Alloy Piping Products, Inc. v. United States

201 F. Supp. 2d 1267, 26 Ct. Int'l Trade 330, 26 C.I.T. 330, 24 I.T.R.D. (BNA) 1417, 2002 Ct. Intl. Trade LEXIS 28
CourtUnited States Court of International Trade
DecidedMarch 11, 2002
DocketConsol. 01-00099
StatusPublished
Cited by15 cases

This text of 201 F. Supp. 2d 1267 (Alloy Piping Products, Inc. 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
Alloy Piping Products, Inc. v. United States, 201 F. Supp. 2d 1267, 26 Ct. Int'l Trade 330, 26 C.I.T. 330, 24 I.T.R.D. (BNA) 1417, 2002 Ct. Intl. Trade LEXIS 28 (cit 2002).

Opinion

Opinion

CARMAN, Chief Judge.

This consolidated action comes before the Court on Plaintiffs’ and Defendants Intervenors’ respective motions for judgment upon the agency record pursuant to USCIT R. 56.2. At issue are several elements of the Department of Commerce’s (“Commerce”) final affirmative antidump-ing duty (“AD”) determination in Notice of Final Determination of Sales at Less Than Fair Value: Stainless Steel Butt-Weld Pipe Fittings From Malaysia, 65 Fed.Reg. 81,825 (Dec. 27, 2000) ("Final Determination").

Plaintiffs Alloy Piping Products, Inc., Flowline Division., Markovitz Enterprises, Inc., Gerlin, Inc., and Taylor Gorge Stainless, Inc. (“Alloy” or “Domestic Industry”) contest Commerce’s use of third country sales as the basis for normal value (“NV”). Defendant-Intervenors Kanzen Tetsu Sdn. Bhd., Schulz (Mfg) Sdn. Bhd., and Schulz U.S.A., Inc. (“Kanzen”) claim the Final Determination is subject to a ministerial error that Commerce has failed to correct. Kanzen also renews its motion, pursuant to USCIT Rules 7(f) and 71(a), for an order *1269 requiring Commerce to supplement the administrative record. Defendant, United States, opposes all three motions. On the basis of the papers submitted, the relevant statutes and regulations, and for the reasons set forth herein, the Court denies Alloy’s motion for judgment upon the agency record. The Court also denies Kanzen’s motion to supplement the administrative record and its motion for judgment upon the agency record. Commerce’s Final Determination is sustained. Kanzen’s application for oral argument is denied. The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(c) (1994).

Background

On January 18, 2000, Commerce initiated an AD investigation into whether stainless steel butt-weld pipe fittings from Malaysia were being sold, or were likely to be sold in the United States at less than fair value. 1 See Initiation of Antidumping Duty Investigation: Stainless Steel Butt-Weld Pipe Fittings from Germany, Italy, Malaysia and the Philippines, 65 Fed.Reg. 4,595 (Jan. 31, 2000). On February 10, 2000, Kanzen submitted a questionnaire response, alleging that its Malaysian home market sales were not “viable” for purposes of calculating normal value because their volume was less than five percent of the volume of Kanzen’s U.S. sales. (Alloy Confidential Appendix (Alloy Conf. App.) Tab 3.) Kanzen, therefore, submitted third country market information to serve as the basis for NV. (Id.) On February 24, 2000, the ITC published its preliminary determination 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. See Certain Stainless Steel Butty-Weld Pipe Fittings From Germany, Italy, Malaysia, and the Philippines, Investigations Nos. 731-TA-864-867 (Preliminary), 65 Fed.Reg. 9,298 (Feb. 24, 2000).

On August 2, 2000, after reviewing the questionnaire responses submitted by Kanzen, Commerce published its preliminary determination. See Notice of Preliminary Determination of Sales at Not Less Than Fair Value and Postponement of Final Determination: Stainless Steel Butt-Weld Pipe Fittings from Malaysia, 65 Fed.Reg. 47,398 (Aug. 2, 2000) (“Preliminary Determination ”). Commerce estimated a de minimis weighted-average dumping margin of 0.59 percent and thus preliminarily determined that stainless steel butt-weld pipe fittings from Malaysia were not being sold, nor were they likely to be sold, in the United States at less than fair value. Id. Important to the instant review, Commerce determined that Kanzen’s “aggregate volume of home market sales of the foreign hke product was less than five percent of its aggregate volume of U.S. sales for the subject merchandise, ... [and thus] not viable.” Id. at 47,399. Therefore, Commerce based NV on Kanzen’s sales to the United Kingdom because Kanzen’s aggregate volume of sales of the foreign hke product in the U.K. was more than five percent of its aggregate volume of U.S. sales of the subject merchandise and therefore viable. See id.

Commerce then conducted a sales verification of Kanzen between September 25 and September 29, 2000. See Sales Verifi *1270 cation Report for the Anti-Dumping Duty Investigation Covering Stainless Steel Butt-Weld Pipe Fittings from Malaysia for the period October 1, 1998 through September 80, 1999 (Oct. 11, 2000) (“Sales Verification Report ”), reproduced at Kan-zen’s Conf.App. Tab 3. During its verification, Commerce conducted full quantity and value reconciliation of Kanzen’s U.K., U.S., and home market sales. See December 15, 2000 Issues and Decision Memorandum (“Decision Memo”) from Joseph A. Spetrini, Deputy Assistant Secretary, Import Administration, to Troy H. Cribb, Assistant Secretary for Import Administration at Comment 2, reproduced at U.S.App. at 7. Commerce found nothing to contradict Kanzen’s assertion that its Malaysian home market was not viable for purposes of determining NV but that its third country sales to the United Kingdom did constitute a viable market for such purposes. Id.

In its comments on the Preliminary Determination Alloy objected to Commerce’s reliance on Kanzen’s third country sales to the United Kingdom as the basis for NV. (Petitioners’ Case Brief at 3, reproduced at Alloy Conf.App. Tab 6.) Kan-zen countered that the U.K. market was a proper, viable market for calculating NV. Decision Memo at Comment 2. After Commerce held a public hearing on November 22, 2000, it addressed all issues raised by the parties in its Decision Memo. See Final Determination, 65 Fed.Reg. at 81,826. There, Commerce agreed with Kanzen that the U.K. market was viable and proper to use as the comparison market. Id.

Commerce expressly adopted its resolution of the issues raised in its Decision Memo when it published its affirmative final determination of sales at less than fair value on December 27, 2000. See Final Determination, 65 Fed.Reg. at 81,826. Commerce calculated a final weighted-average dumping margin of 7.51 percent for all Malaysian producers/exporters. See id. at 81,827.

On December 28, 2000 Kanzen filed its first request with Commerce for correction of certain alleged ministerial errors that Commerce denied because it claimed the alleged errors did not fall within the definition of ministerial errors as provided for in the applicable statute and regulation. 2 Kanzen filed a second request for correction of alleged ministerial errors on February 1, 2001, which Commerce again rejected, this time because it was untimely filed factual information.

On July 6, 2001 Kanzen made a motion before the Court to supplement the administrative record.

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201 F. Supp. 2d 1267, 26 Ct. Int'l Trade 330, 26 C.I.T. 330, 24 I.T.R.D. (BNA) 1417, 2002 Ct. Intl. Trade LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alloy-piping-products-inc-v-united-states-cit-2002.