Borusan Mannesmann Boru Sanayi ve Ticaret A.S. v. United States

2020 CIT 71
Procedural entryThis page is a short order in Borusan Mannesmann Boru Sanayi ve Ticaret A.S. v. United States. Read the opinion of the Court — 426 F. Supp. 3d 1395
United States Court of International Trade·Decided May 22, 2020·No. Consol. 19-00056·Published

Opinion

Slip Op. 20-

UNITED STATES COURT OF INTERNATIONAL TRADE

BORUSAN MANNESMANN BORU SANAYI 9(7,&$5(7$ù Before: Jane A. Restani, Judge Plaintiff,

AMERICAN CAST IRON PIPE COMPANY, Consol. Court No. 19-00056 et al., PUBLIC VERSION

Consolidated Plaintiffs,

v.

UNITED STATES, Defendant,

AMERICAN CAST IRON PIPE COMPANY, et al.,

Defendant-Intervenors, and

BORUSAN MANNESMANN BORU SANAYI 9(7,&$5(7$ù,

Consolidated Defendant-

Intervenor.

OPINION AND ORDER

[Commerce’s Final Results of Redetermination Pursuant to Court Remand are sustained]

Dated: May 22, 2020

Julie C. Mendoza, Donald B. Cameron, R. Will Planert, Brady W. Mills, Mary S. Hodgins, Edward J. Thomas, III, Eugene Degnan, Jordan L. Fleischer, Sabahat Chaudhary, and Rudi W. Planert, Morris, Manning & Martin L.L.P., of Washington, D.C., for Plaintiff and Consolidated Defendant-Intervenor %RUXVDQ0DQQHVPDQQ%RUX6DQD\LYH7LFDUHW$ù

Timothy C. Brightbill, Maureen E. Thorson, Laura El-Sabaawi, Adam M. Teslik, Elizabeth S. Lee, Enbar Toledano, and Tessa V. Capeloto, Wiley Rein L.L.P., of Washington, D.C., for

Consol. Court No. 19-00056 Page 2 Public Version Consolidated Plaintiffs and Defendant-Intervenors American Cast Iron Pipe Company, Berg Steel Pipe Corporation, Berg Spiral Pipe Corporation, Dura-Bond Industries, Strupp Corporation, Greens Bayou Pipe Mill LP, JSW Steel (USA) Inc., Skyline Steel, Trinity Products LLC, and Welspun Tubular LLC.

Robert R. Kiepura, Trial Attorney, and L. Misha Preheim, Assistant Director, Civil Division, Commercial Litigation Branch, U.S. Department of Justice, of Washington, D.C., for Defendant United States of America. With them on the brief were Joseph H. Hunt, Assistant Attorney General, and Jeanne E. Davidson, Director, Civil Division, Commercial Litigation Branch, U.S. Department of Justice, of Washington, D.C. Of counsel on the brief was Reza Karamloo, Senior Attorney, Office of the Chief Counsel, Commercial Litigation Branch for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C.

Restani, Judge: This matter is before the court following a remand to the Department of Commerce (“Commerce”) in %RUXVDQ0DQQHVPDQQ%RUX6DQD\LYH7LFDUHW$ùY8QLWHG6WDWHV, 426 F. Supp. 3d 1395 (CIT 2020) (“Borusan”), in which Plaintiff, Borusan Mannesmann Boru 6DQD\LYH7LFDUHW$ù ³%0%´ FKDOOHQJHVDILQDOGHWHUPLQDWLRQDQGUHVXOWLQJDQWLGXPSLQJduty order as to certain Large Diameter Welded Pipe (“LDWP”) from the Republic of Turkey. See Large Diameter Welded Pipe from the Republic of Turkey: Final Determination of Sales at Less Than Fair Value, 84 Fed. Reg. 6,362 (Dep’t Commerce Feb. 27, 2019) (“Final Determination”); Large Diameter Welded Pipe from the Republic of Turkey: Amended Final Affirmative Antidumping Duty Determination & Antidumping Duty Order, 84 Fed. Reg. 18,799 (Dep’t Commerce May 2, 2019).

