Aluminum Extrusions Fair Trade Committee v. United States

968 F. Supp. 2d 1244, 2014 CIT 6, 35 Int'l Env't Rep. (BNA) 2556, 2014 WL 243451, 2014 Ct. Intl. Trade LEXIS 5
CourtUnited States Court of International Trade
DecidedJanuary 23, 2014
DocketConsol. 11-00216
StatusPublished

This text of 968 F. Supp. 2d 1244 (Aluminum Extrusions Fair Trade Committee 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.

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Aluminum Extrusions Fair Trade Committee v. United States, 968 F. Supp. 2d 1244, 2014 CIT 6, 35 Int'l Env't Rep. (BNA) 2556, 2014 WL 243451, 2014 Ct. Intl. Trade LEXIS 5 (cit 2014).

Opinion

OPINION

POGUE, Chief Judge:

In this action, the Aluminum Extrusions Fair Trade Committee (“AEFTC”) challenges two aspects of the Department of Commerce’s (“Commerce” or the “Department”) definition of the products excluded from Anti-Dumping (“AD”) and Countervailing Duty (“CVD”) orders on aluminum extrusions from the People’s Republic of China (“China”). 2 Plaintiff first argues that the definition of finished heat sinks (“FHS”) excluded from the orders does not accurately reflect the definition provided by the International Trade Commission (“ITC” or the “Commission”) in its finding of no material injury. Second, Plaintiff challenges the Department’s failure to specify in the instructions issued to Customs and Border Protection (“CBP”) that importers must certify that their products meet certain testing requirements allegedly required by the ITC’s definition of FHS.

The court has jurisdiction over Plaintiffs claims under 28 U.S.C. 1581(c). 3

*1247 Currently before the Court is Plaintiffs motion for judgment on the agency record. ECF No. 49. 4 The motion is denied. The Plaintiff has not demonstrated that the scope of the exclusion in the Department’s AD and CVD orders is materially different from the exclusion identified by the ITC. Further, Plaintiffs claim that the corresponding instructions issued by the Department to CBP are flawed in failing to require testing, certification, or proof of buyer in order to establish their eligibility for the FHS exclusion, must be rejected as unripe for decision. Until CBP, acting upon the Department’s instructions, misidentifies products eligible for the ITC’s FHS exclusion, the Plaintiffs claim remains speculative and their injury hypothetical.

BACKGROUND

In response to the Plaintiffs petitions, Commerce initiated an investigation of aluminum extrusions imported from China in April of 2010. 5 PI. Mot. for Judgment on the Agency Record, May 15, 2014, ECF No. 49 (“PL’s Mot.”) at 4. The final determinations in this investigation concluded that Chinese aluminum extrusions were being sold at less than fair value and that countervailable subsidies were being provided by the Chinese government, thus warranting the imposition of AD and CV duties on the subject imports. Aluminum Extrusions From the People’s Republic of China, 76 Fed.Reg. 18,521 (Dep’t Commerce Apr. 4, 2011) (final affirmative countervailing duty determination); Aluminum Extrusions From the People’s Republic of China, 76 Fed.Reg. 18,524 (Dep’t Commerce Apr. 4, 2011) (final determination of sales less than fair value). The scope of the Department’s determination included finished and unfinished aluminum shapes produced by extrusion and identified by their metallurgical content and role in a production process, with clarifying statements and examples about product types excluded from the investigation. 6 Aluminum Extrusions, 76 Fed.Reg. at 18,521-22.

*1248 Concurrent with the Department’s investigation, and in accordance with 19 U.S.C. 1671(b) and 19 U.S.C. 1673b(a), the ITC conducted its own investigation to determine whether domestic industries were materially injured or threatened with material injury by the importation of dumped or subsidized aluminum extrusions. While the ITC’s preliminary affirmative finding of injury matched the product scope definition used by the Department and reflected the original petition, Certain Aluminum Extrusions From China, 75 Fed. Reg. 34,482 (ITC June 17, 2010) (preliminary determination), this scope finding was revised in the Commission’s final determination to exclude FHS as a separate domestic like product and industry not threatened with material injury. Certain Aluminum Extrusions From China, 76 Fed.Reg. 29,007 (ITC May 19, 2011) (final determination). This exclusion was based on a set of criteria regularly used by the ITC and hinged specifically on

the customized thermal resistance properties of FHS; the unique aspects of the design, testing and production of FHS; differences between FHS and other aluminum extrusions in the channels of trade through which they are sold; evidence that the thermal management industry is perceived by producers and customers as being different from the general aluminum extrusions industry; and the fact that FHS are sold at much higher prices because of high value-added than most other aluminum extrusions. 7

Certain Aluminum Extrusions from China, USITC Pub.4229, Inv. Nos. 701-TA-475 and 731-TA-1177 (Final), at 9 (May 2011) (“ITC Report ”).

In defining the excluded industry and domestic like product, the ITC report described FHS, in the introductory Determinations section, as “fabricated heat sinks, sold to electronics manufacturers, the design and production of which are organized around meeting certain specified thermal performance requirements and which have been fully, albeit not necessarily individually, tested to comply with such requirements.” Id. at 1 n. 4; Id. at 3 n. 1. In response to the exclusion specified in the ITC’s final report, the Department revised its own final determination to exclude FHS and issued AD and CVD orders excluding FHS from the scope of the cash deposit requirements on aluminum extrusions. Pl.’s Mot. at 5; Draft Customs Instructions, AD. PR. Doc. No. 540.

In identifying the excluded products in the AD and CVD orders, the Department modified the exact language used by the ITC in its footnote 4. Specifically, the Department eliminated the four words “sold to electronics manufacturers” from the ITC’s product description. Pl. ’s Mot. at 5. This clause, identifying the buyers of FHS, is alleged by the Plaintiff to represent a critical limitation on the scope of the ITC’s exclusion from the injury determination. 8

*1249 Id. at 5-6. To the Plaintiff, the elimination of these four words expands the scope of the ITC’s excluded category and therefore represents both an unlawful violation of the Department’s authority relative to the ITC and an inappropriate limit on the remedy to which the law entitles a domestic industry injured by subsidized imports. Com/pl., ECF No. 7, at 6; Pl.’s Reply Br. at 5.

STANDARD OF REVIEW

The Department’s determination will be affirmed unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C.

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