United States Steel Corp. v. United States

621 F.3d 1351, 32 I.T.R.D. (BNA) 1385, 2010 U.S. App. LEXIS 21146, 2010 WL 3835098
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 4, 2010
Docket2009-1572, 2009-1573
StatusPublished
Cited by68 cases

This text of 621 F.3d 1351 (United States Steel Corp. 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
United States Steel Corp. v. United States, 621 F.3d 1351, 32 I.T.R.D. (BNA) 1385, 2010 U.S. App. LEXIS 21146, 2010 WL 3835098 (Fed. Cir. 2010).

Opinion

LOURIE, Circuit Judge.

United States Steel Corp. (“U.S. Steel”) and Nucor Corp. (“Nucor” and collectively “Appellants”) appeal from the decision of the United States Court of International Trade upholding the Department of Commerce’s (“Commerce’s”) determination of antidumping duties against Coras Staal (“Coras”) for imports of hot-rolled carbon steel flat products from the Netherlands. U.S. Steel Corp. v. United States, 637 F.Supp.2d 1199 (Ct. Int’l Trade 2009) (“U.S. Steel”).

Because the Court of International Trade properly found that Commerce’s interpretation of its governing statute is in accordance with law, we affirm.

Background

Under the antidumping statute, Commerce imposes duties on imported merchandise that “is being, or is likely to be, sold in the United States at less than fair value” and harms domestic industry. 19 U.S.C. § 1673. Sales at less than fair value are those sales for which the “normal value” (the price a producer charges in its home market) exceeds the “export price” (the price of the product in the United States) or “constructed export price.” Id. § 1677(35)(A). 1 Commerce then calculates a “dumping margin” for a particular product subject to review, equal to “the amount by which the normal value exceeds the export price or constructed export price.” Id.; see also Koyo Seiko Co. v. United States, 258 F.3d 1340, 1342 (Fed.Cir.2001). A “weighted average dumping margin” across the products is calculated by “dividing the aggregate dumping margins ... by the aggregate export prices ... of such exporter or producer.” 19 U.S.C. § 1677(35)(B).

In November 2001, Commerce issued an antidumping duty order against Coras imposing a dumping margin of 2.59%. Certain Hot-Rolled Carbon Steel Flat Products from the Netherlands, 66 Fed.Reg. 59,565 (Dep’t Commerce Nov. 29, 2001) (amended final determination of sales at less than fair value). In determining the dumping margin, Commerce adhered to its existing practice at the time of “zeroing,” by which Commerce assigns a value of zero to sales margins of merchandise sold at or above fair value prices. See Corus Staal BV v. Dep’t of Commerce, 395 F.3d 1343, 1345-46 (Fed.Cir.2005). Thus, “dumping margins for sales below normal value are not offset by ‘negative dumping margins’ for those sales made above normal value.” Corns Staal BV v. United States, 502 F.3d 1370, 1372 (Fed.Cir.2007). Commerce’s zeroing methodology had earlier been challenged and upheld as a reasonable interpretation of the antidumping statute. See id.; Timken Co. v. United States, 354 F.3d 1334, 1342 (Fed.Cir.2004) (upholding zeroing in the context of an administrative review); see also Serampore Indus. v. U.S. Dep’t Commerce, 675 F.Supp. 1354, 1360-61 (Ct. Int’l Trade 1987); Bowe Passat Reinigungs-Und Waschereitechnik Gmbh v. United States, 926 F.Supp. 1138, 1150 (Ct. Int’l Trade 1996).

