This is a trade case dealing with the scope of an antidumping investigation and the trial court’s authority to review the final scope determination. Plaintiffs-Appellants Ad Hoc Shrimp Trade Action Committee, Versaggi Shrimp Corporation, and Indian Ridge Shrimp Co. (collectively plaintiffs or “AHSTAC”) appeal a final order and decision of the Court of International Trade,
Ad Hoc Shrimp Trade Action Comm. v. United States,
I.
A.
Importers of goods into the United States are subject to antidumping duties if (1) Commerce determines that “a class or kind of foreign merchandise is being, or is likely to be, sold in the United States at less than its fair value;” and (2) the International Trade Commission (“ITC”) determines that a domestic industry will be harmed “by reason of imports of that merchandise, or by reason of sales (or the likelihood of sales) of
that
merchandise for importation.” 19 U.S.C. § 1673 (emphasis added);
see also Viraj Group v. United States,
Under the statute, a multi-step process involving actions by both Commerce and the ITC must be completed before an anti-
If the ITC makes an affirmative determination, then Commerce must issue a preliminary determination of whether there is “a reasonable basis to believe or suspect that the merchandise is being sold, or is likely to be sold, at less than fair value.” Id. § 1673b(b). As part of this preliminary determination, Commerce will also make a preliminary determination of the scope of the investigation. Within 75 days after its preliminary determination, Commerce must issue a “final determination of whether the subject merchandise is being, or is likely to be, sold in the United States at less than its fair value.” Id. § 1673d(a)(l). If Commerce determines that goods within the proper scope of the investigation are being or are likely to be sold at less than fair value, Commerce forwards its determination and “all information upon which such determination was based” to the ITC. Id. § 1673d(c). The ITC must then make a final determination of whether United States industry is materially threatened or injured by the importation of “the merchandise with respect to which [Commerce] has made an affirmative determination.” Id. § 1673d(b). If Commerce and the ITC both issue final affirmative determinations, then Commerce “shall issue” an antidumping order. Id. §§ 1673d(c)(3), 1673e(a). If either of the final determinations is negative, the investigation is terminated. Id. § 1673d(e).
Judicial review of the antidumping procedure is available in the Court of International Trade. In particular, the statute provides that within 30 days of publication in the Federal Register, an interested party can commence an action in the Court of International Trade for a review of “[a] final negative determination by [Commerce] or the [ITC] under section 705 or 735 of this Act [19 U.S.C. § 1671d or 1673d], including, at the option of the appellant, any part of a final affirmative determination which specifically excludes any company or product.” Id. §§ 1516a(a)(2)(B)(ii), 1516a(a)(2)(A)(i)(I) (emphasis added).
B.
The antidumping proceedings at issue in this case proceeded as required by statute. On December 31, 2003, AHSTAC, a coalition of members of the domestic shrimp industry, filed an antidumping duty petition concerning frozen and canned warm-water shrimp from Brazil, Ecuador, India, Thailand, China, and Vietnam. In response, Commerce announced that it was initiating an antidumping investigation.
Notice of Initiation of Antidumping Duty Investigations: Certain Frozen and Canned Warmwater Shrimp from Brazil, Ecuador, India, Thailand, the People’s Republic of China and the Socialist Re
In February 2004 the ITC issued its preliminary determination that there was a reasonable indication that United States industry was materially injured by reason of imports of certain frozen or canned warmwater shrimp and prawns from the countries named in the petition. Certain Frozen or Canned Warmwater Shrimp and Prawns from Brazil, China, Ecuador, India, Thailand, and Vietnam, USITC Pub. 3673 (Feb.2004).
Meanwhile, in response to Commerce’s initial request for comments regarding product coverage, various foreign producers, including Defendant Eastern Fish Company, Inc. (“Eastern Fish”), submitted briefs to Commerce arguing that “battered shrimp” and “dusted shrimp” should be excluded from the scope of the investigation. According to Eastern Fish and the other foreign producers, “dusted shrimp,” 1.e., shrimp coated with a light layer of flour, is only used as an intermediate to making the already excluded breaded shrimp and, therefore, should similarly be excluded.
After considering the interested parties’ comments, Commerce issued its preliminary determinations finding that certain frozen and canned warmwater shrimp from the countries under investigation were being sold in the United States at less than fair value.
