Luoyang Bearing Factory v. United States

259 F. Supp. 2d 1357, 27 Ct. Int'l Trade 569, 27 C.I.T. 569, 25 I.T.R.D. (BNA) 1484, 2003 Ct. Intl. Trade LEXIS 40
CourtUnited States Court of International Trade
DecidedApril 14, 2003
DocketSlip Op. 03-41; Court 99-12-00743
StatusPublished
Cited by4 cases

This text of 259 F. Supp. 2d 1357 (Luoyang Bearing Factory 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
Luoyang Bearing Factory v. United States, 259 F. Supp. 2d 1357, 27 Ct. Int'l Trade 569, 27 C.I.T. 569, 25 I.T.R.D. (BNA) 1484, 2003 Ct. Intl. Trade LEXIS 40 (cit 2003).

Opinion

OPINION

TSOUCALAS, Senior Judge.

I. Standard of Review

The Court will uphold Commerce’s redetermination pursuant to the Court’s remand unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i) (1994). Substantial evidence is “more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 95 L.Ed. 456 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). Substantial evidence “is something less than the weight of the evidence, and the possibility of drawing two inconsistent conclusions from the evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Consolo v. Federal Maritime Comm’n, 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966).

II. Background

On October 1, 2002, this Court issued an opinion and order directing the United States Department of Commerce, International Trade Administration (“Commerce”), to:

(1) (a) examine whether or not the PRC trading company import prices constitute the “best available information” to value either all of the subject merchandise at issue or a portion of the subject merchandise purchased by Luoyang through the trading company and used by Luoy-ang in the manufacture of TRB cups and cones and, if Commerce concludes that the PRC trading company import prices present the *1359 “best available information” for the purpose of such surrogate evaluation, to recalculate Commerce’s determination not inconsistent with this opinion; and
(b) examine if, and only if, Commerce finds that the PRC trading company import prices do not constitute the “best available information,” whether or not Indonesian data (that is, Indonesian import statistics and export data from Japan to Indonesia) constitute the “best available information” over export data from Japan to India to value the bearing quality steel bar used in the production of TRB cups and cones, and to explain, (if Commerce finds that export data from Japan to India is the “best available information,”) how the entire export data from Japan to India falls within the range of values in the United States category benchmark range;
(2) exclude “consumption of traded goods” from Commerce’s overhead, SG & A and profit rate calculations and to recalculate the dumping margins accordingly; and
(3) (a) explain, with reference to the record, whether or not the PRC bearing producer’s import data at issue was “meaningful”; and
(b) provide the Court with an explanation as to why the PRC trading company data is not the “best available information” for the purpose of valuing either the entire FOP (that is, both the directly imported FOP and the NME sourced FOP) or the NME sourced FOP.

Luoyang Bearing Factory v. United States, 240 F.Supp.2d 1268, 1305 (CIT, 2002).

On December 31, 2002, Commerce submitted its Final Results of Redetermination Pursuant to Court Remand (“Remand Results”). 1 On January 27, 2003, Luoyang submitted comments to this Court regarding the Remand Results. See Comments on Final Results Pursuant to Remand (“Luoyang’s Comments”). Subsequently, Timken submitted a rebuttal to Luoyang’s comments and Commerce filed a response to Luoyang’s comments.

III. Contentions of the Parties

1. Luoyang’s Contentions

Luoyang limits its comments to Commerce’s decision to use export data from Japan to India to value bearing quality steel bar used by Luoyang to manufacture tapered roller bearing (“TRB”) cups and cones 2 and asserts that Commerce’s Remand Results do not satisfy the Court’s remand order on this issue. See Luoy-ang’s Comments at 2, 4-18. In particular, Luoyang argues that rather than evaluate whether or not the PRC trading company import prices constitute the “best available information” to value either all of the subject merchandise at issue or a portion of the subject merchandise purchased by Luoyang through the trading company and used by Luoyang in the manufacture of TRB cups and cones, Commerce in the Remand Results, instead offered its “sub *1360 sidy suspicion” policy which amounts to a post hoc rationalization. 3 See id. at 5-9. Luoyang further argues that since the Court in Luoyang Bearing Factory, at 1300 n. 28, refused to add information pertaining to a subsequent review to the record, the Court now should likewise reject Commerce’s rationale in the Remand Results because Commerce’s rationale constitutes new record evidence. See Luoy-ang’s Comments at 7 n. 20. Moreover, Luoyang contends that “[b]oth the United States Supreme Court and this Court have categorically rejected consideration of post hoc rationalizations and arguments which are not on the record.... Commerce’s 'subsidy suspicion’ argument meets both criteria for rejection.” Id. at 9 (emphasis omitted); see also id. at 8-9 (citing Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 168-69, 83 S.Ct. 239, 9 L.Ed.2d 207 (1962), and Hoogovens Staal BV v. United States, 22 CIT 139, 143, 4 F.Supp.2d 1213, 1218 (1998)).

Next, Luoyang argues that Commerce’s acknowledgment that the export data from Japan to India value of $871 per metric ton (“MT”) does not fall within the United States benchmark range of $642/MT to $834/MT and Commerce’s subsequent explanation that “its intention ‘was to indicate that the [export data from Japan] to India fell ‘within range’ of the values in the benchmark range’ ” (that is, the export data from Japan to India value was reasonable when compared to the values within the benchmark range) amounts to a post hoc rationalization. Luoyang’s Comments at 10 (quoting Remand Results at 11); see also Luoyang’s Comments at 5. Luoyang further argues that “Commerce failed to give any example in the Remand Results where it applied the ‘within range of the range’ methodology in any other case.” Luoyang’s Comments at 10-11.

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259 F. Supp. 2d 1357, 27 Ct. Int'l Trade 569, 27 C.I.T. 569, 25 I.T.R.D. (BNA) 1484, 2003 Ct. Intl. Trade LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luoyang-bearing-factory-v-united-states-cit-2003.