Consolidated Fibers, Inc. v. United States

Slip Op. 08-2 UN|TED STATES COURT OF lNTERNATlONAL TRADE CONSOL|DATED F|BERS, |NC., STE|N F|BERS, LTD., BERNET |NTERNAT|ONAL TRAD|NG, LLC, AND Bl\/|T CO|\/lMOD|TY CORPORAT|ON, public version P|aintiffs’ Before: Leo l\/|. Gordon, Judge v Court NO. 06-00134 UN|TED STATES, Defendant. OP|N|ON [Plaintiffs’ motion forjudgment on the agency record denied.] Dated: January 10, 2008 deKieffer & Horqan (Greqorv S. Meneqaz, l\/lerritt R. Blakeslee, J. Kevin Horqan) for Plaintiffs C0nsolidated Fibers, lnc., Stein Fibers, Ltd., Bernet international Trading, LLC, and Bl\/lT Commodity Corporation. James M. Lyons, General Counse|, Nea| J. Reynolds, Assistant General Counse| for Litigation, Karl von Schriltz, Attorney-Advisor, United States |nternationa| Trade Commission, for Defendant. Kellv Drve Col|ier Shannon (Paul C. Rosenthal, Kathleen W. Cannon, David C. Smith Jr.) for Defendant-lntervenors Dak Fibers, LLC, lnvista S.a.r.l., and We|lman, |nc. Gordon, Judge: Plaintiffs move for judgment on the agency record pursuant to USC|T R. 56.1, challenging the United States international Trade Commission’s ("Commission") refusal to reconsider the original injury determination underlying the antidumping duty order on polyester staple fiber ("PSF") from Korea and Taiwan. For the reasons set forth below, the court denies Plaintiffs’ motion. Court No. 06-00134 Page 2 |. Background ln l\/larch 2005 the Commission instituted five-year reviews ("sunset reviews") of the antidumping duty orders on PSF from Korea and Taiwan. After the sunset reviews commenced, Plaintiffs (importers of PSF) discovered evidence that some domestic producers of PSF had allegedly conspired to fix PSF prices and allocate customers during the original period of investigation and part of the sunset review period. Plaintiffs were eager to share this information with the Commission because a comparable revelation in another proceeding had led the Commission to rescind the original injury determinations in that proceeding. See Ferrosilicon From Brazil, China, Kazakhstan, Russia, Ukraine, and Venezuela, lnv. Nos. 303-TA-23, 731-TA-566-570 and 731-TA- 641 (Reconsideration), USlTC Pub. 3218 (Aug. 1999) at 3, 8 ("Ferrosilicon ")- ln the Ferrosilicon Reconsideration the Commission learned of a criminal price- fixing conspiracy among the domestic ferrosi|icon producers through the Brazilian ferrosi|icon producers’ request for a changed circumstances review pursuant to Section 751(b) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1675(b) (2000).‘ Troubled by the revelation of an antitrust conspiracy affecting pricing in the domestic ferrosi|icon market, the Commission took the unprecedented step of sua sponte suspending the changed circumstances proceedings and commencing "reconsideration" proceedings to review the original injury determinations underlying the antidumping and countervailing duty orders on ferrosilicon. Ferrosilicon From Brazil, China, Kazakhstan, Russia, 1 Further citations to the Tariff Act of 1930 are to the relevant provision in Title 19 of the U.S. Code, 2000 edition. Court No. 06-00134 Page 3 Ukraine, and Venezuela, 64 Fed. Reg. 28,212 (lnt’l Trade Comm’n l\/lay 25, 1999) (notice of suspension of changed circumstances review and commencement of reconsideration proceeding). ln the course of those reconsiderations, the Commission discovered that in the original investigations the domestic ferrosi|icon producers had misrepresented that the "U.S. ferrosi|icon market was driven by unfettered price competition," when in fact, "three ferrosi|icon producers, representing a significant majority of 1993 U.S. production, had been convicted of conspiring to fix domestic prices of commodity ferrosilicon" during a "substantia| portion of the time period on which the Commission based its original determination." Ferrosilicon Reconsideration at 3, 8. Because "[t]he Commission’s statute and longstanding Commission precedent place the nature of price competition at the center of its injury analysis," j