Co-Steel Raritan, Inc. v. International Trade Commission

357 F.3d 1294, 2004 WL 112757
Court of Appeals for the Federal Circuit·Decided January 26, 2004·No. Nos. 03-1006, 03-1099·Published·Cited by 5 cases

Opinions

Opinion for the court filed by Circuit Judge SCHALL. Concurring in part and dissenting in part opinion filed by Circuit Judge LOURIE.

SCHALL, Circuit Judge.

This is an antidumping case. Alexandria National Iron and Steel Company (“Alexandria”) and Siderúrgica Del Orinoco, C.A. (“Sidor”) appeal the final decision of the United States Court of International Trade in Co-Steel Raritan, Inc., et al v. United States International Trade Commission, 24 I.T.R.D 2010, 2002 WL 31052739 (Ct. Int’l Trade 2002) (“Co-Steel II ”). In that decision, the court affirmed the preliminary determination of the United States International Trade Commission (“Commission”) on remand that imports of carbon and alloy steel wire rod (“wire rod”) from Egypt, South Africa, and Venezuela during the period of investigation were non-negligible under a revised scope of investigation. Carbon and Certain Alloy Steel Wire Rod from Egypt, South Africa, and Venezuela, Inv. Nos. 731-TA-955, -960, -963, USITC Pub. 3543 (Oct.2002) (“Remand Determination”). Based upon that determination, the Commission concluded that, under 19 U.S.C. § 1673b(a)(l) (2000),1 there was a reasonable indication that an industry in the United States would suffer material injury from imports of wire rod from those three countries. Id.

The Commission originally had issued a preliminary determination in which it found that imports of wire rod from Egypt, South Africa, and Venezuela were negligible. Carbon and Certain Alloy Steel Wire Rod from Brazil, Canada, Egypt, Germany, Indonesia, Mexico, Moldova, South Africa, Trinidad and Tobago, Turkey, Ukraine, and Venezuela, Inv. Nos. 701-TA-417-421, 731-TA-953-963, USITC Pub. 3456 (Oct.2001) (“Preliminary Determination”). The antidumping investigation as to imports from those countries therefore had been terminated, in accordance with 19 U.S.C. § 1673b(a)(l). Carbon and Certain Alloy Steel Wire Rod from Brazil, Canada, Egypt, Germany, Indonesia, Mexico, Moldova, South Africa, Trinidad and Tobago, Turkey, Ukraine, and Venezuela, 66 Fed.Reg. 54,539, 2001 WL 1301164 (Oct. 29, 2001) (“Preliminary Determination Order”). On June 20, 2002, however, following an appeal of the Preliminary Determination Order by plaintiffs-appellees, the Court of International Trade ordered a remand and a re-determination of negligibility with respect to imports from Egypt, South Africa, and Venezuela. It did so based upon the fact that six months after the preliminary determination, where the Commission had found such imports to be negligible, the United States Department of Commerce (“Commerce”) amended the scope of the anti-dumping investigation. Co-Steel Rar[1297]*1297itan, Inc. v. U.S. Int’l Trade Comm’n, 244 F.Supp.2d 1349 (2002) (“Co-Steel I”). The Commission’s Remand Determination followed in the wake of Co-Steel I. The Commission’s finding after remand that imports of wire rod from Egypt, South Africa, and Venezuela were not negligible was based upon additional import data that was gathered in response to Commerce’s revised scope of investigation.

On appeal, Alexandria and Sidor, joined by the Commission (collectively “Appellants and the Commission”), argue that the decision of the Court of International Trade in Co-Steel II should be reversed because the court erred in Co-Steel I when it remanded the Commission’s preliminary determination. According to Appellants and the Commission, the remand order was contrary to 19 U.S.C. § 1673b(a)(l), which provides, in relevant part, that the Commission is to make its preliminary determination as to material injury “based upon the information available to it at the time of the determination.... ” Appellants and the Commission argue that the Court of International Trade abused its discretion in Co-Steel I when it directed the Commission on remand to consider circumstances arising after the preliminary determination. Because we agree that the Court of International Trade erred in Co-Steel I when it remanded the preliminary determination, we vacate the court’s decision in Co-Steel II and remand the case to the court for further proceedings consistent with this opinion.

BACKGROUND

I.

Generally, “American industries may petition for relief from imports that are sold in the United States at less than fair value (‘dumped’).... ” Allegheny Ludlum Corp. v. United States, 287 F.3d 1365, 1368 (Fed.Cir.2002) (citing 19 U.S.C. § 1675b). Commerce determines whether sales have been made at less than fair value, 19 U.S.C. § 1673(1), whereas the Commission determines whether the imported merchandise materially injures or threatens to materially injure the pertinent domestic industry. Id. § 1673d(b)(l). If both inquiries are answered in the affirmative, Commerce issues the relevant antidump-ing duty order. Id. § 1673d(c)(2).

An antidumping investigation is typically initiated when a domestic industry files a petition requesting that Commerce conduct an investigation into possible dumping. Duferco Steel, Inc. v. United States, 296 F.3d 1087, 1089 (Fed.Cir.2002). The petition initially determines the scope of the investigation. Section 1673a(b)(l) of title 19 provides that the “petition may be amended at such time and upon such terms as [Commerce] and the [Commission] may permit.” Commerce makes an initial determination as to whether the petition “contains information ... supporting the allegations.” Id. § 1673a(c)(l)(A)(i). Commerce then must make a preliminary determination “of whether there is a reasonable basis to believe that or suspect that the merchandise is being sold, or is likely to be sold, at less than fair value.” Id. § 1673b(b)(l)(A).

At the same time that Commerce is making its preliminary determination as to sales at less than fair value, the Commission must make a preliminary determination as to whether there is a “reasonable indication” that an industry in the United States is “materially injured or is threatened with material injury ... by reason of imports of the subject merchandise and that imports of the subject merchandise are not negligible.” Id. § 1673b(a)(l). Imports of “subject merchandise” from a country are “negligible” if they “account for less than 3 percent of the volume of all such merchandise imported into the United States” during the relevant period. Id. [1298]*1298§ 1677(24)(A)(i). Section 1677(24)(A) of title 19, however, contains an exception with respect to negligibility. Imports of “subject merchandise” from a country that would otherwise be negligible because they account for less than three percent of all such imports are not negligible if the total volume of imports of subject merchandise from all countries under investigation having imports not exceeding three percent exceeds seven percent of the volume of all such merchandise imported into the United States. Id. § 1677(24)(A)(ii).

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Co-Steel Raritan, Inc. v. International Trade Commission, 357 F.3d 1294, 2004 WL 112757 (Fed. Cir. 2004).

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