Notice of Preliminary Determination of Sales at Less than Fair Value, Partial Affirmative Preliminary Determination of Critical Circumstances and Postponement of Final Determination,
69 Fed.Reg. 42654 (July 16, 2004)
(“Commerce Preliminary
Determination”).
2
In its preliminary determinations, Commerce excluded “battered shrimp” from the scope of the investigation under the exclusion for “breaded shrimp” but did not' exclude “dusted shrimp.” U.S. Dep’t of Commerce Memorandum, Antidumping Investigation on Certain Frozen and Canned Warmwarter Shrimp from Brazil, Ecuador, India, Thailand, the People’s Republic of China and the Socialist Republic of Vietnam: Scope Clarification: Dusted Shrimp and Battered Shrimp 18 (July 2, 2004) (“July Scope Memorandum”). Commerce found, however, that there was “sufficient evidence for the Department to be prepared to exclude [dusted shrimp] from the scope of the order provided an appropriate description [could] be developed.”
Commerce Preliminary Determination,
69 Fed.Reg. at 42660;
see also
July Scope Memorandum at 18. In response, certain importers proposed a definition of “dusted shrimp” based on various physical requirements, and Commerce determined that this definition provided a workable definition that
Commerce then forwarded the results of its final fair value determination to the ITC. The ITC determined that United States industry was materially injured “by reason of imports from Brazil, China, Ecuador, India, Thailand, and Vietnam of certain non-canned warmwater shrimp and prawns ... that have been found by the Department of Commerce to be sold in the United States at less than fair value (LTFV).” 4 Certain Frozen or Canned Warmwater Shrimp and Prawns from Brazil, China, Ecuador, India, Thailand, and Vietnam, USITC Pub. 3748, at i (Jan. 2005) {“ITC Final Determination ”) (emphasis added). The report noted that Commerce had excluded “dusted shrimp” from its scope of the investigation and that the ITC “must accept the determination of the Department of Commerce as to the scope of the imported merchandise sold at less than fair value.” Id. at 4. [JA 249]
Following the ITC’s final material injury determination, Commerce published amended final determinations to correct various ministerial errors in its initial final fair value determinations, and as required by statute, issued the antidumping duty orders. Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Certain Frozen Warmwater Shrimp from the People’s Republic of China, 70 Fed.Reg. 5149 (Feb. 1, 2005). “Dusted shrimp” were excluded from the scope of the orders. Id.
C.
On April 1, 2005, AHSTAC filed a timely complaint in the Court of International Trade appealing “the final determination issued by the United States Department of Commerce” to the extent that it excluded “dusted shrimp” from the scope of the antidumping investigation. Compl. ¶¶ 1-2, 21. In their prayer for relief plaintiffs requested that the Court of International
Plaintiffs filed a Rule 56.2 motion for judgment on the agency record,
see
Ammex
Inc. v. United States,
AHSTAC appealed. We have jurisdiction to review the final judgment of the Court of International Trade pursuant to 28 U.S.C. § 1295(a)(5).
II.
This Court reviews the Court of International Trade’s legal determinations without deference.
United States v. Ford Motor Co.,
The parties dispute how to characterize the trial court’s holding. Plaintiffs and Commerce suggest that the court dismissed the case for lack of jurisdiction. Eastern Fish argues that the court found that it did have jurisdiction, but did not have authority to grant the relief requested. Eastern Fish more accurately describes the trial court’s holding.
See AHSTAC,
The trial court’s dismissal rested on three independent holdings. First, the trial court held that it did not have authority to order Commerce to unilaterally amend the antidumping order because Commerce was without statutory power to amend an antidumping order to include merchandise which was not the subject of an affirmative final material injury determination by the ITC. Second, the trial court found that plaintiffs had not requested as relief that the court remand Commerce’s final fair value determination to the agency, except to the extent that this was part of an order to amend the anti-dumping order. Third, the trial court held that even if plaintiffs had requested a remand of Commerce’s final determination, the court was without power to grant such relief because “plaintiffs, although having brought a timely challenge to the amended final less than fair value determinations of Commerce, failed to challenge the final affirmative injury determination of the U.S. International Trade Commission on which the antidumping duty orders on frozen shrimp were based.... ” AHSTAC, 473 F.Supp.2d. at 1337. According to the trial court, this failure to appeal the ITC’s final determination would make a court order directing Commerce to amend its final determinations to include dusted shrimp “futile should the Commission refuse to act voluntarily to modify its final injury determination.” Id. at 1347-48. We review each determination in turn.
