Alloy Piping Products, Inc. v. Kanzen Tetsu Sdn. Bhd.

334 F.3d 1284, 25 I.T.R.D. (BNA) 1321, 2003 U.S. App. LEXIS 13191
CourtCourt of Appeals for the Federal Circuit
DecidedJune 27, 2003
Docket02-1396
StatusPublished
Cited by5 cases

This text of 334 F.3d 1284 (Alloy Piping Products, Inc. v. Kanzen Tetsu Sdn. Bhd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alloy Piping Products, Inc. v. Kanzen Tetsu Sdn. Bhd., 334 F.3d 1284, 25 I.T.R.D. (BNA) 1321, 2003 U.S. App. LEXIS 13191 (Fed. Cir. 2003).

Opinion

334 F.3d 1284

ALLOY PIPING PRODUCTS, INC., Flowline Division, Markovitz Enterprises, Inc., Gerlin, Inc., and Taylor Forge Stainless, Inc., Plaintiffs-Appellees, and
United States, Defendant-Appellee,
v.
KANZEN TETSU SDN. BHD., Defendant-Appellant, and
Schulz (Mfg) Sdn. Bhd. and Schulz U.S.A., Inc., Defendants.

No. 02-1396.

United States Court of Appeals, Federal Circuit.

DECIDED: June 27, 2003.

Frank H. Morgan, White & Case, LLP, of Washington, DC, argued for defendant-appellant. With him on the brief were Walter J. Spak and Robert G. Gosselink.

Mary T. Staley, Collier Shannon Scott, PLLC, of Washington, DC, argued for plaintiffs-appellees. With her on the brief was Jeffrey S. Beckington.

Stephen C. Tosini, Trial Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, DC, argued for defendant-appellee. With him on the brief were Robert D. McCallum, Jr., Assistant Attorney General; David M. Cohen, Director; Lucius B. Lau, Assistant Director. Of counsel on the brief were John D. McInerney, Chief Counsel, Berniece A. Browne, Senior Counsel, and Robert E. Nielsen, Senior Attorney, Department of Commerce, of Washington, DC.

Before SCHALL, GAJARSA, and DYK, Circuit Judges.

DYK, Circuit Judge.

Kanzen Tetsu Sdn. Bhd. ("Kanzen") appeals the decision of the United States Court of International Trade sustaining the final affirmative antidumping duty determination issued by the Department of Commerce ("Commerce"). Alloy Piping Prods., Inc. v. United States, 201 F.Supp.2d 1267, 1269 (C.I.T.2002). Kanzen argues that Commerce was required to correct an alleged error in its final determination. We hold that Commerce's refusal to correct the alleged error was not arbitrary and capricious, because (1) Kanzen itself was the source of the error; (2) Kanzen did not call attention to the error until after the issuance of the final determination; and (3) there was no showing that the error was or would have been apparent to Commerce before it issued the final determination. We therefore affirm the decision of the Court of International Trade.

BACKGROUND

* Commerce is required to impose antidumping duties on "foreign merchandise [that] is being, or is likely to be, sold in the United States at less than its fair value." 19 U.S.C. § 1673(1) (2000); Micron Tech., Inc. v. United States, 243 F.3d 1301, 1303 (Fed.Cir.2001). Commerce determines antidumping duties by first calculating the "dumping margin," which is "the amount by which the normal value exceeds the export price or constructed export price of the subject merchandise." 19 U.S.C. § 1677(35)(A) (2000); Koyo Seiko Co. v. United States, 258 F.3d 1340, 1342 (2001). Commerce is then obligated by statute "to use the dumping margin as `the basis for the assessment of countervailing or antidumping duties on entries of merchandise covered by the [antidumping] determination and for deposits of estimated duties.'" Koyo Seiko, 258 F.3d at 1342 (quoting 19 U.S.C. § 1675(a)(2)(C)). A duty is then imposed if the International Trade Commission ("ITC") determines that an industry in the United States is "materially injured, or is threatened with material injury" or "the establishment of an industry in the United States is materially retarded" by the sale of foreign products at less than fair value. 19 U.S.C. § 1671b(a)(1) (2000).

The "export price" or "constructed export price" referred to in section 1677(35)(A) is the price charged by importers in the United States. Micron Tech., 243 F.3d at 1303. By statute, certain upward and downward adjustments must be made to the export price before calculating the dumping margin. Pertinent to this appeal, Commerce must reduce the export price by "expenses that result from, and bear a direct relationship to, the sale, such as credit expenses." 19 U.S.C. § 1677a(d)(1)(B) (2000). Hence, a large credit expense per sale will result in a lower export price and a greater dumping margin.

By statute, Commerce must establish a procedure for the correction of "ministerial errors" that may occur in its final determinations:

The administering authority shall establish procedures for the correction of ministerial errors in final determinations within a reasonable time after the determinations are issued under this section. Such procedures shall ensure opportunity for interested parties to present their views regarding any such errors. As used in this subsection, the term "ministerial error" includes errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which the administering authority considers ministerial.

19 U.S.C. § 1673d(e) (2000).

Pursuant to this statute, Commerce has promulgated a regulation providing that "[a] party to the proceeding to whom the Secretary has disclosed calculations performed in connection with a final determination or the final results of a review may submit comments concerning any ministerial error in such calculations." 19 C.F.R. § 351.224(c)(1) (2002). Under the regulation, parties must file comments concerning ministerial errors within five days of the disclosure of the final dumping margin calculations. Id. § 351.224(c)(2). Parties can also apply for an extension, allowing them to file ministerial error comments five days after the publication of the final determination. Id. § 351.224(c)(4). The regulation further provides: "[t]he Secretary will analyze any comments received and, if appropriate ... correct any ministerial error by amending the final determination." Id. § 351.224(e). The definition of "ministerial error" is identical to that found in the statute: "an error in addition, subtraction, or other arithmetic function, clerical error resulting from inaccurate copying, duplication, or the like, and any other similar type of unintentional error which the Secretary considers ministerial." Id. § 351.224(f). Neither the statute nor the regulation specifies whether the definition of ministerial error includes errors made by private parties in the proceeding.

II

On December 29, 1999, the private appellees in this action, Alloy Piping Products, Inc., Flowline Division, Markovitz Enterprises, Inc., Gerlin, Inc., and Taylor Forge Stainless, Inc., filed a petition with Commerce asking that it investigate the importation of pipe fittings from Germany, Italy, Malaysia, and the Philippines. Commerce initiated the antidumping investigation on January 18, 2000, to determine whether pipe fittings imported from those countries should be assessed an antidumping duty. Stainless Steel Butt-Weld Pipe Fittings From Germany, Italy, Malaysia and the Philippines, 65 Fed. Reg. 4595, 4596 (Dep't Commerce Jan. 31, 2000) (Initiation of Antidumping Duty Investigations). On February 24, 2000, the ITC determined "that there was a reasonable indication that an industry in the United States was being materially injured by reason of imports of the subject merchandise from Malaysia." Alloy Piping Prods.,

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334 F.3d 1284, 25 I.T.R.D. (BNA) 1321, 2003 U.S. App. LEXIS 13191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alloy-piping-products-inc-v-kanzen-tetsu-sdn-bhd-cafc-2003.