NACCO Materials Handling Group, Inc. v. United States

20 Ct. Int'l Trade 759, 932 F. Supp. 304, 20 C.I.T. 759, 18 I.T.R.D. (BNA) 1857, 1996 Ct. Intl. Trade LEXIS 106
CourtUnited States Court of International Trade
DecidedJune 18, 1996
DocketCourt No. 94-02-00096
StatusPublished
Cited by1 cases

This text of 20 Ct. Int'l Trade 759 (NACCO Materials Handling Group, Inc. 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
NACCO Materials Handling Group, Inc. v. United States, 20 Ct. Int'l Trade 759, 932 F. Supp. 304, 20 C.I.T. 759, 18 I.T.R.D. (BNA) 1857, 1996 Ct. Intl. Trade LEXIS 106 (cit 1996).

Opinion

Opinion

Carman, Judge:

Plaintiffs NACCO Materials Handling Group, Inc., Independent Lift Truck Builders Union, International Association of Machinists and Aerospace Workers, International Union, Allied Industrial Workers of America (AFL-CIO), and United Shop and Service Employees (collectively “plaintiffs”) challenge that aspect of the Department of Commerce’s (“Department” or “Commerce”) Final Results of Redetermination Pursuant to Court Remand (Oct. 31, 1995) (Redetermination) dealing with credit revenue offset. Additionally, plaintiffs have requested oral argument on the Redetermination. Defendant-Intervenor Toyota Motor Sales, U.S.A., Inc. (“TMS” or “defendant-intervenor”) challenges that aspect of Commerce’s Redetermination dealing with operator restraint safety seat retrofit expense. The Court has retained jurisdiction during the pendency of this action. 28 U.S.C. § 1581(c) (1988).

Background

A. Procedural Background:

On January 10, 1994, Commerce published the final results of its June 1,1989, through May 31,1990, administrative review of the anti-dumping duty order on certain internal-combustion, industrial forklift trucks from Japan. See Certain Internal-Combustion Industrial Forklift [760]*760Trucks From Japan, 59 Fed. Reg. 1374 (Dep’t Comm. 1994) (final results) (Final Results). The review covered, in part, sales made by Toyota Motor Corporation (Toyota). Id. at 1375.1

Toyota’s U.S. selling division, TMS sold Toyota’s forklift trucks to dealers, who sold the forklift trucks to end-users. Id. at 1379. TMS’ related finance company, Toyota Motor Credit Corporation (TMCC), provided financing for the purchases of both dealers and end-users. Id. Because Commerce based United States price (USP)2 on the price to the first unrelated purchaser in the United States, Commerce based USP on what TMS charged unrelated dealers. Id.3 In claiming credit revenue for its U.S. sales, however, Toyota claimed credit revenue TMCC received from both unrelated dealers and unrelated end-users resulting from the financing TMCC supplied. Id.4 In the Final Results, Commerce allowed the inclusion of credit revenue received from unrelated dealers, but disallowed credit revenue received from unrelated end-users. Id. Commerce explained that because it had based USP on the price TMS charged unrelated dealers, Commerce considered “revenue generated as a result of the sale by the dealer to the end-user through a financing arrangement a separate transaction, and as such, not directly associated with the sales under review.” Id.

During the administrative review, plaintiffs also urged Commerce to consider costs allegedly incurred by Toyota in retrofitting its forklifts with redesigned seats under an operator restraint safety seat (ORS) program as direct U.S. selling expenses. Id. at 1378. Toyota argued that any costs incurred due to the retrofit were only for forklifts imported and sold prior to the period of review (POR). Id. In the Final Results, Commerce concluded “there [was] no evidence on the record indicating that forklifts sold during the POR required retrofitting.” Id. Furthermore, Commerce explained, “[petitioners have * * * provided no evidence that Toyota incurred any such expenses with respect to the Toyota sales made in the current POR.” Id. Accordingly, Commerce made no adjustment in the Final Results for Toyota’s alleged retrofitting expenses. Id.

In NACCO Materials Handling Group, Inc. v. United States, 896 F. Supp. 1248 (CIT 1995), this Court remanded the Final Results and ordered Commerce first

to consider plaintiffs’ argument that Toyota’s credit revenue offset for interest income earned on financing arrangements made with unrelated dealers was improper because the financing and sale of [761]*761the forklift trucks were separate transactions. If on remand Commerce determines that the corporate relationship of TMS, TMCC, and Toyota is a determinative factor in its consideration of plaintiffs’ argument against Toyota’s credit revenue offset, Commerce is instructed to explain its finding as to that relationship and to point out what evidence on the record, if any, supports its finding. Commerce is further instructed to provide an explanation of how it adjusts for credit revenue, and to state the statutory, regulatory, or other authority for making such adjustments. Second, Commerce is to make determinations with respect to the issue of whether the expenses of retrofitting forklift trucks with occupant restraint safety seats should have been deducted from U.S. price * * *.5

NACCO, 896 F. Supp. at 1257.

B. Commerce’s Redetermination:

1. Toyota’s Credit Revenue Offset for TMCC’s Wholesale Financing Credit Revenue:

In the Redetermination, Commerce indicates TMS is a wholly-owned subsidiary of Toyota and TMCC is a wholly-owned subsidiary of TMS. Redetermination at 3. Commerce found this corporate relationship a determinative factor in its consideration of plaintiffs’ argument against Toyota’s credit revenue offset. Id. Commerce explains its practice is to ‘“combine the * * * activities of a parent and subsidiary when the parent exercises control over the subsidiary (i.e., meets the requirements for consolidation)’ and to treat the entities as a consolidated group.” Id. (quoting Certain Carbon Steel Butt-Weld Pipe Fittings From Thailand, 57 Fed. Reg. 21,065, 21,069 (Dep’t Comm. 1992) (final determ.) (Carbon Steel Butt-Weld Pipe Fittings) and citing New Minivans From Japan, 57 Fed. Reg. 21,937, 21,946 (Dep’t Comm. 1992) (final determ.) (New Minivans)). In this case, Commerce found control by TMS over TMCC to be clearly evident by the record. Id.6 Thus,

[tjreatingthe financing and sale of the forklift truck as one transaction in this case is based upon the Department’s practice of combining the activities of the consolidated group. The Department, therefore, treated Toyota and its related entities as a consolidated group, and treated the operations of the financing entity, TMCC, as [762]*762a member of the consolidated group. Thus, when TMS makes a sale to the unrelated dealer, and when TMCC finances that same sale to the unrelated dealer, the credit expense incurred and the interest revenue earned affects Toyota as a corporate entity and is based on the sale and financing arrangement made between Toyota as a corporate entity and the unrelated dealer.

Id. at 3-4 (citations omitted).7

Commerce addressed “plaintiffs’ argument that Toyota’s credit revenue offset for interest income earned on financing arrangements made with unrelated dealers was improper because, according to the plaintiffs, the financing and sale of the forklift trucks were separate transactions” as follows. Id. at 5 (citation omitted).

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Related

NACCO Materials Handling Group, Inc. v. United States
971 F. Supp. 586 (Court of International Trade, 1997)

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Bluebook (online)
20 Ct. Int'l Trade 759, 932 F. Supp. 304, 20 C.I.T. 759, 18 I.T.R.D. (BNA) 1857, 1996 Ct. Intl. Trade LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nacco-materials-handling-group-inc-v-united-states-cit-1996.