Ellwood City Forge Co. v. United States

2023 CIT 110
CourtUnited States Court of International Trade
DecidedJuly 24, 2023
DocketConsol. 21-00077
StatusPublished

This text of 2023 CIT 110 (Ellwood City Forge 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
Ellwood City Forge Co. v. United States, 2023 CIT 110 (cit 2023).

Opinion

Slip Op. No. 23-110

UNITED STATES COURT OF INTERNATIONAL TRADE

ELLWOOD CITY FORGE CO., ELLWOOD NATIONAL STEEL CO., ELLWOOD QUALITY STEELS CO., and A. FINKL & SONS,

Plaintiffs/Defendant-Intervenors,

v. Before: Stephen Alexander Vaden, Judge UNITED STATES, Consol. Court No. 1:21-00077 Defendant,

and

BGH EDELSTAHL SIEGEN GMBH,

Defendant-Intervenor/Plaintiff.

OPINION

[Granting Commerce’s request for a voluntary remand and remanding for further explanation.]

Dated: July 24, 2023

Myles S. Getlan, Cassidy Levy Kent LLP, of Washington, DC, for Plaintiffs. With him on the brief were Jack A. Levy, Thomas M. Beline, James E. Ransdell, IV, and Nicole Brunda.

Sarah E. Kramer, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for Defendant United States. With her on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. McCarthy, Director, Commercial Litigation Branch, Franklin E. White, Jr., Assistant Director, and Alexander Fried, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce. Consol. Court No. 1:21-00077 Page 2

Marc E. Montalbine, deKieffer & Horgan, PLLC, of Washington, DC, for Defendant- Intervenor. With him on the brief were Gregory S. Menegaz, Alexandra H. Salzman, and Merisa A. Horgan.

Vaden, Judge: Before the Court is the U.S. Department of Commerce’s

(Commerce) Remand Redetermination in the antidumping investigation of forged

steel fluid end blocks from Germany. See Forged Steel Fluid End Blocks from the

Federal Republic of Germany: Final Determination of Sales at Less Than Fair Value

(Final Determination), 85 Fed. Reg. 80,018 (Dec. 11, 2020). Ellwood City Forge

Company, Ellwood National Steel Company, Ellwood Quality Steels Company, and

A. Finkl & Sons (collectively “Ellwood City” and “Plaintiffs”) argue that Commerce

failed to explain why it refused to consider alternative pathways to make a particular

market situation adjustment, meaning substantial evidence does not support its

decision. Pls’ Comments at 7–17, ECF No. 62. Meanwhile, Commerce has requested

a voluntary remand to address alleged errors in its calculation of the antidumping

margin. Def.’s Resp. at 4, ECF No. 65. Defendant-Intervenor BGH Edelstahl Siegen

GmbH (BGH), a German producer of fluid end blocks and mandatory respondent in

this investigation objects that administrative exhaustion bars Commerce’s request

for a voluntary remand. See Def.-Int.’s Resp. at 1–6, ECF No. 66. For the reasons set

forth below, Commerce’s request for a voluntary remand is GRANTED; and the case

is also REMANDED to Commerce for further explanation of its refusal to address

Plaintiffs’ arguments regarding alternative pathways for a particular market

situation adjustment. Consol. Court No. 1:21-00077 Page 3

BACKGROUND

The Court presumes familiarity with the facts of this case as set out in its

previous opinion and now recounts those facts relevant to the review of the Remand

Redetermination. See Ellwood City Forge Co. v. United States, 600 F. Supp. 3d 1281

(CIT 2022). The investigation at issue began on December 18, 2019, when Plaintiffs

filed a petition with Commerce alleging that German producers were selling fluid end

blocks at less than fair market value in the United States. Forged Steel Fluid End

Blocks from the Federal Republic of Germany, India, and Italy: Initiation of Less-

Than-Fair-Value Investigations, 85 Fed. Reg. 2,394 (Jan. 15, 2020). On December 8,

2020, Commerce issued its Final Issues and Decision Memorandum (IDM),

explaining its decision to assign a dumping margin of 3.82% to BGH. J.A. at 83,987,

ECF No. 42. Commerce published the Final Determination on December 11, 2020.

Final Determination, 85 Fed. Reg. 80,018.

