1:16-cv-00218•Eregli Demir ve Celik Fabrikalari T.A.S. v. United States
Full text
Slip Op. 19-135
UNITED STATES COURT OF INTERNATIONAL TRADE
(5(ö/,'(0,59(d(/,K
)$%5,.$/$5,7$ù,
Plaintiff,
and
d2/$.2ö/80(7$/85-,A.S. $1'
d2/$.2ö/8',67,&$5(7$6,
&RQVROLGDWHG3ODLQWLIIV,
v.
81,7('67$7(6,
'HIHQGDQW,
and
67((/'<1$0,&6,1&(7$/,
'HIHQGDQW-,QWHUYHQRUV.
%HIRUH: 0DUN$%DUQHWW, -XGJH
&RQVRO&RXUW1R. 16-00218
OPINION AND ORDER
>7KH86'HSDUWPHQWRI&RPPHUFH¶V)LQDO5HVXOWVRI5HGHWHUPLQDWLRQ3XUVXDQWWR
6HFRQG&RXUW5HPDQG DUH5HPDQGHG.]
'DWHGOctober 29, 2019
0DWWKHZ01RODQ, $UHQW)R[, //3RI:DVKLQJWRQ'&IRU&RQVROLGDWHG3ODLQWLIIV
dRODNR÷OX0HWDOXUML$6DQGdRODNR÷OX'LV7LFDUHW$6
3DWULFLD00F&DUWK\$VVLVWDQW'LUHFWRU&RPPHUFLDO/LWLJDWLRQ%UDQFK&LYLO'LYLVLRQ
86'HSDUWPHQWRI-XVWLFHRI:DVKLQJWRQ'&IRU'HIHQGDQW8QLWHG6WDWHV:LWKKHU
RQWKHEULHIZHUH-RVHSK++XQW, $FWLQJ$VVLVWDQW$WWRUQH\*HQHUDODQG-HDQQH(
'DYLGVRQ'LUHFWRU. 2IFRXQVHORQWKHEULHIZDV%UDQGRQ-&XVWDUG$WWRUQH\2IILFHRI
WKH&KLHI&RXQVHOIRU7UDGH(QIRUFHPHQWDQG&RPSOLDQFH86'HSDUWPHQWRI
&RPPHUFHRI:DVKLQJWRQ'&.
Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 1 of 27&RQVRO&RXUW1R 16-00218 3DJH2 3DXO&5RVHQWKDO, 5$ODQ/XEHUGD, 'DYLG&6PLWK, and -RVKXD50RUH\.HOOH\'U\H :DUUHQ //3RI:DVKLQJWRQ'&IRU'HIHQGDQW-,QWHUYHQRU$UFHORU0LWWDO86$//&. 6WHSKHQ$-RQHV and 'DQLHO/6FKQHLGHUPDQ.LQJ 6SDOGLQJ, //3RI:DVKLQJWRQ '&IRU'HIHQGDQW-,QWHUYHQRU$.6WHHO&RUSRUDWLRQ $ODQ+3ULFH and &KULVWRSKHU%:HOG:LOH\5HLQ//3RI:DVKLQJWRQ'&IRU 'HIHQGDQW-,QWHUYHQRU1XFRU&RUSRUDWLRQ 5RJHU%6FKDJULQ and &KULVWRSKHU7&ORXWLHU6FKDJULQ$VVRFLDWHVRI:DVKLQJWRQ '&IRU'HIHQGDQW-,QWHUYHQRUV6WHHO'\QDPLFV,QFDQG66$%(QWHUSULVHV//& 7KRPDV0%HOLQH and 6DUDK(6KXOPDQ&DVVLG\/HY\.HQW 86$ //3RI :DVKLQJWRQ'&IRU'HIHQGDQW-,QWHUYHQRU8QLWHG6WDWHV6WHHO&RUSRUDWLRQ %DUQHWW, -XGJH: 7KLVPDWWHULVEHIRUHWKHFRXUWIROORZLQJWKH86'HSDUWPHQWRI &RPPHUFH¶V ³&RPPHUFH´RU³WKHDJHQF\´ UHGHWHUPLQDWLRQXSRQVHFRQGFRXUW-RUGHUHG UHPDQG. See )LQDO5HVXOWVRI5HGHWHUPLQDWLRQ3XUVXDQWWR6HFRQG&RXUW5HPand ³2nd 5HPDQG5HVXOWV´ (&)1R133. 