Asahi Seiko Co., Ltd. v. United States

751 F. Supp. 2d 1335, 34 Ct. Int'l Trade 1443, 34 C.I.T. 1443, 32 I.T.R.D. (BNA) 2158, 2010 Ct. Intl. Trade LEXIS 132
CourtUnited States Court of International Trade
DecidedNovember 12, 2010
DocketSlip Op. 10-127; Court 08-00363
StatusPublished
Cited by6 cases

This text of 751 F. Supp. 2d 1335 (Asahi Seiko Co., Ltd. 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
Asahi Seiko Co., Ltd. v. United States, 751 F. Supp. 2d 1335, 34 Ct. Int'l Trade 1443, 34 C.I.T. 1443, 32 I.T.R.D. (BNA) 2158, 2010 Ct. Intl. Trade LEXIS 132 (cit 2010).

Opinion

OPINION

STANCEU, Judge.

Plaintiff Asahi Seiko Co., Ltd. (“Asahi”) contests a final determination (“Final Results”) of the International Trade Administration, U.S. Department of Commerce (“Commerce” or the “Department”), in the eighteenth administrative reviews of anti-dumping duty orders on ball bearings and parts thereof (the “subject merchandise”) from France, Germany, Italy, Japan, and the United Kingdom. Compl. HI; see Ball Bearings & Parts Thereof From France, Germany, Italy, Japan, & the United Kingdom: Final Results of Antidumping Duty Admin. Reviews & Rescission of Reviews in Part, 73 Fed.Reg. 52,823 (Sept. 11, 2008) (“Final Results ”). Asahi, a Japanese manufacturer and exporter of the subject merchandise, requested review of its sales and then withdrew its request for review after Commerce did not select it as a mandatory respondent. Letter from As ahi to the Sec’y of Commerce 1-2 (Sept. 26, 2007) (Admin.R.Doc. No. 13342) (“Asahi’s Withdrawal Request”). Asahi now challenges the Department’s selection of mandatory respondents, and in particular the decision not to select Asahi, which was not assigned a margin in the Final Results. Compl. ¶¶ 26-29. Before the court is plaintiffs motion, made under USCIT Rule 56.2, for judgment upon the agency record. Mot. for J. on the Agency R. Submitted by PI. Asahi Seiko Co., Ltd., Pursuant to Rule 56.2 of the Rules of the U.S. Court of International Trade (“PL’s Mot.”). Defendant filed a brief opposing this motion, which defendant-intervenor supports. Def.’s Opp’n to PL’s Mot. for J. upon the Agency R.; Tr. 47 (Sept. 22, 2010).

Asahi contends that Commerce’s unlawful selection of only three mandatory respondents deprived it of an individual margin and of the opportunity to develop a record of three consecutive zero or de minimis margins that would enable it to request revocation from the antidumping *1337 duty order on ball bearings and parts from Japan. Mem. in Supp. of the Mot. for J. on the Agency R. Submitted by PI. Asahi Seiko Co., Ltd., Pursuant to Rule 56.2 of the Rules of the U.S. Court of International Trade (“Pl.’s Mem.”) 12-16. Asahi argues that Commerce’s refusal to determine Asahi’s individual margin unfairly forced it to withdraw from the review to avoid the “all others” rate for non-selected respondents, which Asahi claims to have been far in excess of the average of the individual margins it obtained in past reviews. Pl.’s Mem. 20-21. Asahi also argues that its continued participation in the review would have been futile because there was no possibility that Commerce would have conducted an individual examination of Asahi. Id. at 18-20.

The court concludes that Asahi, having failed to exhaust its administrative remedies, is not entitled to relief on its claim. Although Commerce acted unlawfully in selecting only three mandatory respondents, Asahi’s withdrawal of its request for review of its sales, in the absence of a request from any other party that Commerce review Asahi, resulted in the rescission of the review as to Asahi. The court also concludes, contrary to Asahi’s futility argument, that it would not have been futile for Asahi to seek voluntary respondent status.

