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581 F.Supp.3d 1349
Ct. Intl. Trade
2022
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Background:

  • Prolamsa, a Mexican producer/exporter of heavy walled rectangular welded carbon steel pipes and tubes (HWR), was subject to a 2016 antidumping duty order.
  • Commerce’s second administrative review initially assigned Prolamsa a 7.47% weighted-average dumping margin in the Final Results.
  • Prolamsa argued Commerce should grant a level-of-trade (LOT) adjustment because its home-market (HM) Channel 4 (OEM/custom parts) sales involved distinct, more intensive selling activities than HM Channels 1–3 (commercial sales).
  • The Court in Productos Laminados de Monterrey v. United States (Prolamsa I) remanded, finding Commerce’s rejection of the two-LOT claim unsupported by substantial evidence.
  • On remand Commerce found two HM LOTs, made an LOT adjustment, and recalculated Prolamsa’s margin as 0.89% (Remand Redetermination); the government supports this result, while intervenor Nucor opposes it.
  • The Court sustained the Remand Redetermination, holding Commerce’s LOT finding and adjustment are supported by substantial evidence.

Issues:

Issue Plaintiff's Argument Defendant / Intervenor's Argument Held
Whether Commerce lawfully denied a LOT adjustment in the Final Results Prolamsa: HM Channel 4 sales are a distinct LOT and require an LOT adjustment Commerce/US: On remand supports LOT finding; Nucor: contends the record is insufficient for LOT Court: Remand Redetermination showing two HM LOTs and an LOT adjustment is supported by substantial evidence; sustain remand
Whether the record contains adequate quantitative evidence to show different LOTs Prolamsa: provided quantitative metrics (selling expenses, salaries, inventory turnover, headcount) showing higher intensity for Channel 4 Nucor: data do not link higher selling expenses to price differences; evidentiary gaps and inferences are speculative Court: Substantial record evidence (qualitative + quantitative) sufficed; statute does not require more particularized linkage Nucor demands
Whether price differences reflect higher manufacturing (DIFMER) costs rather than LOT Prolamsa: price premium reflects both custom manufacturing and additional, OEM-specific selling activities Nucor: price premium is due to custom manufacturing costs and should be addressed as DIFMER, not LOT Court: Commerce permissibly attributed price premium in part to different selling activities and applied LOT adjustment; DIFMER argument did not preclude LOT and was unpersuasive

Key Cases Cited

  • SKF USA, Inc. v. United States, 537 F.3d 1373 (Fed. Cir. 2008) (defining "substantial evidence" standard of review)
  • Consol. Edison Co. v. NLRB, 305 U.S. 197 (1938) (standard for substantial-evidence review)
  • Productos Laminados de Monterrey S.A. de C.V. v. United States, 554 F. Supp. 3d 1355 (CIT 2021) (Prolamsa I) (Court remanded Commerce’s Final Results for reconsideration of LOT issues)
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Case Details

Case Name: Productos Laminados de Monterrey S.A. de C.V. v. United States
Court Name: United States Court of International Trade
Date Published: Jul 6, 2022
Citations: 581 F.Supp.3d 1349; 1:20-cv-00166
Docket Number: 1:20-cv-00166
Court Abbreviation: Ct. Intl. Trade
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    Productos Laminados de Monterrey S.A. de C.V. v. United States, 581 F.Supp.3d 1349