Sugiyama Chain Co., Ltd. v. United States

891 F. Supp. 619, 19 Ct. Int'l Trade 903, 19 C.I.T. 903, 17 I.T.R.D. (BNA) 1896, 1995 Ct. Intl. Trade LEXIS 155
CourtUnited States Court of International Trade
DecidedJune 23, 1995
DocketSlip Op. No. 95-116. Court No. 92-12-00798
StatusPublished
Cited by2 cases

This text of 891 F. Supp. 619 (Sugiyama Chain Co., Ltd. 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
Sugiyama Chain Co., Ltd. v. United States, 891 F. Supp. 619, 19 Ct. Int'l Trade 903, 19 C.I.T. 903, 17 I.T.R.D. (BNA) 1896, 1995 Ct. Intl. Trade LEXIS 155 (cit 1995).

Opinion

Opinion

CARMAN, Judge:

Plaintiffs Sugiyama Chain Co., Ltd., I & OC of Japan Co., Ltd. (I & OC), and HKK Chain Corp. of America (collectively “plaintiffs” or “Sugiyama”) challenge the results of the Department of Commerce’s (Commerce or Department) second remand determination (Second Remand, Results) rejecting plaintiffs’ claimed level of trade adjustment. This dispute arises from Commerce’s April 1, 1990, through March 31, 1991, administrative review of the antidumping finding on roller chain, other than bicycle, from Japan. See Roller Chain, Other Than Bicycle, From Japan, 57 Fed.Reg. 56,319 (Dep’t Comm.1992) (final results), as amended by Roller Chain, Other Than Bicycle, From Japan, 57 Fed. Reg. 58,285 (Dep’t Comm.1992) (final results). The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(c) (1988).

BACKGROUND

A. Case History

By an opinion and order of this Court, the final results of Commerce’s April 1, 1990, through March 31, 1991, administrative review of the antidumping finding on roller chain, other than bicycle, from Japan, was remanded for a second time on the issue of plaintiffs’ claimed level of trade adjustment. Sugiyama Chain Co., Ltd. v. United States, 19 CIT-, 880 F.Supp. 869 (1995) (Sugiya-ma III)\ see also Sugiyama Chain Co., Ltd. v. United States, 18 CIT-, 865 F.Supp. 843 (1994) (Sugiyama II) (remanding this administrative review for the first time on three issues, including plaintiffs’ claimed level of trade adjustment). Pursuant to this Court’s instructions in Sugiyama II, Commerce was supposed to have addressed whether a comparison of United States sales by Sugiyama directly to I & OC, an unrelated trading company, with home market sales by Sugiyama through related distributors “Companies E and H” 1 to their respective *621 unrelated customers merited a level of trade adjustment. See Sugiyama III, 19 CIT at -, 880 F.Supp. at 874. Plaintiffs argued that home market customers buying through Sugiyama’s related distributors Companies E and H

were at a second level of trade because their purchases were made through the home market intermediary distributors _ [Essentially it is plaintiffs’ position that an adjustment to [foreign market value] is necessary to account for marketing, sales, distribution and collection expenses incurred by Companies E and H to their customers and ostensibly reflected in their resale prices at the second level of trade, which prices Commerce compared with Sugiyama’s U.S.' sales directly to I & OC at the first level of trade. The short of the matter is that plaintiffs claim that a level-of-trade adjustment is in order to avoid a dumping margin calculation based on unfair price comparisons.

Id. at-, 880 F.Supp. at 875. Plaintiffs also complained that Commerce had failed to address plaintiffs’ proposed alternative methodology for quantifying the claimed level of trade adjustment. Id at-, 880 F.Supp. at 875.

Upon review of the determination, this Court found Commerce had failed once again to adequately address Sugiyama’s claimed level of trade adjustment. See id at-, 880 F.Supp. at 875. Although counsel for defendant attempted to argue to this Court that Sugiyama did not provide a “basis for determining whether all, part, or none of the related distributors’ alleged selling expenses differ from expenses incurred by Sugiyama— or how the individual components of the expenses relate to price differences incurred as a result of making sales at several levels of trade,” 2 defendant’s first remand determination “utterly fail[ed] to raise, much less address, such issues.” Id at-, 880 F.Supp. at 874. This Court also found Commerce had again failed to address plaintiffs’ proposed alternative methodology for quantifying the claimed level of trade adjustment. Id at-, 880 F.Supp. at 875. Accordingly, this Court remanded to Commerce “for a full explanation of its rationale on Sugiyama’s claim for a level-of-trade adjustment, thus eliminating the need for speculation by the court and plaintiffs as to the specific issues and information that the agency considered in making its determination.” Id at-, 880 F.Supp. at 875.

B.

Commerce’s Second Remand Results

In Commerce’s Second Remand Results presently before this Court, Commerce explains its rejection of Sugiyama’s claimed level of trade adjustment as follows. Under Commerce’s regulations, any party seeking an adjustment to foreign market value bears the burden of establishing a basis for its claim. See Second Remand Results at 3 (citing 19 C.F.R. § 353.54). For level of trade adjustments, Commerce reports its practice is to require a respondent to: (1) request the adjustment; (2) “demonstrate that distinct, discemable levels of trade exist by describing the functions performed at each level”; and (3) quantify the adjustment, “normally by demonstrating that it incurred differing selling expenses on sales to different levels of trade.” See id. at 3-4 (citing 19 C.F.R. § 353.54 and Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From the Federal Republic of Germany, 56 Fed.Reg. 31,692, 31,710 (Dep’t Comm.1991) (final results)). In Sugiyama’s case, Commerce acknowledges Sugiyama requested a level of trade adjustment in its response to Commerce’s original questionnaire. See id. at 4. Commerce concludes, however, that Sugiyama has failed on the second and third requirements of showing *622 justification for and quantification of the claimed level of trade adjustment. See id. at 8, 9, 13.

1. Distinct, Discernable Levels of Trade On the issue of showing justification for Sugiyama’s claimed level of trade adjustment, Commerce states in the Second Remand Results first that Sugiyama supported its claim for a level of trade adjustment by asserting that “sales to I & OC were made at ‘wholesale level one,’ whereas the home market sales to which those sales were matched, sales from Sugiyama’s related distributors, [Cjompanies E and H, to their respective customers, were made at ‘wholesale level two.’ ” Id. at 4. Commerce complains, however, that Sugiyama failed to define “distributor” and its “wholesale level” terms. Id. Thus, Commerce reasons, “record support for Sugiyama’s claim that the customers of [Cjompanies E and H are at a different [level of trade] than I & OC is based solely

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891 F. Supp. 619, 19 Ct. Int'l Trade 903, 19 C.I.T. 903, 17 I.T.R.D. (BNA) 1896, 1995 Ct. Intl. Trade LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sugiyama-chain-co-ltd-v-united-states-cit-1995.