Union Camp Corp. v. United States

53 F. Supp. 2d 1310
CourtUnited States Court of International Trade
DecidedApril 29, 1999
DocketSlip Op. 99-40, Court No. 97-03-00483
StatusPublished

This text of 53 F. Supp. 2d 1310 (Union Camp Corp. 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
Union Camp Corp. v. United States, 53 F. Supp. 2d 1310 (cit 1999).

Opinion

OPINION

WALLACH, Judge.

I

INTRODUCTION

At issue in this case is the proper surrogate value for octanol-2, a subsidiary product of the sebacic acid production process, that is to be used by the International Trade Administration of the U.S. Department of Commerce (“ITA” or “Commerce”) in its first administrative review of antidumping duties on sebacic acid from the People’s Republic of China (“PRC”). See Sebacic Acid from the People’s Republic of China; Final Results of Antidumping Duty Administrative Review, 62 Fed.Reg. 10,530 (1997) (“First Administrative Review”). This case is before the Court for the second time, following the Court’s Memorandum and Order of March 27, 1998, (“Remand Memorandum” and “Remand Order”), directing Commerce, inter alia, to “value octanol-2 based on an appropriate cost (which may be the U.S. cost but which may not be based solely on similar molecular structure without any additional evidence) of crude octanol-2, and then recalculate the by-product/co-product determination with the correct value.” Union Camp Corp. v. United States, 8 F.Supp.2d 842, 853 (CIT 1998). Commerce issued its remand determination on June 25, 1998. See Remand Determination: Union Camp Corporation v. United States (Consol. Court No. 97-03-00483) (“Remand Determination ”). The parties subsequently submitted their respective [1313]*1313comments on the Remand Determination, and Defendant-Intervenors’ submitted a motion asking the Court to reconsider its Remand Order (“Motion To Reconsider”).

For the reasons stated herein, the Court agrees with Defendant-Intervenors and finds that its Remand Order was ambiguous, in so far as Commerce interpreted the Remand Order as preventing it from considering record evidence of market prices in valuing the octanol-2 that results from the sebacic acid production process. Accordingly, the Court grants Defendant-Intervenors’ Motion To Reconsider and remands this case for further consideration consistent with this opinion. In doing so, however, the Court takes judicial notice of the fact that in its third administrative review of antidumping duties on sebacic acid from the PRC, Commerce, on the basis of a letter from the editor of the Chemical Weekly (India), reversed its previous position and found that the “octanol” quote from this publication did not refer to octanol-1. See Sebacic Acid From The People’s Republic of China; Final Results of Antidumping Duty Administrative Review, 63 Fed.Reg. 43,373, 43,374-75 (1998) (“Third Administrative Review”). Having taken judicial notice of .this fact, the Court directs Commerce to consider the letter from the editor of the Chemical Weekly (India) in choosing an .appropriate surrogate value on remand.

Finally, the Court further instructs Commerce that it is to consider whether it should accept new evidence concerning the comparability of 2-ethylhexanol and octanol-2. Should Commerce come to the conclusion that it should accept such evidence, Commerce may do so and, if appropriate, use that evidence as a basis for justifying its use of the Chemical Weekly (India) value for “octanol” as a surrogate value.

II

BACKGROUND

The relevant facts of this case are described in Union Camp Corp. v. United States, 8 F.Supp.2d 842 (CIT 1998), and familiarity with them is presumed. Only the facts relevant to the disposition of Defendant-Intervenors’ Motion To Reconsider are repeated.