3ODLQWLII(UH÷OL'HPLUYHdHOLN)DEULNDODUL7$ù ³(UGHPLU´ DQG&RQVROLGDWHG3ODLQWLIIVdRODNR÷OX0HWDOXUML$6DQGdRODNR÷OX'LV 7LFDUHW$6 WRJHWKHU³dRODNR÷OX´ HDFKFKDOOHQJHGDVSHFWVRI&RPPHUFH¶VILQDO GHWHUPLQDWLRQLQWKHVDOHVDWOHVV WKDQ IDLU YDOXHLQYHVWLJDWLRQRIFHUWDLQKRW-UROOHGVWHHO IODWSURGXFWVIURPWKH5HSXEOLFRI7XUNH\See Certain Hot-Rolled Steel Flat Products from the Republic of Turkey, 81 )HG5HJ 'HS¶W&RPPHUFH$XJ ILQDOGHWHUPLQDWLRQRIVDOHVDWOHVVWKDQIDLUYDOXH– ³Final Determination´ (&)1R-DQGDFFRPSDQ\LQJ,VVXHVDQG'HFLVLRQ0HP$-- $XJ (&)1R-DVDPHQGHGE\Certain Hot-Rolled Steel Flat Products from Australia, Brazil, Japan, the Republic of Korea, the Netherlands, the Republic of Turkey, and the United Kingdom)HG5HJ 'HS¶W&RPPHUFH2FW DPILQDO Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 2 of 27
&RQVRO&RXUW1R 16-00218 3DJH3 aff. DQWLGXPSLQJGHWHUPLQDWLRQVIRU$XVWUDOLDWKH5HSXEOLFRI.RUHDDQGWKH5HSXEOLFRI 7XUNH\DQGDQWLGXPSLQJGXW\RUGHUV (&)1R-2. 1 7KLVLVWKHFRXUW¶VWKLUGRSLQLRQ DGGUHVVLQJFKDOOHQJHVDULVLQJRXWRI&RPPHUFH¶VFinal Determination. 2Q0DUFKWKHFRXUWUHPDQGHGWKH Final Determination ZLWKUHVSHFWWR (UGHPLU¶VKRPHPDUNHWGDWHRIVDOHWKHGHQLDORIdRODNR÷OX¶VGXW\GUDZEDFN DGMXVWPHQWDQGWKHUHMHFWLRQRIdRODNR÷OX¶VFRUUHFWLRQVWRLWVLQWHUQDWLRQDOIUHLJKW H[SHQVHVSee (UH÷OL Demir ve Çelik Fabrikalari T.A.S v. United States ³Erdemir I´ , &,7___, 308 F. 6XSS G 7KHFRXUWVXVWDLQHG&RPPHUFH¶VFinal Determination LQDOORWKHUUHVSHFWVSee id. DW 2QUHPDQGIURPErdemir I, &RPPHUFHUHYLVHGLWVGDWHRIVDOHGHWHUPLQDWLRQIRU(UGHPLU¶VKRPHPDUNHW VDOHV in a PDQQHUIDYRUDEOHWR(UGHPLUJUDQWHGdRODNR÷OX¶VGXW\GUDZEDFNDGMXVWPHQW EXW UHYLVHGLWVPHWKRGRIFDOFXODWLQJWKHDGMXVWPHQWDQGSURYLGHGDGGLWLRQDOHYLGHQFHDQG H[SODQDWLRQVXSSRUWLQJLWVUHMHFWLRQRIdRODNR÷OX¶VFRUUHFWLRQVWRLQWHUQDWLRQDOIUHLJKW