A.
The trial court did not err in concluding that it was without authority to order Commerce to directly revise the antidump-ing order to include dusted shrimp. The Court of International Trade has no authority to order Commerce to act in direct violation of the statute. Under the statute, Commerce can only issue an anti-dumping order if it has “determine[ed] that a class or kind of foreign merchandise is being, or is likely to be, sold in the United States at less than its fair value,” and (2) the ITC determines that an industry in the United States is materially injured or threatened with material injury by “reason of imports of
that merchandise
” or by reasons of sales of
“that merchandise.”
19 U.S.C. § 1673 (emphasis added). Accordingly, the Court of International Trade has no authority to order Commerce to issue an antidumping order on merchandise for which the ITC has never made a material injury finding.
See Wheatland Tube Co. v. United States,
On appeal, AHSTAC concedes that the Court of International Trade could not order Commerce to amend the antidumping order in the absence of a final material injury determination by the ITC that included dusted shrimp.
5
It argues, however, that the ITC’s final determination did,
We agree with the trial court that the fact that the ITC may have relied, at least in part, on data which included dusted shrimp is not sufficient to establish that the . ITC made a final determination of material injury which included dusted shrimp. Under the statute, the ITC has the authority to make a final determination of material injury only for “the merchandise with respect to which [Commerce] has made an affirmative determination.” 19 U.S.C. § 1673d(b). In this case, that merchandise excluded dusted shrimp. Moreover, the ITC explicitly recognized that Commerce had excluded dusted shrimp from the scope of the investigation and that the ITC “must accept the determination of the Department of Commerce as to the scope of the imported merchandise sold at less than fair value.” ITC Final Determination at 4. In keeping with its statutory duties, the ITC’s final determination was limited to finding material injury “by reason of imports ... that have been found by the Department of Commerce to be sold in the United States at less than fair value (LTFV).” Id. Accordingly, whether or not the ITC could have found material injury if dusted shrimp were included in the scope of the investigation, the ITC never made such a finding and would have been statutorily precluded from doing so.
Thus, the trial court correctly determined that it was without authority to order Commerce to amend the antidump-ing order immediately.
B.
The trial court concluded that given its lack of authority to order Commerce to amend the antidumping order itself, the present suit should be dismissed because plaintiffs had never requested any other relief.
AHSTAC,
In its complaint, AHSTAC requested a declaratory judgment that “Commerce’s Final Determination to exclude ‘dusted’ shrimp from the scope of the investigation is unsupported by substantial evidence, and is otherwise not in accordance with the law” and a court order directing Commerce “to rescind its determination to exclude ‘dusted’ shrimp from the scope of the investigation, and to amend its order to include ‘dusted’ shrimp among products subject to the antidumping duty order.” Compl. ¶ 21 (emphasis added). AHSTAC’s Rule 56.2 motion similarly concludes: “[T]he U.S. Department of Commerce’s final determinations unlawfully excluded so-called ‘dusted shrimp’ from the scope of the investigations. Accordingly, plaintiffs respectfully request that this Court remand the final determinations to the United States Department of Commerce with instructions to correct this error as specified in the accompanying proposed order.” Mot. for J. on the Agency R. 2 (emphasis added).
Thus, plaintiffs consistently requested that the trial court find that Commerce’s
C.
Since we disagree with the trial court and find that AHSTAC did request that Commerce’s final determination be remanded to the agency, we must also consider the trial court’s alternative holding that, had such relief been requested, it would not have been empowered to grant it.
AHSTAC,
The antidumping statute provides an interested party a right to Court of International Trade review of “[a] final negative determination by [Commerce] or the [ITC] ... including, at the option of the appellant, any part of a final affirmative determination which specifically excludes any company or product.” 19 U.S.C. § 1516a(a)(2)(B)(ii). Thus, the antidump-ing statute explicitly authorizes suits in the Court of International Trade, such as the one brought here, to review the scope of a final affirmative determination by Commerce. And there is nothing in the statute that requires an interested party to bring a suit simultaneously against both Commerce and the ITC. To the contrary, the statute is clearly phrased in the alternative, allowing for a suit against either Commerce or the ITC.
