Florida Tomato Exchange v. United States

255 F. Supp. 3d 1362, 2017 CIT 114
CourtUnited States Court of International Trade
DecidedAugust 25, 2017
DocketSlip Op. 17-114; Court 13-00148
StatusPublished

This text of 255 F. Supp. 3d 1362 (Florida Tomato Exchange 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
Florida Tomato Exchange v. United States, 255 F. Supp. 3d 1362, 2017 CIT 114 (cit 2017).

Opinion

OPINION and ORDER

Eaton, Judge:

This case involves a determination by the United States Department of Commerce (“Commerce” or the “Department”) to enter into a suspension agreement with exporters of fresh tomatoes from Mexico to “eliminate completely the injurious effect of exports to the United States of the subject merchandise,” pursuant to 19 U.S.C. § 1673c(c) (2012). 1 Fresh Tomatoes From Mexico: Suspension of Antidumping Investigation, 78 Fed. Reg. 14,967, 14,968 (Dep’t Commerce Mar. 8, 2013) (“2013 Suspension Agreement” or “2013 Agreement”). In Florida Tomato Exchange v. United States, 39 CIT -, 107 F.Supp.3d 1342 (2015) (“Tomato Exchange I”), the court held that Commerce had failed to comply with the notice, comment, and consultation requirements of 19 U.S.C. § 1673c(e) prior to entering into the 2013 Suspension Agreement, and remanded to Commerce.

Before the court are Commerce’s final results of redetermination following remand. See Final Results of Redetermination Pursuant to Court Remand, ECF No. 84-1, P.R. 62-65 at bar code 3476104-01 to -04 (“Remand Results”). During remand proceedings, Commerce provided interested parties with notice, and an opportunity for comment and consultations, regarding certain Department memoranda whose purpose was to explain the bases for its determination that the 2013 Agreement would eliminate completely the injurious effect of imports of the Mexican tomatoes. In the Remand Results, Commerce continued to determine that the agreement met the requirements of 19 U.S.C. § 1673c(c).

Plaintiff the Florida Tomato Exchange 2 (“plaintiff’ or the “Tomato Exchange”) challenges, as unsupported by substantial evidence or otherwise not in accordance with law, several of Commerce’s determinations on remand, including (1) that the 2013 Agreement will limit dumping to the level permitted by statute; and (2) that the agreement will prevent price suppression or undercutting and thereby eliminate completely the injurious effect of the subject imports. Plaintiff asks the court to again remand this matter to Commerce with instructions either to comply with subsection 1673c(c)’s requirements or to terminate the 2013 Suspension Agreement. See PL’s Cmts. Opp’n Final Results of Redetermination on Remand, ECF No. 86 (“Pl.’s Cmts.”) 1-3.

*1365 The United States (“defendant”), on behalf of Commerce, argues that the Remand Results are supported by substantial evidence,and otherwise in accordance with law. See Def.’s Resp. Cmts. Remand Rede-termination, ECF No. 96 (“Def.’s Resp. Cmts.”). Defendant-intervenors CAADES Sinaloa, A.C., et al. 3 (collectively, “defendant-intervenors”), the Mexican signatories to the 2013 Agreement, join the defendant in urging the court to sustain the Remand Results. See Def.-Int.’s Mem. Supp. Def.’s Final Results of Redetermination, ECF No. 90.

The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2012), and 19 U.S.C. § 1516a(a)(2)(B)(iv), For the reasons set forth below, the court remands this matter to Commerce.

LEGAL FRAMEWORK

Commerce is authorized, under limited circumstances, to suspend an antidumping investigation by entering into a suspension agreement with exporters and producers of particular merchandise, or a foreign government. 4 Generally, suspension agreements are entered into where Commerce has made an affirmative preliminary dumping determination. See 19 C.F.R. § 351.208(f)(l)(i)(A) (2012) (proposed suspension agreement-must be submitted to Commerce within 15 days of the preliminary determination); id. § 351.208(g)(l)(i) (Commerce may accept a suspension agreement within 60 days of issuance of a preliminary determination). “[I]n a suspension agreement, the exporters and producers. or the foreign government agree to modify their behavior so as.to eliminate dumping or the injury caused thereby.” Id. § 351.208(a);

Suspension agreements are an atypical remedy in antidumping cases. See S. Rep. No. 96-249, at 71 (1979), reprinted in 1979 U.S.C.C.A.N. 381, 457 (“[Suspension is an unusual action which should not become the normal means for' disposing of cases.”). Congress, in providing for such agreements,'intended that they be used “as a means of achieving the remedial purposes of the [antidumping] law in as short a time as possible and with a minimum expenditure of resources by all parties involved.” H.R. Rep. No, 96-317, 96th Cong., 1st Sess. 53 (1979); see also PPG Indus., Inc. v. United States, 11 CIT 344, 355, 662 F.Supp. 258, 267 (1987), aff'd, 928 F.2d 1568 (Fed. Cir. 1991) (noting “congressional desire that suspension agreements lead to rapid resolution of the issues”).

The availability of suspension agreements is circumscribed by statute. See 19 U.S.C. § 1673c(b), (c), (l ). 5 The *1366 most common type is an agreement entered into pursuant to 19 U.S.C. § 1673c(b) (“subsection (b) agreement”), by which exporters that account for “substantially all” of the imports of subject merchandise into the United States agree to cease exports to the United States or revise their prices to eliminate all dumped sales. Following the publication of its preliminary dumping determination, however, Commerce entered into a second type of agreement found in 19 U.S.C. § 1673c(c) (“subsection (c) agreement”). Unlike subsection (b) agreements, the goal of subsection (c) agreements is not to.eliminate all dumped sales. Rather, subsection, (c) agreements seek to eliminate the injurious effect of exports of subject merchandise. 19 U.S.C. § 1673c(c)(1).

For the Department to enter rinto a subsection (c) agreement, “extraordinary circumstances” must be present. 19 U.S.C, § 1673c(c)(l).

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255 F. Supp. 3d 1362, 2017 CIT 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florida-tomato-exchange-v-united-states-cit-2017.