In Borusan, the court upheld Commerce’s determination that BMB was entitled to a post-

sale price adjustment and concluded that Commerce’s application of its new arm’s-length test to BMB’s home-market transactions with its affiliate was not contrary to law. Borusan, 426 F. Supp. 3d at 1406–10, 1413–14. The court remanded to Commerce to reconsider (1) the amount of BMB’s downward post-sale price adjustment on its home market sales and (2) the date of BMB’s U.S. sales, and ordered Commerce to eliminate any adjustment to BMB’s sales below the costs of

Consol. Court No. 19-00056 Page 3 Public Version production based on a finding that a particular market situation (“PMS”) exists in the exporting

country. See id. at 1415.

Following remand, Commerce concluded it did not have additional evidence showing an improper allocation of the post-sale price adjustment to BMB. Final Results of Redetermination Pursuant to Court Remand, ECF No. 86 at 1, 4 (Mar. 9, 2020) (“Remand Results”). Thus, Commerce, under protest, granted BMB “the full amount of the post-sale price adjustment,” which resulted in a de minimis estimated weighted-average dumping margin. Id. at 1, 4. Accordingly, Commerce did not address BMB’s U.S. date of sale or sales-below-cost because doing so would be an exercise in futility. Id. at 4. The Remand Results adequately address the court’s concerns in Borusan and they are supported by substantial evidence. Accordingly, the Remand Results are sustained.

BACKGROUND

While the court presumes familiarity with the record in Borusan, the court briefly summarizes the relevant record evidence for ease of reference. The period of investigation covers January 1 through December 31, 2017. See Final Determination, 84 Fed. Reg. at 6,362. In Autumn 2013, BMB and two other Turkish LDWP producers (the “Consortium Members”) formed a general partnership (the “Consortium”). See BMB's Resp. to Commerce’s Suppl. Sections A-C Questionnaire, C.R. 200-225, P R. 173-174 (June 15, 2018), ECF No. 100 at 38–45 (May 5, 2020). (the “2013 Joint Venture Agreement”). The 2013 Joint Venture Agreement recognizes joint and several liability among the Consortium Members as to the Consortium’s liabilities to third-parties, and goes on to create an irrevocable guaranty arrangement between the Consortium and the Consortium Members. 1

1 The guaranty arrangement provides that “[[

Consol. Court No. 19-00056 Page 4 Public Version In Spring 2014, in advance of submitting their bid for a domestic pipeline project, the

Consortium Members concluded a second written agreement in which they re-affirmed their individual obligations to the Consortium in view of the specific project’s requirements. See BMB's Resp. to Commerce’s Suppl. Sections A-C Questionnaire, C.R. 200-225, P R. 173-174 (June 15, 2018), ECF No. 100 at 47–48 (May 5, 2020) (“2014 Consortium Agreement”). Specifically, the 2014 Consortium Agreement reiterates the Consortium Members’ joint and several liability as to the Client and provides that should any Consortium Member fail to fulfill its obligations to the Client, the other two Members would indemnify those obligations. Id. at ¶ 2. The Consortium won the bid and, in Autumn 2014, agreed to sell certain quantities of LDWP to the Client. See BMB’s Suppl. Resp. to Commerce’s Second Suppl. Questionnaire, CR. 280-288, P.R. 180, Ex. B- 32 (July 6, 2018), ECF No. 100 at 60–199 (May 5, 2020) (the “Sales Contract”). As a condition precedent to the Client’s performance, the Consortium was required to provide the Client a written guaranty agreement demonstrating that each Consortium Member indemnifies the others’ obligations as to the Client. See id. at 99, ¶ 6.4. 2

]], providing furthermore that each Consortium Member “[[

]]” including any [[

]]2013 Joint Venture Agreement, at 39, ¶ 6(2) (emphases added).

The court’s previous opinion seems to state that an agreement containing this exact language was presented to the Client; it appears that there is no evidence to that effect. Commerce did not comment on this point now raised by Domestic Producers. 2 Compare Sales Contract at 99, ¶ 6.4 [[ ]] with id. at 70, ¶ 1.2- [[ ]].

Consol. Court No. 19-00056 Page 5 Public Version In June 2018, pursuant to the 2014 Consortium Agreement, BMB negotiated a settlement

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