Ellwood City sued Commerce in February 2021, challenging the final

determination regarding BGH. Compl. ¶¶ 23–39, ECF No. 6. BGH moved to

intervene as Defendant-Intervenor on March 29, 2021. Consent Mot. Intervene, ECF

No. 10. On May 6, 2021, the parties moved to consolidate with companion case 21-

00079, in which BGH as Plaintiff challenges elements of the same determination.

ECF No. 17. The Court granted that Motion on May 7, 2021, designating the present

case as the lead consolidated case. Order Granting Mot. to Consolidate Cases, ECF

No. 18. Ellwood City asked this Court to reverse Commerce’s final determination on Consol. Court No. 1:21-00077 Page 4

the bases that (1) Commerce’s failure to conduct on-site verification was contrary to

law and (2) Commerce’s overall determination is unsupported by substantial evidence

and contrary to law because it relied on unreconciled cost data. Mot. for J. on Agency

R. at 13–36, ECF No. 25. BGH similarly asked this Court to remand Commerce’s

final determination but on the bases that (1) Commerce erred in making particular

market situation adjustments to BGH’s reported costs and (2) Commerce erred in its

application of differential pricing methodology. BGH’s Mot. J. on Agency R. at 3–22,

ECF No. 23. Commerce filed its response on December 17, 2021, and did not oppose

a remand on BGH’s particular market situation claim. Resp. Br. at 29, ECF No. 37.

Ellwood City and BGH filed reply briefs on January 18, 2022. Ellwood City’s Reply

Br., ECF No. 40; BGH’s Reply Br., ECF No. 38.

The Court held oral argument on April 25, 2022. ECF No. 52. The resulting

opinion held that Elwood City had forfeited its verification claim and that Commerce

did not err in its pricing methodology while also remanding the case back to

Commerce to remove the particular market situation adjustment in accordance with

the Federal Circuit’s decision in Hyundai Steel Co. v. United States, 19 F.4th 1346,

1352 (Fed. Cir. 2021). See Ellwood City Forge, 600 F. Supp. 3d at 1292. In Hyundai

Steel, the Federal Circuit confirmed the consistent position of the Court of

International Trade and held that applying a particular market situation adjustment

to the calculation of the cost of production under 19 U.S.C. § 1677b(b) for sales below

cost is illegal. 19 F.4th at 1352. This Court therefore “remand[ed] this issue to allow Consol. Court No. 1:21-00077 Page 5

Commerce to recalculate the dumping margin without impermissible cost-based

particular market situation adjustments.” Ellwood City, 600 F. Supp. 3d at 1303.

Commerce filed its Remand Redetermination with the Court on March 14,

2023. ECF No. 59. The agency removed the particular market situation adjustment

to BGH’s antidumping margin, and BGH received a new antidumping margin of zero.

Remand Redetermination at 4, ECF No. 59. In response to comments proffered by

Ellwood City arguing that Commerce improperly ignored alternative avenues to

make a particular market situation adjustment to BGH’s production costs, Commerce

replied “that this remand redetermination is not the appropriate proceeding in which

Commerce should address, for the first time, alternative possible interpretations of

the CAFC’s analysis in Hyundai Steel.” Id. at 6. Ellwood City filed comments

opposing the Remand Redetermination, arguing that Commerce’s revision to the

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McCarthy v. Madigan
503 U.S. 140 (Supreme Court, 1992)
Parkdale International v. United States
475 F.3d 1375 (Federal Circuit, 2007)
Skf Usa Inc. v. United States
254 F.3d 1022 (Federal Circuit, 2001)
Nakornthai Strip Mill Public Co. v. United States
587 F. Supp. 2d 1303 (Court of International Trade, 2008)
Xinjiamei Furniture (Zhangzhou) Co., Ltd. v. United States
968 F. Supp. 2d 1255 (Court of International Trade, 2014)
Borusan Mannesmann Boru Sanayi ve Ticaret A.S. v. United States
426 F. Supp. 3d 1395 (Court of International Trade, 2020)
Dong-A Steel Co. v. United StatesPublic version posted 10/01/2020.
475 F. Supp. 3d 1317 (Court of International Trade, 2020)
Hyundai Steel Co. v. United States
483 F. Supp. 3d 1273 (Court of International Trade, 2020)
Hyundai Steel Company v. United States
19 F.4th 1346 (Federal Circuit, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
2023 CIT 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellwood-city-forge-co-v-united-states-cit-2023.