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

31 Ct. Int'l Trade 58, 2007 CIT 7
CourtUnited States Court of International Trade
DecidedJanuary 17, 2007
DocketCourt 01-00955
StatusPublished

This text of 31 Ct. Int'l Trade 58 (Co-Steel Raritan, Inc. v. United States International Trade Commission) 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
Co-Steel Raritan, Inc. v. United States International Trade Commission, 31 Ct. Int'l Trade 58, 2007 CIT 7 (cit 2007).

Opinion

OPINION & ORDER

Aquilino, Senior Judge:

The Trade Agreements Act of 1979, as amended, 19 U.S.C. §1677(24)(A)(i), provides that imports of merchandise corresponding to a U.S. domestic like product are “negligible” if such imports account for less than three percent of the volume of all such merchandise imported into the United States during a defined 12-month period. Exceptions to this statutory rule are as follows:

(ii). . . Imports that would otherwise be negligible under clause (i) shall not be negligible if the aggregate volume of imports of the merchandise from all countries described in clause (i) with respect to which investigations were initiated on the same day exceeds 7 percent of the volume of all such merchandise imported into the United States during the applicable 12-month period.
Hi * *
(iv) Negligibility in threat analysis. Notwithstanding clauses (i) and (ii), the [U.S. International Trade] Commission [“ITC”] shall not treat imports as negligible if it determines that there is a potential that imports from a country described in clause (i) will imminently account for more than 3 percent of the volume of all such merchandise imported into the United States, or that the aggregate volumes of imports from all countries described in clause (ii) will imminently exceed 7 percent of the volume of all such merchandise imported into the United States. The Commission shall consider such imports only for purposes of determining threat of material injury.

19 U.S.C. §1677(24)(A). The act further provides that, in computing import volumes for purposes of foregoing subparagraph (A), the ITC may make reasonable estimates on the basis of available statistics. 19 U.S.C. §1677(24)(C).

*59 I

In reviewing agency analyses under the foregoing provisions, a court shall hold unlawful any determination, finding, or conclusion found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. 19 U.S.C. §1516a(b)(l)(A). See, e.g., Texas Crushed Stone Co. v. United States, 35 F.3d 1535 (Fed.Cir. 1994). In exercising this statutory standard of review, the courts have sustained negative preliminary determinations of the Commission

only when (1) the record as a whole contains clear and convincing evidence that there is no material injury or threat of such injury; and (2) no likelihood exists that contrary evidence will arise in a final investigation.

American Lamb Co. v. United States, 785 F.2d 994, 1001 (Fed.Cir. 1986). And this approach has necessarily been followed at bar viz. Co-Steel Raritan, Inc. v. U.S. Int’l Trade Comm’n, 26 CIT 639, 648-49, 244 F.Supp.2d 1349, 1358 (2002); Co-Steel Raritan, Inc. v. Int’l Trade Comm’n, 357 F.3d 1294, 1310-11 (Fed.Cir. 2004), citing the Uruguay Round Agreements Act Statement of Administrative Action (“URAA-SAA”), H.R. Doc. No. 103-316, vol. 1 (1994). That statement includes:

In threat of material injury analyses, the Commission will examine “actual” as well as “potential” import volumes. Import volumes at the conclusion of the 12-month period examined for purposes of considering negligibility may be below the negligibility threshold, but increasing at a rate that indicates they are likely to imminently exceed that threshold during the period the Commission examines in conducting its threat analysis. In such circumstances, the [ITC] will not make a material injury determination concerning such imports because they are currently negligible, but it will consider the imports for purposes of a threat determination.

URAA-SAA, p. 856.

A

As reported in this court’s subsequent slip opinion 05-63 filed herein, 29 CIT_(June 7, 2005), familiarity with which is presumed, the decision of two members of the three-judge panel of the Court of Appeals for the Federal Circuit (“CAFC”) in Co-Steel Raritan, Inc. v. Int’l Trade Comm’n, supra, was read to require

further proceedings . . . [to] consider the contention in [plaintiffs’] original motion for judgment on the administrative record that it did not address in Co-Steel /...[,] that the Commission erred in concluding in the preliminary determination that there was no reasonable indication that wire rod imports from Egypt, *60 South Africa, and Venezuela would imminently exceed statutory negligibility levels, whether considered individually or collectively.

357 F.3d at 1317. When the parties hereto did not disagree 1 , this court sought to comply with this mandate to consider the “record as a whole”, “the record at the time the Commission render [ed] its preliminary determination”, 357 F.3d at 1314, and the parties’ arguments based thereon. Again as reported, the court strained

to discern a supposition, let alone clear and convincing evidence, of no potential that imports from South Africa will imminently account for more than three percent of all subject merchandise imported into the United States. 2

Whereupon the court was constrained to grant plaintiffs’ motion for judgment on the agency record

to the extent of remand to the defendant to (a) reconsider its preliminary determination that wire rod imports from South Africa will not imminently exceed three percent of the volume of all such merchandise imported into the United States and (b) pinpoint the clear and convincing evidence on the record, if there is any, that there is little potential that the imports from South Africa and those from Egypt and Venezuela, collectively, will not imminently exceed seven percent. 3

B

The defendant has sought to comply with this remand, finding subject imports from South Africa, individually, and also aggregated with those from Egypt and Venezuela, to be negligible, so that its antidumping-duty investigations of such imports from those countries “are terminated by operation of law.” Views of the Commission, p. 36.

(1)

Slip opinion 05-63 pointed out that, in sustaining the defendant’s affirmative threat-of-material-injury determination, the court in Asociacion de Prod. de Salmon y Trucha de Chile AG v. U.S. Int’l Trade Comm’n,

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