Fujitsu Ltd. v. United States

36 F. Supp. 2d 394, 23 Ct. Int'l Trade 46
CourtUnited States Court of International Trade
DecidedNovember 25, 1999
DocketSlip Op. 99-11. Court No. 97-11-02021
StatusPublished
Cited by3 cases

This text of 36 F. Supp. 2d 394 (Fujitsu Ltd. 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
Fujitsu Ltd. v. United States, 36 F. Supp. 2d 394, 23 Ct. Int'l Trade 46 (cit 1999).

Opinion

OPINION

POGUE, District Judge.

Plaintiffs, Fujitsu Limited and Fujitsu America, Inc. (“Fujitsu”) move for judgment on the agency record pursuant to U.S. CIT Rule 56.2 challenging the United States Department of Commerce’s (“Commerce”) “domestic like product” determination and Commerce’s decision not to initiate a standing inquiry in its investigation of vector supercomputers from Japan. See Initiation of Antidumping Duty Investigation: Vector Supercomputers from Japan, 61 Fed.Reg. 43,527 (Dep’t. Commerce Aug. 23, 1996)(“Initiation Notice”). Plaintiffs contend that Commerce’s domestic like product determination was erroneous, and therefore, its finding of domestic industry support for an anti-dumping investigation was fatally flawed.

Background

On July 29, 1996, domestic producer Cray Research, Inc. (“Cray”) petitioned Commerce to investigate sales at less than fair value of vector supercomputers, defined as “any computer with a vector hardware unit as an integral part of any of its central processing unit boards” from Japan. Antidumping Petition from Cray Research, Inc., P.R. Doc. 1 at 8 (Jul. 29,1996)(“Petition”) (emphasis provided). Alleging differences between vector and non-vector supercomputers in their performance, architecture, production, and application, Cray limited the scope of its petition to vector supercomputers. See id. at 8-15. Cray also defined the “domestic like product” as vector supercomputers. See id. at 15.

Fujitsu challenged the petition, arguing that the domestic like product of the investigation must include numerous other supercomputers that are “like, or in the absence of like, most similar in characteristics and uses” to vector supercomputers. See August 14, 1996 Letter from Fujitsu, P.R. Doe. No. 9 at 1 (citing 19 U.S.C. § 1677(10)(1994)). Fujitsu claimed that vector and non-vector supercomputers compete directly and share the same channels of distribution and end use. See id. at 5-18. In addition, Fujitsu maintained that customers perceive vector and non-vector supercomputers as interchangeable, and that both vector and non-vector su *396 percomputers are similar in price and have common manufacturing facilities. See id. at 18-23. Accordingly, Fujitsu asked Commerce to poll the domestic producers of both vector and non-vector supercomputers in determining whether industry support exists for the investigation pursuant to 19 U.S.C. § 1673a(c)(l)(B) & (c)(4)(D). See id. at 24-25. Cray submitted rebuttal comments to Fujitsu’s arguments on August 16, 1996, see August 16, 1996 Letter from Cray, P.R. Doc. No. 10, and Fujitsu responded with a second submission on August 19, 1996. See August 19, 1996 Letter from Fujitsu, P.R. Doc. No. 12.

Commerce gave notice of the initiation of its investigation on August 23, 1996, defining the scope to include “all vector supercomputers!)] ... A vector supercomputer is any computer with a vector hardware unit as an integral part of its central processing unit [‘CPU’] boards.” Initiation Notice at 43,528. The scope definition in the Initiation Notice was based on the petition. See id. Commerce concluded that the vector unit in the CPU “identifies both the Japanese vector supercomputers that the petitioner would have subject to the antidumping investigation and the domestically-produced products that would define the domestic industry.” Id. at 43,528-529.

Having decided to define the domestic like product as vector supercomputers, Commerce addressed Fujitsu’s argument, explaining:

When properly analyzed, the evidence of record demonstrates that there are clear dividing lines between the characteristics and uses of the vector supercomputers subject to investigation and the various other types of supercomputers. Significantly, the vector supercomputer has a different computer architecture than the non-vector computer technologies and, consequently, it processes information differently. The close physical proximity of the vector hardware to the computer’s central processing boards and high memory bandwidth (with limited parallelism) contribute to the high speeds with which vector supercomputers process information. These differences give vector supercomputers different performance characteristics than non-vector supercomputers. For example, vector supercomputers are more efficient dealing with linear and matrix algebra equations than are non-vector supercomputers. Given the states of the different supercomputer technologies today, there are computer modeling applications where only the vector supercomputers are used. For example, only vector supercomputer bids met the technical requirements (which involved weather forecasting and climate modeling applications) in the University Corporation for Atmospheric Research (“UCAR”) procurement from which this petition derives the export price.

Id. at 43,529.

Defining the domestic like product as vector supercomputers, Commerce determined that there was industry support for the petition because the petitioner, the only domestic producer of vector supercomputers, accounted for more than fifty percent of the total domestic production of vector supercomputers. See id. Thus, Commerce proceeded with its investigation, ultimately determining that Japanese vector supercomputers were being sold in the United States at less than fair value. See Notice of Final Determination of Sales at Less Than Fair Value: Vector Supercomputers From Japan, 62 Fed. Reg. 45,623-624 (Dep’t Commerce Aug. 28, 1997).

Standard of Review

In reviewing a final determination, the Court must decide whether Commerce’s determination is in accordance with law and whether Commerce’s conclusions are supported by substantial evidence on the record. Section 516A(b)(l)(B)(i) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(b)(l)(B)(i)(1994).

Discussion

I. Scope and Industry Support

An antidumping investigation may be commenced in one of two ways: 1) Commerce may self-initiate an investigation, see 19 U.S.C. § 1673a(a); 19 C.F.R. § 353.11 (1996); or 2) an interested party may file a petition alleging the elements necessary for *397 imposition of an antidumping duty. See 19 U.S.C. § 1673a(b); 19 C.F.R. § 353.12 (1996).

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

Related

Hyundai Elecs. Indus. Co. v. United States
2004 CIT 37 (Court of International Trade, 2004)
Hyundai Electronics Industries Co. v. United States
342 F. Supp. 2d 1141 (Court of International Trade, 2004)
Save Domestic Oil, Inc. v. United States
116 F. Supp. 2d 1324 (Court of International Trade, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
36 F. Supp. 2d 394, 23 Ct. Int'l Trade 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fujitsu-ltd-v-united-states-cit-1999.