I. Background

On May 1, 2007, Commerce announced the opportunity for parties to request reviews of the antidumping duty orders on ball bearings and parts thereof, including review of the order pertaining to Japan, for the period of May 1, 2006 through April 30, 2007 (“period of review,” or “POR”). Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity to Request Admin. Review, 72 Fed.Reg. 23,796, 23,797 (May 1, 2007). On May 30, 2007, Asahi requested that Commerce review Asahi’s sales pertaining to the period of review. Letter from Asahi to the Sec’y of Commerce 1-2 (May 30, 2007) (Admin.R.Doc. No. 13072). No party other than Asahi requested a review of Asahi’s sales. Ball Bearings & Parts Thereof from France, Germany, Italy, Japan, & the United Kingdom: Notice of Partial Rescission of Antidumping Duty Admin. Reviews, 72 Fed.Reg. 64,-577, 64,578 (Nov. 16, 2007) (“Rescission Notice ”) (listing Asahi as a “self-request- or”). On June 29, 2007, Commerce published a notice (“Initiation Notice”) commencing the eighteenth periodic reviews of the antidumping duty orders. Initiation of Antidumping & Countervailing Duty Admin. Reviews, Request for Revocation in Part & Deferral of Admin. Review, 72 Fed.Reg. 35,690, 35,692 (June 29, 2007).

After collecting information on the quantity and value of sales to the United States from the exporters and producers listed in the Initiation Notice, Commerce issued, on August 14, 2007, a memorandum (“Respondent Selection Memorandum”) announcing that, due to resource constraints, it had selected for individual examination only three respondents (ie., “mandatory respondents”), which were JTEKT Corporation (“JTEKT”), NSK Ltd. (“NSK”), and NTN Corporation (“NTN”), based on its finding that these three respondents were responsible for the largest volumes of exports during the POR. Mem. from Senior Import Trade Compliance Analyst, AD/ CVD Operations Office 5, to Office Dir., AD/CVD Enforcement Office 5, at 3 (Aug. 14, 2007) (Admin.R.Doc. No. 13261) (“Resp’t Selection Mem.”). Commerce also stated in the Respondent Selection Memorandum that it would consider examining a voluntary respondent if a mandato *1338 ry respondent did not cooperate or withdrew its request for review and that it would consider a request to examine a voluntary respondent if and when it received such a request. Id. at 5.

On September 12, 2007, Asahi requested that Commerce extend “the period for withdrawing requests for review for a period of no less than two (2) weeks after the date of initial responses by the mandatory respondents or the release of the Final Results of the 17th POR, whichever is later.” Letter from Asahi to the Sec’y of Commerce 1 (Sept. 12, 2007) (Admin.R.Doc. No. 13319)(“AsaM Extension Request”). According to this letter, “the due date for initial responses by the mandatory respondents in this review is currently September 20, 2007” and “the normal time limit for withdrawal” would require Asahi to withdraw by September 27, 2007. Id. at 1-2. Asahi gave as its reason that the requested extension is “necessary for non-mandatory respondents, such as Asahi, in order to permit them to review the initial responses in the 18th POR and the final results in the 17th POR in order to make an assessment of what action is necessary.” Id. at 2. Asahi further stated that granting its extension request “would not result in any impediment or burden on the Department since the non-mandatory respondents will not be submitting any information and thus the Department will not be performing any analysis in this regard.” Id. at 2. After Commerce rejected its extension request, Asahi, on September 26, 2007, filed a request to withdraw its previous (May 30, 2007) request for review. Asahi’s Withdrawal Request 1; Letter from Office Dir., AD/ CVD Enforcement Office 5 to Asahi

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751 F. Supp. 2d 1335, 34 Ct. Int'l Trade 1443, 34 C.I.T. 1443, 32 I.T.R.D. (BNA) 2158, 2010 Ct. Intl. Trade LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asahi-seiko-co-ltd-v-united-states-cit-2010.