Tropicana Products, Inc. v. United States

32 Ct. Int'l Trade 122, 2008 CIT 17
CourtUnited States Court of International Trade
DecidedFebruary 5, 2008
DocketCourt 06-00109
StatusPublished

This text of 32 Ct. Int'l Trade 122 (Tropicana Products, Inc. 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
Tropicana Products, Inc. v. United States, 32 Ct. Int'l Trade 122, 2008 CIT 17 (cit 2008).

Opinion

OPINION

RESTANI, Chief Judge:

This matter arises from plaintiff Tropicana Products, Inc.’s (“Tropicana”) challenge to the International Trade Commission’s (“Commission”) affirmative material injury determination with respect to certain orange juice from Brazil. After two remand orders by the court for the Commission to reconsider and explain its determination, see Tropicana Products, Inc. v. United States, 484 F.Supp.2d 1330, 1353-54 (CIT 2007) (“Tropicana /”); Tropicana Products, Inc. v. United States, Slip Op. 07-141, 2007 WL 2717874, at *13 (CIT 2007) (“Tropicana IT’), the Commission again issued an affirmative determination, Certain Orange Juice From Brazil, USITC Pub. 3958, Inv. No. 731-TA-1089 (Oct-. 2007) (“Second Remand Determination”). In the Second Remand Determination, the Commission addressed the court’s concerns and supported its conclusions with substantial evidence. The court will therefore affirm the Commission’s determination.

BACKGROUND

This matter began in December 2004, when several domestic producers of certain orange juice petitioned the Commission and the *123 Department of Commerce (“Commerce”), alleging material injury or threat of material injury by reason of imports of certain orange juice from Brazil. See Tropicana I, 484 F.Supp.2d at 1332-33. Following Commerce’s investigation and determination that certain orange juice from Brazil was being sold at less than fair value (“LTFV”), see Certain Orange Juice From Brazil, 71 Fed. Reg. 2,183 (Dep’t Commerce Jan. 13, 2006) (notice of final determination of sales at less than fair value and affirmative final determination of critical circumstances), the Commission issued an affirmative material injury determination on the basis of data from crop years (“CY”) 2001/02 through 2004/05. See Certain Orange Juice From Brazil, USITC Pub. 3838, Inv. No. 731-TA-1089 (Mar. 2006) (“Original Determination”).

Tropicana challenged the Commission’s determination, and the court remanded the decision with instructions for the Commission to reconsider “the full effects of a shortage in the supply of domestic round oranges, and how that affects the Commission’s volume and price effects analysis [;]” “the opposition to the petition by a large portion of the domestic industry; whether, if prices were adjusted to account for the LTFV margin, non-subject imports would displace subject imports; and its price suppression analysis.” Tropicana I, 484 F.Supp.2d at 1353. “Given the relatedness of the issues,” the court asked the Commission to “consider the totality of the evidence anew.” Id.

On the first remand, the Commission reconsidered each issue and maintained its affirmative material injury determination. 1 Certain Orange Juice From Brazil, USITC Pub. 3930, Inv. No. 731-TA-1089 (June 2007) (“First Remand Determination”). Tropicana challenged the Commission’s determination, and the court again remanded for the Commission to explain “its conclusions as to the inverse correlation between subject imports and domestic production,” and to conduct a sufficient analysis under Bratsk Aluminium Smelter v. United States, 444 F.3d 1369 (Fed. Cir. 2006). Tropicana II, at *13. The court noted that “ ‘in any remand,’ ” the Commission considers “ ‘the entire record in light of any new findings’ it has made.” Id. at *13 n.ll (quoting First Remand Determination, at *15-16).

On the second remand, the Commission addressed the issues raised in Tropicana II and again reached an affirmative material injury determination. See Second Remand Determination, at *1. Subject to its updated findings and explanations, the Commission also adopted *124 the views expressed in the Original Determination and First Remand Determination. Id. Tropicana contests the Commission’s determination, arguing that the Commission’s analysis is erroneous and unsupported by record evidence.

JURISDICTION AND STANDARD OF REVIEW

The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2000). The court will uphold the Commission’s determination 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) (2000).

DISCUSSION

As stated in Tropicana I and II, to reach an affirmative determination, the Commission must find a “‘present material injury or a threat thereof,”’ and “causation of such harm by reason of subject imports.” Tropicana I, 484 F.Supp.2d at 1333 (quoting Hynix Semiconductor, Inc. v. United States, 431 F.Supp.2d 1302, 1306 (CIT 2006)); see also Tropicana II, at *5. The Commission must consider: “(I) the volume of imports of the subject merchandise, (II) the effect of imports of that merchandise on prices...for domestic like products, and (III) the impact of imports of such merchandise on domestic producers of domestic like products, but only in the context of production operations within the United States,” 19 U.S.C. § 1677(7) (B)(i), and “must analyze contradictory evidence or evidence from which conflicting inferences could be drawn, to ensure that the subject imports are causing the injury,” Taiwan Semiconductor Indus. Ass’n v. ITC, 266 F.3d 1339, 1345 (Fed. Cir. 2001) (citations and quotation marks omitted). The Commission must show that the harm is “not inconsequential, immaterial, or unimportant,” 19 U.S.C. § 1677(7)(A), and that there is a “causal — not merely temporal — connection between the [subject imports] and the material injury,” Gerald Metals, Inc. v. United States, 132 F.3d 716, 720 (Fed. Cir. 1997).

I. Inverse Correlation Between Domestic Production and Subject Imports

In Tropicana II, the court noted that data provided in a footnote in the First Remand Determination failed to support the Commission’s finding that, “ ‘[t]o the extent there is an inverse correlation between domestic production and subject imports,...the magnitude of any such correlation is questionable on this record [because] [s]ubject import volumes were virtually identical in two crop years when domestic production levels varied substantially.’ ”

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Related

Bratsk Aluminium Smelter v. United States
444 F.3d 1369 (Federal Circuit, 2006)
Tropicana Products, Inc. v. United States
484 F. Supp. 2d 1330 (Court of International Trade, 2007)
Allegheny Ludlum Corp. v. United States
475 F. Supp. 2d 1370 (Court of International Trade, 2006)
Hynix Semiconductor, Inc. v. United States
431 F. Supp. 2d 1302 (Court of International Trade, 2006)
Usinor, Beautor, Haironville, Sollac Atlantique, Sollac Lorraine v. United States
342 F. Supp. 2d 1267 (Court of International Trade, 2004)
Ceramica Regiomontanam, S.A. v. United States
636 F. Supp. 961 (Court of International Trade, 1986)
Gerald Metals, Inc. v. United States
132 F.3d 716 (Federal Circuit, 1997)

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32 Ct. Int'l Trade 122, 2008 CIT 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tropicana-products-inc-v-united-states-cit-2008.