Deacero S.A.P.I. de C v. v. United States

2014 CIT 99
CourtUnited States Court of International Trade
DecidedAugust 28, 2014
Docket12-00345
StatusPublished

This text of 2014 CIT 99 (Deacero S.A.P.I. de C v. 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
Deacero S.A.P.I. de C v. v. United States, 2014 CIT 99 (cit 2014).

Opinion

Slip Op. 14-99

UNITED STATES COURT OF INTERNATIONAL TRADE

DEACERO S.A.P.I. DE C.V. and DEACERO USA, INC., Plaintiffs, Before: Richard W. Goldberg, Senior Judge Court No. 12-00345 v.

UNITED STATES, Defendant,

and

ARCELORMITTAL USA LLC, GERDAU AMERISTEEL U.S. INC., EVRAZ ROCKY MOUNTAIN STEEL, and NUCOR CORPORATION,

Defendant-Intervenors.

OPINION AND ORDER

[Remanding the Department of Commerce’s remand redetermination.]

Dated: August 28, 2014

David E. Bond and Jay C. Campbell, White & Case LLP, of Washington, DC, for plaintiffs.

Melissa M. Devine, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for defendant. With her on the brief were Stuart F. Delery, Assistant Attorney General, Jeanne E. Davidson, Director, and Reginald T. Blades, Jr., Assistant Director. Of counsel on the brief was David Richardson, Office of the Chief Counsel for Trade Enforcement & Compliance, U.S. Department of Commerce, of Washington, DC.

Paul C. Rosenthal, Kathleen W. Cannon, R. Alan Luberda, and David C. Smith, Kelley Drye & Warren LLP, of Washington, DC, for defendant-intervenors ArcelorMittal USA LLC, Gerdau Ameristeel U.S. Inc., and Evraz Rocky Mountain Steel.

Alan H. Price, Daniel B. Pickard, and Maureen E. Thorson, Wiley Rein LLP, of Washington, DC, for defendant-intervenor Nucor Corporation. Court No. 12-00345 Page 2

Goldberg, Senior Judge: This matter returns to the court following a remand of the U.S.

Department of Commerce’s (“Commerce”) final affirmative determination of circumvention of

the antidumping duty order on certain wire rod from Mexico (“Wire Rod Order”). See Carbon

and Certain Alloy Steel Wire Rod from Mexico, 77 Fed. Reg. 59,892 (Dep’t Commerce Oct. 1,

2012) (final affirm. circumvention) (“Final Determination”). In its remand order, the court

instructed Commerce to reconsider its conclusion that Deacero S.A.P.I. de C.V.1 and Deacero

USA, Inc.’s (collectively, “Deacero”) wire rod with an actual diameter of 4.75 millimeters

(“mm”) was a circumventing minor alteration of subject wire rod under 19 U.S.C. § 1677j(c)

(2006). See Deacero S.A. de C.V. v. United States, 37 CIT __, __, 942 F. Supp. 2d 1321, 1332

(2013) (“Deacero I”). On remand, Commerce concluded under protest that Deacero’s wire rod

was not circumventing the Wire Rod Order. Final Results of Redetermination Pursuant to Ct.

Remand 6, ECF No. 87 (“Remand Results”).

Defendant-Intervenors ArcelorMittal USA LLC, Gerdau Ameristeel U.S. Inc., Evraz

Rocky Mountain Steel (collectively, “the Domestic Industry”), and Nucor Corporation (“Nucor”)

filed comments challenging Commerce’s Remand Results. ArcelorMittal, Gerdau, and Evraz

Cmts. on Remand Redetermination, ECF No. 94 (“Domestic Indus. Cmts.”); Nucor Cmts. on

Remand Redetermination, ECF No. 95 (“Nucor Cmts.”). Both Deacero and the United States

(“the Government”) request that the court sustain the Remand Results. Deacero Cmts. on

Remand Redetermination, ECF No. 93; Gov’t Cmts. on Remand Redetermination, ECF No. 105

(“Gov’t Cmts.”). For reasons set forth below, this matter is again remanded so Commerce has an

opportunity to explain whether it wishes to revisit its commercial availability finding.

