949 F.3d 710
Fed. Cir.2020Background
- Antidumping investigation into carbon and alloy steel cut-to-length (CTL) plate; petitions filed April 2016 and Commerce and the U.S. International Trade Commission (Commission) opened investigations.
- Commerce defined the scope of "subject merchandise"; the Commission must separately define the "domestic like product" for its injury analysis.
- In its preliminary and final determinations the Commission defined a single domestic like product coextensive with Commerce’s scope (including tool steel) and adopted Commerce’s size/content limitations and seven express exclusions.
- Hitachi (a Japanese producer and U.S. importer) asked the Commission to collect separate data for tool steel; the Commission issued supplemental questionnaires, collected responses from several firms, and contacted non-respondents.
- The Commission concluded the record did not show a clear dividing line separating tool steel from other CTL plate products and therefore declined to treat tool steel as a separate like product.
- The Court of International Trade affirmed the Commission’s like-product determination; Hitachi appealed and the Federal Circuit affirmed.
Issues
| Issue | Hitachi's Argument | Commission's Argument | Held |
|---|---|---|---|
| Whether the Commission unlawfully presumed the domestic like product is coextensive with Commerce’s subject merchandise | Commission improperly relied on Commerce’s scope and treated it as controlling | Statute requires Commission to start its like-product analysis from Commerce’s subject merchandise; Commission retained independent analysis | Commission may begin with Commerce’s scope; no unlawful presumption; affirmed |
| Whether the Commission unlawfully departed from a 35‑year practice of treating tool steel as a separate like product | Commission ignored longstanding agency practice and failed to justify departure | Prior decisions involved different statutes/products; each investigation is sui generis so different outcomes do not show legal error | No unlawful departure; Commission adequately explained and applied its analysis |
| Whether the Commission’s inclusion of tool steel is unsupported by substantial evidence due to inadequate data collection | Commission failed to collect sufficient data and ignored most of the relevant industry, producing an infirm record | Commission issued supplemental questionnaires, obtained responses from tool‑steel producers, and followed up with nonrespondents; record was adequate | Substantial‑evidence standard satisfied; record supports Commission’s conclusion |
Key Cases Cited
- Cleo Inc. v. United States, 501 F.3d 1291 (Fed. Cir. 2007) (explains Commission must perform independent six‑factor like‑product analysis but may start from Commerce’s subject‑merchandise scope)
- Nucor Corp. v. United States, 414 F.3d 1331 (Fed. Cir. 2005) (antidumping investigations are sui generis; different facts can yield different outcomes)
- Altx, Inc. v. United States, 370 F.3d 1108 (Fed. Cir. 2004) (describes substantial‑evidence review and deference to reasonable agency conclusions)
- Consol. Edison Co. of New York v. N.L.R.B., 305 U.S. 197 (U.S. 1938) (defines "substantial evidence" standard)
- Hosiden Corp. v. Advanced Display Mfrs. of Am., 85 F.3d 1561 (Fed. Cir. 1996) (Commission must separately define like products, distinct from Commerce’s scope)
- Nippon Steel Corp. v. United States, 458 F.3d 1345 (Fed. Cir. 2006) (addresses standards of review for CIT appeals in trade cases)
- Pesquera Mares Australes Ltda. v. United States, 266 F.3d 1372 (Fed. Cir. 2001) (Commerce determines the class or kind of merchandise for the investigation)
