U.H.F.C. Co. v. United States

706 F. Supp. 914, 13 Ct. Int'l Trade 119, 13 C.I.T. 119, 1989 Ct. Intl. Trade LEXIS 489
CourtUnited States Court of International Trade
DecidedFebruary 14, 1989
Docket83-11-01598
StatusPublished
Cited by5 cases

This text of 706 F. Supp. 914 (U.H.F.C. 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
U.H.F.C. Co. v. United States, 706 F. Supp. 914, 13 Ct. Int'l Trade 119, 13 C.I.T. 119, 1989 Ct. Intl. Trade LEXIS 489 (cit 1989).

Opinion

OPINION

MUSGRAVE, Judge.

BACKGROUND

This lawsuit was commenced in accordance with Section 516A of the Tariff Act, as amended, 19 U.S.C. § 1516a, to seek review of a final determination of the U.S. Department of Commerce, International Trade Administration (ITA) in a 19 U.S.C. § 1675(a) administrative review of Treasury Decision 78-2, an outstanding Finding of Dumping against Animal Glue and Inedible Gelatin from the Netherlands. Notice of the contested determination was published in the Federal Register on October 6, 1983. 48 Fed.Reg. 45583-84.

The administrative review which is the subject of this lawsuit covered entries of Animal Glue and Inedible Gelatin from the Netherlands made during the period from December 1, 1980 through November 30, 1981. Through their review, ITA determined that antidumping duties in a weighted average amount of 24.60% ad valorem should be collected on entries made during that period of animal glue manufactured in the Netherlands by B.V. Lijmfabriek C. Trommelen (“Trommelen”). Plaintiff, who imported substantial quantities of such animal glue during the period covered by the review, challenges the manner in which ITA determined foreign market value with respect to entries of Trommelen merchandise during the period of review. The court has jurisdiction under 28 U.S.C. § 1581(c) (1982).

FACTS

A. Description of Subject Merchandise

This case concerns the appraisement under the antidumping law of various grades of animal glues, of which there are two principle types: hide glue and bone glue. The glues which are the subject of this lawsuit are hide glues.

The production process for a particular hide glue will depend upon the raw material used. Where glue is produced from “hide-cuttings” (e.g. headskins) and/or *916 “splits” (i.e., waste parts generated by the “splitting” of hides during the tanning process), the hide-cuttings and splits are stored in a solution which has the effect of hydrolyzing the insoluble collagen in the raw materials into water-soluble proteins. Afterwards, the treated materials are submitted to a “washing” process, which is repeated several times, which permits the soluble proteins to be extracted from the prepared raw materials. The diluted glue solution which results is thereafter concentrated and dried. Proteins extracted during the first washing produce glue of the highest quality and strength; each successive washing yields successively weaker glues.

A third type of raw material used in the production of hide glues is “fleshings” (i.e., connective tissues scraped from a hide during the tanning process). Because “flesh-ings” have a different molecular structure than either “hide-cuttings” or “splits”, they are processed separately in a process which yields glue-water, which is then distilled into glue.

Animal glues are graded on the basis of comparative jelly and viscosity values. Jelly-strength is measured in “Bloomgrams” and ranges from 30 bloomgrams (weak jelly) to approximately 500 bloomgrams (very strong jelly). Viscosity measurements range from 25 millipoises (watery glue) to about 200 millipoises (very viscous glue).

Glue is priced according to its jelly-strength; glues of high jelly-strength generally command a higher price than those of lesser jelly strength. A glue’s strength depends on the characteristics of the particular raw materials used, and generally cannot be determined by measurement until after manufacture. 1

Depending upon its strength, animal glue is used for a variety of purposes such as a general adhesive, an abrasive, or as a sizing agent (i.e., glaze or filler).

B. The Contested Determination

On December 23, 1976 representatives of the United States industry engaged in the manufacture of animal glue and inedible gelatin filed a petition with the Secretary of Treasury (“Treasury”) seeking the imposition of antidumping duties against animal glue and inedible gelatin imported from the Netherlands and three other nations. On August 3, 1977 Treasury determined that animal glue and inedible gelatin from the Netherlands was being sold in the United States at less than fair value (LTFV). 42 Fed.Reg. 39289-90. On October 31, 1977 the U.S. International Trade Commission (“ITC”) determined that an industry in the United States was being or was likely to be injured by reason of such LTFV imports from the Netherlands. 42 Fed.Reg. 57565. On December 22, 1977 Treasury promulgated Treasury Decision 78-2, a Finding of Dumping against Animal Glue and Inedible Gelatin from the Netherlands. 42 Fed.Reg. 64115.

On January 2, 1980 authority for administering the antidumping law was transferred from Treasury to the Commerce Department pursuant to the Trade Agreements Act of 1979. Since 1980, ITA has conducted three Section 751(a) reviews of Treasury Decision 78-2. Final results of the second such review (which is the subject of this action) encompassed entries made from December 1, 1980 through November 30, 1981, and were published in the Federal Register on October 6, 1983. 48 Fed.Reg. 45583-84. During the period from December 1, 1980 to November 30, 1981 Trommelen sold to plaintiff U.H.F.C. (an unrelated U.S. glue importer) animal hide glues of the following bloomgram strengths: 250, 350, 365, 380, and 450. (R. 74-75.) Trommelen’s sales in the Netherlands were of glues having bloomgram strengths of 150, 170, 190, 210, 220, 230, 260, 290, 300, and 400. (R. 64-66.)

On December 21, 1981 an antidumping questionnaire was mailed to Trommelen, *917 which was granted an extension of the deadline for its questionnaire response until February 26, 1982. (R. 42.) The response, which was received on March 1, 1982 (R. 67), requested that foreign market value be calculated using sales to third countries (Rumania and the United Kingdom). The response stated that Tromme-len’s Netherlands (home market) sales accounted for 4.9% of its total sales during the period under review. (R. 58.) Trom-melen also reported that “[jelly strength] expressed in bloomgrams is determining [sic] the price,” along with certain other factors. (Defendant’s Brief at 6.)

Trommelen submitted a supplemental questionnaire response to the ITA on August 13, 1982, claiming price adjustments based upon the differences between the quantity of sales in the home country and the U.S., and because of differences in jelly-strength. The price lists of other companies were submitted by Trommelen in support of its claim for price adjustments. The ITA requested further information about the claimed adjustments, which information Trommelen did not, or was not able to, supply.

The ITA published the preliminary results of its review on January 17,1983. 48 Fed.Reg. 2030. In calculating the foreign market value, ITA

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706 F. Supp. 914, 13 Ct. Int'l Trade 119, 13 C.I.T. 119, 1989 Ct. Intl. Trade LEXIS 489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uhfc-co-v-united-states-cit-1989.