Slip Op. 05-137
UNITED STATES COURT OF INTERNATIONAL TRADE
____________________________________
:
Slater Steels Corporation, et al., :
:
Plaintiffs, :
:
v. :
:
United States, :
:
Defendant : Before: Judith M. Barzilay, Judge
____________________________________:
____________________________________
: Consol Ct. No. 02-00551
Viraj Group, :
:
Plaintiff, :
:
v. :
:
United States, :
:
Defendant, :
:
and :
:
Slater Steels Corporation, et al., :
:
Defendant-Intervenors :
___________________________________ :
OPINION
[Department of Commerce’s Final Results of Redetermination Pursuant to Remand III
sustained.]
Dated: October 20, 2005
Collier, Shannon, Scott, PLLC, (Robin H. Gilbert), for Plaintiffs and Defendant-
Intervenors Slater Steels Corp., et al.
Consol Ct. No. 02-00551 Page 2
Miller & Chevalier Chartered, (Peter J. Koenig), for Plaintiff Viraj Group.
(Jeanne E. Davidson), Deputy Director, Commercial Litigation Branch, Civil Division,
United States Department of Justice; (Stephen C. Tosini), Attorney, Commercial Litigation
Branch, Civil Division, United States Department of Justice; Matthew D. Walden, Office of
Chief Counsel for Import Administration, United States Department of Commerce, of counsel,
for Defendant.
I. Introduction
This case concerns repeated attempts by the United States Department of Commerce
(“DOC”, “government”, or “Commerce”) to collapse companies within the Viraj Group,1 an
Indian importer, pursuant to 19 C.F.R. § 351.401(f) (2000).2 Plaintiff Viraj Group (“Viraj”) and
Defendant-Intervenors (“Slater”) have brought successive challenges to Commerce’s
administrative decision to collapse three affiliated Viraj companies in order to calculate the
dumping margin against imports of certain subject merchandise3 entered during the period of
review (“POR”) between February 1, 2000, and January 31, 2001. The court has remanded this
case to the government three times for reevaluation, and this opinion focuses on the resulting
third set of remand results. See Slater Steels Corp. v. United States, 27 CIT ___, 279 F. Supp. 2d
1370 (2003) (“Slater I”); Slater Steels Corp. v. United States, 28 CIT ___, 316 F. Supp. 2d 1368
1
The relevant Viraj Group companies in this action are Viraj Alloys, Ltd. (“VAL”), Viraj
Impoexpo, Ltd. (“VIL”), and Viraj Forgings, Ltd. (“VFL”).
2
The regulation states:
(f) Treatment of affiliated producers in antidumping proceedings–
(1) In general. In an antidumping proceeding under this part, the Secretary will
treat two or more affiliated producers as a single entity where those producers
have production facilities for similar or identical products that would not require
substantial retooling of either facility in order to restructure manufacturing
priorities and the Secretary concludes that there is a significant potential for the
manipulation of price or production.
19 C.F.R. § 351.401(f)(1).
3
The subject merchandise at issue is stainless steel bar.
Consol Ct. No. 02-00551 Page 3
(2004) (“Slater II”); Slater Steels Corp. v. United States, 29 CIT ___, Slip Op. 05-23 (Feb. 17,
2005) (“Slater III”).
In Slater I and Slater II, the court held that there did not exist substantial evidence on the
record to warrant the government’s collapse of VAL, VIL, and VFL under the three-prong test
outlined in 19 C.F.R. § 351.401(f)(1). This test requires that the government must find that “(1)
the [Viraj] companies are affiliated pursuant to 19 U.S.C. § 1677(33), (2) the companies are
capable of producing similar or identical products without substantial retooling of each
producer’s facility, and (3) there is significant potential for the manipulation of price or
production.” Slater I, 279 F. Supp. 2d at 1376. In Slater III, the court reminded Commerce that
the agency must “either employ the same methodology or give reasons for changing its practice”
if it desires to break with its previous determinations. Slater III, Slip Op. at 9 (citing Cinsa, S.A.
de C.V. v. United States, 21 CIT 341, 349, 966 F. Supp. 1230, 1238 (1997).
II. Standard of Review
This court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(c) (2004). The
court “must sustain ‘any determination, finding or conclusion found’ by Commerce unless it is
‘unsupported by substantial evidence on the record, or otherwise not in accordance with the
law.’” Fujitsu Gen. Ltd. v. United States, 88 F.3d 1034, 1038 (Fed. Cir. 1996) (quoting 19 U.S.C.
§ 1516a(b)(1)(B)). Substantial evidence consists of “such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion.” Matsushita Elec. Indus. Co. v. United
States, 750 F.2d 927, 933 (Fed. Cir. 1984) (quoting Consol. Edison Co. of N.Y. v. NLRB, 305
U.S. 197, 229 (1938)) (quotations omitted). Further, it is crucial to recall that “the possibility of
drawing two inconsistent conclusions from the evidence does not prevent an administrative
Consol Ct. No. 02-00551 Page 4
agency’s finding from being supported by substantial evidence.” Id. (quoting Consolo v. Fed.