1 On December 16, 2013, Deacero S.A. de C.V.’s legal name changed to Deacero S.A.P.I. de C.V. Mot. to Amend Case Caption, ECF No. 84. The court has amended the case caption accordingly. See Order, ECF No. 86. Court No. 12-00345 Page 3

BACKGROUND

Many of the facts relevant to this case were identified in the court’s opinion in Deacero I.

See 37 CIT at __, 942 F. Supp. 2d at 1324–25. To briefly summarize, this case concerns a minor

alteration inquiry initiated pursuant to 19 U.S.C. § 1677j(c). See Carbon and Certain Alloy Steel

Wire Rod from Mexico, 76 Fed. Reg. 33,218, 33,219 (Dep’t Commerce June 8, 2011) (initiation

of circumvention inquiry). The purpose of Commerce’s inquiry was to determine whether

Deacero’s imports of 4.75 mm wire rod were circumventing the Wire Rod Order, which defines

subject merchandise as “certain hot-rolled products of carbon steel and alloy steel, in coils, of

approximately round cross section, 5.00 mm or more, but less than 19.00 mm, in solid cross-

sectional diameter” along with several specific exclusions. See Carbon and Certain Alloy Steel

Wire Rod from Brazil, Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine, 67 Fed.

Reg. 65,945, 65,946 (Dep’t Commerce Oct. 29, 2002) (notice of antidumping duty orders)

(“Order”). After analyzing five factors set forth in relevant legislative history,2 Commerce

answered that question affirmatively. See Final Determination, 77 Fed. Reg. at 59,893.

In deciding to conduct a minor alteration inquiry, Commerce declined to initiate a later-

developed product circumvention inquiry under § 1677j(d). See Initiation Memorandum 14, PD

I 24 (May 31, 2011), ECF No. 43 (Dec. 19, 2012) (“Initiation Mem.”). Commerce reached that

determination upon concluding that small diameter wire rod “was commercially available prior

to the issuance of the Wire Rod Order.” See id. Commerce’s finding regarding commercial

availability was on the record in this case and was not challenged by Deacero. Defendant-

2 19 U.S.C. § 1677j(c) does not identify a particular analytical framework that Commerce must follow when conducting a minor alterations inquiry. But legislative history pertaining to a time when the minor alteration and later-developed product inquiries were collapsed into a single inquiry counsels that Commerce “should consider such criteria as the overall characteristics of the merchandise, the expectations of ultimate users, the use of the merchandise, the channels of marketing and the cost of any modification relative to the total value of the imported product.” S. Rep. No. 100-71, at 100 (1987). This list does not appear to be exhaustive, and Commerce has considered additional factors in practice. See Deacero I, 37 CIT at __, 942 F. Supp. 2d at 1326. Court No. 12-00345 Page 4

Intervenors, the only parties challenging that finding, did not meet the jurisdictional prerequisites

for judicial review. See Target Corp. v. United States, 609 F.3d 1352, 1363 (Fed. Cir. 2010)

(citing 19 U.S.C. § 1516a(a)(2)(A), requiring filing of summons and complaint to gain standing).

The court determined that Commerce’s affirmative circumvention determination was not

supported by substantial record evidence and did not accord with law. Deacero I, 37 CIT at __,

942 F. Supp. 2d at 1332. The court focused on several factors to arrive at this conclusion.

Initially, the court deferred to Commerce’s finding that 4.75 mm wire rod was commercially

available at the Wire Rod Order’s inception. Id. at 1330 & n.3. Because 4.75 mm wire rod was

commercially available, the court concluded that petitioners should have foreseen that a diameter

range of “5.00 mm or more, but less than 19.00 mm” would not capture all sizes of wire rod. See

id.; Order, 67 Fed. Reg.

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