Elkem Metals Co. v. United States

193 F. Supp. 2d 1314, 26 Ct. Int'l Trade 234, 26 C.I.T. 234, 24 I.T.R.D. (BNA) 1249, 2002 Ct. Intl. Trade LEXIS 17
CourtUnited States Court of International Trade
DecidedFebruary 21, 2002
DocketSlip. Op. 02-18; Court 99-10-00628
StatusPublished
Cited by15 cases

This text of 193 F. Supp. 2d 1314 (Elkem Metals Co. 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
Elkem Metals Co. v. United States, 193 F. Supp. 2d 1314, 26 Ct. Int'l Trade 234, 26 C.I.T. 234, 24 I.T.R.D. (BNA) 1249, 2002 Ct. Intl. Trade LEXIS 17 (cit 2002).

Opinion

OPINION & ORDER

EATON, Judge.

Before the court are the motions of plaintiffs Elkem Metals Company, American Alloys, Inc., Applied Industrial Materials Corporation (“AIMCOR”), and CC Metals and Alloys, Inc. (“CCMA”), and plaintiff-intervenor Globe Metallurgical, Inc. (“Globe”) (collectively “Plaintiffs”), for judgment upon the agency record pursuant to USCIT R. 56.2. The court has jurisdiction pursuant to 28 U.S.C. § 1581(c); 19 U.S.C. § 1516a(a)(2)(B)(ii). For the reasons set forth below, the court remands this case to the United States International Trade Commission (“ITC”) for further action consistent with this opinion.

BACKGROUND

Plaintiffs challenge the ITC’s reconsideration and reversal of its final affirmative material injury determinations in anti-dumping investigations Nos. 731-TA-566-570 and 731-TA-641 (Final) covering fer-rosilicon 1 from Brazil, China, Kazakhstan, *1317 Russia, Ukraine, and Venezuela and countervailing duty investigation No. 303-TA-23 (Final) covering ferrosilicon from Venezuela (“Final Determination”).

In 1993 and 1994, shortly after the United States International Trade Administration found that ferrosilicon from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela was being sold in the United States at less than fair value, and that the Venezuelan government was subsidizing ferrosilicon sales, the ITC determined that such sales were causing material injury to the ferrosilicon industry in the United States. It then issued the Final Determination, the reconsideration and reversal of which is the subject of this dispute. Based on the Final Determination, the United States Department of Commerce (“Commerce”) issued antidumping orders against ferrosilicon from Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela, and a countervailing duty order against ferrosilicon from Venezuela. See Anti-dumping Duty Order: Ferrosilicon From the People’s Republic of China, 58 Fed. Reg. 13,448 (Mar, 11, 1993); Final Affirmative Countervailing Duty Determination: Ferrosilicon From Venezuela; and Countervailing Duty Order for Certain Ferrosilicon From Venezuela, 58 Fed.Reg. 27,539 (May 10, 1993), amended by 58 Fed.Reg. 36,394 (July 7,1993); Antidump-ing Duty Orders: Ferrosilicon From Venezuela and the Russian Federation, 58 Fed.Reg. 34,243 (June 24, 1993); Anti-dumping Duty Orders: Ferrosilicon From Kazakhstan and Ukraine, 58 Fed.Reg. 18,079 (Apr. 7, 1993), amended by 60 Fed. Reg. 64,018 (Dec. 13, 1995); Antidumping Duty Order: Ferrosilicon From Brazil, 59 Fed.Reg. 11,769 (Mar. 14,1994).

The imposition of these orders remained unchallenged until 1998, when certain Brazilian ferrosilicon producers petitioned the ITC to institute a review of the Final Determination relating to ferrosilicon from that country. The petition alleged that a, then, recently disclosed price-fixing conspiracy among some domestic manufacturers, and its consequent distortion of the price data presented to the ITC during its original material injury investigations, constituted “changed circumstances” sufficient to warrant review pursuant to 19 U.S.C. § 1675(b). See Ferrosilicon From Brazil, China, Kazakstan [sic], Russia, Ukraine, and Venezuela, 63 Fed.Reg. 27,747 (May 20, 1998). On July 28, 1998, the ITC instituted the requested changed circumstances review and, further, self-initiated changed circumstances reviews of the other related final affirmative material injury determinations — i.e., those pertaining to ferrosilicon from China, Kazakhstan, Russia, Ukraine, and Venezuela. See Ferrosi-licon From Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela, 63 Fed. Reg. 40,314 (July 28,1998).

In May 1999, the ITC suspended these changed circumstances reviews and gave notice of its intention to “reconsider” its Final Determination. See Ferrosilicon From Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela, 64 Fed.Reg. 28,-212 (May 25, 1999) (“Notice”); see also USITC Pub. 3218, at 6 (Aug.1999) (stating that “reconsideration was a more appropriate procedure for review of the original determinations”). The Notice stated:

The [ITC] ... has suspended the [changed circumstances reviews] and is instituting proceedings in which it will reconsider its [Final Determination],
For further information concerning the conduct of this reconsideration and rules of general application, consult the Com *1318 mission’s Rules of Practice and Procedure, part 201, subparts A through E (19 CFR part 201), and part 207, sub-parts A, C, and D (19 CFR part 207).

Notice, 64 Fed.Reg. at 28,212.

Further, the Notice alerted interested parties that the record from the changed circumstances reviews would “be incorporated into the record of the[ ] reconsideration proceedings” (“Reconsideration Proceedings”). In addition, the Notice stated:

Each Party can submit comments, including new factual information ... limited to the issues of (a) the price-fixing conspiracy, or other anticompetitive conduct relating to the original periods of investigation, and (b) any possible material misrepresentations or material omissions, by any entity that provided information or argument in the original investigations, concerning: (1) the conspiracy or other anticompetitive conduct or (2) any other matter.

See Notice, 64 Fed.Reg. at 28,213.

Thereafter, the ITC reversed and vacated its Final Determination, and issued a negative injury determination as to the original investigations. See Ferrosilicon From Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela, 64 Fed.Reg. 47,-865 (Sept. 1, 1999) (“Reconsideration Determination”); see generally USITC Pub. 3218, at 1. As part of this Reconsideration Determination, the ITC concluded that it need not examine whether the alleged price-fixing conspiracy actually distorted the domestic ferrosilicon prices at issue in the original investigations. See USITC Pub. 3218, at 23-24 (“[The ITC] cannot conclude what, if any, of the representations made by the domestic producers on pricing and market conditions are sufficiently credible to rely on. Consequently, in our reconsideration determinations we have taken adverse inferences against these firms and used the facts otherwise available, as authorized by the statute and case law.”). 2

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193 F. Supp. 2d 1314, 26 Ct. Int'l Trade 234, 26 C.I.T. 234, 24 I.T.R.D. (BNA) 1249, 2002 Ct. Intl. Trade LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elkem-metals-co-v-united-states-cit-2002.