Searing Industries v. United States

662 F. Supp. 2d 1327, 33 Ct. Int'l Trade 1681, 33 C.I.T. 1681, 31 I.T.R.D. (BNA) 2289, 2009 Ct. Intl. Trade LEXIS 134
CourtUnited States Court of International Trade
DecidedNovember 6, 2009
DocketSlip Op. 09-129; Court 08-00278
StatusPublished
Cited by2 cases

This text of 662 F. Supp. 2d 1327 (Searing Industries 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
Searing Industries v. United States, 662 F. Supp. 2d 1327, 33 Ct. Int'l Trade 1681, 33 C.I.T. 1681, 31 I.T.R.D. (BNA) 2289, 2009 Ct. Intl. Trade LEXIS 134 (cit 2009).

Opinion

EATON, Judge.

This action is before the court on the USCIT Rule 56.2 motion for judgment on the agency record of plaintiffs Searing Industries, Southland Tube Inc., and Western Tube Conduit Corporation. By their motion, plaintiffs challenge the final results of the United States Department of Commerce’s (“Commerce” or the “Department”) antidumping investigation of Nexteel, Co., Ltd. (“Nexteel”) for the period of investigation April 1, 2006 through March 31, 2007. See Light-Walled Rectangular Pipe and Tube from the Republic of Korea, 73 Fed.Reg. 35,655 (Dep’t of Commerce June 24, 2008) (notice of final determination of sales at less than fair value) and the accompanying Issues and Decision Memorandum (Dep’t of Commerce June 13, 2008) (“Issues & Dec. Mem.”); Light-Walled Rectangular Pipe and Tube from Mex., the People’s Republic of China, and the Republic of Korea, 73 Fed.Reg. 45,403 (Dep’t of Commerce Aug. 5, 2008) (anti-dumping duty orders and notice of amended final determination of sales at less than fair value) (collectively, “Final Results”).

In particular, plaintiffs contest Commerce’s methodology of offsetting positive dumping margins with negative dumping margins in calculating the weighted-average dumping margin applicable to imports of light-walled rectangular pipe and tube from Korea. Jurisdiction lies pursuant to 28 U.S.C. § 1581(c) (2006), and 19 U.S.C. § 1516a(a)(2)(B)(iii) (2006). For the reasons set forth below, Commerce’s Final Results are sustained.

BACKGROUND

Plaintiffs are domestic manufacturers of pipe and tube who petitioned Commerce in June 2007, “alleging] that imports of light-walled rectangular pipe and tube from Korea, Mexico, Turkey, and the [People’s Republic of China], are being, or are likely to be, sold in the United States at less than fair value, ... and that such imports are materially injuring, or threatening material injury” to the domestic industry. Light-Walled Rectangular Pipe and Tube from the Republic of Korea, Mex., Turkey, and the People’s Republic of China, 72 Fed.Reg. 40,274, 40,275 (Dep’t of Commerce July 24, 2007) (initiation of anti-dumping duty investigation). In July 2007, Commerce initiated an antidumping investigation in response to plaintiffs’ petition. See id.

In June 2008, Commerce issued a final affirmative determination with respect to sales at less than fair value of light-walled rectangular pipe and tube from the Republic of Korea. See Light-Walled Rectangular Pipe and Tube from the Rep. of Korea, 73 Fed.Reg. 35,655 (Dep’t of Commerce June 24, 2008) (notice of final determination of sales at less than fair value). Commerce initially calculated a 1.30 percent de minimus antidumping duty rate for imports from Nexteel, a Korean producer of light-walled rectangular pipe and tube; the rate was later reduced to 0.92 percent. *1330 See Light-Walled Rectangular Pipe and Tube from Mex., the People’s Republic of China, and the Republic of Korea, 73 Fed. Reg. 45,403, 45,404 (Dep’t of Commerce Aug. 5, 2008) (antidumping duty orders and notice of amended final determination of sales at less than fair value). As a result, although Commerce found that Nexteel’s merchandise was dumped, because the antidumping duty rate was de minimus, it did not issue an antidumping order. See, e.g., USEC, Inc. v. United States, 31 CIT 1049, 1071, 498 F.Supp.2d 1337, 1356 (2007).

STANDARD OF REVIEW

When reviewing Commerce’s final anti-dumping determinations, the court “shall hold unlawful any determination, finding, or conclusion found ... to be unsupported by substantial evidence on the record, or otherwise not in accordance with law....” 19 U.S.C. § 1516a(b)(l)(B)(i).

DISCUSSION

The antidumping laws are designed to “level the playing field” between imported and domestically-produced goods by imposing increased duties on foreign-produced goods that are sold in the United States at less than fair value. 1 U.S. Steel Corp. v. United States, 33 CIT —, —, 637 F.Supp.2d 1199, 1204 (2009) (“U.S. Steel”). Calculating the weighed-average dumping margin 2 plays a significant role in the application of these laws because it is determinative of the deposit rate 3 to be paid on the importation of merchandise.

In an antidumping investigation, Commerce generally may determine whether the subject merchandise is being sold at less than fair value through one of two methods. 19 U.S.C. § 1677f-l(d). Commerce may compare a weighted-average of normal values 4 to a weighted-average of the export or constructed export prices of comparable merchandise, or it may compare the normal values of individual transactions to the export prices or constructed export prices of individual transactions for comparable merchandise. 19 U.S.C. § 1677Í-1 (d)(l)(A)(i)-(ii). When Commerce applies the first, or average-to-aver *1331 age, methodology during an investigation, it usually divides the export transactions into groups by model and level of trade. 19 C.F.R. § 351.414(d)(2) (2008). Commerce then compares an average of the export prices or constructed export prices of the transactions within one averaging group to the weighted-average of normal values of such sales. 19 C.F.R. § 351.414(d)(1).

For many years, Commerce’s methodology for calculating weighted-average dumping margins employed the “zeroing” of negative dumping margins. Corus Staal BV v. Dep’t of Commerce, 395 F.3d 1343, 1345 (Fed.Cir.2005) (“Corus Staal I ”). That is, when aggregating the results of the averaging groups in order to determine the weighted-average dumping margin, Commerce decreased to zero any weighted-average export price or constructed export price that exceeded the normal value. Antidumping Proceedings: Calculation of Weighted-Average Dumping Margin During an Admin. Investigation, 71 Fed.Reg. 77,722, 77,722 (Dep’t of Commerce Dec. 27, 2006). Thus, any positive result was not used to offset the results of averaging groups for which the weighted-average export price or constructed export price was less than the weighted-average normal value. Essentially, this practice meant that only sales at less than fair value were included in the final calculation of the weighted-average dumping margin.

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662 F. Supp. 2d 1327, 33 Ct. Int'l Trade 1681, 33 C.I.T. 1681, 31 I.T.R.D. (BNA) 2289, 2009 Ct. Intl. Trade LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/searing-industries-v-united-states-cit-2009.