Aramide Maatschappij V.o.F. v. United States

19 Ct. Int'l Trade 884
CourtUnited States Court of International Trade
DecidedJune 19, 1995
DocketCourt No. 94-07-00424S
StatusPublished

This text of 19 Ct. Int'l Trade 884 (Aramide Maatschappij V.o.F. 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
Aramide Maatschappij V.o.F. v. United States, 19 Ct. Int'l Trade 884 (cit 1995).

Opinion

Opinion

Restani, Judge:

This matter is before the court on a motion for judgment upon the agency record pursuant to USCIT Rule 56.2. The motion has been brought by Aramid Products Vo.F. (formerly Aramide Maats-chappij Vo.F.) and Akzo Nobel Fibers Inc. (formerly Akzo Fibers Inc.) (collectively “Akzo”), challenging the determination of the United States International Trade Commission (the “Commission”) in Aramid Fiber Formed ofPoiyPara-Pheny lene Terephthalamide from theNether-lands, USITC Pub. 2783, Inv. No. 731-TA-652 (June 1994) (affirmative final determ.) (“Final Det. ”).

Background

On July 2,1993, E.I. Du Pont de Nemours & Co., Inc. (“petitioner” or “Du Pont”) filed a petition with the Commission and the International Trade Administration of the United States Department of Commerce (“Commerce”), alleging that an industry in the United States was materially injured or threatened with material injury by reason of less than fair value (“LTFV”) imports of poly para-phenylene terephthalamide (“PPD-T aramid fiber”) from the Netherlands. Du Pont is the sole U.S. producer of PPD-T aramid fiber, which is a high-performance synthetic fiber with special characteristics that include high strength, resistance to deformation from stretch, high thermal stability, fire resistance, and chemical resistance. PPD-T aramid fiber is available in a variety of forms, such as filament yarn, staple, pulp, floe, chopped fiber, and non-wovens.1 It is distinguished from other types of fiber by its chemical composition, specific properties, method of production, and range of end uses. Final Det. at II — 5. Commerce issued its final determination on [885]*885May 6, 1994, concluding that PPD-T aramid fiber imports from the Netherlands were being, or were likely to be, sold in the United States at LTFV 59 Fed. Reg. at 23,684. Akzo was the only respondent involved in the investigation. In its final determination, the Commission concluded that the domestic PPD-T aramid fiber industry was materially injured by reason of the LTFV imports from the Netherlands.2 Aramid Fiber Formed of Poly Para-Phenylene Terephthalamide from the Netherlands, 59 Fed. Reg. 32,220 (USITC 1994) (final). Akzo challenges the Commission’s determination that the product under investigation consisted of a single like product, and that the subject imports were a cause of material injury to the domestic industry. Defendant and petitioner oppose Akzo’s motion.

Standard of Review

In reviewing final determinations in antidumping duty investigations, the court will hold unlawful those determinations of the Commission found to be unsupported by substantial evidence on the record, or otherwise not in accordance with law. 19U.S.C. § 1516a(b)(l)(B) (1988) (current version at 19 U.S.C.A. § 1516a(b)(l)(B)(i) (West Supp. 1995)).

Discussion

I. Like Product:

The statute defines “like product” as “aproduct which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation.” 19 U.S.C. § 1677(10) (1988). Factors that the Commission typically considers in defining “like product” include (1) physical characteristics and uses, (2) interchangeability of the products, (3) channels of distribution, (4) customer and producer perceptions of the products, (5) the use of common manufacturing facilities and personnel, and (6) price. See Calabrian Corp. v. United States, 16 CIT 342, 346 n.4, 794 F. Supp. 377, 382 n.4 (1992). The bases upon which a like product determination is made “fall[ ] within the Commission’s broad discretion and expertise in conducting investigations.” Chung Ling Co. v. United States, 16 CIT 636, 647, 805 F. Supp. 45, 54 (1992). Further, the Commission seeks clear dividing lines among possible like products and generally disregards minor variations. Nippon Steel Corp. v. United States, Slip Op. 95-57, at 11 (Apr. 3, 1995).

Akzo challenges the Commission’s determination that PPD-T aramid fiber constituted a single like product, arguing that the Commission should have found four separate like products corresponding to four major forms ofPPD-T aramid fiber — yarn, staple fiber, pulp and nonwo-vens. The court addresses Akzo’s challenges according to the factors typically considered by the Commission in making its like product determination.

[886]*886A. Physical characteristics and uses:

In its final determination, the Commission found that all forms of PPD-T aramid fiber have similar physical and structural characteristics, in that they are produced from the same raw materials and have the same chemical composition. Final Del. at 1-6. Further, processing steps required to make the various downstream forms of PPD-T aramid fiber3 do not alter the molecular organization of the material. Id. The Commission noted that physical differences exist among the various forms of PPD-T aramid fiber, thus many forms are “more appropriate for specific end-use applications.” Id. The Commission further found that physical differences also exist within the four product groupings identified by Akzo. Id. Notwithstanding these differences, the Commission determined that

it is significant that functions of PPD-T aramid fiber products frequently overlap among fiber forms and across applications. Information submitted by the parties indicatés that PPD-T aramid fiber products in the forms of yarn, pulp, and staple are all used to deliver strength in their end-use applications. Products in the form of pulp, staple, and nonwovens are all used to impart thermal stability or insulation.

Id. Finally, the Commission concluded that generally common physical characteristics and product qualities distinguish aramid fibers from other fibers. Id. at 1-8.

Akzo contends that the significant physical differences and specific end-use applications among the various forms do not support a single like product finding. Akzo also contests the Commission’s conclusion that shared characteristics and functions distinguished PPD-T aramid fiber from other non-aramid fibers, on the basis that the Commission made no findings concerning the physical characteristics and product qualities of these other fibers. According to Akzo, evidence in the record of “inter-fiber” competition undermines the Commission’s conclusion.

The shared physical characteristics and product qualities among the various PPD-T aramid fiber forms support the Commission’s single like product finding. The Commission acknowledged the physical differences and specific end-use applications among the various PPD-T ara-mid forms, but found that these differences did not outweigh the products’ shared functions and characteristics. Additionally, Akzo, in general, does not dispute that PPD-T aramid fiber has important shared characteristics and qualities.

Contrary to Akzo’s second contention, the court finds that evidence in the record supports the Commission’s conclusion that PPD-T aramid fiber is distinguished from other non-aramid fibers by its shared characteristics and qualities. Although Akzo correctly asserts that other fibers substitute for PPD -T aramid fiber in many applications, the record indi[887]

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Related

Calabrian Corp. v. United States International Trade Commission
794 F. Supp. 377 (Court of International Trade, 1992)
Copperweld Corp. v. United States
682 F. Supp. 552 (Court of International Trade, 1988)
Iwatsu Elec. Co., Ltd. v. United States
758 F. Supp. 1506 (Court of International Trade, 1991)
Chung Ling Co., Ltd. v. United States
805 F. Supp. 45 (Court of International Trade, 1992)

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