Connecticut Steel Corp. v. United States

462 F. Supp. 2d 1322, 30 Ct. Int'l Trade 1658, 30 C.I.T. 1658, 28 I.T.R.D. (BNA) 2553, 2006 Ct. Intl. Trade LEXIS 161
CourtUnited States Court of International Trade
DecidedOctober 31, 2006
DocketSLIP OP. 06-159; Court 06-00034
StatusPublished
Cited by4 cases

This text of 462 F. Supp. 2d 1322 (Connecticut Steel Corp. 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
Connecticut Steel Corp. v. United States, 462 F. Supp. 2d 1322, 30 Ct. Int'l Trade 1658, 30 C.I.T. 1658, 28 I.T.R.D. (BNA) 2553, 2006 Ct. Intl. Trade LEXIS 161 (cit 2006).

Opinion

Opinion and Order

CARMAN, Judge.

This matter is before this Court on Plaintiffs’ Motion for Judgment on the Agency Record Pursuant to Rule 56.2. This Court, having considered Plaintiffs’ Motion and memorandum in support thereof, Defendant’s and Defendants-In-tervenor’s responses, Plaintiffs’ reply, the *1324 Administrative Record, and all other papers submitted herein, finds that the International Trade Commission’s (“ITC”) negative preliminary determination was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Therefore, Plaintiffs’ Motion is denied.

Procedural History

In November 2005, Connecticut Steel Corporation, Gerdau Ameristeel U.S., Inc., Keystone Consolidated Industries, Inc., Mittal Steel U.S.A. Georgetown, and Rocky Mountain Steel Mills (“Plaintiffs” or, collectively, “Connecticut Steel”), all domestic companies, filed a petition with the ITC and the International Trade Administration of the U.S. Department of Commerce. The companies alleged that imports of carbon and certain steel wire rod (“steel wire rod”) from China, Germany and Turkey were being, or were likely to be, sold in the United States at less than fair value, and that such imports were materially injuring or threatening to injure the competing domestic industry. Carbon and Certain Alloy Steel Wire Rod from Germany, Turkey, and the People’s Republic of China, 70 Fed.Reg. 72,781 (Dep’t Commerce Dec. 7, 2005) (initiation of anti-dumping duty investigations). After completing a preliminary investigation of steel wire rod, the ITC unanimously found “no reasonable indication that an industry in the United States is materially injured or threatened with material injury by reason of [the] subject imports.” Carbon and Certain Alloy Steel Wire Rod from China, Germany, and Turkey, USITC Pub. 3832, Inv. Nos. 731-TA-1099-1101, at 3 (Jan. 2006) (Preliminary) (“Prelim.Report”). The ITC published the negative preliminary injury determination in the Federal Register on January 3, 2006. Carbon and Certain Alloy Steel Wire Rod from China, Germany, and Turkey, 71 Fed.Reg. 132 (ITC Jan. 3, 2006) (preliminary determination). The case arrived at this Court after Connecticut Steel timely appealed, challenging the ITC’s preliminary determination. This matter is before this Court on Plaintiffs’ Motion for Judgment on the Agency Record Pursuant to Rule 56.2.

Factual Background

On November 18, 2005, the ITC commenced its preliminary investigation, Carbon and Certain Alloy Steel Wire Rod from China, Germany, and Turkey, 70 Fed.Reg. 69,988 (ITC Nov. 18, 2005) (preliminary investigation), and sent question-names to both foreign and domestic producers of steel wire rod in conjunction therewith. (Pis’. Mem. of Law in Supp. of Mot. for J. on the Agency R. (“Pis.’ Mem.”) 4.) On November 29, 2005, the ITC provided copies of the submitted question-name responses to all parties to assist their preparation for a public conference on the matter to be held on December 1, 2005. (Id.)

On December 1, 2005, a domestic producer that had submitted a timely questionnaire response contacted the ITC, stating that its questionnaire response “was not completed properly.” (Confidential R. (“Conf. R.”) at 137.) The domestic producer indicated that it would submit a revised questionnaire response to the ITC by December 9, 2005, which it did. (Id.) The ITC included the domestic producer’s revised questionnaire response in the preliminary investigation. The revised questionnaire response is central to the dispute between Connecticut Steel and the ITC.

The revised questionnaire response differs from the original in several respects. While the original questionnaire has many blank pages and unanswered questions, almost every page of the revised questionnaire response is completed. (Compare Conf. R. at 62 (original questionnaire response), with Conf. R. at 164 (revised questionnaire response).) For some questions, the domestic producer included sup *1325 plemental tables in its answer. (Conf. R. at 164: 14, 18, 31.) In addition, some reported data differ between the original and the revised questionnaire response. Further, the domestic producer’s chief financial officer certified that the information in the revised questionnaire response “is complete and correct to the best of [his] knowledge,” while the original lacks certification. (Conf. R. at 164: 1.)

Because the revised questionnaire response was submitted after the December 6, 2005, deadline for post-conference briefs, none of the parties was able to see or comment on the revised questionnaire response before the ITC voted on the petition. (Pis.’ Mem. 8; see also Mem. of Def. U.S. Int’l Trade Comm’n in Opp’n to Pis.’ R. 56.2 Mot. for J. on the Agency R. (“Def.’s Mem.”) 11.) However, between December 12 and 15, 2005, two ITC staff members contacted the domestic producer with questions about the revised questionnaire response. (Conf. R. at 155, 197.) A week later, on December 23, 2005, the ITC unanimously held that “there is no reasonable indication that an industry in the United States is materially injured or threatened with material injury by reason of [steel wire rod] imports from China, Germany, and Turkey.” Prelim. Report at 3.

In the Preliminary Report, the ITC found that the volume of imports was not significant, “either in absolute terms or relative to domestic production and consumption.” Prelim. Report at 24. The ITC explained that “although U.S. producers’ market share ... declined somewhat in 2004, we do not attribute the decline in significant part to the subject imports, but to the domestic industry’s own capacity constraints and production outages during a period of particularly strong demand.” Id. at 23. The Preliminary Report also stated that the ITC failed to find that “subject imports had any significant adverse price effects,” a finding based in part on record high prices in 2004, “when subject import volumes ... reached their highest market share.” Id. at 25. In addition, the ITC found “a general lack of correlation” between subject imports and the domestic industry’s profitability. Id. at 29. Moreover, capital expenditures, an indication of industry health, increased from 2003 to 2004, and “continued to rise in interim 2005.” Id.

Parties’ Contentions

A. Connecticut Steel’s Contentions

1. The ITC Relied on Inaccurate Data Contained in the Revised Questionnaire Response

Connecticut Steel asserts that the ITC’s negative preliminary determination should be remanded. According the Connecticut Steel, the ITC’s finding that there was no “reasonable indication” that the domestic industry is “materially] injured ... by reason of’ the subject steel wire rod imports from China, Germany, and Turkey is arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law. (Pis.’ Mem. 35.) Particularly, Connecticut Steel protests that the ITC should not have used the revised questionnaire response data in making the negative preliminary determination. (Id. at 1,11.)

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462 F. Supp. 2d 1322, 30 Ct. Int'l Trade 1658, 30 C.I.T. 1658, 28 I.T.R.D. (BNA) 2553, 2006 Ct. Intl. Trade LEXIS 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connecticut-steel-corp-v-united-states-cit-2006.