Despite the clear statutory text, the trial court held that it had no authority to remand the final determination to Commerce because doing so “might well prove to be a useless exercise” if the ITC refused to act voluntarily to modify its final injury determination, thus, preventing the amendment of the antidumping order.
AHSTAC,
Accordingly, AHSTAC’s suit was properly filed, and the trial court erred in determining that it had no authority to review Commerce’s final determination to exclude dusted shrimp for the scope of the antidumping investigation.
III.
We affirm the trial court’s decision to the extent that it held that the court had no authority to order Commerce to amend the antidumping order. The trial court erred in dismissing the case, however, because the court does have the authority to remand Commerce’s final less than fair value determination to the agency. On
For the foregoing reasons the decision is
AFFIRMED-IN-PART, VACATED-IN-PART, and REMANDED.
COSTS
Each party shall bear its own costs.
Notes
. "Subject merchandise” is defined in the statute as "the class or kind of merchandise that is within the scope of an investigation. ...” Id. § 1677(25).
. A separate investigation was initiated for each of the six countries, and there were separate preliminary and final determinations for each country; however, the issue of scope was consolidated for all of the investigations. Thus for the purposes of this appeal, all six investigations can be treated identically. For ease, we cite only to the orders regarding the China investigation. As relevant here, substantively identical determinations were made for the other five countries.
. In its final determination, Commerce defined "dusted shrimp” as a shrimp-based product that (1) Is produced from fresh (or thawed-from frozen) and peeled shrimp; (2) To which a "dusting” layer of rice or wheat flour of at least 95 percent purity has been applied; (3) So that the entire surface of the shrimp flesh is thoroughly and evenly coated with flour; and (4) The non-shrimp content of the end product constitutes between 4 to 10 percent of the product’s total weight after being dusted, but prior to being frozen; and (5) Is subjected to IQF freezing immediately after application of the dusting layer.
Commerce Final Determination, 69 Fed.Reg. at 71001.
. The ITC found that industry in the United States was not materially injured by sale of canned shrimp and prawns. ITC Final Determination at i. Accordingly, canned shrimp were excluded from the scope of the final antidumping order. Notice of Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order: Certain Frozen Warmwater Shrimp from the People’s Republic of China, 70 Fed.Reg. 5149, 5152 (Feb. 1, 2005).
. AHSTAC also does not challenge the trial court's ruling that the court lacked authority to order the ITC to change its final determination since the ITC was never brought into the jurisdiction of the court.
. Although Commerce does not explicitly address the issue, in arguing to this court that the case should be remanded to the Court of International Trade to review Commerce's final determination on the merits and arguing that the proper remedy if plaintiffs prevail would be a new final determination by Commerce that is amended to include dusted shrimp within its scope, the agency appears to concede that plaintiffs had sufficiently requested such relief.
. At oral argument, Commerce explained its unusual posture: "The court possessed authority to address the final determination.... We continue to maintain the same position that we maintained below. Although it is certainly not helpful to our current case, we are fully prepared to go back to the trial court and adjudicate the merits of the scope determination. ... The statute says what it says and we certainly believe that antidumping law should be administered in accordance with the statute.” Or. Ar. at 14:29-16:00, available at http://www.cafc.uscourts.gov/ oralarguments.
. The situation might be different if any error by Commerce was harmless because correcting it could not possibly result in a different outcome.
See Intercargo Ins. Co. v. United States,
. Eastern Fish attempts to get around this problem by arguing that AHSTAC could have challenged the ITC's determination not to include dusted shrimp in its "domestic like products” determination. But this argument misses the fundamental distinction between the two inquiries. In order to determine whether a United States industry is materially injured by reasons of imports of the subject merchandise, the ITC is required to determine the relevant domestic industry which is defined by statute as "producers ... of a domestic like product." 19 U.S.C. § 1677(4)(A). Domestic like product is in turn defined as "a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation." Id. § 1677(10). Thus, AHSTAC could have argued to the ITC that dusted shrimp was a "domestic like product” to the shrimp products Commerce in fact included within the scope of the investigation, which specifically excluded dusted shrimp. But that is an entirely different question from whether domestic industry would be injured (or what the scope of domestic like products should be) if dusted shrimp was included in the scope of the investigation.
. The trial court's reliance on
Borlem
SA-Empreedimentos
Industriais v. United States,
