581 F.Supp.3d 1349
Ct. Intl. Trade2022Background:
- 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)
