Ceramark Technology, Inc. v. United States

11 F. Supp. 3d 1317, 2014 CIT 114, 36 I.T.R.D. (BNA) 1031, 2014 Ct. Intl. Trade LEXIS 116, 2014 WL 4746621
CourtUnited States Court of International Trade
DecidedSeptember 24, 2014
DocketSlip Op. 14-114; Court 13-00357
StatusPublished
Cited by8 cases

This text of 11 F. Supp. 3d 1317 (Ceramark Technology, 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
Ceramark Technology, Inc. v. United States, 11 F. Supp. 3d 1317, 2014 CIT 114, 36 I.T.R.D. (BNA) 1031, 2014 Ct. Intl. Trade LEXIS 116, 2014 WL 4746621 (cit 2014).

Opinion

OPINION

POGUE, Senior Judge:

In this action, Plaintiff, Ceramark Technology, Inc. (“Ceramark”) challenges the affirmative final determination of circumvention of an antidumping duty order. 1 Compl., ECF No. 9 at ¶ 2. In that determination, the Department of Commerce (“Commerce”) found that 17 inch diameter graphite electrodes (which Ceramark imports) constitute merchandise altered in form or appearance in such minor respects that it was properly subject to the anti-dumping duty order for graphite electrodes 16 inches or smaller in diameter. 2 Plaintiff claims that Commerce’s determination is neither in accordance with law nor supported by substantial evidence. Rule 56.2 Mot. for J. on the Agency R. on behalf of PI. Ceramark Tech., Inc., ECF No. 25 (“Rule 56.2 Mot.”).

Plaintiff is correct in part: Because Commerce failed to base its determination on a reasonable reading of the record evidence in context, its determination is not supported by substantial evidence. The court remands for further consideration in accordance with this opinion.

BACKGROUND

1. Antidumping Duty Determination and Order

This action derives from a petition by SGL Carbon LLC and Superior Graphite Co. (“Petitioners” or “Defendant-Interve-nors”) alleging that imports of small diameter graphite electrodes (“SDGE”) from the People’s Republic of China (“PRC” or “China”) were being dumped in the United States. [SDGE] from the [PRC], 73 Fed. Reg. 8287 (Dep’t Commerce Feb. 13, 2008) (initiation of antidumping duty investigation) (“AD Initiation Notice ”).

Commerce, having conferred with Defendant-Intervenors to ensure an accurate scope definition reflective of the domestic industry’s concerns, limited its investigation to “all [SDGE] of any length, whether or not finished, of a kind used in furnaces, with a nominal or actual diameter of 400 millimeters (16 inches) or less, and whether or not attached to a graphite pin joining system or any other type of joining system *1320 or hardware.” Id. at 8287. 3 Commerce made a final affirmative determination of sales at less than fair value based on this scope definition. [SDGE] from the [PRC], 74 Fed.Reg. 2049, 2050 (Dep’t Commerce Jan. 14, 2009) (final determination of sales at less than fair value and affirmative determination of critical circumstances) (“AD Final Determination ”). The International Trade Commission (“ITC”) similarly-made a final affirmative determination of material injury to U.S. industry within this scope definition. [SDGE] from China, USITC Pub. 4062, Inv. No. 731-TA-1143 (Feb. 2009) (“ITC Final Determination ”) at 6, 9-10. 4 Drawing on the arguments of the domestic industry, the ITC found “a clear dividing line between [small diameter and large diameter graphite electrodes],” and defined the threatened domestic product as “coextensive with the scope” of Commerce’s antidumping duty determination. Id. at 10.

Based on the final affirmative determinations of Commerce and the ITC, Commerce issued an antidumping duty order on SDGE from the PRC. AD Order, 74 Fed.Reg. at 8775. Commerce again used the same scope definition, with the dividing line between small and large diameter graphite electrodes explicitly and unambiguously specified at 16 inches. Id.

II. Circumvention Investigation and Determination

Several years later, at the request of Defendant-Intervenors, Commerce investigated whether imports of graphite electrodes larger than 16 inches but smaller than 18 inches in diameter were being used to circumvent the antidumping duty order on SDGE. [SDGE] from the [PRC], 77 Fed.Reg. 37,873 (Dep’t Commerce June 25, 2012) (initiation of anticircumvention inquiry) (“Circumvention Initiation Notice”). 5 Commerce issued an affirmative *1321 determination of circumvention, finding that 17 inch graphite electrodes constituted a product altered in form or appearance in such minor respects that it should be included with the scope of the SDGE order pursuant to 19 U.S.C. § 1677j(c). Circumvention Final Determination, 78 Fed.Reg. at 56,864-65. 6 Plaintiff now challenges this determination. Rule 56.2 Mot., ECF No. 25; Mem. of Points & Authorities in Supp. of Pl.’s [Rule 56.2 Mot.], ECF No. 25-1 at 9.

STANDARD OF REVIEW

The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2012) and will therefore uphold Commerce’s final affirmative anticircumvention determination unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i). Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 95 L.Ed. 456 (1951) (quoting Consol. Edison Co. of New York v. N.L.R.B., 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). Substantial evidence review requires consideration of “the record as a whole, including any evidence that fairly detracts from the substantiality of the evidence,” Gallant Ocean (Thailand) Co. v. United States, 602 F.3d 1319, 1323 (Fed.Cir.2010) (internal quotation marks and citation omitted), and asks, in light of that evidence, whether Commerce’s determination was reasonable. Nippon Steel Corp. v. United States, 458 F.3d 1345, 1351 (Fed.Cir.2006). 7

DISCUSSION

I. Antidumping Duty Order Scope and Circumvention

In questions of scope, the language of the antidumping duty order is “the cornerstone of our analysis.” Duferco Steel, Inc. v. United States, 296 F.3d 1087, 1097 (Fed.Cir.2002). When the language is ambiguous in application, Commerce may interpret or clarify the order, 19 C.F.R.

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11 F. Supp. 3d 1317, 2014 CIT 114, 36 I.T.R.D. (BNA) 1031, 2014 Ct. Intl. Trade LEXIS 116, 2014 WL 4746621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceramark-technology-inc-v-united-states-cit-2014.