R-M Industries, Inc. v. United States

848 F. Supp. 204, 18 Ct. Int'l Trade 219, 18 C.I.T. 219, 16 I.T.R.D. (BNA) 1338, 1994 Ct. Intl. Trade LEXIS 60
CourtUnited States Court of International Trade
DecidedMarch 18, 1994
DocketCourt No. 93-03-00184. Slip Op. 94-49
StatusPublished
Cited by16 cases

This text of 848 F. Supp. 204 (R-M Industries, Inc. 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
R-M Industries, Inc. v. United States, 848 F. Supp. 204, 18 Ct. Int'l Trade 219, 18 C.I.T. 219, 16 I.T.R.D. (BNA) 1338, 1994 Ct. Intl. Trade LEXIS 60 (cit 1994).

Opinion

OPINION

RESTANI, Judge:

This matter is before the court on plaintiffs motion for judgment on the agency record, arguing that the United States International Trade Commission (“ITC” or “the Commission”) erred in its negative material injury determination with respect to sulfanil-ie acid imports from the Republic of Hungary. Sulfanilic Acid from the Republic of Hungary and India, USITC Pub. 2603, Inv. Nos. 701-TA-318, 731-TA-560 and 561 (Feb. 1993) (final) (“Final Det.”); 58 Fed.Reg. 11,-246 (Dep’t Comm.1993).

I.

FACTS

A. Background

Plaintiff R-M Industries, Inc. (“R-M”) is a U.S. manufacturer of technical grade sulfanilic acid and sodium sulfanilate. Sulfanilic Acid from the Republic of Hungary and India, USITC Pub. 2526, Inv. Nos. 701-TA-318, 731-TA-560 and 561 (June 1992) (preliminary), at 7. Sulfanilic acid is employed as a raw material in the production of optical brighteners, food colors, specialty dyes, and concrete additives. Final Det., at 1-27. Technical grade sulfanilic acid and sodium sulfanilate are both available in dry powder form. See id. at 1-4. R-M was the sole domestic producer of sulfanilic acid during the period of investigation, thus the domestic industry was defined as consisting of R-M only. Id. at 8.

On May 7,1992, R-M filed an antidumping duty petition with the United States International Trade - Administration (“ITA”) and ITC, alleging that sulfanilic acid imports from India and the Republic of Hungary were being or were likely to be sold in the United States at less than fair value (“LTFV”), and were causing or threatened.to cause material injury to the U.S. industry. 1 57 Fed.Reg. 23,378, 23,378 (Dep’t Comm. 1992) (init. of antidumping duty investigations). 2

ITC issued its preliminary determination .on July 1, 1992, finding that there was a reasonable indieation.that imports from India threatened material injury to the U.S. industry, and imports from the Republic of Hungary had caused or threatened to cause material injury. 57 Fed.Reg. at 29,332. The products subject to the injury investigations included all grades of sulfanilic acid: refined sulfanilic acid, technical sulfanilic acid, and sodium sulfanilate. Id. at n. 3.

On February 24, 1993, ITC announced its final antidumping duty determination. ITC found that: a/ imports from Hungary did not cause or threaten material injury to the U.S. ■ industry, and b/ imports from India sold at LTFV threatened material injury. 58 Fed. Reg. at 11,246. R-M contests the negative determination regarding injury from Hungarian imports.

B. The Final Determination

The Commission found the like product to be all forms of sulfanilic acid, including refined grade sulfanilic acid, technical grade sulfanilic acid and sodium sulfanilate. Final Det., at 7. Refined - grade sulfanilic acid and sodium sulfanilate can be used for the same end uses. Id.; see Sulfanilic Acid from the People’s Republic of China, USITC Pub. *206 2542, Inv. No. 731-TA-538 (Aug. 1992) (final), at 7 n. 11. Technical grade sulfanilic acid is used for production of sodium sulfani-late, refined grade sulfanilic acid, specialty synthetic organic dyes, and concrete additives, and in certain cases shares the same end uses as other forms of sulfanilic acid. Final Det. at 1-5,1 — 10; Sulfanilic Acid from,the PRC, USITC Pub. 2542, at 7 n. 11.

The Commission noted that during the period of investigation, the rate of growth for domestic consumption of the refined forms of sulfanilic acid (refined grade sulfanilic acid and sodium sulfanilate) exceeded the growth rate for consumption of the technical grade. Final Det., at 9. In 1989, R-M discontinued production of refined grade sulfanilic acid because of increased environmental costs resulting from'purification of wastewater, and competition from low-priced imports of refined grade sulfanilic acid. Id. at 9-10. R~ M later resumed production of refined grade in August 1992 following the Commission’s affirmative determination for threat of material injury caused by sulfanilic acid imports from China. Id.; Sulfanilic Acid from, the People’s Republic of China, 57 Fed.Reg. 37,-556, 37,556 (Dep’t Comm.1992).

It was against these conditions of competition that the Commission considered performance of the domestic industry. From 1989 to 1991, domestic consumption of sulfanilic acid increased in quantity and in value. Final Det., at 10. The Commission found that between “interim 1991” (January to September) and “interim 1992” (January to September), consumption decreased in quantity and value. Id. Although U.S. production decreased from 1989 to 1990, it increased during 1990 and into 1991, and decreased in interim 1992 as compared with interim 1991. Id.

The Commission reviewed data indicating that the number of production workers was relatively stable but decreased during 1989 through interim 1992, and hours workéd decreased steadily over the same period. Id. at 11. Productivity decreased from 1989 to 1990, but increased between 1990 and 1991, then decreased during interim 1992. Id. RM’s financial data indicated that net sales decreased from 1989 to 1990, increased in 1991, and decreased in interim 1992. Id. at 11-12. R-M reported operating losses for 1989 and 1990, but a positive operating income was reported for 1991. Id. at 12. Operating income in interim 1992 was less than operating income in interim 1991. Id. RM’s return on total assets increased from 1989 to 1991. Id.

Commissioner Rohr determined, based upon incorporation of the foregoing discussion of factors describing the condition of industry, that R-M was not experiencing material injury. Id. at 12 n. 46, 13. 3 Vice Chairman Watson and Commissioners Brunsdale and Crawford found no. present material injury by reason of either Indian or Hungarian imports. Id. at 13, 25. Chairman Newquist, Vice Chairman Watson, and Commissioners Rohr and Nuzum all found that Indian imports of sulfanilic acid posed a threat of material injury. Id. at 13, 49.

In dissent, Chairman Newquist and Commissioner Nuzum found that imports from Hungary threatened material injury. Id. at 49. Also, in dissent, Commissioners Bruns-dale and Crawford found that imports from India did not threaten material injury. Id. at 25. Plaintiff clarified at oral argument that it does not challenge any of the threat determinations. It challenges only the negative result with respect to present material injury by reason of Hungarian imports.

II.

Standard of Review

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848 F. Supp. 204, 18 Ct. Int'l Trade 219, 18 C.I.T. 219, 16 I.T.R.D. (BNA) 1338, 1994 Ct. Intl. Trade LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-m-industries-inc-v-united-states-cit-1994.