H[SHQVHVSee &RQILGHQWLDO)LQDO5HVXOWVRI5HGHWHUPLQDWLRQ3XUVXDQWWR5HPDQG ³VW 5HPDQG5HVXOWV´ DW–(&)1R. 2 ,QUHVSRQVHWRdRODNR÷OX¶VFKDOOHQJHVWR 1 7KHDGPLQLVWUDWLYHUHFRUG ILOHGLQFRQQHFWLRQZLWK WKH 2nd 5HPDQG5HVXOWV LV FRQWDLQHGLQD3XEOLF2nd 5HPDQG5HFRUG(&)1R-DQGD&RQILGHQWLDO2nd 5HPDQG5HFRUG ³2nd &55´ (&)1R-3DUWLHVVXEPLWWHGSXEOLFDQGFRQILGHQWLDO MRLQWDSSHQGLFHVFRQWDLQLQJUHFRUGGRFXPHQWVFLWHGLQWKHLUEULHIVSee 1RQ- &RQILGHQWLDO-$WRQG5HPDQG5HGHWHUPLQDWLRQ(&)1R&RQILGHQWLDO-$ WR QG5HPDQG5HGHWHUPLQDWLRn ³&5-$´ (&)1R7KHFRXUWUHIHUHQFHVWKH FRQILGHQWLDOYHUVLRQRIUHFRUGGRFXPHQWVXQOHVVRWKHUZLVHVSHFLILHG 2 7KHDGPLQLVWUDWLYHUHFRUG ILOHGLQFRQQHFWLRQZLWKWKHVW5HPDQG5HVXOWVLVFRQWDLQHG in D3XEOLFVW5HPDQG5HFRUG(&)1R-2, DQGD&RQILGHQWLDOVW5HPDQG5HFRUG ³VW&55´ (&)1R-3. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 3 of 27
&RQVRO&RXUW1R 16-00218 3DJH &RPPHUFH¶VPHWKRGRIFDOFXODWLQJWKHGXW\GUDZEDFNDGMXVWPHQWDQGFRQWLQXHG UHMHFWLRQRILWVIUHLJKWH[SHQVHFRUUHFWLRQVRQ'HFHPEHUWKHFRXUWUHPDQGHG WKHIRUPHUGHWHUPLQDWLRQDQGVXVWDLQHGWKHODWWHUSee Ere÷li Demir ve Çelik Fabrikalari T.A.ù v. United States ³Erdemir II´ &,7BB_, ___, ) 6XSS G, 1332– 1336 3 2Q-XQH&RPPHUFHILOHGLWVVHFRQGUHPDQGUHVXOWVSee QG5HPDQG 5HVXOWV 7KHUHLQ&RPPHUFHDJDLQUHYLVHGLWVPHWKRGRIFDOFXODWLQJdRODNR÷OX¶VGXW\ GUDZEDFNDGMXVWPHQWVWR86SULFHDQGPDGHDFLUFXPVWDQFHRIVDOH ³&26´ DGMXVWPHQWWRQRUPDOYDOXHWRLQFUHDVHLWE\WKHVDPHDPRXQWDVWKHGXW\GUDZEDFN DGMXVWPHQWId. at 2, 6–16, 21–7KHFKDQJHV PDGHE\&RPPHUFHLQFUHDVHG dRODNR÷OX¶VZHLJKWHG-DYHUDJHGXPSLQJPDUJLQIURPSHUFHQWWRSHUFHQWId. at 16. dRODNR÷OXILOHGFRPPHQWVRSSRVLQJ&RPPHUFH¶VXVHRID&26DGMXVWPHQW. See &RQVRO3OVdRODNR÷OX0HWDOXUML$6DQGdRODNR÷OX'LV7LFDUHt A.S.¶V&RPPHQWVRQ 5HPDQG5HGHWHUPLQDWLRQ ³dRODNR÷OX¶V &PWV´ (&)1R. 'HIHQGDQW8QLWHG 6WDWHV ³WKH *RYHUQPHQW´ DQG'HIHQGDQW-,QWHUYHQRUVILOHGFRPPHQWVLQVXSSRUWRIWKH 2nd 5HPDQG5HVXOWV See 'HI¶V5HVSWR&RPPHQWVRQ6HFRQG5HPDQG 3 Erdemir I and Erdemir II SUHVHQWDGGLWLRQDOEDFNJURXQGRQWKLVFDVHIDPLOLDULW\ZLWK ZKLFKLVSUHVXPHG Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 4 of 27
