Wind Tower Trade Coalition v. United StatesWind Tower Trade Coalition v. United States
OPINION and ORDER
Thеse actions involve the administration of trade remedy provisional measures (cash deposits) pursuant to Sections 706(b) and 736(b) of the Tariff Act of 1930, as amended,
Plaintiff seeks preliminary injunctions to (1) enjoin Commerce from terminating the suspension of liquidation and ordering the refund of cash deposits for entries of subject merchandise that were entered or withdrawn from warehouse for consumption prior to February 13, 2013; and (2) enjoin Customs during the pendency of this litigation before this court, including any subsequent remands and subsequent appeals, from discontinuing the suspension of liquidation and refunding cash deposits on the subject merchandise. Pl.’s Amend. Mot for Temporary Restraining Order & Prelim. Inj. at 1, ECF No. 15 (Court No. 13-00080).
The court initially denied Plaintiffs applications for temporary restraining orders (“TRO”) and preliminary injunctions because it believed Plaintiff had not made an adequate showing on the likelihood of success on the merits. Order Denying Temp. Restraining Order, Feb. 28, 2013, ECF No. 21 (Court No. 13-00080) (“Feb. 28 Order”). Plaintiff then submitted a sup
I. Standard Governing Issuance of Preliminary Injunction
To prevail on a motion for a preliminary injunction, the movant must establish that (1) the movаnt is likely to succeed on the merits, (2) the movant is likely to suffer irreparable harm in the absence of preliminary relief, (3) the balance of equities tips movant’s favor, and (4) an injunction is in the public interest.
Winter v. Nat. Res. Def. Council, Inc.,
In antidumping and countervailing duty cases preliminary injunctions against liquidation have become almost automatic due to the retrospective nature of U.S. trade remedies,
see
Notwithstanding the near automaticity of preliminary injunctions in anti-dumping and countervailing duty cases, they are not awarded as of right.
See Qingdao Taifa,
II. Discussion
A. Background
Following a preliminary affirmative determination by Commerce, provisional measures take effect pursuant to
An ITC final injury determination comprises the votes of the six individual Commissioners, each of whom chooses from among a menu of statutorily defined choices (no injury, materiаl injury, threat of material injury, or material retardation of establishment of industry).
Plaintiff challenges Commerce’s application of
The statute does not explicitly address whether the general or special rule applies to the fragmented ITC voting pattern presented in these cases: an evenly divided affirmative determination comprising three negative votes and three affirmative votes, with two commissioners voting for material injury and one voting for threat with a “but for” negative material injury finding. It is, however, a voting pattern that the court has addressed once before in
MBL
In
MBL
the court reviewed Commerce’s interpretation of
The court noted Commerce’s position of ignoring the three negative votes and focusing on the three affirmative votes: “Commerce first determines whether the Commission as a whole has made an affirmative or a negative determination. If Commerce determines that the Commission has made an affirmative determination, it then analyzes the affirmative votes of the Commissioners to determine the appropriate date for the imposition of anti-dumping duties.”
MBL,
If this was the approach, whether based on agency practice or not, the court is not persuaded that it led to the proper adherence to19 U.S.C. § 1673e(b) . To be sure, subsection (2) thereof does not refer to a “negative” determination; it refers to a “final determination” of the Commission. And, while the final determinations in these cases were affirmative undersection 1677(11) , if two of the three commissioners reporting negative views had considered the facts as constituting instead threats of material injury and then made negative but-for findings, as Commissioner Rohr did, the special rule of subsection (2) would have been applied. Yet, although those three actually reached outright negative conclusions, the dictate ofsection 1673e(b)(l) was apparently followed by the ITA — in the face of the fact that a majority of the ITC members had found that the domestic industry was not being materially injured, and would not have been during the time in question in the absence of provisional relief. Inherent in such negative views is the realization that anti-dumping duties will not be imposed, just as affirmative views can signify imposition of such duties from the date of a preliminary less-than-fair-value determination rather than from the date of a final decision on material injury.
Id. The MBL court did some simple math and could not understand how two votes for and four votes against material injury during the provisional measures period could reasonably justify application of the general rule.
In this case respondents alerted Commerce to
MBL
аnd argued that Commerce should therefore apply the special rule. Plaintiff responded, arguing that there were conflicting precedents at the U.S. Court of International Trade and that Commerce had a practice of applying the general rule to the voting pattern in question. Commerce ultimately applied the special rule, expressly noting the holding of
MBL
in each of the Orders.
Utility
B. Likelihood of Success on the Merits
Plaintiff contends that Commerce erred in applying the special rule and must instead follow the general rule of
When the court examines the lawfulness of Commerce’s statutory interpretations, it employs the two-pronged test established in
Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc.,
Commerce’s application of the special rule to the fragmented ITC voting pattern here (3 negativе, 2 material injury, 1 threat plus “but for” negative) flows reasonably from the specific statutory provisions, their purposes, and the statute as a whole, as the court explained in
MBL.
The statute states that imposing an earlier effective date
for
the orders under the general rule is proper when the ITC “finds material injury or threat of material injury [with an affirmative “but for” determination.]”
