Koyo Seiko Co., Ltd. And Koyo Corporation of U.S.A. v. United States, and the Timken Company

258 F.3d 1340, 23 I.T.R.D. (BNA) 1261, 2001 U.S. App. LEXIS 16087, 2001 WL 818225
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 20, 2001
Docket00-1500
StatusPublished
Cited by31 cases

This text of 258 F.3d 1340 (Koyo Seiko Co., Ltd. And Koyo Corporation of U.S.A. v. United States, and the Timken Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koyo Seiko Co., Ltd. And Koyo Corporation of U.S.A. v. United States, and the Timken Company, 258 F.3d 1340, 23 I.T.R.D. (BNA) 1261, 2001 U.S. App. LEXIS 16087, 2001 WL 818225 (Fed. Cir. 2001).

Opinion

DYK, Circuit Judge.

This case presents the question whether the Department of Commerce’s (“Commerce”) regulation providing for the use of entered value of imported merchandise in the assessment rate formula (19 C.F.R. § 351.212(b)(1)) is consistent with the anti-dumping statute (codified in pertinent part at 19 U.S.C. § 1675) and, if so, whether it is reasonable. We conclude that Commerce’s interpretation is not foreclosed by the statute, nor have the appellants shown that the interpretation is unreasonable. We accordingly defer to that interpretation under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. *1342 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), and we affirm the decision of the Court of International Trade in Koyo Seiko Co., Ltd. v. United States, 110 F.Supp.2d 934 (Ct. Int’l Trade 2000).

BACKGROUND

This case concerns the determination of antidumping duties for imports of tapered roller bearings with an outside diameter of four inches or less and parts thereof from Japan (“0-4” “TRBs”) by Koyo Seiko Co., Ltd., and its sole United States subsidiary, Koyo Corporation of U.S.A. (collectively, “Koyo”). 1

Under the antidumping statute, Commerce is required to impose antidumping duties on imported merchandise that “is being, or is likely to be, sold in the United States at less than fair value” to the detriment of a domestic industry. 19 U.S.C. § 1673. Commerce determines those duties by first calculating the “dumping margin” for the subject merchandise, i.e., the total amount by which the price charged for the subject merchandise in the home market (the “normal value”) exceeds the price charged in the United States (the “United States price”). 19 U.S.C. § 1677(35)(A). 2 The statute obligates Commerce to use the dumping margin as “the basis for the assessment of countervailing or antidumping duties on entries of merchandise covered by the [antidumping] determination and for deposits of estimated duties.” 19 U.S.C. § 1675(a)(2)(C).

Commerce uses the dumping margin to assess antidumping duties on merchandise imported during the review period, and also to calculate “cash deposits of estimated duties for future entries” of the subject merchandise. Torrington Co. v. United States, 44 F.3d 1572, 1575 (Fed.Cir.1995). A calculational problem arises, however, in the determination of antidumping duties. Although the “dumping margin” is calculated on “sales” during the review period, the duty is imposed upon “entries,” i.e., imports during the review period. Since sales and imports are typically not the same during any particular review period, a method for determining the dumping duty on imports is required. Commerce has adopted two different calculational approaches — one for cash deposits and one for final duties. Commerce requires importers to make cash deposits in an amount based, in pertinent part, on the “estimated weighted average dumping margin” for the merchandise. 19 U.S.C. § 1673b(d)(l)(B). Commerce calculates this “estimated weighted average dumping margin,” ie., estimated duty, by “dividing the aggregate dumping margins determined for a specific exporter or producer [here, Koyo] by the aggregate export prices or constructed export prices of such exporter or producer.” 19 U.S.C. § 1677(35)(B). In other words, the cash *1343 deposit rate is calculated “as a percentage of United States [sales] price.” Torrington Co. ., 44 F.3d at 1576. This rate is then applied to estimated imports (“estimated entries”).

Commerce has devised a different methodology for use in calculating the final amount of the duties to be imposed on merchandise already imported into the United States. “When an antidumping duty is imposed upon imported merchandise, Commerce calculates an assessment rate for each importer by dividing the dumping margin for the subject merchandise [here, the 0-4” TRBs] by the entered value of such merchandise for normal Customs purposes.” Koyo Seiko Co., 110 F.Supp.2d at 938. 3 This methodology has been codified in a regulation that states, in pertinent part, that: 19 C.F.R. § 351.212(b)(1). 4 The assessment rate is then applied “uniformly on all entries each importer made during the [period of review.]” Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan, and Tapered Roller Bearings, Four Inches or Less in Outside Diameter, and Components Thereof, from Japan: Final Results of Antidumping Duty Administrative Reviews, 63 Fed. Reg. 63,860, 63,875 (Nov. 17, 1998) (“Final Results”). In other words, the assessment rate is calculated “as a percentage of entered value” of the subject merchandise sold in the United States during the review period. Torrington Co., 44 F.3d at 1576. That rate is then applied to the merchandise imported (“actual entries”) during that review period.

[T]he Secretary [of Commerce] normally will calculate an assessment rate for each importer of the subject merchandise covered by the review. The Secretary [of Commerce] normally will calculate the assessment rate by dividing the dumping margin found on the subject merchandise examined by the entered value of such merchandise for normal customs duty purposes.

In simple terms, the formula for cash deposit rates uses sales during the review period as the denominator; the formula for the final duty uses imports as the denominator. Both formulae use sales figures in the numerator. Both apply the formula to imports (“entries”). 5

Commerce has recognized that the methodology for calculating the final duty (assessment rate) allows Commerce to collect only a “reasonable approximation” of *1344 the duties that would be imposed if it had calculated the specific duties due on particular sales of merchandise imported during the review period. In Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From the People’s Republic of China; Preliminary Results of 1996-1997 Antidumping Duty Administrative Review and New Shipper Review, 63 Fed. Reg.

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258 F.3d 1340, 23 I.T.R.D. (BNA) 1261, 2001 U.S. App. LEXIS 16087, 2001 WL 818225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koyo-seiko-co-ltd-and-koyo-corporation-of-usa-v-united-states-and-cafc-2001.