&RQVRO&RXUW1R 16-00218 3DJH 5HGHWHUPLQDWLRQ ³*RY¶W¶V5HSO\&PWV´ (&)1R38'HI-,QWV¶&RPPHQWVLQ6XSS RI2nd 5HPDQG5HVXOWV ³'HI-,QWV¶5HSO\&PWV´ (&)1R39. 7KHFRXUW UHFHQWO\ UHPDQGHG &RPPHUFH¶VGHFLVLRQWRPDNHD&26 DGMXVWPHQW WRQRUPDOYDOXHLQWKHVDPHDPRXQW DVWKHGXW\GUDZEDFNDGMXVWPHQWWR86SULFH See generally +DEDú6LQDLYe 7LEEL*D]ODU,VWLKVDO(QGVWULVL$ùY8QLWHG6WDWHV, Slip Op. 19-130, :/ &,72FW . )RU WKHUHDVRQVGLVFXVVHGLQ +DEDúand KHUHLQWKHFRXUWVXVWDLQV&RPPHUFH¶VGXW\GUDZEDFNDGMXVWPHQWDVDSSOLHG WRH[SRUWSULFHDQGUHPDQGV&RPPHUFH¶VGHFLVLRQWRPDNHD&26 DGMXVWPHQW LQWKH VDPHDPRXQW J URISDICTION AND S TANDARD OF REVIEW 7KHFRXUWKDVMXULVGLFWLRQ SXUVXDQWWR$ D % L RIWKH7DULII $FWRI DVDPHQGHG86&D D % L DQG86& F 7KH FRXUWZLOOXSKROGDQDJHQF\GHWHUPLQDWLRQWKDWLVVXSSRUWHGE\VXEVWDQWLDO HYLGHQFHDQG RWKHUZLVHLQDFFRUGDQFHZLWKODZ 86&D E % L ³7KH UHVXOWVRID UHGHWHUPLQDWLRQSXUVXDQWWRFRXUWUHPDQGDUHDOVRUHYLHZHGIRUFRPSOLDQFH ZLWKWKH FRXUW¶VUHPDQGRUGHU´SolarWorld Ams., Inc. v. United States&,7BB_, ___, )6XSSG FLWDWLRQDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHd 'HIHQGDQW-,QWHUYHQRUVFRQVLVWRI$UFHORU0LWWDO86$//&$.6WHHO&RUSRUDWLRQ1XFRU &RUSRUDWLRQ6WHHO'\QDPLFV,QF66$%(QWHUSULVHV//&DQG8QLWHG6WDWHV6WHHO &RUSRUDWLRQ'HI-,QWV¶5HSO\&PWVDW $OOIXUWKHUFLWDWLRQVWRWKH7DULII$FWRIDVDPHQGHGDUHWR7LWOHRI WKH86 &RGHDQGDOOUHIHUHQFHVWRWKH86&RGHDUHWRWKHHGLWLRQXQOHVVRWKHUZLVH VWDWHG Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 5 of 27
