Tehnoimportexport v. United States

766 F. Supp. 1169, 15 Ct. Int'l Trade 250, 15 C.I.T. 250, 13 I.T.R.D. (BNA) 1505, 1991 Ct. Intl. Trade LEXIS 175
CourtUnited States Court of International Trade
DecidedJune 4, 1991
DocketCourt 89-06-00337
StatusPublished
Cited by46 cases

This text of 766 F. Supp. 1169 (Tehnoimportexport 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
Tehnoimportexport v. United States, 766 F. Supp. 1169, 15 Ct. Int'l Trade 250, 15 C.I.T. 250, 13 I.T.R.D. (BNA) 1505, 1991 Ct. Intl. Trade LEXIS 175 (cit 1991).

Opinion

OPINION

TSOUCALAS, Judge:

Plaintiffs, Tehnoimportexport and Peer Bearing Corp. (“Tehnoimportexport”), challenge the final determinations of the Department of Commerce, International Trade Administration (“Commerce” or “ITA”) in Final Determinations of Sales at Less Than Fair Value; Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From Romania, 54 Fed.Reg. 19,109 (1989). Specifically, plaintiffs contest the decision to use surrogate pricing data from Portugal to determine the foreign market value (“FMV”) of plaintiffs’ imported antifriction bearings (“AFBs”) from Romania, and they also challenge the failure of the ITA to correct certain ministerial errors.

Background

On March 31, 1988, The Torrington Company (“Torrington”) filed an antidumping petition which alleged, inter alia, that imports of AFBs from Romania were being sold in the United States at less than fair value and were injuring, or threatening to injure, an American industry. General Administrative Record (“GAR”) (Pub.) Doc. 1. The ITA initiated an investigation of Romanian AFBs on April 27, 1988. 53 Fed.Reg. 15,077 (1988). Because Romania has a non-market, or state-controlled, economy, the ITA was obliged to use data from a market economy country to determine the foreign market value of Romanian AFBs. 19 U.S.C. § 1677b(c) (1988); 19 C.F.R. § 353.8 (1988). 1

The petition proposed Italy and Portugal as surrogate countries. GAR Doc. 1 at 95. Tehnoimportexport, on the other hand, suggested that Turkey, Yugoslavia or Indonesia should be considered. Romanian Record (“RR”) (Pub.) Doc. 75. Later, Tehnoimportexport wrote that Mexico or, in the alternative, Yugoslavia, would be an appropriate substitute for Romania. RR (Pub.) Doc. 162. In a memorandum dated August 8, 1988, the ITA listed five potential surrogate countries: Portugal, Brazil, Mexico, Korea and Yugoslavia. RR (Pub.) Doc. 94 at 1. The ITA stated that these countries were selected “because we determined that their economies were comparable to that of Romania.” Id. The factors considered in making these choices included gross per capita income and the distribution of labor between the agricultural and non-agricultural sectors; attached statistics support this conclusion.

Once the ITA had selected five possible surrogates for Romania, it sent questionnaires to companies and embassies in those countries requesting information regarding prices and the values of the factors of production. These questionnaires were sent out between August and September 1988. See e.g., RR (Pub.) Docs. 101, 103, 126, 127, 138 and 147. The ITA indicated that, “no affirmative responses [were] received” from any of the companies contacted by the ITA. Preliminary Determinations of Sales at Less Than Fair Value: Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From Romania, 53 Fed.Reg. 45,324, 45,-326 (1988). Therefore, the ITA “used the factors of production valued in a comparable economy as the basis of foreign market value.” Id. at 45,326-327. This methodology is expressly authorized by statute and regulation. 19 U.S.C. § 1677b(c); 19 C.F.R. § 353.8(c).

Furthermore, since no responses to its questionnaires were received by the ITA, the agency was authorized by Section 776 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1677e(c) (1988), to use the best information otherwise available in its valuations of the factors of production. Where possible, “best information available was *1173 obtained from publicly available sources in Yugoslavia,” the country selected as the most comparable to Romania. 53 Fed.Reg. at 45,327. However, given the dearth of information gathered to that point, the ITA made clear that it would attempt to obtain more surrogate pricing data prior to the final determinations. Id. at 45,326.

The ITA’s preliminary determinations were released on October 27, 1988, and were published on November 9, 1988, in the Federal Register. In them, the ITA chose to use certain factors of production from Yugoslavia as the basis for calculating the FMV of Tehnoimportexport’s AFBs. The ITA reasoned that Yugoslavia’s level of economic development most closely approximated Romania’s. 53 Fed.Reg. at 45,327. However, since public information was not available for all factors of production from Yugoslavia, the ITA used data from other countries, including Mexico, for the valuation of the balance of the factors of production for purposes of the preliminary determinations.

The final determinations were issued on March 24, 1989 and published in the Federal Register on May 3, 1989. Final Determinations, 54 Fed.Reg. 19,109. The ITA stated that since it was unable to obtain adequate pricing information from Yugoslavia, it opted to change surrogates and use Portugal as the surrogate country for purposes of calculating the factors of production in the final determinations. 54 Fed.Reg. at 19,110. Portugal was chosen because its “level of economic development also closely approximates that of Romania” and it had been listed in the preliminary determinations as one of five possible surrogate countries. Id. Portuguese data was used for: Steel used to manufacture bearing cages; steel scrap; brass used in the manufacture of brass cages; overhead; and labor. Id. at 19,110-111. Because Portugal does not produce bearing quality steel, the ITA used “information obtained from the World Material Study — Europe, as provided by Torrington and verified by the Department” to value steel used to produce inner and outer rings, balls, and other components. Id. at 19,110.

Plaintiffs contend that the ITA should not have switched surrogates in midstream. They claim that Yugoslavia was the country most economically comparable to Romania and thus should have been used for the final determinations as well as the preliminary.

Discussion

A determination by the Department of Commerce will be affirmed unless that determination is not supported by substantial evidence or is otherwise not in accordance with law. 19 U.S.C. § 1516a(b)(l)(B) (1988). Substantial evidence is relevant evidence that “a reasonable mind might accept as adequate to support a conclusion.” Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 216, 83 L.Ed. 126 (1938); Alhambra Foundry Co. v. United States, 12 CIT 343, 345, 685 F.Supp. 1252, 1255 (1988).

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766 F. Supp. 1169, 15 Ct. Int'l Trade 250, 15 C.I.T. 250, 13 I.T.R.D. (BNA) 1505, 1991 Ct. Intl. Trade LEXIS 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tehnoimportexport-v-united-states-cit-1991.