Mar. Comm’n, 383 U.S. 607, 619-20 (1966)) (quotations omitted). The court therefore “affirms
Commerce’s factual determinations so long as they are reasonable and supported by the record
as a whole, even if there is some evidence that detracts from the agency’s conclusions.”
Olympia Indus, Inc. v. United States, 22 CIT 387, 389, 7 F. Supp. 2d 997, 1000 (1998) (citing
Atl. Sugar, Ltd. v. United States, 744 F.2d 1556, 1563 (Fed. Cir. 1984)). The court may not re-
weigh the evidence or substitute its own judgment for that of the agency. See Granges
Metallverken AB v. United States, 13 CIT 471, 474, 716 F. Supp. 17, 21 (1989).
III. Discussion
A. Collapsing VIL & VFL
In Commerce’s Final Results of Redetermination Pursuant to Remand III (“Remand
Results III”), the government collapsed VIL and VFL while treating VAL as a separate entity. 4
See Slater III, Slip Op. at 15; Remand Results III at 1. Plaintiff has never challenged the
collapsing of VIL and VFL. Comments on Commerce’s Final Results of Redetermination
Pursuant to Remand III (“Remand Results III Comments”) at 9. The government did not explain
its method of determination within this set of Remand Results in accordance with Slater I and
Slater II. See Slater II, 316 F. Supp. 2d at 1372; Slater I, 279 F. Supp. 2d at 1376, 1379.
Nevertheless, because Plaintiff does not object to the final Remand Results, the issues regarding
4
Contrary to the DOC’s contention, this court did not forbid the government from
collapsing all three companies within the Viraj Group; Slater III simply insisted that Commerce
“provide an explanation regarding its method of determining the sufficiency” of such a departure
from its precedent. Slater III, Slip. Op. at 14. But see Def.’s Resp. Pl.’s Comments Concerning
Third Remand Results at 2, 4. It would lend credence to the DOC’s arguments if it accurately
and consistently cited to its sources.
Consol Ct. No. 02-00551 Page 5
the interpretation of the collapsing regulation as raised in Slater I and Slater II are moot.
Therefore, this court SUSTAINS the Final Results of Redetermination Pursuant to Remand III.
B. Issues Contested by Plaintiff
In its Comments on the DOC’s Remand Results III , Plaintiff claims the government
“failed to calculate the most accurate and complete uncollapsed VIL margin by ignoring the
record evidence.” Remand Results III Comments at 9. Specifically, Plaintiff wants the court to
have Commerce alter alleged errors within VIL/VFL’s claimed U.S. indirect selling expenses
and then adjust the starting price of the constructed export price (“CEP”) accordingly. See
Remand Results III Comments at 9.
The government and Viraj rebut that Plaintiff’s claim “exceeds the Court’s directive.”
Remand Results III at 21. As Commerce correctly notes, “during the proceeding underlying
Slater III, no party objected to Commerce’s treatment of Viraj’s U.S. CEP selling expenses.”
Remand Results III at 21. In fact, in the course of this case’s history, Plaintiff never raised this
issue and has not even exhausted its administrative remedies. Cf. Slater I, 279 F. Supp. 2d at
1372 (noting that “sole issue” in case is collapsing of Viraj Group companies).
The court concurs with Commerce and Viraj. This court “generally takes a strict view of
the need to exhaust remedies by raising all arguments.” Pohang Iron & Steel Co. v. United
States, 23 CIT 778, 792, 1999 WL 970743, at *13 (1999). When examining whether a party may
raise an issue for the first time on appeal, “the court looks at administrative efficiency and
fairness” in making its decision. Id. As a general rule, “the doctrine of exhaustion holds that ‘no
one is entitled to judicial relief . . . until the prescribed administrative remedy has been
exhausted.’” Ta Chen Stainless Steel Pipe, Ltd. v. United States, 28 CIT ___, ___, 342 F. Supp.
Consol Ct. No. 02-00551 Page 6
2d 1191, 1205 (2004) (quoting Sandvik Steel Co. v. United States, 164 F.3d 596, 599 (Fed. Cir.
1998) (quoting McKart v. United States, 395 U.S. 185, 193 (1969))); see 28 U.S.C. § 2637(d).
In certain cases, when mandating administrative exhaustion would prove “futile or an insistence
on a useless formality[,]” the court has waived the requirement. Alhambra Foundry Co. v.
United States, 12 CIT 343, 347, 685 F. Supp. 1252, 1256 (1988). The issue raised by Plaintiff in
this case, however, does not meet these criteria. See, e.g., Budd Co., Wheel & Brake Div. v.
United States, 15 CIT 446, 452 n.2, 773 F. Supp. 1549, 1555 n.2 (1991).5 Therefore, the court
cannot address Plaintiff’s claim at this time.
October 20, 2005 /s/ Judith M. Barzilay
Dated:________________________ __________________________
New York, NY Judge
5
The four scenarios in which the court waives administrative exhaustion requirements are
when:
1. Plaintiff raised a new argument that was purely legal and required no further
agency involvement.
2. Plaintiff did not have timely access to the confidential record.
3. A judicial interpretation intervened since the remand proceeding, changing the
agency result.
4. It would have been futile for plaintiff to have raised its argument at the
administrative level.
Budd Co., 15 CIT at 452 n.2 (citations omitted).