On March 7, 1997, Commerce issued its First Administrative Review, covering shipments of sebacic acid from the PRC to the United States during the period July 13, 1994,. through June 30, 1995. First Administrative Review, 62 Fed.Reg. at 10,530. Because the PRC is a nonmarket economy, Commerce determined the “normal value” of the sebacic acid using a constructed value pursuant to 19 U.S.C. § 1677b(c)(1) (1994), which provides that, where appropriate, Commerce “shall determine the normal value of the subject merchandise on the basis of the value of the factors of production utilized in producing the merchandise.” In valuing the factors of production, Commerce is to use, where possible, “prices or costs ... in one or more market economy countries” that are at a comparable level of economic development and that are “significant producers of comparable merchandise.” 19 U.S.C. § 1677b(c)(4) (1994)

For the First Administrative Review, Commerce used surrogate values from India to construct the normal value of the sebacic acid. See First Administrative Review, 62 Fed.Reg. at 10,533. In doing so, Commerce used a published price for “octanol” from the Chemical Weekly (India) to value the octanol-2 that is produced, as a subsidiary product, through the sebacic acid production process. See id. at 10,534-35. Although the “octanol” quote from the Chemical Weekly (India) does not make clear whether it refers to octanol-2 or another type of octanol, Commerce assumed that this price was for octanol-1 and concluded that octanol-1 was a comparable product to octanol-2. See id. at 10,534. Commerce’s only explanation as to how the two products were comparable, however, was that they have similar molecular formulae. See id.

[1314]*1314Before this Court, Plaintiff challenged Commerce’s conclusion concerning the comparability of octanol-1 and octanol-2, arguing that the decision was not supported by substantial evidence on the record and not otherwise in accordance with law. See Brief In Support Of Union Camp Corporation’s Rule 56.2 Motion For Judgment Upon The Agency Record, dated September 5, 1997, at 19-21. On March 27, 1998, the Court agreed with Plaintiff and found that Commerce’s interpretation of the word “comparable” in 19 U.S.C. § 1677b(e)(4) (1994), to mean similar molecular structure, was not a reasonable interpretation of the statute. Union Camp, 8 F.Supp.2d at 849. The Court stated that Commerce “must either provide an explanation for how octanol-1 is comparable to octanol-2 based on some acceptable standard [value or use] or it must offer a reasonable explanation of why it is changing its legal standard for such determinations.” Id. In regard to Commerce’s conclusion also being unsupported by substantial evidence, the Court stated:

Commerce discussed its reason for selecting the Indian value of octanol-2, i.e., the similar molecular formulae. It also discussed why it rejected Union Camp’s internal cost of octanol-2 based on Commerce’s preference for public, published information. Commerce failed to discuss, or apparently consider, however, the U.S. value of octanol-2 placed on the record by Dastech or Union Camp’s submission regarding an adjustment of that U.S. value to reflect that Dastech’s submission reflected the value of refined octanol-2.... Thus, Commerce’s failure here to consider the other surrogate values placed on the record results in its valuation of octanol-2 using the Indian value of octanol-1 being unsupported by substantial evidence on the record.

Id. at 850 (citation omitted).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Far East Conference v. United States
342 U.S. 570 (Supreme Court, 1952)
United States v. Western Pacific Railroad
352 U.S. 59 (Supreme Court, 1956)
Rust v. Sullivan
500 U.S. 173 (Supreme Court, 1991)
O. Hommel Company v. Ferro Corporation
659 F.2d 340 (Third Circuit, 1981)
EI DuPont De Nemours & Co., Inc. v. United States
932 F. Supp. 296 (Court of International Trade, 1996)
Asociacion Colombiana De Exportadores De Flores v. United States
704 F. Supp. 1114 (Court of International Trade, 1989)
Borlem S.A.-Empreedimentos Industriais v. United States
710 F. Supp. 797 (Court of International Trade, 1989)
National Corn Growers Ass'n v. Baker
623 F. Supp. 1262 (Court of International Trade, 1985)
Timken Co. v. United States
569 F. Supp. 65 (Court of International Trade, 1983)
Tehnoimportexport v. United States
766 F. Supp. 1169 (Court of International Trade, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
53 F. Supp. 2d 1310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-camp-corp-v-united-states-cit-1999.