Nitta Industries Corp. v. United States

16 Ct. Int'l Trade 244
CourtUnited States Court of International Trade
DecidedApril 7, 1992
DocketCourt No. 90-03-00128
StatusPublished

This text of 16 Ct. Int'l Trade 244 (Nitta Industries Corp. 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
Nitta Industries Corp. v. United States, 16 Ct. Int'l Trade 244 (cit 1992).

Opinion

Memorandum

Aquilino, Judge:

Subsequent to publication of an antidumping-duty order sub nom. Industrial Belts and Components and Parts Thereof, Whether Cured or Uncured, From Japan, 54 Fed. Reg. 25,314 (June 14, [245]*2451989), and a similar order regarding the Federal Republic of Germany1, Nitta Industries Corporation and Nitta International, Inc. requested that the International Trade Administration, U.S. Department of Commerce (“ITA”) exclude nylon-core flat belts and spindle belts from the scope of the order for Japan.2

The ITA denied the request as to the flat belts and granted it with regard to the spindle belting in an unpublished ruling per the following analysis:

In this case, we do not need to address the Diversified Products criteria because the descriptions found in the antidumping duty order and the ITC determinations are sufficient to evaluate Nitta’s exclusion request.
The written description of scope from the initiation of the investigation through the publication of the antidumping duty order included flat, corded belts. Likewise, cordless belts were not included in the scope during any phase of the investigation or the antidump-ing duty order. The written description of the scope remains dis-positive, and the TSUSA and HTS categories are provided for the convenience of Customs. There is no characteristic or qualification about Nitta’s nylon core belt that differentiates it from “flat belts * * * containing cord or strand” (54 FR15486). Nitta’s spindle belt is properly classified as a cordless belt and is therefore excluded from the scope, as both the ITC and the Department made clear.
* * *[W]e determine that nylon core flat belts are within the scope of the antidumping duty order and that spindle belting is outside the scope of the antidumping duty order on industrial belts from Japan.

R.Doc 19, p. 3 (Feb. 12,1990).

This action, brought pursuant to 19 U.S.C. § 1516a(a)(2)(B)(vi) and 28 U.S.C. § 1581(c), challenges that part of the ITA’s determination which held nylon-core flat belts within the scope of its antidumping-duty order(s). The plaintiffs and the intervenor-plaintiffs have interposed motions for judgment on the agency record, alleging that the ruling is not supported by substantial evidence or otherwise in accordance with law.

The ruling makes reference to Diversified Products Corp. v. United States, 6 CIT 155, 572 F.Supp. 883 (1983), and the plaintiffs argue that the “late introduction of flat belts into this proceeding mandates that a [246]*246full Diversified Products analysis be conducted”.3 But such analysis applied in that and subsequent cases to later-developed merchandise, and the ITA has not been held obligated to apply the criteria to pre-existing goods like the nylon-core belts herein. See, e.g., PPG Industries, Inc. v. United States, 15 CIT 99, 759 F.Supp. 834 (1991). See also 19 U.S.C. § 1677j(d) (1988). On the other hand, as the ruling itself indicates, the agency has been at liberty to rely on Diversified Products as an aid in determining the coverage of such goods. Cf. Floral Trade Council of Davis v. United States, 13 CIT 638, 640 n. 3, 716 F.Supp. 1580, 1582 n. 3 (1989). Indeed, the plaintiffs refer this court to 19 C.F.R. § 353.29(i), which provides that the ITA “will * * * consider” in proceedings like these the physical characteristics of the product, the expectations of the ultimate purchasers, the ultimate use of the product and its channels of trade. That provision, however, was published onMarch 9,1990, or after the ruling herein had been rendered. See 55 Fed. Reg. 9,046, 9,049. Moreover, as promulgated, the regulation provides that the agency “will take into account” first the descriptions of the merchandise contained in the petition, the initial investigation, and the determinations by it and the ITC and that only when these criteria are not decisive will the foregoing factors be considered.

Here, the ITA held the first-rank criteria to be dispositive. Its initiation notice and other determinations specify flat belts viz. Initiation of Antidumping Duty Investigation; Industrial Belts and Components and Parts Thereof, Whether Cured or Uncured, From Japan, 53 Fed.Reg. 28,036 (July 26, 1988) (“These include V-belts, synchronous belts, round belts and flat belts”), Preliminary Determination of Sales at Less Than Fair Value: Industrial Belts and Components and Parts Thereof, Whether Cured or Uncured, From Japan, 54 Fed.Reg. 5,114,5,115 (Feb. 1,1989) (same), Final Determination of Sales of Less Than Fair Value: Industrial Belts and Components and Parts Thereof, Whether Cured or Uncured, From Japan, 54 Fed. Reg. 15,485, 15,486 (April 18, 1989) (same), while the resultant antidumping-duty order states that the covered merchandise

includes industrial belts used for power transmission. These include industrial belts, in part or wholly of rubber or plastic, and containing textile fiber (including glass fiber) or steel wire, cord or strand, and whether in endless (i.e., closed loops) belts, or in belting in lengths or links. This investigation excludes conveyor belts and automotive belts as well as front engine drive belts found on [247]*247equipment powered by internal combustion engines, including trucks, tractors, buses, and lift trucks.

54 Fed. Reg. at 25,315, as corrected, 54 Fed.Reg. 32,104 (Aug. 4,1989).

As for the ITC, before which Nitta appeared and participated, the commissioners had opted for five different definitions of like product, apparently upon an understanding that “past Commission decisions have made clear that the like product can contain articles not included within the scope of the investigation”. Views of Commissioner Rohr, R.Doc 11 at 27. Thus, despite an attempt by the petitioner not to include automotive belts, Chairman Brunsdale and Commissioner Rohr divided the merchandise into three like products encompassing both automotive and industrial belts, namely, synchronous belts, V-belts, other belts, with the last category covering flat belts and round belts. Vice Chairman Cass also based his analysis on three product categories: V-belts and round belts, synchronous belts, flat belts. Commissioners Eckes and Newquist took “all industrial belts”4 into account, while Commissioner Lodwick considered “all power transmission belts, both for industrial and automotive uses.” Id. at 10.

Under 19 C.F.R. § 353.36(a)(4) (1988), antidumping petitions had to contain a “detailed description of the imported merchandise in question, including its technical characteristics and uses, and, where appropriate, its tariff classification under the Tariff Schedules of the United States”.

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16 Ct. Int'l Trade 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nitta-industries-corp-v-united-states-cit-1992.