Neenah Foundry Co. v. United States

86 F. Supp. 2d 1308, 24 Ct. Int'l Trade 33, 24 C.I.T. 33, 22 I.T.R.D. (BNA) 1022, 2000 Ct. Intl. Trade LEXIS 7
CourtUnited States Court of International Trade
DecidedJanuary 20, 2000
DocketSlip Op. 00-7; Court 99-07-00441
StatusPublished
Cited by9 cases

This text of 86 F. Supp. 2d 1308 (Neenah Foundry Co. 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
Neenah Foundry Co. v. United States, 86 F. Supp. 2d 1308, 24 Ct. Int'l Trade 33, 24 C.I.T. 33, 22 I.T.R.D. (BNA) 1022, 2000 Ct. Intl. Trade LEXIS 7 (cit 2000).

Opinion

Opinion & Order

AQUILINO, Judge.

Claiming their current circumstances give rise to an issue of first impression, come now the plaintiffs with an application to enjoin the International Trade Administration, U.S. Department of Commerce (“ITA”) from instructing the Customs Service to discontinue suspension of liquidation and collection of cash deposits on and after January 1, 2000 for entries of merchandise theretofore within the ambit of Certain Iron Metal Castings From India: Countervailing Duty Order, 45 Fed. Reg. 68,650 (Oct. 16, 1980), per the ITA notice of its revocation published November 12,1999, 64 Fed.Reg. 61,602.

I

This action derives from the “Uruguay Round” negotiations under the guise of the General Agreement on Tariffs and Trade, which resulted in multilateral agreements, including one on subsidies and countervailing measures, and which in turn led the U.S. Congress to enactment of the Uruguay Round Agreements Act, Pub.L. No. 103-465, 108 Stat. 4809 (Dec. 8, 1994). Section 220 thereof amended section 751 of the Trade Agreements Act of 1979, 19 U.S.C. § 1675, to require that

5 years after the date of publication of ... a countervailing duty order ... the [ITA] and the [International Trade] Commission ... conduct a review to determine ... whether revocation of ... [such] order ... would be likely to lead to continuation or recurrence of ... a countervailable subsidy ... and of material injury.

19 U.S.C. § 1675(c)(1) (1995). Such five-year or “sunset” reviews are to be conducted pursuant to section 752, which was added to the 1979 act by section 221 of Pub.L. No. 103-465, 19 U.S.C. § 1675a (1995) (Special Rules for Section 751(b) and 751(c) Reviews). Both the ITA and the Commission (“ITC”) have now done so with regard to the above-cited 1980 coun *1310 tervailing-duty order. In its Amended Final Remits of Expedited Sunset Review: Iron Metal Castings From India, 64 Fed. Reg. 37,509, 37,511 (July 12, 1999), the ITA continued

to find that revocation of the countervailing duty order would be likely to lead to continuation or recurrence of a countervailable subsidy at the rates listed in the Department’s final determination of the sunset review of this case[,j

citing Final Results of Expedited Sunset Review: Iron Metal Castings From India, 64 Fed.Reg. 30,316 (June 7, 1999). Nonetheless, the above-named plaintiff domestic U.S. manufacturers of competing merchandise commenced this action, alleging in their complaint, among other things, that the agency’s determination of certain subsidy rates is “erroneous, being significantly understated.” Complaint, para. 8.

Subsequent to publication of that determination, which entailed margins ranging from 0.84 to 1.82 percent 1 , the ITC came to conclude (over the dissent of two commissioners) that

revocation of the countervailing duty order on iron metal castings from India would not be likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time[ 2 ,]

given the magnitude" of those rates, 3 among other factors. See, e.g., Iron Metal Castings From India; Heavy Iron Construction Castings From Brazil; and Iron Construction Castings From Brazil, Canada, and China, USITC Pub. 3247, p. 13 (Oct.1999). Whereupon the ITA notice of revocation, supra, issued — and caused the plaintiffs to interpose their application for a preliminary injunction, which the court finds timely, and in which they contend that, in the absence of this immediate relief,

the domestic industry will forfeit its right to obtain judicial review and the full benefit of a favorable ruling by this Court.

Plaintiffs’ Motion for Preliminary Injunction, p. 2.

II

Both before and during a hearing in open court, the application was opposed by the defendant 4 , notwithstanding such relief *1311 in regular course in cases reviewing administrative determinations pursuant to section 751 of the Trade Agreements Act of 1979, as amended. See, e.g., Zenith Radio Corp. v. United States, 710 F.2d 806 (Fed.Cir.1988); Fenton Corporation v. United States, CIT No. 00-01-00014 (preliminary injunction entered Jan. 11, 2000).

Be Zenith and the innumerable cases that have followed it as they have been, in the absence of government consent in this action, the plaintiffs properly recognize in their papers that this court must consider four factors in determining whether to grant ... an injunction:

(1) whether the movant will suffer irreparable harm if the relief is not granted;
(2) whether the movant is likely to succeed on the merits; (3) whether an injunction will be contrary to the public interest; and (4) whether the balance of hardships tips in the movant’s favor.... No one factor, taken individually, is necessarily dispositive.... The weakness of the showing regarding one factor may be overborne by the strength of the others....

Plaintiffs’ Motion for Preliminary Injunction, pp. 2-3. See FMC Corporation v. United States, 3 F.3d 424, 427 (Fed.Cir. 1993), and cases cited therein. Cf. 19 U.S.C. § 1516a(c)(2).

A

The papers contain a supporting affidavit from the Vice President of Construction Products Sales and Engineering for plaintiffs Neenah and Deeter foundry companies. It avers, in part, that:

6. Prior to the commencement of the sunset proceedings concerning the 1980 CVD Order, prices of imported castings from India averaged approximately 17.5 cents per pound, based on the floor price established by the Indian Engineering Export Promotion Council (“EEPC”). The EEPC sets the minimum export price primarily to keep the Indian producers from competing with each other.... In the past, in addition to the existence of a floor price mechanism, there was less competition among importers as well because their pricing was dictated by different cash deposit rates that were in effect. If the Order is revoked, Indian producers will no longer have CVD duties assessed on their products. Importers, therefore, will no longer have to pay these CVD duties.

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Bluebook (online)
86 F. Supp. 2d 1308, 24 Ct. Int'l Trade 33, 24 C.I.T. 33, 22 I.T.R.D. (BNA) 1022, 2000 Ct. Intl. Trade LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neenah-foundry-co-v-united-states-cit-2000.