*1354 However, the U.S. practice of zeroing— both as a general methodology and as applied in specific investigations, including the investigation underlying this appeal— was successfully challenged by the European Communities before the World Trade Organization’s (“WTO’s”) Dispute Settlement Body. Panel Report, United States— Laws, Regulations and Methodology for Calculating Dumping Margins (“Zeroing”), WT/DS294/R (October 31, 2005), and the challenge was subsequently upheld by that organization’s Appellate Body, United States — Laws, Regulations and Methodology for Calculating Dumping Margins (“Zeroing”), WT/DS294/R (May 15, 2006) (upholding the Dispute Settlement Panel’s finding that the United States acted inconsistently with Article 9.3 of the Anti-Dumping Agreement and Article VI:2 of the General Agreement on Tariffs and Trade 1994). The investigation of hot-rolled steel from the Netherlands was one of the 15 investigations challenged.

Commerce responded to the adverse WTO ruling that zeroing is inconsistent with United States obligations under the Antidumping Duty Agreement according to two administrative procedures, laid out in the Uruguay Round Agreements Act (“URAA”). See 19 U.S.C. § 3533 (“Section 123”) and 19 U.S.C. § 3538 (“Section 129”). Section 123 provides, in relevant part, that

Promptly after the circulation of a report of a panel or of the Appellate Body to WTO members in a proceeding described in subsection (d) of this section, the Trade Representative shall—
(1) notify the appropriate congressional committees of the report;
(2) in the case of a report of a panel, consult with the appropriate congressional committees concerning the nature of any appeal that may be taken of the report; and
(3)if the report is adverse to the United States, consult with the appropriate congressional committees concerning whether to implement the report’s recommendation and, if so, the manner of such implementation and the period of time needed for such implementation.

19 U.S.C. § 3533(f). The statute continues by listing the requirements for agency action:

In any case in which a dispute settlement panel or the Appellate Body finds in its report that a regulation or practice of a department or agency of the United States is inconsistent with any of the Uruguay Round Agreements, that regulation or practice may not be amended, rescinded, or otherwise modified in the implementation of such report unless and until—
(D) the Trade Representative has submitted to the appropriate congressional committees a report describing the proposed modification, the reasons for the modification, and a summary of the advice obtained under subparagraph (B) with respect to the modification;
(E) the Trade Representative and the head of the relevant department or agency have consulted with the appropriate congressional committees on the proposed contents of the final rule or other modification....

19 U.S.C. § 3533(g).

Section 123 describes how Commerce and the United States Trade Representative are to implement an adverse report from the WTO.

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

Related

CS Wind Malaysia Sdn. Bhd. v. United States
2025 CIT 135 (Court of International Trade, 2025)
Citribel N.V. v. United States
2025 CIT 110 (Court of International Trade, 2025)
Wheatland Tube v. United States
755 F. Supp. 3d 1304 (Court of International Trade, 2025)
Noksel Celik Boru Sanayi A.S. v. United States
2023 CIT 125 (Court of International Trade, 2023)
ICDAS Celik Enerji Tersane Ve Ulasim Sanayi, A.S. v. United States
2023 CIT 124 (Court of International Trade, 2023)
Uttam Galva Steels Limited v. United States
997 F.3d 1192 (Federal Circuit, 2021)
Dillinger France S.A. v. United States
981 F.3d 1318 (Federal Circuit, 2020)
Solarworld Americas, Inc. v. United States
962 F.3d 1351 (Federal Circuit, 2020)
New Mexico Garlic Growers v. United States
953 F.3d 1358 (Federal Circuit, 2020)
Mid Continent Steel & Wire v. United States
940 F.3d 662 (Federal Circuit, 2019)
Abb, Inc. v. United States
920 F.3d 811 (Federal Circuit, 2019)
Weishan Hongda Aquatic Food Co. v. United States
917 F.3d 1353 (Federal Circuit, 2019)
Diamond Sawblades Manufacturers Coalition v. States
704 F. App'x 924 (Federal Circuit, 2017)
Apex Frozen Foods Private Ltd. v. United States
862 F.3d 1322 (Federal Circuit, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
621 F.3d 1351, 32 I.T.R.D. (BNA) 1385, 2010 U.S. App. LEXIS 21146, 2010 WL 3835098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-steel-corp-v-united-states-cafc-2010.