciali Terni, S.p.A. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acciai Speciali Terni, S.p.A. v. United States, 19 Ct. Int'l Trade 1051 (cit 1995).

Opinion

Opinion

Restani, Judge:

This matter is before the court on the parties’ cross-motions for judgment upon the agency record, which challenge the affirmative material injury determination by the United States International Trade Commission (“ITC” or “Commission”) with respect to certain grain-oriented silicon electrical steel (“GOES”) from Italy and Japan that was found to be subsidized and/or sold,at less than fair value (“LTFV”). Grain-Oriented Silicon Electrical Steel from Italy and Japan, USITC Pub. No. 2778, Inv. Nos. 701-TA-355 and 731-TA-660 (May 1994) (final affirmative determ.) (“Final Det. "I1 and Grain-Oriented Silicon Electrical Steel from Italy, USITC Pub. No. 2800, Inv. No. 731-TA-659 (Aug. 1994) (final affirmative determ.); 59 Fed. Reg. 28,561 (USITC 1994) (final) and 59 Fed. Reg. 42,285 (USITC 1994) (final) respectively.

I. Facts

Defendant-intervenors Allegheny-Ludlum Corporation, Armco, Inc., the Butler Armco Independent Union, the Zanesville Armco Independent Union, and the United Steelworkers of America are domestic manufacturers of GOES products, or unions related to the manufacture of these products. GOES, a flat-rolled steel product, is used in the manufacture of the cores of power and distribution transformers, as well as specialty transformers. Final Det. at II-4 (“Pub. Staff Rpt. ”). GOES is sold in sheet or strip form and possesses superior magnetic [1052]*1052properties, including higher permeability and lower core loss, which make it a more efficient conductor than non-grain-oriented silicon electrical steel. Id.

GOES is differentiated by grades, with specifications that identify separate core-loss designations for conventional and high-permeability product types.2 Id. at II — 5. Within each grade, the average core loss of a product may vary from producer to producer. Id. Transformer manufacturers diverge in their approach to assessing a grade of GOES for purchase. Manufacturers of industrial transformers generally do not evaluate core-losses, and usually select M-6 grade. Id. at 11-30. Power and distribution transformer bids that are solicited by utility companies are evaluated by a “total ownership cost” (“TOC”) model. Id. at II-30-II-31. Utilities usually do not specify the grade of GOES required for use in a transformer design, but rather indicate other characteristics that affect a transformer manufacturer’s selection of grade, such as the amount, in dollars per watt, at which core loss and windings loss are evaluated by the utility, maximum limits for loss, impedance, and weight. Id. at 11-31. As a result, nearly all transformers sold to utilities are custom-designed to meet the requirements contained in autility company’s request for quotes. Id.

Some GOES, mostly M-6 grade, is used predominantly by stampers to punch laminations for use in equipment employing smaller transformers, such as appliances and aerospace, aeronautical and electronic equipment.3 Id. at II — 8. In general, the production process varies for high-permeability GOES as compared with conventional GOES. Id. For instance, in the manufacture of high-permeability permanently domain-refined (“PDR”) GOES, the product is etched by laser to improve magnetic properties, and further coated to improve electronic resistance. Id. at II — 6 & n.25, II — 8.

A. Parties’ contentions:

On August 26, 1993, defendant-intervenors filed with the Commission and the International Trade Administration of the United States Department of Commerce (“Commerce”) their petitions alleging that the domestic GOES industry was materially injured or threatened with material injury by reason of subsidized and/or LTFV imports from Italy and Japan. In October 1993, the Commission made preliminary determinations, finding there existed a reasonable indication that the domestic industry producing GOES was materially injured or threatened with material injury by reason of the subject imports from Italy and Japan. The Commission published the final results of its investigations on June 2, 1994 and August 17, 1994, respectively.