&RQVRO&RXUW1R 16-00218 3DJH6 DISCUSSION I. Duty Drawback and Circumstance of Sale Adjustments A. Commerce’s Duty Drawback Calculation Methodologies Prior to Erdemir II 7RGHWHUPLQHZKHWKHUWKHVXEMHFWPHUFKDQGLVHLVEHLQJVROGDWOHVVWKDQIDLU YDOXH&RPPHUFHFRPSDUHVWKHH[SRUWSULFH RUFRQVWUXFWHGH[SRUWSULFH6 RIWKHVXEMHFW PHUFKDQGLVHWRLWVQRUPDOYDOXHSee generally 86& et seq. *HQHUDOO\ DQDQWLGXPSLQJGXW\LVWKHDPRXQWE\ZKLFKWKHQRUPDOYDOXHRIDSURGXFW—W\SLFDOO\LWV SULFHLQWKHH[SRUWLQJFRXQWU\—H[FHHGVH[SRUWSULFH, DVDGMXVWHG See id2QH RIWKHDGMXVWPHQWV&RPPHUFHPDNHVWRH[SRUW SULFHSXUVXDQWWR86&D F LVNQRZQDVWKH³GXW\GUDZEDFNDGMXVWPHQW´ 6SHFLILFDOO\&RPPHUFHLVWRLQFUHDVH H[SRUWSULFH E\³WKHDPRXQWRIDQ\ LPSRUWGXWLHVLPSRVHGE\WKHFRXQWU\RIH[SRUWDWLRQ ZKLFKKDYHEHHQUHEDWHGRUZKLFKKDYHQRWEHHQFROOHFWHGE\UHDVRQRIWKH H[SRUWDWLRQRIWKHVXEMHFWPHUFKDQGLVHWRWKH8QLWHG6WDWHV´Id. D F % 7KLV VWDWXWRU\DGMXVWPHQWLVLQWHQGHGWRSUHYHQWWKHGXPSLQJPDUJLQIURPEHLQJLQFUHDVHG E\ LPSRUWWD[HVWKDWDUHLPSRVHGRQ LQSXWV XVHGWRSURGXFHVXEMHFWPHUFKDQGLVHLIWKRVH LPSRUWWD[HVDUHUHEDWHGRUH[HPSWHGIURPSD\PHQWZKHQWKHVXEMHFWPHUFKDQGLVHLV H[SRUWHGWRWKH8QLWHG6WDWHVSee Saha Thai Steel Pipe (Public) Co. Ltd. v. United States)G )HG&LU Wheatland Tube Co. v. United States, 30 6 86SULFHPD\EHEDVHGRQ H[SRUWSULFH RUFRQVWUXFWHGH[SRUWSULFH%HFDXVHWKH GLVWLQFWLRQVEHWZHHQH[SRUWSULFHDQGFRQVWUXFWHGH[SRUWSULFHDUHQRW DWLVVXHLQWKLV FDVHWKHFRXUWJHQHUDOO\ZLOOUHIHURQO\WRH[SRUWSULFHRU86SULFH6XFKUHIHUHQFHV KRZHYHUPD\EHXQGHUVWRRGDVLQFOXGLQJFRQVWUXFWHGH[SRUWSULFH Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 6 of 27
&RQVRO&RXUW1R 16-00218 3DJH &,7) 6XSS G rev’d on other grounds, )G )HG&LU 7KHDGMXVWPHQWDFFRXQWVIRUWKHIDFWWKDWLPSRUWHGLQSXWVUHPDLQ VXEMHFWWRWKHLPSRUWGXWLHVZKHQFRQVXPHGLQWKHSURGXFWLRQRIWKHIRUHLJQOLNHSURGXFW ³ZKLFKLQFUHDVHVKRPHPDUNHWVDOHVSULFHVDQGWKHUHE\LQFUHDVHV>QRUPDOYDOXH@´ Saha Thai, )Gat 1338. ³8QWLOUHFHQWO\&RPPHUFHFDOFXODWHGWKHGXW\GUDZEDFNDGMXVWPHQWWR86SULFH E\GLYLGLQJUHEDWHGRUH[HPSWHGGXWLHVE\WRWDOH[SRUWVDQGDGGLQJWKHUHVXOWDQWSHU XQLWGXW\EXUGHQWRWKHH[SRUWSULFH´Erdemir II, )6XSSGDW:KHQ SURGXFHUVZHUHH[HPSW