Allied Tube & Conduit Corp. v. United States

721 F. Supp. 305, 13 Ct. Int'l Trade 698, 13 C.I.T. 698, 1989 Ct. Intl. Trade LEXIS 485
CourtUnited States Court of International Trade
DecidedAugust 31, 1989
Docket89-06-00353
StatusPublished
Cited by7 cases

This text of 721 F. Supp. 305 (Allied Tube & Conduit 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
Allied Tube & Conduit Corp. v. United States, 721 F. Supp. 305, 13 Ct. Int'l Trade 698, 13 C.I.T. 698, 1989 Ct. Intl. Trade LEXIS 485 (cit 1989).

Opinion

OPINION AND ORDER

CARMAN, Judge:

Plaintiffs Allied Tube and Conduit Corp., Sawhill Div., Cyclops Corp., and Wheatland Tube Co. (plaintiffs) contest the denial by the Department of Commerce, International Trade Administration (Commerce), of their request for release of confidential business proprietary information contained in documents utilized by Commerce for verification of questionnaire responses in the administrative review (for 1987) of the countervailing duty order in Circular Welded Carbon Steel Pipes and Tubes From Thailand (Inv. No. C-549-501). Plaintiffs seek an order from this Court, pursuant to section 777(c) of the Tariff Act of 1930 (the Act) as amended, compelling Commerce to release the confidential information to plaintiffs under an administrative protective order. 19 U.S.C. § 1677f(c) (1982) as amended by the Omnibus Trade and Competitiveness Act of 1988, Pub.L. No. 100-418, § 1332(3), 102 Stat. 1107, 1208-09 (1988) (the 1988 Act). This Court has jurisdiction pursuant to 28 U.S.C. *307 § 1581(f) (1982). 1

Commerce opposes this action arguing that the information should not be disclosed due to its sensitive and highly confidential nature. Defendant’s Memorandum In Opposition To Plaintiffs’ Motion For Release Of Confidential Information To Plaintiffs’ Counsel Pursuant To A Judicial Protective Order at 3-4. 2 Defendant-inter-venors (intervenors), citing legislative history, claim that verification documents do not fall within the scope of section 777 of the Act, and are per se exempt from disclosure under the Act. Alternatively, intervenors argue that even if verification exhibits are within the scope of the disclosure provisions of section 777, there is a clear and compelling need to withhold disclosure in this case. See Intervenors’ Opposition To Plaintiffs’ Application For Access To Confidential Information Under Protective Order (Intervenors’ Brief).

On the basis of the papers submitted, the Court’s examination of the documents in camera, the arguments of the parties and a careful reading of the relevant statutes, this Court grants plaintiffs’ application except for items redacted by agreement of the parties. This Court finds that under the statute and in accordance with Bethlehem Steel Corp. v. United States, 13 CIT -, 718 F.Supp. 70 (1989) verification exhibits as a class are not exempt from disclosure under section 777(c) and that Commerce has failed to show a clear and compelling need to withhold disclosure of the verification exhibits in question as mandated under the statute. Further, this Court finds that intervenors have failed to meet the requirements for a stay of this Court’s order pending appeal.

BACKGROUND

Plaintiffs, interested parties to Commerce’s administrative review of the 1987 period of the countervailing duty order concerning Circular Welded Carbon Steel Pipes and Tubes From Thailand, filed several requests for release of business proprietary information pursuant to 19 U.S.C. 1677f(c)(l). See Complaint, Exhibits 2 and 5. These requests encompassed questionnaire responses and verification reports. Commerce subsequently released the questionnaire responses to plaintiffs under the extant administrative protective order, but refused to release verification exhibits. Id., Exhibits 1 and 3. By letter dated June 12, 1989, Commerce provided a specific denial of plaintiffs’ request for release of verification exhibits and the reasons for its denial. Letter from Paul McGarr, Program Manager, Office of Countervailing Compliance, Complaint, Exhibit 1.

The letter stated the “1988 Act contains no specific reference to the release of verification exhibits and, therefore, there is no specific mandate to release verification exhibits.” Id. at 2. Continuing, the letter outlined Commerce’s position:

We believe there is a clear and compelling need to withhold release of verification exhibits. Verification exhibits merely corroborate the information presented in the response. Verification exhibits, such as sales ledgers, often contain sensitive price and sales information for products not under review. Disclosing such data might cause substantial harm to respondents by revealing important company pricing and marketing decisions to competitors, thus providing them with an unfair and unnecessary competitive advantage. Further, verification exhibits consist of internal business records that go to the heart of daily business *308 transactions that are extremely sensitive to a company’s operations. Release of such documents would be viewed by cooperative respondents as a breach of trust and would severely impair our ability to gather such documents in the future. Finally, applicants have access to all the information necessary to comment on, and participate in, the review without access to the underlying substantiating documents.

Id. Subsequent to plaintiffs’ initiation of this action, the verification documents in question were transmitted to this Court under seal pursuant to 28 U.S.C. § 2635(c) enabling this Court to examine the documents in camera. 3

A hearing for all purposes was held before this Court on August 16, 1989, at which time legal arguments were made but no evidence whatsoever was offered. At the close of the hearing this Court found that Congress intended for business proprietary information contained within the verification exhibits to be subject to disclosure under the statute. Additionally, this Court found that Commerce had failed to offer evidence showing a clear and compelling reason for withholding disclosure of any of the contested documents. Transcript of Hearing on August 16, 1989 (Tr.) at 67-68.

Upon the consent of all parties, the Court ordered Commerce, in consultation with in-tervenors, to review the documents and to return to open Court with copies of the proposed redactions of customer and supplier names highlighted for this Court’s in camera review. 4 The parties reconvened before this Court on August 22, 1989 at which time Commerce agreed to transfer the proposed redactions to the documents in the Court’s record under seal. At that time argument was heard on intervenors’ motion for a stay of the Court’s order in this case pending appeal. 5

CONTENTIONS OF THE PARTIES

Plaintiffs argue that the statute requires Commerce to release under protective order “all ” business proprietary information contained within the record, including verification exhibits, subject to a limited exception for information which Commerce can demonstrate a clear and compelling need to withhold.

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

Related

Solianus, Inc. v. United States
391 F. Supp. 3d 1331 (Court of International Trade, 2019)
United States v. UPS Customhouse Brokerage, Inc.
686 F. Supp. 2d 1337 (Court of International Trade, 2010)
Daido Corp. v. United States
807 F. Supp. 1571 (Court of International Trade, 1992)
General Electric Co. v. United States
16 Ct. Int'l Trade 864 (Court of International Trade, 1992)
Allied Tube & Conduit Corp. v. United States
898 F.2d 780 (Federal Circuit, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
721 F. Supp. 305, 13 Ct. Int'l Trade 698, 13 C.I.T. 698, 1989 Ct. Intl. Trade LEXIS 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-tube-conduit-corp-v-united-states-cit-1989.