Awp Industries, Inc. v. United States

783 F. Supp. 2d 1266, 33 I.T.R.D. (BNA) 1641, 2011 Ct. Intl. Trade LEXIS 90, 2011 WL 2843839
CourtUnited States Court of International Trade
DecidedJuly 12, 2011
DocketSlip Op. 11-81; Court 10-00250
StatusPublished
Cited by2 cases

This text of 783 F. Supp. 2d 1266 (Awp Industries, 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
Awp Industries, Inc. v. United States, 783 F. Supp. 2d 1266, 33 I.T.R.D. (BNA) 1641, 2011 Ct. Intl. Trade LEXIS 90, 2011 WL 2843839 (cit 2011).

Opinion

OPINION

POGUE, Chief Judge:

In this action, Plaintiffs seek review of the International Trade Commission’s (“the Commission”) finding of no material injury, or threat thereof, to the domestic industry, as a result of imports of wire decking from China. Plaintiffs challenge, as unsupported by substantial evidence in the record, the following five factual determinations (the “subsidiary findings”) relevant to the Commission’s ultimate negative determination: 1) the Commission’s choice of questionnaire response data to determine subject import market share; 2) the Commission’s determination that subject imports were not suppressing domestic prices to a significant degree; 3) the Commission’s conclusion that the domestic industry’s declining performance was largely due to a decline in demand for wire decking; 4) the Commission’s reliance on Chinese producer questionnaire responses in its determination regarding Chinese capacity; and 5) the Commission’s determination that the largest importer of wire decking had ceased operations.

As explained below, the court concludes that the Commission’s five subsidiary findings do not reflect an unreasonable reading or analysis of the record evidence regarding the economic conditions affecting the domestic industry during the Commission’s 2006-2009 period of review. Accordingly, the Commission’s decision is affirmed.

JURISDICTION

The court has jurisdiction over this case pursuant to 28 U.S.C. § 1581(c). 1

BACKGROUND

The economic conditions affecting the domestic industry are, of course, the critical focus for a Commission’s determination of whether a U.S. industry is being materially injured, or threatened with material injury, by reason of subject imports. See 19 U.S.C. § 1671d(b). 2 Specifically, in *1271 making its final determination, the Commission is required to consider the volume of subject imports, their effect on prices in the United States for the domestic like product, and the impact on domestic producers within the context of U.S. production, see 19 U.S.C. § 1677(7)(B). Additionally, in examining the impact of subject imports, the Commission “evaluate[s] all relevant economic factors which have a bearing on the state of the industry in the United Statesf.]” 19 U.S.C. § 1677(7)(C)(iii). 3

The Commission’s review of the economic conditions affecting the domestic industry covers the three-year period prior to the request or petition for an investigation (“POI”). 4 The investigation at issue here was initiated on June 5, 2009, when AWP Industries, Inc. (“AWP”), ITC Manufacturing, Inc. (“ITC”), J & L Wire Cloth, Inc. (“J & L”), Nashville Wire Products Mfg. Co., Inc. (“Nashville Wire”) and Wireway Husky Corp. (“Wireway”), (collectively the “Domestic Industry,” “Petitioners,” or “Plaintiffs”), filed petitions with both the U.S. Department of Commerce (“Commerce”) and the Commission, alleging that the U.S. wire decking 5 industry was being materially injured or was threatened with material injury by reason of Chinese imports. The Domestic Industry also alleged that Chinese producers were selling their wire decking product at less than fair value (“LTFV”) while receiving subsidies from the Chinese government, thus causing material injury to the U.S. industry. 6

*1272 Generally, to put the investigation in context, during this POI, from 2006-2009, “nonresidential construction activity slumped ..., w[ith] industrial production bottoming] out in mid-2009.” Final Views at 15. Thus, the Commission was faced with determining the effects of the subject imports in a generally declining economic environment that reduced demand. Nonetheless, during the preliminary investigation, the Commission found “a causal nexus between the subject imports and the deteriorating condition of the domestic industry.” Views of the Commission in the Preliminary Investigation 27 (CR 70) (PR 47) (“Prelim. Views”). In the final phase of its investigation, however, the Commission — after receiving questionnaire responses from foreign producers, domestic producers, importers and purchasers, in addition to evidence submitted by Petitioners — determined that the domestic industry was not being materially injured or threatened with material injury by reason of wire decking from China. Rather, to the Commission, the industry’s difficulties were due to other economic factors or conditions. 7

Notably, the Commission sent questionnaires to ten domestic wire decking producers identified by Petitioners, and received eight responses, seven of which provided usable information. Petitioners estimated that the seven usable responses accounted for approximately 99 percent of U.S. wire decking production in 2008. Confidential Staff Report for the Final Investigation III — 1 n. 1 (June 17, 2010) (CR 180) (“Final Staff Report”). In addition, for the final phase of the investigation, the Commission sent questionnaires to thirty-six U.S. wire decking importers, and again received seven usable responses from firms reporting wire decking imports. The Commission stated that these responses were reported to account for “the majority” of imports during the relevant period. Final Views 3^4; see also Final Staff Report at IV-1. Further, the Commission received twenty-six purchaser responses and sent forty-eight final questionnaires to foreign producers believed to produce wire decking in China during the POI, receiving four responses. 8 Final Staff Report at VII-2. The Commission believed that these responses accounted for the vast majority of Chinese production and exports to the U.S. in 2009. Final Views 4. 9

*1273 After briefly summarizing the court’s familiar standard of review, this decision will discuss each of the Commission’s subsidiary findings that Plaintiffs challenge here.

STANDARD OF REVIEW

Where an action is brought under 19 U.S.C. § 1516a(a)(2) seeking review of a final determination of the Commission under 19 U.S.C. § 1673d, “[t]he court shall hold unlawful any determination, finding, or conclusion found ... to be unsupported by substantial evidence on the record, or otherwise not in accordance with law[.]” 19 U.S.C.

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Related

JMC Steel Group v. United States
24 F. Supp. 3d 1290 (Court of International Trade, 2014)
Whirlpool Corp. v. United States
2013 CIT 155 (Court of International Trade, 2013)

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783 F. Supp. 2d 1266, 33 I.T.R.D. (BNA) 1641, 2011 Ct. Intl. Trade LEXIS 90, 2011 WL 2843839, Counsel Stack Legal Research, https://law.counselstack.com/opinion/awp-industries-inc-v-united-states-cit-2011.