Nitrogen Solutions Fair Trade Committee v. United States

358 F. Supp. 2d 1314, 29 Ct. Int'l Trade 86, 29 C.I.T. 86, 27 I.T.R.D. (BNA) 1342, 2005 Ct. Intl. Trade LEXIS 15
CourtUnited States Court of International Trade
DecidedJanuary 31, 2005
DocketSlip Op. 05-13; Court 03-00260
StatusPublished
Cited by8 cases

This text of 358 F. Supp. 2d 1314 (Nitrogen Solutions Fair Trade Committee 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
Nitrogen Solutions Fair Trade Committee v. United States, 358 F. Supp. 2d 1314, 29 Ct. Int'l Trade 86, 29 C.I.T. 86, 27 I.T.R.D. (BNA) 1342, 2005 Ct. Intl. Trade LEXIS 15 (cit 2005).

Opinion

*1317 OPINION

GOLDBERG, Senior District Judge.

[ITC’s final negative injury and threat determination sustained.]

In this action, Plaintiff Nitrogen Solutions Fair Trade Committee challenges the final negative injury and threat determination of the United States International Trade Commission (“ITC”) in the anti-dumping proceedings involving Urea Ammonium Nitrate Solutions from Belarus, Russia and Ukraine, 68 Fed.Reg. 18673 (Apr. 16, 2003) (“Notice of Determination”) and USITC Pub. 3591, Inv. Nos. 731-TA-1006, 1008, and 1009 (Apr.2003) (“Views of the Commission”) (together, the “Final Determination”). Pursuant to USCIT Rule 56.2, Plaintiff moves for judgment on the agency record.

For the reasons that follow, the Court sustains the Final Determination.

I. BACKGROUND

Plaintiff is an association of domestic producers of urea ammonium nitrate (“UAN”). Notice of Determination at 18674. UAN is a liquid nitrogen fertilizer used primarily in the United States (“U.S.”) for row crops. Views of the Commission at 5. It is a commodity product; UAN from different sources (including imports) is commingled throughout the distribution system. Id. at 14. Natural gas is an important material input used to produce UAN, accounting for over half of its cost of production. Id. In late 2000 and early 2001, natural gas prices in the U.S. increased dramatically. Id. During this same period, domestic UAN prices rose, domestic UAN consumption fell and the volume of UAN imports to the U.S. increased. Id. at 13-16. In addition, the domestic UAN industry lost market share and suffered financially. Id. at 25. Natural gas prices began to normalize in mid 2001. Id. at 18. Imports also began to decline, although remained at historically high levels. Id.

On April 19, 2002, Plaintiff filed petitions with the U.S. Department of Commerce and the ITC alleging that UAN from Belarus, Lithuania, Russia and Ukraine was being sold in the U.S. at less than fair value and was causing material injury or threatening to cause material injury to the domestic UAN industry. The ITC initiated an antidumping investigation on that same day. 67 Fed.Reg. 20994 (Apr. 29, 2002). On June 4, 2002, the ITC issued a unanimous affirmative preliminary injury and threat determination as to UAN imports from Belarus, Russia and Ukraine (the “subject imports”), and determined that imports from Lithuania were negligible. Urea Ammonium Nitrate Solutions from Belaus, Russia, and Ukraine, 67 Fed.Reg. 39439 (June 7, 2002) and USITC Pub. 3517, Inv. Nos. 731-TA-1006, 1008, and 1009 (June 2002) (“Preliminary Views of the Commission”) (together, the “Preliminary Determination”).

The ITC then commenced its final investigation. On April 10, 2003, the ITC issued the Final Determination, unanimously concluding that the domestic UAN industry was not materially injured or threatened with material injury by reason of the subject imports. Views of the Commission at 34.

This appeal followed. The Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1581(c).

II. STANDARD OF REVIEW

The Court must sustain the Final Determination 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). Substantial evidence means “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion” taking into ac *1318 count the record as a whole. Pierce v. Underwood, 487 U.S. 552, 565, 108 S.Ct. 2541, 101. L.Ed.2d 490 (1988) (citation omitted). It “requires more than a mere scintilla, but is satisfied by something less than the weight of the evidence.” Altx, Inc. v. United States, 370 F.3d 1108, 1116 (Fed.Cir.2004) (citations omitted).

In conducting its review, the Court must consider “not only the evidence on the record that justifies the ITC’s findings, but also whatever in the record fairly detracts from its weight.” Am. Bearing Mfrs. Ass’n v. United States, 28 CIT -, -, 350 F.Supp.2d 1100 (2004) (citations omitted). However, the Court “may not reweigh the evidence or substitute its judgment for that of the ITC.” Dastech Int’l, Inc. v. USITC, 21 CIT 469, 470, 963 F.Supp. 1220, 1222 (1997). Instead, the Court’s function is to ascertain “whether there was evidence which could reasonably lead to the [ITCj’s conclusion[.]” Matsushita Elec. Indus. Co. v. United States, 750 F.2d 927, 933 (Fed.Cir.1984). “[T]he possibility of drawing two inconsistent conclusions from the evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Id. (citation omitted).

III. DISCUSSION

A. The ITC’s Determination that Subject Imports Did Not Undersell Domestic UAN Is Supported by Substantial Evidence and Otherwise in Accordance with Law.

In making its final injury and threat determination, the ITC was required to consider the effect of subject imports on domestic UAN prices. 19 U.S.C. § 1677(7)(B)(i)(II). As part of this evaluation, the ITC was further required to consider whether there had been “significant price underselling” by subject imports compared with the price of domestic UAN during the period of investigation. Id. § 1677(7)(C)(ii)(I). In the Final Determination, the ITC found that prices of imported UAN were generally higher than domestic UAN from 1999 to 2001 and for the interim periods of January-September 2001 and January-September 2002 (together, the “period of investigation”). Views of the Commission at 20. Relying in part on this underselling analysis, the ITC ultimately concluded that there was no evidence of significant price effects by reason of the subject imports. Id. at 21.

Plaintiff advances four arguments for why the ITC’s underselling analysis is not supported by substantial record evidence or otherwise in accordance with law. For the reasons set forth below, the Court sustains this aspect of the Final Determination.

1. The ITC Appropriately Excluded Sales Data That Did Not Involve Comparable Quantities of UAN.

Plaintiff argues that the ITC erred by excluding from consideration in its underselling analysis certain sales data from a significant importer into three of the U.S. cities under investigation ([ ]). See

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358 F. Supp. 2d 1314, 29 Ct. Int'l Trade 86, 29 C.I.T. 86, 27 I.T.R.D. (BNA) 1342, 2005 Ct. Intl. Trade LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nitrogen-solutions-fair-trade-committee-v-united-states-cit-2005.