Peer Bearing Co.-Changshan v. United States

298 F. Supp. 2d 1328, 27 Ct. Int'l Trade 1763, 27 C.I.T. 1763, 26 I.T.R.D. (BNA) 1009, 2003 Ct. Intl. Trade LEXIS 163
CourtUnited States Court of International Trade
DecidedDecember 12, 2003
DocketSlip Op. 03-160; Court 02-00241
StatusPublished
Cited by15 cases

This text of 298 F. Supp. 2d 1328 (Peer Bearing Co.-Changshan 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
Peer Bearing Co.-Changshan v. United States, 298 F. Supp. 2d 1328, 27 Ct. Int'l Trade 1763, 27 C.I.T. 1763, 26 I.T.R.D. (BNA) 1009, 2003 Ct. Intl. Trade LEXIS 163 (cit 2003).

Opinion

OPINION

TSOUCALAS, Senior Judge.

Plaintiff, Peer Bearing Company-Changshan (“CPZ”), moves pursuant to USCIT R. 56.2 for judgment upon the agency record challenging the United States Department of Commerce, International Trade Administration’s (“Commerce”) final determination, entitled Final Results of New Shipper Reviews of Tapered Roller Bearings and Parts Thereof Finished and Unfinished, From the People’s Republic of China (“Final Results”), 67 Fed.Reg. 10,665 (Mar. 8, 2002).

Specifically, CPZ contends that Commerce improperly rejected the actual prices paid for steel inputs from its market-economy supplier. CPZ further contends that Commerce’s determination that it has reason to believe or suspect that the supplier’s prices were subsidized, because there are generally available export subsidies in the supplier’s home country, are baseless.

BACKGROUND

This case concerns the new shipper reviews of the antidumping duty order on tapered roller bearings (“TRBs”) and parts thereof, finished and unfinished, from the People’s Republic of China (“PRC”) for the period of review covering June 1, 2000, through January 31, 2001. See Final Results, 67 Fed.Reg. at 10,666. On November 29, 2001, Commerce published the preliminary results of the subject review. See Preliminary Results of New Shipper Reviews of Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From the People’s Republic of China, 66 Fed.Reg. 59,569. Commerce published the Final Results on March 8, 2002. See Final Results, 67 Fed.Reg. 10,-665.

JURISDICTION

The Court has jurisdiction over this matter pursuant to 19 U.S.C. § 1516a(a) (2000) and 28 U.S.C. § 1581(c) (2000).

STANDARD OF REVIEW

The Court will uphold Commerce’s final determination in an antidumping administrative review 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)(i) (2000); see NTN Bearing Corp. of Am. v. United States, 24 CIT 385, 389-90, 104 F.Supp.2d 110, 115-16 (2000) (detailing the Court’s standard of review for antidumping proceedings).

DISCUSSION

I. Commerce’s Determination to Reject Prices Paid by a Non-Market Producer for Steel Inputs from a Market-Economy Supplier

A. Statutory Background

In conducting a new shipper review, Commerce determines the antidump-ing margin by taking the difference between the normal value (“NV”) and the United States price of the merchandise. When merchandise is produced in a non- *1325 market economy country (“NME”), such as the People’s Republic of China (“PRC”), there is a presumption that exports are under the control of the state. Section 1677b(c) of Title 19 of the United States Code provides that, “the valuation of the factors of production shall be based on the best available information regarding the values of such factors in a market economy country or countries considered to be appropriate by [Commerce].” 19 U.S.C. § 1677b(c)(1) (2000). The statute, however, does not define the phrase “best available information,” it only provides that, “[Commerce], in valuing factors of production ..., shall utilize, to the extent possible, the prices or costs of factors of production in one or more market economy countries that are — (A) at a level of economic development comparable to that of the nonmarket economy country, and (B) significant producers of comparable merchandise.” 19 U.S.C. § 1677b(c)(4). Consequently, Commerce is given broad discretion “to determine margins as accurately as possible, and to use the best information available to it in doing so.” Lasko Metal Prods., Inc. v. United States, 43 F.3d 1442, 1443 (Fed.Cir.1994).

The antidumping duty statute authorizes, but does not mandate that Commerce use surrogate countries to estimate the value of the factors of production. In legislative history, Congress provided Commerce with guidance by stating that, “[i]n valuing such factors [of production], Commerce shall avoid using any prices which it has reason to believe or suspect may be dumped or subsidized prices.” H.R. Conf. Rep. No. 100-576, at 590 (1988), reprinted in 1988 U.S.C.C.A.N. 1547, 1623 (“House Report”). The House Report further states that, “the conferees do not intend for Commerce to conduct a formal investigation to ensure that such prices are not dumped or subsidized, but rather intend that Commerce base its decision on information generally available to it at that time.” H.R. Conf. Rep. No. 100-576, at 590-91, reprinted in 1988 U.S.C.C.A.N. at 1623-24. In addition, Commerce has promulgated regulations regarding the valuation of factors of production in the NME context. The relevant regulations state that “where a factor is purchased from a market economy supplier and paid for in a market economy currency, the Secretary normally will use the price paid to the market economy supplier.” 19 C.F.R. § 351.408(c)(1) (2000).

In gathering factual information from interested parties in an antidumping duty proceeding, Commerce regulations set out time limits for the submission of such information. See 19 C.F.R. § 351.301(b)(4) (2000). The regulations state that any submissions of factual information are due no later than “100 days after the date of publication of notice of initiation of the review, except that factual information requested by the verifying officials from a person normally will be due no later than seven days after the date on which the verification of that person is completed....” Id.

B. Contentions of the Parties

1. CPZ’s Contentions

CPZ complains that Commerce’s interpretation of the House Report is contrary to its plain language and leads to a result contrary to law. See Pl.’s Mem. P. & A. (“CPZ’s Mem.”) at 15-20. CPZ maintains that the House Report solely concerns the use of surrogate values to determine NV in the NME context. See CPZ’s Mem. at 16. CPZ further argues that the House Report does not address the use of market-economy prices. CPZ alleges that “Commerce has now stretched the Legislative History concerning- surrogate values to apply to whether it should use market-economy *1326 prices as well.” CPZ’s Mem. at 16. Accordingly, CPZ asserts that Commerce erred in rejecting actual market-economy prices paid.

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298 F. Supp. 2d 1328, 27 Ct. Int'l Trade 1763, 27 C.I.T. 1763, 26 I.T.R.D. (BNA) 1009, 2003 Ct. Intl. Trade LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peer-bearing-co-changshan-v-united-states-cit-2003.