Gilmore Steel Corp. v. United States

585 F. Supp. 670, 7 Ct. Int'l Trade 219, 7 C.I.T. 219, 1984 Ct. Intl. Trade LEXIS 1954
CourtUnited States Court of International Trade
DecidedApril 23, 1984
DocketCourt 84-2-00228
StatusPublished
Cited by39 cases

This text of 585 F. Supp. 670 (Gilmore Steel Corp. 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
Gilmore Steel Corp. v. United States, 585 F. Supp. 670, 7 Ct. Int'l Trade 219, 7 C.I.T. 219, 1984 Ct. Intl. Trade LEXIS 1954 (cit 1984).

Opinion

Opinion and Order

MALETZ, Senior Judge:

In this action plaintiff Gilmore Steel Corp. challenges the government’s rescission of a notice initiating an antidumping proceeding, as well as its dismissal of plaintiffs antidumping petition. The crux of the parties’ dispute focuses on the phrase “on behalf of an industry” contained in section 732(b) of the Tariff Act of 1930, as amended by the Trade Agreements Act of 1979, 19 U.S.C. § 1673a(b) (1982). Section 1673a provides in part:

§ 1673a. Procedures for initiating an antidumping duty investigation
(b) Initiation by petition (1) Petition requirements
An antidumping proceeding shall be commenced whenever an interested party ... files a petition with the administering authority, on behalf of an industry, which alleges the elements necessary for the imposition of the duty imposed by section 1673 of this title, and which is accompanied by information reasonably available to the petitioner supporting those allegations. The petition may be amended at such time, and upon such conditions, as the administering authority and the Commission may permit. [Emphasis added.]

The term “industry” is defined in general as

the domestic producers as a whole of a like product, or those producers whose collective output of the like product constitutes a major proportion of the total domestic production of that product.

19 U.S.C. § 1677(4)(A) (1982).

The questions presented are fourfold. First, does “on behalf of an industry” mean “as the representative of an industry,” as the government contends; or does it merely refer to the scope of relief sought by the petitioner, i.e., relief which would inure to the benefit of an industry, as Gilmore maintains? Second, does the term “industry” as used in section 1673a(b) refer only to national industries, or does it include regional industries as well? The third inquiry — and in Gilmore’s view the overriding question — is whether the Department of Commerce, International Trade Administration (ITA), had the power to dismiss Gilmore’s petition well after the 20-day period had run for determining the sufficiency of its petition. See 19 U.S.C. § 1673a(c), discussed infra. Fourth, assuming that certain ex parte communications took place between the ITA and officials of the European Economic Community, what bearing, if any, does that have on the outcome of this action?

As to the first two inquiries, the court believes that a petitioner must present an antidumping petition in a representative capacity, but that it may do so on behalf of either a regional or national industry. The court is also of the view that the ITA had the power to dismiss Gilmore’s petition after the 20-day petition determination period of section 1673a(e) had run, insofar as that petition purported to represent the national hot-rolled carbon steel plate industry. However, to the extent Gilmore’s petition alleged in the alternative less-than-fair-value (LTFV) sales and injury to a regional industry, it was error for the ITA to dismiss it. And as for the alleged ex parte communications, the court finds any error in that connection harmless.

*672 Accordingly, for the reasons that follow, the ITA’s determination is affirmed in part and reversed in part, and the case is remanded for further proceedings consistent with this opinion.

Background

Approximately one year before Gilmore filed its antidumping petition, an eleventh-hour agreement had been reached among the Commerce Department, the major U.S. steel producers, and the European Economic Community (EEC or EC), whereby the EEC agreed to restrict its exports of steel products to the United States in exchange for the U.S. steel industry’s commitment to drop all pending antidumping and countervailing duty proceedings against the EC steel producers. See 47 Fed.Reg. 49,058 (Oct. 29, 1982). This agreement, generally referred to as “the Arrangement,” was not acceded to by all domestic steel producers, Gilmore being one such nonsignatory. The Arrangement allows for abrogation by the EC producers if any U.S. producer — signatory or nonsignatory — files an antidumping petition respecting EC carbon steel products.

During 1983 Gilmore sustained what it characterizes as a deteriorating business condition due to imports of hot-rolled carbon steel plate in cut lengths (steel plate) from Belgium and West Germany — both EC members. Gilmore therefore petitioned the ITA on September 29, 1983, for initiation of an antidumping investigation pursuant to 19 U.S.C. § 1673a(b)(l). With regard to both the alleged Belgian and West Germany LTFV sales, the petition was brought “on behalf of” all U.S. producers of steel plate. Alternatively, however, with respect to LTFV sales from West Germany, the petition was brought on behalf of a regional industry only, comprising West coast steel plate producers. At the time the petition was filed that regional industry numbered two producers — Kaiser Steel Corp. and Gilmore. By the end of 1983 their number had been winnowed to one, Gilmore being the sole survivor.

Within 20 days of Gilmore’s filing the ITA made an affirmative determination under 19 U.S.C. § 1673a(c) 1 that the petition set forth the allegations necessary for imposition of antidumping duties. Notice of the commencement of an investigation was, accordingly, published in the Federal Register on October 25, 1983. 48 Fed.Reg. 49,322. The ITA simultaneously notified the International Trade Commission (ITC) that a preliminary injury investigation should be undertaken. See 19 U.S.C. § 1673a(d). On November 7,1983, a unanimous ITC rendered an affirmative preliminary injury determination, but only insofar as the national steel plate industry was concerned. There was no regional industry determination by the full ITC. See Determination of the Commission in Investigations Nos. 731-TA-146 and 147 (Preliminary) Under the Tariff Act of 1930, Together with the Information Obtained in the Investigation, USITC Pub. No. 1451 (Nov. 1983) (the ITC Report).

Two months after the ITC Report the ITA published the following notice in the Federal Register, purporting to rescind its earlier notice commencing the investigation, and dismissing Gilmore’s petition:

[T]he Department has determined that Gilmore’s petition was not filed on behalf of a United States industry and that this *673 earlier initiation was not well founded.

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Bluebook (online)
585 F. Supp. 670, 7 Ct. Int'l Trade 219, 7 C.I.T. 219, 1984 Ct. Intl. Trade LEXIS 1954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilmore-steel-corp-v-united-states-cit-1984.