Granges Metallverken AB v. United States

716 F. Supp. 17, 13 Ct. Int'l Trade 471, 13 C.I.T. 471, 1989 Ct. Intl. Trade LEXIS 491
CourtUnited States Court of International Trade
DecidedJune 7, 1989
DocketCourt 87-04-00583
StatusPublished
Cited by52 cases

This text of 716 F. Supp. 17 (Granges Metallverken AB 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
Granges Metallverken AB v. United States, 716 F. Supp. 17, 13 Ct. Int'l Trade 471, 13 C.I.T. 471, 1989 Ct. Intl. Trade LEXIS 491 (cit 1989).

Opinion

DiCARLO, Judge:

Plaintiffs move pursuant to Rule 56.1 of the Rules of this Court to challenge the decision of the United States International Trade Commission that a domestic industry is materially injured by reason of cumulat-ed imports of brass sheet and strip from Sweden and other countries. Certain Brass Sheet and Strip from France, Italy, Sweden, and West Germany, Inv. Nos. 701-TA-270 and 731-TA-313, 314, 316 and 317 (Final), USITC Pub. No. 1951 (Feb. 1987). The Court has jurisdiction under 28 U.S.C. § 1581(c) (1982).

The Court holds that even if the Commission had found that some domestic purchasers perceived Swedish brass to be of a higher quality than other imports, the record supports the finding of a reasonable overlap in competition among imported and domestic brass to allow the Commission to cumulate Swedish brass with imports from Brazil, Canada, France, Italy, the Republic of Korea, and West Germany, even though domestic producers did not manufacture one brass sub-product during most of the period under investigation.

*19 THE MERCHANDISE

“Certain brass sheet and strip” refers to wrought brass sheet and strip of solid rectangular cross section over 0.006 inch but less than 0.188 inch in thickness, in coils or cut to length, whether or not corrugated or crimped, but not cut, pressed, or stamped to non-rectangular shape, and provided for in items 612.3960, 612.3952, and 612.3986 of the Annotated Tariff Schedules of the United States. USITC Pub.1951 at 6, Al n. 1, A4. For tariff purposes brass sheet is over 20 inches wide, and strip is not over 20 inches wide. Id. at 6, A5. The generally accepted industry distinction between sheet and strip is that strip consists of brass that is coiled or wound on reels of whatever gauge or width, while sheet consists of brass that is no longer coiled or wound but has been cut to length. Id. at A5.

The brass products investigated are defined in the “C20000-series” under the nomenclature the Unified Numbering System and the equivalent “200-series” under the Copper Development Association numbering system. Id. at A4. The chief characteristics of C20000 series brass are ease of manufacture, fair electrical conductivity, excellent forming and drawing properties, and good strength. Id. at 7. Brass sheet and strip have numerous uses, including ammunition, automotive radiators, door hardware and bathroom accessories, electrical connectors, jewelry, and lamp bases. Id.

DISCUSSION

I. Competition

Plaintiffs submit that there is no substantial evidence to support cumulation of Swedish brass with other imports because the Commission (A) failed to account for substantial evidence relating to the fungi-bility of imported and domestic products, and (B) did not determine whether imported and domestic products are within a reasonable price range.

A. Fungibility

Plaintiffs state that the record is replete with evidence confirming the lack of fungi-bility and competition due to the superior quality of Swedish brass products as compared to brass products from other sources. R. List 1, Doc. 274, at 136-39, 143. Plaintiffs argue that the Commission failed to account for this evidence in its determination.

To invoke the cumulation statute, the imports to be cumulated must compete with one another and with the domestic like products they allegedly injure. 19 U.S.C. § 1677(7)(C)(iv) (Supp. V 1987); LMI — La Metalli Industriale, S.p.A. v. United States, 13 CIT-,-, 712 F.Supp. 959, 969 (1989); Mock, Cumulation of Import Statistics in Injury Investigations before the International Trade Commission, 7 Nw.J.Int’1 L. & Bus. 433, 441 (1986).

In its earlier determination on Certain Brass Sheet and Strip from Brazil, Canada, and the Republic of Korea, Inv. Nos. 701-TA-269 and 731-TA-311, 315, and 315 (Final), USITC Pub.1930 (Dec. 1986), the Commission found evidence that domestic and imported C20000 series brass sheet and strip did “compete with one another” after it considered: (1) the degree of fungibility between the products; (2) the presence of sales or offers to sell in the same geographic markets; (3) the existence of common or similar channels of distribution; and (4) the simultaneous presence of imports in the market. Id. at 12-13. Referring to that earlier determination in its determination on Certain Brass Sheet and Strip from France, Italy, Sweden, and West Germany, the Commission stated that “[i]n these investigations, no new information has been brought to our attention that leads us to believe that cumulation is inappropriate or that imports from any individual country should be excluded from a cumulative analysis.” USITC Pub. 1951, at 12. In its decision to include Swedish imports in its cumulative analysis, the Commission considered the arguments of the Swedish producers that their imports should not be cumulated with those from other countries:

They raised a number of grounds on which their product allegedly did not compete with other imports or with the domestic like product. Post-Hearing *20 Brief of Metallverken Inc. and Metall-verken AB [R. List 2, Doc. 30.] at 1-4. However, these are the same arguments that were before us and that we rejected in [Certain Brass Sheet and Strip from Brazil, Canada, and the Republic of Korea, Inv. Nos. 701-TA-269 and 731-TA-311, 315, and 315 (Final), USITC Pub. 1930 (Dec. 1986) ]. Keeping in mind the range of product covered by this investigation, the differences that exist between the imports from Sweden and other imports and between the imports from Sweden and the domestic like product are not sufficient for us to find that the Swedish product does not compete with other imports or the domestic like product “in any meaningful sense.”

USITC Pub.1951, at 12 n. 32 (citing Certain Carbon Steel Pipes and Tubes from the People’s Republic of China, the Philippines, and Singapore, Inv. Nos. 731-TA-292 through 296 (Preliminary), USITC Pub. 1796, at 17 (Dec. 1985)).

Plaintiffs argue that Swedish products do not compete with other imports because:

(1) The French primarily produce brass reroll of standard quality while Metallverken does not sell reroll products. R. List 1, Doc. 274, at 136, 139.
(2) The Germans produce high-quality brass, as does Metallverken, but brass products from these two countries do not compete because “[the] Swedes sell especially thin [gauges] for unique applications with which the German producers do not compete.” Id. at 137.
(3) Imports from Italy, Korea, and Canada do not compete with Swedish imports “also due to quality reasons and due to the fact that they are engaged primarily in producing and selling more standardized products rather than the specialty brass produced by Metallverken.”

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716 F. Supp. 17, 13 Ct. Int'l Trade 471, 13 C.I.T. 471, 1989 Ct. Intl. Trade LEXIS 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/granges-metallverken-ab-v-united-states-cit-1989.