United States Steel Corp. v. United States

637 F. Supp. 2d 1199, 33 Ct. Int'l Trade 984, 33 C.I.T. 984, 31 I.T.R.D. (BNA) 1770, 2009 Ct. Intl. Trade LEXIS 81
United States Court of International Trade·Decided July 20, 2009·No. Consol. 07-00170·Published·Cited by 18 cases

Opinion

OPINION

BARZILAY, Judge.

In December 2006, the U.S. Department of Commerce (“Commerce”) determined that it would apply a new methodology to calculate the weighted-average dumping margins in certain investigations. See Antidumping Proceedings: Calculation of the Weighted-Average Dumping Margin During an Antidumping Investigation; Final Modification, 71 Fed.Reg. 77,722, 77,722 (Dep’t Commerce Dec. 27, 2006) (“Section 123 Determination ”). 1 Plaintiff United States Steel Corporation (“U.S.Steel”), along with other interested domestic parties, 2 challenge that determination in a particular Section 129 proceeding, 3 claiming that the use of offsetting and the elimination of zeroing is not *1204 in accordance with antidumping law. 4 Plaintiff and Plaintiff-Intervenors also allege that Commerce’s application of the methodology outlined in the Section 123 Determination to reach the final results of the Section 129 Determination was not in accordance with law. Finally, Plaintiff-Intervenors Nucor and ArcelorMittal argue that Commerce erred when it declined to consider their claims of targeted dumping in the Section 129 Determina tion. 5 For the reasons stated below, the court rejects all three claims in Plaintiffs and Plaintiff-Intervenors’ Motions for Judgment Upon the Agency Record and, therefore, denies the motions and grants judgment to the Government.

I. Background

A. The Purpose of the Antidumping Laws and the Weighted-Average Dumping Margin

The central aim of the antidumping laws is to protect domestic industries from foreign manufactured goods that are sold injuriously in the United States at prices below the fair market value of those goods in their home market. See Sango Int'l L.P. v. United States, 484 F.3d 1371, 1372 (Fed.Cir.2007). The antidumping laws are not punitive in nature, but rather, are meant to “remedy disparities in the value of imported and domestic merchandise created by impermissible international trade practices.” Bethlehem Steel Corp. v. United States, 25 CIT 930, 933, 162 F.Supp.2d 639, 643 (2001). The application of antidumping principles should level the playing field between foreign and domestic manufacturers of like merchandise and not give an unfair advantage to the domestic industry. See Peer Bearing Co. v. United States, 25 CIT 1199, 1221, 182 F.Supp.2d 1285, 1310 (2001).

Commerce is required to impose an anti-dumping duty order on imported merchandise that (1) is sold in the U.S. below its fair value and (2) materially injures or threatens to injure a domestic industry. 19 U.S.C. § 1673. The determination of whether the subject imports are sold at less than fair value involves a two-step process, whereby Commerce must first calculate the “dumping margin” — the amount by which “the normal value [ (‘NV’) ] exceeds the export price [ (‘EP’) ] or constructed export price [ (‘CEP’) ] of the subject merchandise.” 6 19 U.S.C. *1205 § 1677(35)(A). If the price of a good in the home market (NV) is greater than the price for the same good in the U.S. (EP or CEP), then the dumping margin comparison produces a positive number indicating that dumping has occurred. In contrast, when the price charged for the subject merchandise in the U.S. (EP or CEP) is greater than that charged for the same merchandise in the home market (NV), the dumping margin calculation yields a negative value, showing that those sales were made fairly.

The second step of the process requires Commerce to determine the weighted-average dumping margin, which expresses the dumping margin as a percentage and is determined by dividing the aggregate dumping margins of a specific exporter or producer by the aggregate export or constructed export prices of that same exporter or producer. § 1677(35)(B). Importantly, under Commerce’s new methodology of offsetting, the numerator in the weighted-average dumping margin calculation is the aggregate of all dumping margins (ie., those that have both positive and negative values). Under the previously employed zeroing methodology, those dumping margins with a negative value were given an assumed value of zero. A weighted-average dumping margin that yields a positive value demonstrates, on the whole, that the subject merchandise was dumped in the United States.

If the International Trade Commission (“ITC”) finds that the dumped subject merchandise causes the domestic industry to suffer material injury or threatens material injury, then Commerce must issue an antidumping duty order covering entries of the subject merchandise. 19 U.S.C. § 1673. The antidumping duty imposed on entries of the subject merchandise is equal in amount to the weighted-average dumping margin. §§ 1673, 1677(35)(A)-(B).

B. Sections 123 and 129 of the Uruguay Round Agreements Act

Congress established two procedures by which an adverse decision from the World Trade Organization (“WTO”) Dispute Settlement Panel or Appellate Body may be implemented into domestic law — Sections 123 and 129 of the Uruguay Round Agreements Act (“URAA”). A Section 123 determination amends, rescinds, or modifies an agency regulation or practice that is found to be inconsistent with any of the Uruguay Round Agreements. 19 U.S.C. § 3533(g)(1). This scheme requires the United States Trade Representative (“USTR”), an official of the Executive Branch, to consult with the appropriate congressional and private sector advisory committees, and to provide an opportunity for public comment before determining whether and how to implement the agency regulation or practice at issue. Id. The USTR, as part of the consultation process, is required to provide the relevant congressional committees with a report that describes the proposed modification, the reasons for the modification, and a summary of the advice obtained from the private sector advisory committees. § 3533(g)(1)(D). The final modification takes effect when it is published in the Federal Register. § 3533(g)(1)(F).

The second procedure — a Section 129 determination — amends, rescinds, or modifies the application of an agency regulation or practice in a specific antidumping, countervailing duty, or safeguards proceeding *1206 that is found to be inconsistent with U.S. obligations under the WTO Antidumping Agreement (“AD Agreement ”), the Agreement on Subsidies and Countervailing Measures, or the Safeguards Agreement. 19 U.S.C.

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United States Steel Corp. v. United States, 637 F. Supp. 2d 1199, 33 Ct. Int'l Trade 984, 33 C.I.T. 984, 31 I.T.R.D. (BNA) 1770, 2009 Ct. Intl. Trade LEXIS 81 (cit 2009).

637 F. Supp. 2d 1199 (United States Steel Corp. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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