Timken Company v. United States

321 F. Supp. 2d 1361, 28 Ct. Int'l Trade 277, 28 C.I.T. 277, 26 I.T.R.D. (BNA) 1364, 2004 Ct. Intl. Trade LEXIS 17
CourtUnited States Court of International Trade
DecidedFebruary 25, 2004
DocketSlip Op. 04-17. Court No. 00-08-00386
StatusPublished
Cited by1 cases

This text of 321 F. Supp. 2d 1361 (Timken Company 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
Timken Company v. United States, 321 F. Supp. 2d 1361, 28 Ct. Int'l Trade 277, 28 C.I.T. 277, 26 I.T.R.D. (BNA) 1364, 2004 Ct. Intl. Trade LEXIS 17 (cit 2004).

Opinion

OPINION

TSOUCALAS, Senior Judge.

I. Standard of Review

The Court will uphold the United States International Trade Commission’s *1363 (“ITC” or “Commission”) redetermination pursuant to the Court’s remand 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) (1994). Substantial evidence is “more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 95 L.Ed. 456 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). Substantial evidence “is something less than the weight of the evidence, and the possibility of drawing two inconsistent conclusions from the [same] evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Consolo v. Fed. Mar. Comm’n, 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966).

II. Background

On April 24, 2003, this Court issued an order directing the Commission to

(a) explain the likely impact of TRB imports from Japan on the entire United States TRB industry; (b) further investigate and explain the basis that Japanese TRB producers used to report them capacity to produce TRBs to the Commission; and (c) further explain the Commission’s findings in the context of the TRB business cycle.

Timken Co. v. United States, 27 CIT -, -, 264 F.Supp.2d 1264, 1285 (2003). On July 23, 2003, the ITC submitted its Remand Determination. On August 22, 2003, NSK Ltd. and NSK Corporation (collectively, “NSK”) filed comments with this Court in support of the ITC’s remand determination. On September 2, 2003, The Timken Company (“Timken”) filed comments regarding the Remand Determination. Subsequently, on September 8, 2003, NTN Corporation, NTN Bearing Corporation of America, American NTN Bearing Manufacturing Corporation and NTN Bower Corporation (collectively, “NTN”), Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A. (collectively, “Koyo”), and NSK filed their respective comments to Timken’s comments on the Remand Determination. The ITC filed a response to Timken’s comments on September 15, 2003.

DISCUSSION

I. The ITC’s Findings Regarding Reported Capacity Information

A. Contentions of the Parties
1. Timken’s Contentions

Timken complains that the Commission erroneously determined that Japanese producers lacked the capacity to increase exports to the United States. See Timken’s Comments Remand Determination (“Timken’s Comments”) at 1-7. Timken asserts that the ITC “has continued to base its volume holding on its finding that the Japanese producers ‘were operating at extremely high capacity utilization (95.5 percent in 1998).’ ” Id. at 2 (quoting Remand Determination at 6). Timken maintains that the Commission wrongly relied “solely on the capacity figures reported by the Japanese producers for its volume determination.” Id. at 5. Timken asserts that the capacity utilization data reported by the Japanese producers is not accurate. See id. at 3-5 (citing proprietary material). Moreover, Timken takes issue with the definition of capacity that the ITC used to determine capacity utilization rates. See id. at 4-5. Consequently, Timken deduces that the ITC failed to measure actual capacity. See id. (citing proprietary material). Timken also argues that the data the ITC relied upon is different from the data provided by Timken from World Bearing Statistics. See id. at 6. Finally, Timken complains that the methodology used by *1364 the Commission led to an inaccurate volume determination. See id. at 6-7 (citing proprietary material).

2. ITC’s Contentions

The Commission responds that it complied with the remand instructions and reopened the agency record to investigate the basis on which the Japanese tapered roller bearing (“TRB”) producers used to report their capacity to produce TRBs. Rebuttal Comments of Def. ITC Regarding July 23, 2003, Five-Year Review Remand Determination Concerning TRBs Japan (“ITC’s Comments”) at 2-15. The Commission asserts that “Timken’s arguments have now morphed into a disagreement about how the questionnaire responses were tabulated and about the conclusions the Commission drew from them.” Id. at 4. The ITC refutes Timken’s suggestion that there is “mathematical error” in its computations “because the quantities in the worksheets match the quantities reported in the questionnaire responses, the addition in the worksheets is verifiable by a hand calculator, and the results in the worksheets match the information reported in the summary table and in turn cited in the Commission’s determinations.” Id. at 5. In addition, the ITC asserts that it applied its established methodology to determine capacity utilization for foreign producers and the domestic industry. See id.

The Commission further asserts that it complied with the statutory requirements set forth in 19 U.S.C. § 1675a(a)(2)(A) by recognizing that, “during the period of review the Japanese industry as a whole operated at high capacity utilization rates that exceeded 100 percent....” Id. at 6. The Commission maintains that it considered the likelihood of increased production or existing unused production capacity in Japan. See id. The ITC further asserts that the Japanese producers provided additional information, which was reconfirmed and recertified during the remand proceedings, regarding the data previously reported in the five-year review. See id. at 7-8. The ITC states that: “the fact that individual Japanese producers may have been able to produce at levels greater (or lower) than their reported average production capacity such that their capacity utilization levels were greater (or lower) than one hundred percent does not detract from the reliability of the reported capacity information.” Id. at 8. The ITC maintains that it “explicitly referenced and distinguished information reported in specific questionnaire responses and observed that ‘in general’ the average production capacity and production information reported by Japanese producers” was based on certain operating parameters. Id. at 6 (quoting proprietary material).

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321 F. Supp. 2d 1361, 28 Ct. Int'l Trade 277, 28 C.I.T. 277, 26 I.T.R.D. (BNA) 1364, 2004 Ct. Intl. Trade LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/timken-company-v-united-states-cit-2004.