Al Tech Specialty Steel Corp. v. United States

27 Ct. Int'l Trade 1791, 2003 CIT 164
CourtUnited States Court of International Trade
DecidedDecember 16, 2003
DocketCourt 98-10-03062
StatusPublished

This text of 27 Ct. Int'l Trade 1791 (Al Tech Specialty Steel Corp. 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
Al Tech Specialty Steel Corp. v. United States, 27 Ct. Int'l Trade 1791, 2003 CIT 164 (cit 2003).

Opinion

OPINION

RlDGWAY, Judge:

Plaintiffs AL Tech Specialty Steel Corp., Carpenter Technology Corp., Republic Engineered Steels, Talley Metals Technology, Inc., and United Steel Workers of America, AFL-CIO/ CLC (collectively, “Plaintiffs” or “Domestic Industry”) challenge the determination by the United States International Trade Commission (the “Commission”) that imports of stainless steel wire rod (“SSWR”) from Germany were “negligible” within the meaning of 19 U.S.C. §§ 1673d(b)(l) and 1677(24)(A)(i). 1 Stainless Steel Wire Rod From *1792 Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, 63 Fed. Reg. 49,610 (Int’l Trade Comm’n Sept. 16, 1998) (“ITC Final Determination”). By operation of law, the Commission’s finding of negligibility terminated its antidumping investigation of imports from Germany. 19 U.S.C. 1673d(b)(l).

For the reasons set forth below, Plaintiffs’ motion for judgment on the agency record is denied.

I. BACKGROUND

Plaintiffs filed an antidumping duty petition with the United States Department of Commerce (“Commerce”) and the Commission against imports of SSWR from Germany and other countries on July 30, 1997. 2 Complaint ¶ 6. The petition alleged that these SSWR imports “are being, or are likely to be, sold in the United States at less than fair value within the meaning of [19 U.S.C. § 1677], and that such imports are materially injuring an industry in the United States.” Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, 62 Fed. Reg. 45,224 (Dep’t Commerce Aug. 26, 1997). Both Commerce and the Commission instituted preliminary antidumping investigations. Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, 62 Fed. Reg. 42,263 (Int’l Trade Comm’n Aug. 6, 1997); Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, 62 Fed. Reg. 45,224 (Dep’t Commerce Aug. 26,1997).

During the preliminary injury investigation, Defendant-Intervenors Krupp Edelstahlprofile GmbH (“KEP”) and Krupp Hoesch Steel Products, Inc. (collectively, “Krupp”) argued that imports of SSWR from Germany were “negligible” within the meaning of 19 U.S.C. § 1673b(a)(l) and § 1677(24)(A)(i). Public Record (“P.R.”) 102, Confidential Record (“C.R.”) 27, Post-Conference Brief on Behalf of Krupp Edelstahlprofile GmbH and Krupp Hoesch Steel Products, Inc. at 25-33. Krupp noted a discrepancy between the “official” import data and its own records with respect to German imports of SSWR when it noted a concentration of German imports under the tariff subheadings 7221.00.0045 HTSUS (stainless steel wire rod with cross-sections exceeding 19mm) and 7221.00.0075 (coiled stainless steel wire rod and bars of non-circular cross-sectional profiles) when it actually only shipped [a relatively low number of] tons. *1793 C.R. 27 at 32, C.R. 76 at 2-4. Specifically, it argued that statistics showing 1,024 tons — or 44% — of German imports were classified under subheadings 7221.00.0045 and 7221.00.0075 could not be correct since Krupp [ ] and the Commission estimated Krupp accounted for [a very high percentage] of all SSWR imports from Germany as of September 1997. P.R. 102/C.R. 27 at 32; C.R. 76 at 3 — 4, C.R. 43, Stainless Steel Wire Rod From Germany; Italy, Japan, Korea, Spain, Sweden, and Taiwan, Staff Report to the Commission on Inv. No. 701-TA-373 and Nos. 731-TA-769 through 775 (Prelim.) (“Preliminary Staff Report”) at VII-3 n.3 (Sept. 8, 1997).

The Commission Staff noted a “discrepancy between official statistics on imports from Germany and the numbers reported by [one company] in the foreign producer questionnaire and [another com pany.1 in the importer’s questionnaire.” C.R. 173. Specifically, official import statistics showed [a major inconsistency compared to] reported imports and exports in 1996. C.R. 173. Official statistics showed 1,655 short tons of SSWR imported from Germany, but questionnaire responses reported only [a much smaller quantity] exported to the United States. C.R. 43, Preliminary Staff Report, IV-4 (Table IV-2), VII-2 to -3 (Table VTI-1). When asked about the discrepancy, counsel for Krupp guessed that the problem could be misclassification of goods or mislabeled country of origin. C.R. 173. Counsel for Krupp requested that the Commission, in the event of a final investigation, “do an extensive analysis” to trace “exactly where the shipments were originating.” C.R. 173.

The Commission published notice of its preliminary affirmative determination that there was “a reasonable indication that an industry in the United States [was being] materially injured or threatened with material injury by reason of imports from Germany ... of stainless steel wire rod that [were allegedly being] sold in the United States at less than fair value (LTFV).” Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, 62 Fed. Reg. 49,994 (Int’l Trade Comm’n Sept. 24, 1997) (“ITC Preliminary Determination”); see RR 144, Stainless Steel Wire Rod from Germany, Italy, Japan, Korea, Spain, Sweden, and Taiwan, Inv. Nos. 701-TA-373 and Nos. 731-TA-769-775 (Prelim.), USITC Pub. 3060 (“Preliminary Commission Views”) at IV-1 at 3 n.l (Sept. 1997). In its preliminary determination, the Commission relied on the unadjusted, official U.S. import statistics for imports for consumption to find that imports of SSWR from Germany accounted for more than three percent of total imports for consumption during twelve months prior to the petition for which information was available, that is Julyl996 through June 1997. P.R. 144, Preliminary Commission Views at 14. The Commission also noted Krupp’s argument to the contrary. P.R. 144 at 14.

Commerce also published notice of a preliminary affirmative determination that imports of SSWR from Germany were being sold *1794 for less than fair value. 3 Stainless Steel Wire Rod From Germany, 63 Fed. Reg. 10,847 (Dep’t Commerce Mar. 5, 1998) (“DOC Preliminary Determination”). Commerce later issued a final determination that imports of SSWR from Germany were being sold at less than fair value, stating it would impose final antidumping duties on the imports if the Commission found material injury, or threat of material injury. 4

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