Texas Crushed Stone Co. v. United StatesTexas Crushed Stone Co. v. United States
Appellants, Texas Crushed Stone Company, Parker Lafarge, Inc., and Gulf Coast Limestone, Inc., appeal from the May 25, 1993 judgment of the United States Court of International Trade (CIT), sustaining a negative preliminary determination of the United States International Trade Commission (ITC or agency) under sections 773(a) and 771(4)(C) of the Tariff Act of 1930, as amended,
BACKGROUND
I. The Statutory Scheme
One of the purposes of the antidumping statute is to remedy the harm caused by sales of imported merchandise in the United States at less than fair value (LTFV). Consequently, if imported merchandise is being sold, or is likely to be sold, at LTFV and as a result, an industry in the United States is materially injured or threatened with material injury, the statute authorizes the imposition of an antidumping duty on such merchandise.
Antidumping proceedings are normally commenced when interested parties file petitions with the ITC and the International Trade Administration (ITA).
II. Proceedings before the ITC
On May 20, 1992, appellants filed petitions with the ITC and the ITA alleging that an industry in the United States was materially injured or threatened with material injury by reason of imports of crushed limestone from Mexico at LTFV. Texas Crushed Stone,
In appropriate circumstances, the United States, for a particular product market, may be divided into 2 or more markets and the producers within each market may be treated as if they were a separate industry if—
(i) the producers within such market sell all or almost all of their production of the like product in question in that market, and
(ii) the demand in that market is not supplied, to any substantial degree, by producers of the product in question located elsewhere in the United States.
In such appropriate cirсumstances, material injury, the threat of material injury, or material retardation of the establishment of an industry may be found to exist with respect to an industry even if the domestic industry as a whole, or those producers whose collective output of a like product constitutes a major proportion of the total domestic production of that product, is not injured, if there is a concentration of subsidized or dumped imports into such an isolated market and if the producers of all, or almost all, of the production within that markеt are being materially injured or threatened by material injury, or if the establishment of an industry is being materially retarded, by reason of the subsidized or dumped imports.
Based on the information obtained during the investigation, the ITC made a negative preliminary determination. Id. The ITC determined that there was not a concentration of dumped imports into the Southeast Texas Region. Id. The ITC stated that “[wjhile the statute does not define concentration, the [ITC] generally has found concentration of dumped imports at or above 80 percent of total imports into the United States to meet the statutory criterion.” Id. at 775. The ITC noted that in 1990, 55.1 percent of imрorts of crushed limestone from Mexico were imported into the region; in 1991, 59.6 percent; and in the period from January through March 1992, 54.3 percent. Id. The ITC concluded that these levels of imports did not satisfy the statutory concentration requirement. Id. Because import concentration was not satisfied for the Southeast Texas Region, the ITC did not reach the stage (2) issue of material injury or threat of material injury. Id. The ITC stated that a finding of import concentration was a legal prerequisite to an analysis of whether the producers of all or almost all of the production within the market were being materially injured or threatened with material injury. Id.
In concluding that the statutory concentration requirement had not been met, the ITC used the “percent of imports” test. Under that test, the ITC considers the percentage of all the dumped imports of a given product (in this case, crushed limestone) that are imported into a particular region. Id. at 777. If the region accounts for a sufficiently large percentage of all the dumped imports of that product into thе United States in light of the facts of the ease, the ITC will find that such imports are concentrated and will proceed to determine whether there is material injury or the threat of material injury. Id. Appellants had urged the ITC to use what is referred to as the “ratio of import penetration” test. Under that test, the ITC determines whether there is concentration by considering whether dumped import penetration of a given product (ratio of such imports to consumption) in a particular region is relatively higher in that region than dumped import рenetration of that product in the United States as a whole. Id.
III. Proceedings in the CIT
Appellants appealed the ITC’s negative preliminary determination to the CIT.
Appellees contended that the ITC’s interpretation of
As already noted, the CIT sustained the ITC’s ruling. Id. at 782. The court concluded that the negative preliminary determination was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Id. First, the court held that the ITC had reasonably interpreted
Finally, the court rejected appellants’ argument that the ITC should have considered evidence relevant to the issue of material injury or threat of material injury. Id. The court stated that
DISCUSSION
I. Standard of Review
In reviewing a determination of the ITC, the CIT is governed by the standard of review set forth in
II. Analysis
A.
On appeal, appellants repeat the contentions they made before the CIT. Their principal argument is that the ITC abused its discretion in analyzing “concentration of ... dumped imports” as set forth in
When a court reviews an agency’s construction of the statute which it administers, it is confronted with two questions. First, always, is the question whether Congress has directly spoken to the precise question at issue. If the intent of Congress is clear, that is thе end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress. If, however, the court determines Congress has not directly addressed the precise question at issue, the court does not simply impose its own construction on the statute, as would be necessary in the absence of an administrative interpretation. Rather, if the statute is silent or ambiguous with respect to the specific issue, the question for the court is whether the agency’s answer is based on a permissible construction of the statute.
Chevron U.S.A v. Natural Resources Defense Council, Inc.,
Our first task is to examine the pertinent statutory language in order to determine whether Congress has “directly spoken to the precise question at issue.” Chevron,
Neither is the legislative history instructive. See Suramerica,
Clearly, the language from the legislative history does not reveal an expressed intent on the part of Congress that the ratio of import penetrаtion test be used in determining whether there is a concentration of dumped imports in a particular region. The most that can be said is that the legislative history contains conflicting statements on whether concentration of dumped imports must be found when there is a higher ratio of such imports to consumption in the regional market than in the rest of the United States market. One source states that, in such a situation, concentration “will be found,” while two other sources, one of which was approved by the Congress, see supra note 6, state that, in such a situation, concentration “could be” found. Under these circumstances and in view of the absence of any guiding language in the statute itself, we must conclude that Congress has not “unambiguously” expressed an intent on the question of what test is to be used in determining whether there has been a concentration of dumped imports in a particular region. Consequently, we must defer to the ITC’s interpretation of the statutory provision in question — as represented by the approach it used in this case — unless we find such interpretation to be unreasonable.
