Tokyo Kikai Seisakusho, Ltd. v. United States

529 F.3d 1352, 30 I.T.R.D. (BNA) 1161, 2008 U.S. App. LEXIS 12698, 2008 WL 2416220
CourtCourt of Appeals for the Federal Circuit
DecidedJune 17, 2008
Docket2007-1226, 2007-1227, 2007-1254
StatusPublished
Cited by60 cases

This text of 529 F.3d 1352 (Tokyo Kikai Seisakusho, Ltd. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tokyo Kikai Seisakusho, Ltd. v. United States, 529 F.3d 1352, 30 I.T.R.D. (BNA) 1161, 2008 U.S. App. LEXIS 12698, 2008 WL 2416220 (Fed. Cir. 2008).

Opinion

LINN, Circuit Judge.

In this antidumping case, we are asked to determine the scope of the Department of Commerce’s (“Commerce’s”) authority to reopen proceedings tainted by fraud. Following Commerce’s receipt of information indicating that Tokyo Kikai Seisakusho, Ltd. and TKS (U.S.A.), Inc. (collectively, “TKS”) had provided false information during yearly administrative reviews of an existing antidumping duty order to which they were subject, Commerce initiated a “changed circumstances review.” It initiated that proceeding to reconsider the administrative reviews themselves, as well as its revocation of the antidumping duty order, which was based in part on the results of those administrative reviews. In the final results of the changed circumstances review, Commerce concluded that TKS had provided false information during one of the administrative reviews and modified the result of that review accordingly. Because the result of that review originally led Commerce to revoke-in-part the anti-dumping duty order as it applied to TKS, Commerce reinstated that portion of the antidumping duty order. Finally, Commerce also stated its intention to reopen in a future, separate proceeding the sunset review that had revoked the anti-dumping duty order in its entirety.

The Court of International Trade (“the trial court”) concluded that Commerce possessed authority to conduct the changed circumstances review, Tokyo Kikai Seisakusho, Ltd. v. United States, 473 F.Supp.2d 1349, 1355 (Ct. Int’l Trade 2007) (“TKS”), but concluded, after determining that the issue was ripe, that Commerce lacked authority to reopen the sunset review for reconsideration, id. at 1361-62. The United States and Goss International Corporation (collectively, “Appellants”) appeal the trial court’s decision, arguing that the issue of whether Commerce has authority to reopen the sunset review is not ripe, and alternatively, that Commerce possesses such authority. TKS cross-appeals the trial court’s decision, arguing that Commerce lacks authority to conduct a changed circumstances review in the circumstances of this case for the purpose of reconsidering the yearly administrative re *1356 views or the revocation of the antidumping duty order.

We conclude that the trial court correctly determined that Commerce possesses inherent authority to reconsider the results of the yearly administrative reviews in light of TKS’s fraud, but that it incorrectly determined that Commerce’s stated intention to reopen the sunset review made it ripe for judicial review. Thus, we affirm-in-part and reverse-in-part.

I. BACKGROUND

This case involves the importation of large newspaper printing presses and their components, which the parties and the trial court refer to as “LNPPs.” Goss International Corporation (“Goss”), a domestic producer of LNPPs, alleged that TKS and Mitsubishi Heavy Industries, Ltd. (“MHI”) were engaged in dumping that was causing material injury to the domestic industry. 1 In 1996, Commerce determined that TKS and MHI were selling LNPPs imported from Japan at less than fair value. Notice of Final Determination of Sales at Less Than Fair Value: Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassembled, From Japan, 61 Fed.Reg. 38,139, 38,139 (Dep’t of Commerce July 23, 1996); see also Notice of Antidumping Duty Order and Amended Final Determination of Sales at Less Than Fair Value: Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassembled, From Japan, 61 Fed.Reg. 46,621 (Dep’t of Commerce Sept. 4, 1996). Following a finding by the International Trade Commission that this dumping was causing material injury to the domestic industry, Commerce issued a final anti-dumping duty order covering these LNPPs. 61 Fed.Reg. at 46,622.

During three successive one-year periods — 1997-1998, 1998-1999, and 1999-2000 — Commerce conducted yearly administrative reviews to determine whether TKS was continuing to dump LNPPs, and concluded that it was not. Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassem-bled, From Japan: Final Results of Anti-dumping Duty Administrative Review and Revocation in Part, 67 Fed.Reg. 2,190, 2,191-92 (Dep’t of Commerce Jan. 16, 2002). Section 351.222(b) of 19 C.F.R. provides for revocation of an antidumping duty order based on certain showings, including evidence of sales at not less than normal value for three consecutive years. In January 2002, pursuant to section 351.222(b) and based on the results of the three consecutive administrative reviews showing a zero dumping margin, Commerce revoked the antidumping duty order with respect to TKS. Id.

In August 2001, during the course of the yearly administrative reviews, Commerce initiated a “sunset review” of the anti-dumping duty order as applied to all parties. Large Newspaper Printing Presses and Components Thereof, Whether Assembled or Unassembled, from Japan (A-588-887) and Germany (A-I28-821): Notice of Final Results of Five-Year Sunset Reviews and Revocation of Antidumping Duty Orders, 67 Fed.Reg. 8,522, 8,522 (Dep’t of Commerce Feb. 19, 2002). Goss initially filed a notice of intent to partici *1357 pate as a domestic party, but later withdrew from participation. Id. Goss was the sole domestic interested party. Because Goss, as the sole domestic interested party, withdrew its interest in participating, Commerce “determined to treat th[e] situation as if no domestic interested party responded to the notice of initiation of th[e] sunset reviews.” Id. at 8,523. Consequently, Commerce, effective September 4, 2001, revoked the antidumping duty order in its entirety, citing statutory and regulatory provisions requiring revocation of the order if no domestic interested party participates. Id. (citing § 751(c)(3)(A) of the Tariff Act of 1930 and 19 C.F.R. § 351.218(d)(l)(iii)(B)(3)).

While the foregoing matters were before Commerce, Goss, in May 2000, brought a civil action against TKS under the Anti-dumping Act of 1916,15 U.S.C. § 72, alleging that TKS had unlawfully dumped LNPPs from Japan. 2 See Goss Int’l Corp. v. Tokyo Kikai Seisakusho, Ltd., 321 F.Supp.2d 1039, 1042 (N.D.Iowa 2004). In December 2003, the jury returned a verdict in Goss’s favor, and the district court subsequently found, in the context of TKS’s motions for new trial and for judgment as a matter of law, that the evidence at trial supported the jury’s verdict that TKS had “dumped” LNPPs in the United States. See generally id. In upholding the jury’s verdict, the district court pointed specifically to evidence presented at trial that TKS had provided a “secret rebate” to the Dallas Morning News newspaper to prevent Goss from making that sale, and that “TKS and its counsel engaged in a concerted effort to conceal the secret rebates.” Id. at 1045. The sale in question was the sole transaction considered during Commerce’s 1997-1998 administrative review of TKS.

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529 F.3d 1352, 30 I.T.R.D. (BNA) 1161, 2008 U.S. App. LEXIS 12698, 2008 WL 2416220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tokyo-kikai-seisakusho-ltd-v-united-states-cafc-2008.