Matsushita Electric Industrial Co., Ltd. v. The United States and Zenith Radio Corporation

750 F.2d 927, 6 I.T.R.D. (BNA) 1465
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 13, 1984
DocketAppeal 84-693, 84-694
StatusPublished
Cited by462 cases

This text of 750 F.2d 927 (Matsushita Electric Industrial Co., Ltd. v. The United States and Zenith Radio Corporation) 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
Matsushita Electric Industrial Co., Ltd. v. The United States and Zenith Radio Corporation, 750 F.2d 927, 6 I.T.R.D. (BNA) 1465 (Fed. Cir. 1984).

Opinion

NIES, Circuit Judge.

Upon review under 19 U.S.C. § 1675(b) (Supp. IV 1980), the International Trade Commission (Commission) determined that the U.S. television industry would be threatened with material injury if an existing antidumping order on television receivers from Japan, T.D. 71-76, were to be modified or revoked. 1 The Court of International Trade reversed, holding that the Commission’s determination was not supported by substantial evidence. 2 The United States and Zenith Radio Corporation appeal that decision to this court under 28 U.S.C. § 1295(a)(5) (1982). We reverse.

Background

In 1971, to protect the U.S. television industry from injury by sales of television receivers from Japan at less than fair value (LTFV), an antidumping duty order (T.D. 71-76) was issued imposing the assessment of dumping duties on such imports. 3 Even with the antidumping order in effect, the condition of the U.S. television industry deteriorated. In 1977, the Commission, pursuant to 19 U.S.C. § 2251 (1976), recommended a restriction on the quantity of imports of color television receivers from Japan. The President, acting on that recommendation, implemented an orderly marketing agreement (OMA) with the Japanese. The OMA stayed in effect until May 1980, when it was allowed to expire following the Commission’s review and determination, pursuant to 19 U.S.C. § 2253(i) (1980), that a restriction on the quantity of imports was no longer necessary inasmuch as the “imports of Japanese [color] sets no longer pose a serious concern to the domestic industry.” 4

Following the elimination of the OMA restriction, Matsushita Electric Industrial Co., Ltd., and the other appellees of this appeal (collectively “Matsushita”), pursuant to 19 U.S.C. § 1675(b)(1) (Supp. IV *929 1980), 5 petitioned the Commission to review T. D. 71-76, contending that revocation of that order would not be injurious to the U. S. industry for the same reasons that the OMA was no longer necessary. The petitions were opposed by various U.S. interests, including appellant, Zenith Radio Corporation, which argued that circumstances had not changed sufficiently to warrant review. Nevertheless, an investigative review was undertaken pursuant to 19 C.F.R. § 207.45 (1981) (implementing 19 U.S.C. § 1675(b) (Supp. IV 1980)) to determine “whether an industry in the United States would be materially injured, or would be threatened with material injury ... if the antidumping order were to be modified or revoked.” 6

In its review, the Commission compiled relevant data, sent out questionnaires to domestic producers, importers, and purchasers of television receivers, and held two days of hearings during which counsel for all parties and interested members of the public were allowed to testify, present witnesses, present oral argument, question opposing counsel and witnesses, and answer questions from the panel of Commissioners.

On June 4, 1981, the Commission determined by a vote of three to one that the U.S. industry would be threatened with material injury if T.D. 71-76 were to be modified or revoked.

The Commission’s Determination

The Commission began its analysis by noting that the results of the investigation into continuation of the 1977 OMA did not dispose of the issues faced here for three principal reasons:

(1) The two investigations, according to the Commission, are fundamentally different, an OMA investigation involving, for example, a much more rigorous standard of injury than that in an anti-dumping investigation;

(2) Since the 1980 OMA review was made, imports from Japan had bottomed out and had started to climb again; and most importantly,

(3) The 1980 OMA review assumed the continuation of T.D. 71-76.

The Commission noted that while the statute sets forth no specific standard for conducting an antidumping review under 19 U.S.C. § 1675(b), the implementing regulation, 19 C.F.R. § 207.45(a), according to the Commission, required it to:

consider the relevant facts and circumstances as they currently exist, assess the intentions of the exporters and importers as to the prospective revocation or modification of the order, and project those factors into the future, to determine whether an industry in the United States would suffer material injury, or the threat thereof, or whether the establishment of an industry would be materially retarded, as a result of the changed behavior of the exporters and importers upon being freed from the pricing constraints of the order.

The Commission premised its determination on the assumption that LTFV sales would resume or continue upon revocation of the antidumping order. This premise was seen to follow from the alternative routes available to a party seeking relief from an outstanding antidumping order. Under 19 C.F.R. § 353.54 (1981), an importer may seek exemption from or revocation of a dumping order through the Commerce Department by showing dumping has ceased (ordinarily for a period of *930 two years) and, most significantly, by agreeing not to dump in the future. The importers in this case did not utilize this relief provision. 7 Moreover, the importers introduced no direct testimony with respect to how removal of the order would or would not alter their pricing and volume decisions. In the absence of satisfactory evidence with respect to the importers’ intentions, the Commission found itself forced to rely on the capabilities of the Japanese producers and on general economic factors to assess their future behavior. Though evidence on Japanese production capacity was also difficult to obtain, the indications, according to the Commission, were that the Japanese had adequate flexibility to supply any market on relatively short notice. Given the strong price competition in the U.S. market, the Commission concluded it had no basis to believe that dumping would not resume or margins increase upon revocation of the order.

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750 F.2d 927, 6 I.T.R.D. (BNA) 1465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matsushita-electric-industrial-co-ltd-v-the-united-states-and-zenith-cafc-1984.