Preliminarily, we note appellants’ argument that the ITC’s use of the percent' of imports test in this case is not entitled to deference because the ITC departed from its practice in prior determinations by using only the percent of imports test and by applying a higher numerical cut-off under that test.
The ITC’s approach in this case was not inconsistent with its prior practice. The ITC has generally used the percent of imports test in analyzing import concentration. See Texas Crushed Stone,
In addition, the ITC has never adopted a precise numerical cut-off in analyzing import concentration under the percent of imports test. The ITC has found sufficient concentration where the percentage of imports in the region is 80 percent or more. See, e.g., Portland Hydraulic Cement from Australia and Japan, Inv. Nos. 731-TA-108 and 109 (Final), USITC Pub. 1440 (1983) (99 percent); Sugars and Sirups from Canada, Inv. No. 731-TA-3 (Final), USITC Pub. 1047 (1980) (96 percent). At the same time, the ITC has usually found insufficient concentration where the percentage was below 80 percent. See, e.g., Certain Welded Carbon Steel Pipes
Turning to the question of whether the ITC’s interpretation of the statute was reasonable and whether the ITC properly exercised its discretion in applying the per-, cent of imports test, we observe that the ITC’s case-by-case approach in analyzing import concentration in a region takes into account the competing interests reflected in the antidumping statute. The statutе allows the ITC to find injury based upon a regional analysis in appropriate circumstances. This is because a national analysis can obscure significant injury that may fall disproportionately on an isolated region. However, anti-dumping duties assessed on the basis of injury to a regional industry are applicable not only to that region, but also to the rest of the United States. See Gray Portland Cement and Cement Clinker from Venezuela, Inv. Nos. 731-TA-519, 303-TA-21 (Prelim.), USITC Pub. 2400 (1991) (views of Commissioners Lodwick and Newquist) (concern that “regional analysis be utilized only in appropriate circumstances in order to prevent imрosing duties on imports sold in the entire national market in cases in which the detrimental impact of the imports is limited to a small segment of that market”).
We believe the ITC’s case-by-case approach represents a “legitimate policy ehoice[ ] made by the agency in interpreting and applying the statute.” Suramerica,
In this case, imports of crushed limestone outsidе the Southeast Texas Region were not widely dispersed, but were found overwhelmingly in the 10-state Mississippi River/Gulf Coast region. Id. at 779. The imposition of antidumping duties based upon an analysis of injury to a small region of Texas would pose a risk of disrupting trade in the rest of the country, namely the 10-state Mississippi River/Gulf Coast region. As just seen, in such circumstances, the ITC typically uses the percent of imports test and declines to use the ratio of import penetration test. We hold that the ITC acted reasonably and did not abuse its discretion in applying the percent of imports test in this case.
B.
Finally, appellants contend that the ITC’s ruling was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law because the ITC violated the legal standard for making a negative preliminary determination set forth in American Lamb,
As noted above, in a preliminary antidump-ing investigation, the ITC must determine whether there is a reasonable indication that an industry in the United States is materially injured, or threatened with material injury.
As for appellants’ contention that the ITC should have considered evidence of materiаl injury or threat of material injury, the statute provides, in pertinent part, that in the case of a regional industry, material injury or the threat of material injury may be found “if there is a concentration of ... dumped imports into such an isolated market and if the producers of all, or almost all, of the production within that market are being materially injured or threatened by material injury ..., by reason of the ... dumped imports.”
CONCLUSION
The ITC’s negative preliminary determination was not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Therefore, we affirm the judgment of the CIT sustaining that determination.
COSTS
Each party shall bear its own costs.
AFFIRMED.
Notes
. The ITC and ITA are "charged” with administering different parts of the antidumping statute. See Suramerica de Aleaciones Laminadas, C.A. v. United States,
. The ITC may have already initiated an investigation, because within 45 days of the petition filing date the ITC must make a preliminary determination.
. If the ITA’s preliminary determination is affirmative, the ITC's final determination must be made within 120 days of that preliminary determination or within 45 days of the ITA’s final determination, whichever is later.
.All of the Mexican crushed limestone at issue in this case came from the Yucatan Peninsula quarry of appellee Calizas Industriales del Carmen, S.A. (Calica), and was imported into the United States by appellee Vulcan/ICA Distribution Company (Vulcan/ICA). Id. Appellee Vulcan Materials Company, a domestic operator of limestone quarries throughout the United States, owns interests in Calica and Vulcan/ICA through one of its wholly owned subsidiaries. Id. Vulcan/ICA began to import crushed limestone into the United States for use as construction aggregate in 1990. Id.
. Judicial review in the CIT is available of any negative preliminary determination (stages 1-3),
. In general, differences between the House and Senate over the meaning of provisions in a bill are resolved by a conference committee, which issues a conference report setting forth a resolution of the differences. The Trade Agreements Act of 1979 (which expressly added the regional industry provision to the antidumping statute) was not subject to the usual conference process, however, because it was presented by the President to Congress pursuant to
. Prior agency practice is relevant in determining the amount of deference due an agency’s interpretation. An agency’s interpretation of a relevant provision which conflicts with the agency's earlier interpretation is "entitled to considerably less deference” than a consistently held agency view. INS v. Cardoza-Fonseca,