Texas Crushed Stone Co. v. United States

822 F. Supp. 773, 17 Ct. Int'l Trade 428, 17 C.I.T. 428, 15 I.T.R.D. (BNA) 1616, 1993 Ct. Intl. Trade LEXIS 81, 1993 WL 187470
CourtUnited States Court of International Trade
DecidedMay 25, 1993
DocketCourt 92-08-00559
StatusPublished
Cited by8 cases

This text of 822 F. Supp. 773 (Texas Crushed Stone Co. 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
Texas Crushed Stone Co. v. United States, 822 F. Supp. 773, 17 Ct. Int'l Trade 428, 17 C.I.T. 428, 15 I.T.R.D. (BNA) 1616, 1993 Ct. Intl. Trade LEXIS 81, 1993 WL 187470 (cit 1993).

Opinion

OPINION

CARMAN, Judge:

Pursuant to Rule 56.1 plaintiffs move for judgment upon the agency record. Plaintiffs contest the negative preliminary determination of the International Trade Commission, in its investigation in Crushed Limestone from Mexico, 57 Fed.Reg. 31,386 (1992). This action is brought pursuant to 19 U.S.C. § 1516a(a)(l)(C) (19881 and 28 U.S.C. § 1581(c) (1988).

BACKGROUND

Texas Crushed Stone Co., Parker LaFarge Inc., and Gulf Coast Limestone, Inc. (plaintiffs) filed a petition on May 20,1992 with the ITC and Commerce alleging that an industry in the United States was materially injured or threatened with material injury by reason of imports of crushed limestone from Mexico at less than fair value. The ITC conducted a preliminary investigation. Crushed Limestone from Mexico, 57 Fed.Reg. 22,255 (1992). Based on the information obtained during the investigation, the five participating Commissioners reached a negative preliminary determination. 1 Crushed Limestone from Mexico, 57 Fed.Reg. 31,386 (1992). The Commission’s views and a public version of the staff report are set forth in Crushed Limestone from Mexico, USITC Pub. 2533, Inv. No. 731-TA-562 (Preliminary) (July 1992) (AR Doc. 57).

All of the Mexican crushed limestone at issue originated at the Yucatan Peninsula quarry of defendant-intervenor Calizas Industriales del Carmen, S.A. and was imported into the United States by defendant-intervenor Vulcan/ICA Distribution Company. AR Doc. 57 at 1-13. Defendant-intervenor Vulcan Material Company is a domestic operator of limestone quarries throughout the United States, including the Southeastern Texas region, and owns interests in Calica and Vulcan/ICA through one of its wholly owned subsidiaries. AR Doc. 1 (Petition) at 11, citing Collective Exhibit 5 (Vulcan 1990 Form 10-K) at 50. Vulcan/ICA began to import crushed limestone into the U.S. market for use as construction aggregate in 1990.

In addressing the first issue of the definition of “like product,” the Commissioners adopted plaintiffs’ definition which included crushed limestone and excluded limestone flux, cement kiln feed, limestone used for the manufacture of lime, and agricultural limestone. AR Doc. 57 at 4-9,17-18. The Commission also adopted the region of seventy-five counties in Southeast Texas proposed by plaintiffs in order to consider the ease on a regional industry basis within the meaning of 19 U.S.C. § 1677(4)(C) (1988). AR Doc. 57 at 11-13.

The Commission next determined that there was not a concentration of dumped imports into the regional market. AR Doc. *775 57 at 14. In making this determination, the Commission stated that “[wjhile the statute does not define concentration, the Commission generally has found concentration of dumped imports at or above 80 percent of total imports into the United States to meet the statutory criterion.” AR Doc. 57 at 18 (footnote omitted). The Commission noted that in 1990, 55.1 percent of imports from Mexico were imported into the region; in 1991, 59.6 percent; and in the period January through March 1992, 54.3 percent. AR Doc. 57 at 13-14. The majority and concurring Commissioners concluded that these levels of imports did not satisfy the statutory concentration requirement. AR Doc. 57 at 13-14, 22-23. The Commission declined to consider concentration on plaintiffs’ proposed alternative basis of import market share because the evidence before them demonstrated that imports were not dispersed widely throughout the country. AR Doc. 57 at 14.

Because the Commission determined that imports were not concentrated in the market, the majority did not reach the issue of material injury or threat thereof to the producers of all or almost all of the production within the market. The majority stated that a finding of import concentration was a legal prerequisite to an analysis of whether the producers of all or almost all of the production within the market were being materially injured or threatened by material injury. AR Doc. 57 at 15. The concurring commissioners on the other hand, reached the issue and stated the following:

Having determined that the condition precedent, import concentration, to an affirmative injury finding in a regional industry investigation is lacking, we are compelled to conclude that there is no reasonable indication that producers of all or almost all of regional production are being materially injured or threatened with material injury by reason of the allegedly unfair Mexican imports.

AR Doc. 57 at 23.

CONTENTIONS OF THE PARTIES

Plaintiffs first argue that the ITC used an unlawful interpretation of 19 U.S.C. § 1677(4)(C) in making its negative preliminary determination. Plaintiffs read the statute and its legislative history as requiring the Commission to use a “ratio of import penetration analysis,” an analysis plaintiffs claim the Commission abandoned in this ease.

The second argument raised by plaintiffs is that the Commission departed from its prior practice by applying a higher numerical benchmark and by only using the percent of imports analysis. Plaintiffs claim that in past determinations the Commission not only used a lower numerical benchmark, but that it viewed import concentration alternatively in terms of a percentage of national imports (the percent of imports analysis) or of the relative market share (ratio of import penetration analysis).

Plaintiffs next contend the Commission misapplied the preliminary injury standard in its investigation. They claim the “ITC failed to apply the proper legal standard in the context of a preliminary determination, to wit: ‘whether there is a reasonable indication that’ an industry is materially injured or threatened with injury by reason of dumped imports. 19 U.S.C. § 1673b(a).” Plaintiffs’ Brief at 36. Plaintiffs argue the Commission ignored evidence on the record which indicated there was a higher import concentration ratio in the Southeast Texas region than in the United States as a whole. Due to this arbitrary and capricious application of the facts, plaintiffs argue that the Commission improperly failed to proceed to a final determination.

Plaintiffs’ final argument is that the Commission’s finding, that there was no reasonable indication that the Southeast Texas crushed limestone industry was threatened with material injury by reason of the subject imports, was an abuse of discretion and not in accordance with law.

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822 F. Supp. 773, 17 Ct. Int'l Trade 428, 17 C.I.T. 428, 15 I.T.R.D. (BNA) 1616, 1993 Ct. Intl. Trade LEXIS 81, 1993 WL 187470, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-crushed-stone-co-v-united-states-cit-1993.