Torrington Co. v. United States

790 F. Supp. 1161, 16 Ct. Int'l Trade 220, 16 C.I.T. 220, 14 I.T.R.D. (BNA) 1161, 1992 Ct. Intl. Trade LEXIS 47
United States Court of International Trade·Decided April 3, 1992·No. 91-05-00355·Published·Cited by 30 cases

Opinion

MEMORANDUM OPINION AND ORDER

DiCARLO, Chief Judge:

Plaintiff brings this action challenging the negative preliminary determinations of injury by the U.S. International Trade Commission in the antidumping and countervailing duty investigations regarding Ball Bearings, Mounted or Unmounted, and Parts Thereof, from Argentina, Austria, Brazil, Canada, Hong Kong, Hungary, Mexico, the People’s Republic of China, Poland, the Republic of Korea, Spain, Taiwan, Turkey, and Yugoslavia, 56 Fed.Reg. 14,534 (Int’l Trade Comm’n 1991) (neg. prelim.). The Court has jurisdiction under 19 U.S.C. § 1516a(a)(1)(C) (1988) and 28 U.S.C. § 1581(c) (1988). The Court affirms the Commission’s determinations and holds the Commission did not abuse its discretion: 1) in relying upon questionnaire data in determining the condition of the domestic industry; 2) by declining to exclude related parties from its consideration of the condition of domestic industry; 3) in concluding there was no reasonable indication of material injury or threat of material injury to the domestic industry; and 4) by declining to cumulate imports.

STANDARD OF REVIEW

The Commission’s role in a preliminary determination is to decide, on “the best information available to it at the time,” whether there is a reasonable indication that a domestic industry is being materially injured or threatened with material injury by reason of imports of the merchandise under investigation. 19 U.S.C. § 1673b(a) (1988). The Court of Appeals for the Federal Circuit has affirmed the Commission’s practice of reaching a negative preliminary determination of injury only when: 1) the record as a whole contains clear and convincing evidence that there is no material injury or threat of injury by reason of imports, and; 2) there is no likelihood that contrary evidence will arise in a final investigation. American Lamb Co. v. United States, 4 Fed.Cir. (T) 47, 55, 785 F.2d 994, 1001 (1986). This Court must uphold a negative preliminary injury determination of the Commission unless it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(A) (1988). For this purpose, the Court is to “ ‘ascertain whether there was a rational basis in fact for the determination.’ ” American Lamb, 4 Fed.Cir. (T) at 59, 785 F.2d at 1004 (quoting S.Rep. No. 249, 96th *1166 Cong., 1st Sess. 252 (1979), reprinted in 1979 U.S.C.C.A.N. 381, 638).

DISCUSSION

A. The Commission’s Reliance Upon Questionnaire Data

The Commission determined that the industry against which it was to assess the impact of the alleged less than fair value (LTFV) imports was the industry producing ground ball bearings, mounted and unmounted, and parts thereof. Ball Bearings, Mounted or Unmounted, and Parts Thereof, from Argentina, Austria, Brazil, Canada, Hong Kong, Hungary, Mexico, the People’s Republic of China, Poland, the Republic of Korea, Spain, Taiwan, Turkey and Yugoslavia, Inv. Nos. 701-TA-307 and 731-TA-498-511, USITC Pub. 2374 at 1 n. 3 (Apr.1991) (prelim.). It sent questionnaires to 51 firms it had reason to believe produced ball bearings, or parts thereof, in the United States during the calendar years 1988-90. Id. at A-24. The Commission received usable responses from 25 producers.

The Commission concluded the questionnaire data were sufficiently complete to provide an accurate characterization of the condition of the domestic industry and that there was no likelihood that additional evidence obtained in a final investigation would produce a materially different view of the industry. Id. at 19. It determined that during the period of investigation factors relating to domestic consumption and production were generally positive, the market share of domestic producers remained at high levels, employment-related indicators were uniformly positive and profitability changed little, despite large annual fluctuations. Id. at 19-21. Also, the Commission noted that since production increased at a greater rate than consumption, inventories of complete ball bearings increased throughout the period of investigation. In addition, the Commission cited increases in prices and positive investment-related indicators as factors leading to its conclusion that the industry was in a strong condition. Id. at 21-22.

Plaintiff contends the Commission abused its discretion by relying upon incomplete questionnaire data. Plaintiff also complains the Commission erred in concluding the record clearly and convincingly supported a negative determination since the questionnaire data conflicted with data compiled by the Bureau of the Census. Plaintiff further asserts the Commission abused its discretion by not attempting to reconcile the conflicting data.

Plaintiff argues the Commission relied upon questionnaire data containing information from only half of the known producers of ball bearings. The Commission is required to make its preliminary determination within 45 days based upon the “best information available to it at the time.” 19 U.S.C. 1673b(a); see Atlantic Sugar, Ltd. v. United States, 2 Fed.Cir. (T) 130, 133-34, 744 F.2d 1556, 1561 (1984) (noting the extremely short deadlines built into the antidumping law). All of the known domestic producers were surveyed. Three firms indicated they did not produce ground ball bearings or parts during the period of investigation. Other firms responded too late for their responses to be incorporated into the staff report presented to the Commission at the time of the vote in these investigations or provided data in a form that could not be incorporated into the staff report. The information provided by the 25 producers represented a substantial majority of domestic production, accounting for an estimated 74%, by quantity, of producers’ total shipments of complete ground ball bearings in 1989 and for 68%, by value, of 1989 producers’ total shipments of ball complete ground bearings and parts. USITC Pub. 2374 at 19 & A-24. Under these circumstances, the Commission did not abuse its discretion in determining its questionnaire data were sufficiently complete to accurately describe the condition of the domestic industry.

Plaintiff also contends the record does not clearly and convincingly support a negative determination because the questionnaire data conflicted with the Bureau of the Census data contained in plaintiff’s petition and post-conference submissions. *1167

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Torrington Co. v. United States, 790 F. Supp. 1161, 16 Ct. Int'l Trade 220, 16 C.I.T. 220, 14 I.T.R.D. (BNA) 1161, 1992 Ct. Intl. Trade LEXIS 47 (cit 1992).

790 F. Supp. 1161 (Torrington Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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