Plaintiff insists that the special rule cannot apply because only one Commissioner voted for threat. Pl.’s Supp. Br. at 10. Plaintiff misunderstands the consequences of a fragmented ITC affirmative determination. The fragmented determination here necessarily involved a finding that the domestic industry was at least threatened with material injury because in addition to the one threat finding, the two broader material injury findings inherently entail the narrower finding of threat.
Cf. MBL,
Plaintiff also contends that there are conflicting precedents at the Court of International Trade. Pl.’s Supp. Br. at 8-9. The court does not agree. There is one applicable precedent covering the ITC voting pattern presented in this case:
MBL.
The earlier case upon which Plaintiff relies,
Metallverken Nederland B.V. v. United States,
Finally, Plaintiff contends that Commerce’s application of the special rule represents an unexplained departure from agency practice. Pl.’s Supp. Br. at 8, 12. Plaintiff attempts to identify an agency “practice” from
Silicomanganese from Brazil,
59 Fed. Reg. 66,003 (Dep’t of Commercе Dec. 22, 1994) (antidumping duty order), a single instance post-dating
MBL
in which Commerce appears to have treated the same ITC voting pattern as requiring imposition of duties from the date of suspension of liquidation following a preliminary affirmative determination by Commerce. Of note, the lone respondent in the investigation withdrew its participation.
See Silicomanganese from Brazil,
59 Fed. Reg. 55,432, 55,433 (Dep’t of Commerce Nov. 7, 1994) (final antidumping determination). Despite Commerce not explaining its reasoning, or mentioning
MBL, see Silicomanganese from Brazil,
More fundamentally though, Commerce’s interpretation of the statute in
Silicomanganese from Brazil
does not preclude Commerce’s interpretation here. To the extent
Silicomanganese from Brazil,
a single case from 19 years ago, can be said to establish any sort of post-MBL agency practice, Commerce provided an explanation in the
Orders
citing directly to
MBL
as to why interpreting the statute in a different manner is reasonable. Under the
Chevron
framework initial agency interpretations are not “instantly carved in stone” and may change so long as an agen
Given the reasonableness of Commerce’s application of the special rule, the court cannot direct Commerce by affirmative injunction to apply the general rule, leaving Plaintiff without a fair chance of success in this action.
C. Irreparable Injury
As noted above, parties tend to establish irreparable injury fairly easily in trade cases because of the negative consequences of liquidation. Here, the court believes that Plaintiff has established such injury because once the entries covered by the provisional measures are liquidated, the court cannot provide any meaningful relief for Plaintiff. Both Defendant and CS Wind suggest that Plaintiff may not satisfy the
Zenith
standard of irreparable harm because the underlying proceeding was an investigation, not an administrative review.
See American Spring Wire Corp., v. United States,
D. Balance of Equities
Although Plaintiff appears to have established irreparable injury in the absence of an injunction, and this usually is enough to tip the equities in the movant’s favor in a trade case, here, in addition to the problem of Plaintiff failing to establish a likelihood of success on the merits, the unique aspects of provisional measures adds additional considerations to the balance of the equities. Provisional measures are accorded distinct treatment in the antidumping and countervailing duty laws. They take effect when Commerce issues a preliminary affirmative less than fair value or countervailing duty determination, and generally “may not remain in effect for more than 4 months.”
Given the weakness of Plaintiffs arguments on the merits, the court is concerned that issuance of preliminary injunctions against liquidation here may be a misuse of the court’s equitable power by
E. Public Interest
A preliminary injunction is generally in the public interest in order “to maintain the status quo of the unliquidated entries until a final resolution of the merits.”
Smith-Corona Group v. United States,
III. Conclusion
For the foregoing reasons, the court does not believe that issuance of preliminary injunctions in these actions is appropriate. Accordingly, it is hereby
ORDERED that Plaintiffs motions for preliminary injunctions are denied; and it is further
ORDERED that the Temporary Restraining Orders issued March 4, 2013 are dissolved.
Notes
. Further citations to the Tariff Act of 1930, as amended, are to the relevant provision of Title 19 of the U.S.Code, 2006 edition.
. Commerce has combined the two operative rules into one regulation,
. The same restrictions on the imposition of duties during the provisional measures period carried forward into the current Agreement on Implementation of Article VI сoncerning antidumping duties and the Agreement on Subsidies and Countervailing Measures, both adopted at the conclusion of the Uruguay Round of Multilateral Trade Negotiations in 1994. "Article 10 provides several exceptions to this general principle that ... {"antidumping duties, in the case of a final determination, will apply to imports entered after” the final determination is made} ... that permit the national authorities to apply final duties to imports entered at an earlier stage of аn investigation. First, as under current U.S. law, national authorities may apply definitive anti-dumping duties from the date of application of provisional measures if the final injury determination is based on present material injury. Second, as under current law, national authorities may apply definitive antidumping duties from the date of application of provisional measures if the final injury determination is based on threat of material injury if the authorities determine that but for the application of provisional measures injury would have occurred.” Uruguay Round Amendments Act, Statement of Administrative Action, H.R. Doc. No. 103-316, at 816 (1994), reprinted in 1994 U.S.C.C.A.N. 4040, 4158.