GPX International Tire Corp. v. United States
2011 U.S. App. LEXIS 25069
| Fed. Cir. | 2011Background
- Consolidated countervailing duty case concerning imports from China (NME) and the U.S. determination to impose or not impose countervailing duties.
- Trade Court previously held Commerce’s NME interpretation unreasonable due to potential double counting; Court of International Trade remanded for policy adjustments.
- GPX and related entities challenged imposition of CVDs on NME exports; Court affirmed Trade Court on legislative ratification grounds.
- URAA/URAA-related changes did not substantively alter Georgetown Steel’s prohibition on CVDs for NMEs, per majority view.
- Congress reenacted and amended trade laws in 1988 and 1994, ratifying Commerce’s position that CVDs cannot be applied to NMEs; Commerce cannot contravene this through administrative interpretation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CVDs may be imposed on NMEs like China. | GPX argued NMEs cannot be subject to CVDs. | Commerce contends statute allows if countervailable subsidy exists. | CVDs cannot be imposed on NMEs. |
| Whether legislative ratification forecloses CVDs on NMEs. | Georgetown Steel remains controlling; ratification should not alter it. | 18 88/1994 reenactments ratify Commerce’s interpretation. | Yes; Congress ratified and thus bars CVDs on NMEs. |
| Whether URAA/SAA preserved pre-URAA definitions to permit or bar CVDs on NMEs. | URAA/SAA do not permit CVDs on NMEs; Georgetown Steel remains persuasive. | ||
| Whether newer legislative history (2000s) undermines prior ratification. | No; later proposals/unenacted bills do not override ratified interpretation. | ||
| Whether Commerce must apply Chevron deference once statute is ambiguous. | Commerce could interpret ambiguity to allow CVDs on NMEs. | Chevron deference applies if statutory ambiguity remains after construction. | Statute interpreted to bar CVDs on NMEs; no Chevron-based reversal. |
Key Cases Cited
- Georgetown Steel Corp. v. United States, 801 F.2d 1308 (Fed. Cir. 1986) (held that CVDs do not apply to NMEs; subsidies not countervailable in NMEs)
- Lorillard v. OPM, 434 U.S. 575 (U.S. 1978) (presumption of ratification when Congress reenacts and adopts prior interpretation)
- Lindahl v. OPM, 470 U.S. 768 (U.S. 1985) (strong ratification signal when Congress is aware of prior interpretation)
- FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120 (U.S. 2000) (Congressional ratification can limit agency jurisdiction in statutory interpretation)
- Commissioner v. Engle, 464 U.S. 206 (U.S. 1984) (cannot choose among reasonable interpretations when Congress has enacted longstanding interpretation)