2011 Ct. Intl. Trade LEXIS 18
Ct. Intl. Trade2011Background
- This action challenges the Final Results of Commerce’s fourteenth administrative review of the antidumping duty order on certain corrosion-resistant carbon steel flat products from Korea.
- U.S. Steel and Nucor challenged Commerce’s valuation of steel substrate procured from affiliated suppliers by Union Steel Manufacturing Co., Ltd. and related entities.
- Plaintiff-Intervenor Nucor separately contested Commerce’s treatment of other affiliated suppliers and its decision not to collapse Union with the POSCO Group.
- Commerce sought voluntary remand to reconsider its determinations on adjustments to Union’s steel-substrate costs, major input rulings, and collapse determinations.
- The court granted remand with instructions to address the various claims and provide a full, explanations-based reconsideration.
- The proceedings proceed under 28 U.S.C. § 1581(c) and 19 U.S.C. § 1516a, with the court reviewing the agency record for substantial evidence and law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Remand proper to reconsider neglect of insignificant adjustments | U.S. Steel argues adjustments to Union’s costs should not be disregarded | Commerce’s characterization of adjustments as negligible may be erroneous; remand appropriate | Remand granted to reconsider the negligible adjustment finding |
| Major input rule applied to POSCO Group purchases | Nucor contends the major input rule should apply to all affiliated purchases, including POSCO Group | Record insufficiently explained for POSCO Group and acknowledges an error in the initial finding | Remand required to reconsider and explain the decision not to apply the major input rule to POSCO Group |
| Major input rule valuation for JFE Steel via trading company | Nucor argues data from the trading company is insufficient; producer-cost data should be used | Department used available data from trading company as best information on record | Remand to reconsider and explain the valuation method and reasoning for JFE Steel under the major input rule |
| Collapse of Union and POSCO Group | Nucor challenges the decision not to collapse Union with POSCO Group | Record evidence insufficiently demonstrates significant transactions; defense cites lack of intertwined operations | Remand to reconsider collapse in light of erroneous findings and to revisit related criteria |
Key Cases Cited
- Consolidated Edison Co. v. NLRB, 305 U.S. 197 (1938) (substantial evidence standard; court reviews agency actions for reasoned decisionmaking)
- SEC v. Chenery Corp., 332 U.S. 194 (1947) (agency must justify action on the grounds invoked; review of agency reasoning)
