494 F.Supp.3d 1287
Ct. Int'l Trade2021Background
- Commerce completed the 2015–2016 administrative review of the antidumping duty order on welded line pipe from Korea and published amended final results assigning weighted-average dumping margins (Hyundai 18.77%; SeAH 14.39%).
- Plaintiffs (SeAH, Hyundai, NEXTEEL, Husteel) challenged multiple aspects of Commerce’s determination; the Court earlier remanded issues including Commerce’s market‑situation adjustment to HRC costs and Commerce’s treatment of SeAH’s third‑country (Canada) sales and a requested constructed export price (CEP) offset.
- In Husteel I and Husteel II the Court sustained some Commerce positions but remanded the CEP‑offset question for further consideration.
- On second remand, Commerce reconsidered the record, accounted for selling activities performed by SeAH’s U.S. affiliates (PPA and State Pipe), concluded SeAH’s Canadian sales are at a more advanced level of trade than its CEP sales, and granted SeAH a CEP offset under 19 U.S.C. § 1677b(a)(7)(B).
- Commerce recalculated margins (SeAH 4.23%; Hyundai 9.24%; review‑specific rate for non‑selected respondents 6.74%); no party objected to the second remand results.
- The Court sustained Commerce’s second remand redetermination as supported by substantial evidence and in accordance with law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Commerce should grant SeAH a constructed export price (CEP) offset because Canadian LOT is more advanced than CEP | SeAH argued a CEP offset is warranted where Canadian LOT is at a more advanced distribution stage and no LOT adjustment is feasible | Commerce, after reconsideration, supported granting the CEP offset based on LOT comparison and lack of data for a LOT adjustment | Court sustained Commerce’s grant of a CEP offset to SeAH as supported by substantial evidence and law |
| Whether Commerce properly excluded U.S. affiliates’ selling activities when identifying CEP LOT | Challengers previously contended Commerce’s LOT analysis was flawed and insufficiently explained | Commerce applied Micron/regulatory precedent to exclude selling activities reflected in CEP price (those performed by PPA and State Pipe) and reassessed Canadian LOT accordingly | Court found Commerce reasonably excluded U.S. affiliates’ activities and properly compared LOTs |
| Whether Commerce’s second remand complied with the Court’s remand order and evidentiary standards | Plaintiffs sought a remand‑compliant explanation and substantial‑evidence support for any change | Commerce revised its LOT analysis, explained its reasoning, and recalculated margins consistent with statute and the Court’s remand instructions | Court held the redetermination complied with the remand and was supported by substantial evidence |
Key Cases Cited
- Micron Tech., Inc. v. United States, 243 F.3d 1301 (Fed. Cir. 2001) (CEP LOT analysis excludes selling activities reflected in price after §1677a(d) deductions)
- Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (Commerce must notify the public when a court decision is not in harmony with an agency determination)
- Diamond Sawblades Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 2010) (clarifies Timken notice requirements)
- Viraj Group, Ltd. v. United States, 343 F.3d 1371 (Fed. Cir. 2003) (Commerce may adopt positions under protest to preserve appeal rights)