[1053]*1053Motions for judgment upon the agency record pursuant to USCIT Rule 56.2 have been filed by (1) Acciai Speciali Terni, S.p.A., ILVAS.p.A. (in liquidation) and ILVA USA, Inc. (collectively “Acciai Speciali” or “Acciai”), and (2) Nippon Steel Corporation and Kawasaki Steel Corporation (collectively “Nippon Steel”), contesting portions' of the determination. Acciai Speciali challenges the Commission’s causation analysis with respect to volume and price effects of imports from Italy. Nippon Steel argues in its motion that the Commission failed to undertake a segmented analysis as to Japanese imports, and also challenges the Commission’s causation analysis as to volume and price effects of imports from Japan. Lastly, Nippon Steel asserts a deprivation of its right to due process. Nippon Steel specifically challenges the Commission’s rejection of Nippon Steel’s comments sent in response to information submitted by domestic producers late in the investigation. Defendant and petitioners oppose these motions.

B. ITC’s determination:

The majority of the Commission found that imports from both Italy and Japan caused material injury.4 The Commission noted that nearly all of the Italian imports consisted of low-efficiency conventional grade M-6 GOES, while the majority of Japanese imports was composed of high-permeability GOES. Final Det. atl-12-l-13. The Commission concluded that the low-efficiency Italian M-6 grade and the Japanese high-permeability GOES were not sufficiently fungible to support a finding of a reasonable overlap of competition, thus the Commission did not cumu-late the subject countries’ imports for purposes of assessing present material injury. Id. at I-13-I-14.

With regard to Italian imports, the Commission found that volume increased over the period of investigation (“POI”) in both absolute and relative terms, while total apparent domestic consumption declined. Def.’s App. to Mem. in Opp’n to Pis.’ Mot. J. Agency R., Conf. Doc. 57, at 1-15 (“Conf. Final Det. ”). The Commission noted that several large purchasers had indicated they would have purchased domestic grade M-6 GOES if the imported price had increased by as little as 5 percent. Final Det. at 1-15. The Commission found evidence of underselling, and determined that, when combined with a steady decrease in price of Italian imports, depression of prices for M-6 GOES resulted, causing domestic prices in 1993 to dip below 1990 levels. Id. The domestic industry’s market share declined throughout the period, from just under 80 percent in 1990 to below 74 percent in 1993. Def.’s App. to Mem. in Opp’n to Pis.’ Mot. J. Agency R., Conf. Doc. 56, at 11-51 tbl. 17 (“Conf. Staff Rpt. ”); see Conf. Final Det. at 1-15. With regard to the impact upon the domestic [1054]*1054industry, the Commission observed reduced revenue, a decline in domestic production and capacity utilization, and higher production costs, plus a decline in domestic shipment volume and market share. Final Det. at 1-16.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mitsubishi Electric Corp. v. United States
700 F. Supp. 538 (Court of International Trade, 1988)
Gifford-Hill Cement Co. v. United States
615 F. Supp. 577 (Court of International Trade, 1985)
Copperweld Corp. v. United States
682 F. Supp. 552 (Court of International Trade, 1988)
R-M Industries, Inc. v. United States
848 F. Supp. 204 (Court of International Trade, 1994)
Iwatsu Elec. Co., Ltd. v. United States
758 F. Supp. 1506 (Court of International Trade, 1991)
CEMEX, S.A. v. United States
790 F. Supp. 290 (Court of International Trade, 1992)
Avesta AB v. United States
689 F. Supp. 1173 (Court of International Trade, 1988)
United Engineering & Forging v. United States
779 F. Supp. 1375 (Court of International Trade, 1991)
USX Corp. v. United States
698 F. Supp. 234 (Court of International Trade, 1988)
General Motors Corp. v. United States
17 Ct. Int'l Trade 697 (Court of International Trade, 1993)
Grupo Industrial Camesa v. United States
18 Ct. Int'l Trade 461 (Court of International Trade, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
19 Ct. Int'l Trade 1051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acciai-speciali-terni-spa-v-united-states-cit-1995.