Techsnabexport v. United States

515 F. Supp. 2d 1363, 31 Ct. Int'l Trade 1490, 31 C.I.T. 1490, 29 I.T.R.D. (BNA) 2480, 2007 Ct. Intl. Trade LEXIS 143
CourtUnited States Court of International Trade
DecidedSeptember 26, 2007
DocketConsol. 06-00228
StatusPublished
Cited by1 cases

This text of 515 F. Supp. 2d 1363 (Techsnabexport 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
Techsnabexport v. United States, 515 F. Supp. 2d 1363, 31 Ct. Int'l Trade 1490, 31 C.I.T. 1490, 29 I.T.R.D. (BNA) 2480, 2007 Ct. Intl. Trade LEXIS 143 (cit 2007).

Opinion

OPINION

DONALD C. POGUE, Judge.

These consolidated actions, which are part of a long line of uranium cases, arise from a decision made by the Department of Commerce (“Commerce” or “the government”) to include sales of uranium enrichment services in an antidumping investigation. Plaintiffs Techsnabexport (“Tenex”) and Ad Hoc Utilities Group (“AHUG”) 1 (collectively “Plaintiffs”) challenge the final results (or “determination”) in the second five-year sunset review (“the Review”) of the suspended antidumping duty investigation of uranium from Rus-sia. Uranium from the Russian Federation, 71 Fed.Reg. 32,517 (Dep’t Commerce June 6, 2006)(final results of five-year sunset review of suspended antidumping duty investigation)(“Fmai Results ”) and the accompanying Issues and Decision Memorandum (“Decision Mem.”).

Plaintiffs claim that Commerce’s inclusion of and reliance upon service transactions for uranium enrichment renders unlawful its findings and conclusions with regard to the products subject to investigation, or scope of the proceeding, the volume of subject imports, the likelihood of dumping, and the magnitude of the margin likely to prevail.

Pursuant to USCIT R. 56.2, Plaintiffs move for judgment on the agency record. The court has jurisdiction pursuant to 19 U.S.C. § 1516a (a)(2)(B)(iii) and 28 U.S.C. § 1581(c). 2 For the reasons stated below, Commerce’s determination is remanded.

BACKGROUND

Tenex is the Russian executive agent responsible for the export of uranium and uranium enrichment services from Russia. 3 AHUG is a group of utility companies that use enriched uranium. 4 The Plaintiffs participated in Commerce’s sunset review pro *1365 ceedings, the results of which are challenged here. Defendanh-Intervenor, USEC, Inc., and its wholly-owned subsidiary, United States Enrichment Company (collective!y, “USEC”) is a domestic provider of enrichment services. USEC also participated in Commerce’s sunset review.

Commerce conducts a five-year sunset review of a suspended antidumping duty investigation pursuant to Sections 751 and 752 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1675. 5

The original suspended antidumping duty investigation reviewed here was initiated in December of 1991, just before the dissolution of the Soviet Union. 6 Commerce continued the investigation against the Soviet republics individually, as newly *1366 independent states, and, using best information available data, came to preliminary affirmative dumping determinations with regard to uranium products and services from Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan. Uranium from Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan, 57 Fed.Reg. 23,380 (Dep’t Commerce June 3, 1992)(preliminary determinations of sales at less than fair value). However, before Commerce issued final results in that original investigation, the investigation was suspended, when the government entered into an agreement restricting the volume of imports to the United States. Uranium from Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Ukraine, and Uzbekistan, 57 Fed.Reg. 49,220 (Dep’t Commerce Oct. 30, 1992)(suspension of investigations and amendment of preliminary determina tions)(‘‘Suspension Agreement ”). 7 As noted above, the action at issue here is a challenge to the results of the second five-year sunset review of the suspended investigation.

In this matter, both Tenex and AHUG challenge Commerce’s scope determination in the Review and its finding of a likelihood of continued or recurring dumping if the Suspension Agreement is terminated, together with other subsidiary findings upon which Commerce’s decision is based. Specifically, Plaintiffs challenge Commerce’s inclusion of low-enriched uranium (LEU) obtained pursuant to uranium enrichment services contracts both in the scope of the Review and in the “likelihood” determination. 8 In addition, Tenex alleges *1367 that if Commerce’s decision is interpreted as having made the statutorily required finding of a likelihood of dumping if the investigation were terminated, in accordance with 19 U.S.C. §§ 1675(c) and 1675a(c), then such a determination was neither in accordance with law nor supported by substantial evidence because, inter alia, the determination failed to exclude SWU transactions.

Lastly, Tenex challenges as unsupported by substantial evidence Commerce’s reliance upon the 115.82% margin set in Commerce’s original preliminary determination, and adopted in the Final Results here as the margin likely to prevail in and after the Review. This last challenge, according to Tenex, is based on the alleged “extraordinary circumstances” that have occurred since the commencement of the investigation and preliminary determination, such as the decline of the Soviet Union and Russia’s emerging status as a market economy country, 9 exacerbated by the fact that in the preliminary determination, Commerce relied upon the “best information available” in making its determination. Tenex argues that Commerce, in conducting its sunset review, should not rely on USSR information but rather should look to Russia-specific information and take into account the changed economy of the country as well. In addition, Tenex challenges the connection between Commerce’s finding that prices were likely to be depressed if the Suspension Agreement was lifted and its conclusion that uranium would be sold at less than fair value, noting that there is no necessary, logical connection between prices which may be low and prices which are less than normal value and therefore constitute dumping.

STANDARD OF REVIEW

The court will uphold Commerce’s determination unless it is unsupported by substantial evidence on the record, or otherwise not in accordance with law. 19 U.S.C. § 1516a(b)(l)(B)(i).

DISCUSSION

It is settled law that LEU processed pursuant to uranium enrichment services transactions is not a “good” or “merchandise” subject to the antidumping duty statute and that such transactions do not constitute a “sale” subject to those statutory provisions.

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Related

Ad Hoc Utilities Group v. United States
650 F. Supp. 2d 1318 (Court of International Trade, 2009)

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Bluebook (online)
515 F. Supp. 2d 1363, 31 Ct. Int'l Trade 1490, 31 C.I.T. 1490, 29 I.T.R.D. (BNA) 2480, 2007 Ct. Intl. Trade LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/techsnabexport-v-united-states-cit-2007.