NSK Ltd. v. United States

20 Ct. Int'l Trade 1164, 939 F. Supp. 901, 20 C.I.T. 1164, 18 I.T.R.D. (BNA) 2282, 1996 Ct. Intl. Trade LEXIS 176
United States Court of International Trade·Decided September 12, 1996·No. Court No. 94-12-00771·Published·Cited by 1 cases

Opinion

Opinion

Tsoucalas, Judge:

Plaintiffs, NSK Ltd. and NSK Corporation (collectively “NSK”), commenced this action pursuant to Rule 56.2 of the Rules of this Court for judgment upon the agency record contesting one aspect of the Department of Commerce, International Trade Administration’s (“Commerce” or “ITA”) final determination of administrative reviews, entitled Tapered Roller Bearings, Four Inches or Less in Diameter, and Components Thereof, From Japan (“Final Results”), 59 Fed. Reg. 56,035 (1994).

Background

On July 9, 1986, Commerce published a notice of its initiation of administrative reviews of sales of tapered roller bearings (“TRBs”) imported from April 1974 through July 1985. See Initiation of Antidumping Duty Administrative Reviews, 51 Fed. Reg. 24,883 (1986). On October 3, 1986, Commerce initiated an administrative review of TRBs imported from Japan during the period of August 1, 1985 through July 31, 1986. See Initiation of Antidumping and Countervailing Duty Administrative Reviews, 51 Fed. Reg. 35,384 (1986).

On June 1,1990, Commerce published the final results of its administrative reviews of sales of TRBs for the period of April 1, 1974 through July 31, 1980. Tapered Roller Bearings Four Inches or Less in Outside Diameter From Japan; Final Results of Antidumping Duty Administra[1165]*1165tive Review, 55 Fed. Reg. 22,369 (1990). NSK appealed the results, and the Court held that NSK’s entries between the dates of May 1,1974 and March 31, 1978, should not have been subject to review by Commerce but, rather, should have been liquidated in accordance with “master lists”1 prepared by the United States Treasury before Commerce possessed jurisdiction over dumping issues. NSK Ltd. v. United States, 16 CIT 401, 404, 794 F. Supp. 1156, 1159 (1992). On remand, pursuant to the Court’s instructions, Commerce recalculated the dumping margins for the periods not covered by the master lists. Koyo Seiko Co. v. United States, 17 CIT 131, 132-33, 819 F. Supp. 1093, 1095-96 (1993), aff'd in part and rev’d in part, Koyo Seiko Co. v. United States, 20 F.3d 1160 (Fed. Cir. 1994). For the four month period of April 1, 1978 through July 31, 1978, Commerce calculated a margin rate of 39.60%. On appeal, the United States Court of Appeals for the Federal Circuit (“CAFC”) reversed the Court’s decision and ordered a remand to permit Commerce to redetermine the dumping margins for all of the review periods without resort to the master lists. Koyo Seiko, 20 F.3d at 1167. On remand, for NSK’s imports between August 1,1977 andMarch31,1978, Commerce calculated a dumping margin of 18.63%. In sum, for the 1977-78 review, Commerce determined a four month rate of39.60% and an eight month rate of 18.63%.

On November 10, 1994, Commerce published its final determination for the six reviews conducted during the time spanning from August 1, 1980 through July 31, 1986. See Final Results, 59 Fed. Reg. at 56,035. In the Final Results, due to deficiencies in NSK’s home market sales data, Commerce applied best information available (“BIA”) to all U.S. models that were not matched with identical home market models. Id. at 56,049. NSK now contests Commerce’s decision to select as BIA the 39.60% rate calculated for the four month period of April 1, 1978 through July 31, 1978.2

Discussion

The Court’s jurisdiction in this action is derived from 19 U.S.C. § 1516a(a)(2) (1994) and 28 U.S.C. § 1581(c) (1994).

The Court must uphold Commerce’s 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)(1)(B) (1994). Substantial evidence is “more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. ” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229 (1938)). “It is not within the Court’s domain either to weigh the adequate quality or quantity of the evidence for sufficiency or to reject a finding on grounds of a [1166]*1166differing interpretation of the record.” Timken Co. v. United States, 12 CIT 955, 962, 699 F. Supp. 300, 306 (1988), aff'd, 894 F.2d 385 (Fed. Cir. 1990).

In the Final Results at issue, Commerce explained its choice of BIA as follows:

With respect to the choice of BIA, we note that, throughout the many delays that have arisen in the course of the 1980/86 reviews, NSK has generally been a cooperative respondent. Accordingly, for those U.S. sales where no identical matches are possible, we have relied on a second-tier BIA rate, which is the highest margin for NSK from any preceding review period.

59 Fed. Reg. at 56,049.

NSK challenges Commerce’s selection of BIA as constituting a misapplication of the two-tier BIA rule. NSK emphasizes that to date, in cases where Commerce has used a BIA rate based on a prior administrative review of a company, Commerce has relied on a rate calculated for a period of twelve months or more. NSK argues that applying a rate based upon four months of the review period was inconsistent with Commerce’s two-tier methodology as described in Allied-Signal Aerospace Co. v. United States, 996 F.2d 1185, 1190-91 (Fed. Cir. 1993). Pls.’ Mem. Supp. Mot. J. Agency R. at 10-12.

NSK further maintains that a four month rate is not an accurate representation of a company’s sales practices. In support of its position, NSK points out that for purposes of conducting less than fair value investigations (“LTFV”), Commerce reviews at least six months of sales. Pis.’ Mem. Supp. Mot. J. Agency R. at 13. NSK also insists that the four month rate is not an accurate representation of a margin from any prior review period as it is substantially higher than the rates calculated for other periods of review. Id. at 14-15. To avoid the alleged distortion produced by use of the four month rate, NSK suggests that the Court order Commerce to recalculate the BIA rate by weight-averaging the eight month rate (18.63%) with the four month rate (39.60%). Id. at 19.

Commerce responds that the two-tier methodology does not require Commerce to choose a rate as BIA based on a particular time frame. While Commerce acknowledges that, generally, rates selected as BIA have been based on full review periods, Commerce emphasizes that the calculation of two rates for the 1977-78 review period was required by special circumstances.

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NSK Ltd. v. United States, 20 Ct. Int'l Trade 1164, 939 F. Supp. 901, 20 C.I.T. 1164, 18 I.T.R.D. (BNA) 2282, 1996 Ct. Intl. Trade LEXIS 176 (cit 1996).

20 Ct. Int'l Trade 1164 (NSK Ltd. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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