IURPWKHSD\PHQWRILPSRUWGXWLHV&RPPHUFHDOVRLQFUHDVHG FRVWRISURGXFWLRQDQGFRQVWUXFWHGYDOXH8 WRDFFRXQWIRUWKHFRVWRIWKHH[HPSWHGGXWLHV IRUZKLFKWKHSURGXFHUUHPDLQHGOLDEOHXQWLOWKHH[HPSWLRQSURJUDPUHTXLUHPHQWVZHUH VDWLVILHGId.see also Saha Thai)GDW– DIILUPLQJWKHXSZDUG $GXW\H[HPSWLRQSURJUDPLVGLIIHUHQWIURPDGXW\UHEDWH RUUHLPEXUVHPHQW SURJUDP )RUDUHEDWHSURJUDP³LPSRUWGXWLHVDUHSDLGDQGODWHUUHIXQGHGE\WKHJRYHUQPHQWRI WKHH[SRUWLQJFRXQWU\´2nd 5HPDQG5HVXOWVDW67KXVWKHGXWLHVDUHXVXDOO\ UHFRUGHGDVD³GLUHFWPDWHULDOFRVW´LQWKHSURGXFHU¶VERRNVDQGDVHSDUDWHUHYHQXH LV UHFRUGHGWRERRNWKHDPRXQWRIDQ\GUDZEDFNJUDQWHGLQFRQQHFWLRQZLWKDQH[SRUW WUDQVDFWLRQId. )RUDQH[HPSWLRQSURJUDPDQ³RII-WKH-ERRNV´OLDELOLW\LVFUHDWHGXSRQ LPSRUWDWLRQRIWKHLQSXWZKLFKLVODWHUIRUJLYHQZKHQWKHILQLVKHGSURGXFWLVH[SRUWHG Id. at 1,QWKDWFDVHWKHSURGXFHUW\SLFDOO\ZLOO³QHLWKHUUHFRUGDQDPRXQWIRULPSRUW GXWLHVDVDGLUHFWPDWHULDOFRVWQRUUHFRJQL]HDVHSDUDWHUHYHQXHIRUWKHDPRXQWRI GXW\GUDZEDFNJUDQWHGIRUWKHH[SRUWWUDQVDFWLRQ´Id. at 6–. 8 &RPPHUFHFDOFXODWHVQRUPDOYDOXHXVLQJVDOHVLQWKHKRPHPDUNHWRUDWKLUGFRXQWU\ PDUNHWWKDWDUHDWRUDERYHWKHFRVWRISURGXFWLRQ86&E E :KHQ WKHUHDUHQRVXFKVDOHV&RPPHUFHFDOFXODWHVQRUPDOYDOXH³EDVHGRQWKHFRQVWUXFWHG YDOXHRIWKHPHUFKDQGLVH´Id. 7KHFRVWRISURGXFWLRQLQFOXGHV³WKHFRVWRIPDWHULDOV DQGRIIDEULFDWLRQRURWKHUSURFHVVLQJ´XVHGLQPDQXIDFWXULQJ³VHOOLQJJHQHUDODQG DGPLQLVWUDWLYHH[SHQVHV´DQGWKHFRVWRISDFNDJLQJId. E E &RQVWUXFWHG valXHLQFOXGHVVLPLODUH[SHQVHVDQGDQDPRXQWIRUSURILWId. E H Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 7 of 27
&RQVRO&RXUW1R 16-00218 3DJH8 DGMXVWPHQWWRFRVWRISURGXFWLRQ ,Q&RPPHUFHPRGLILHGLWVGXW\GUDZEDFN DGMXVWPHQW³E\DOORFDWLQJH[HPSWHGGXWLHVRYHUWRWDOSURGXFWLRQUDWKHUWKDQH[SRUWV´ Erdemir II, )6XSSGDW–31&RPPHUFHDGMXVWHGLWVPHWKRGRORJ\LQ UHVSRQVHWRDVVHUWLRQVWKDWPDUJLQGLVWRUWLRQVDURVHZKHQIRUHLJQSURGXFHUV³XVH>G@ IXQJLEOHLQSXWVERWKIURPIRUHLJQVRXUFHVZKLFKLQFXU>UHG@ LPSRUWGXWLHVDQGGRPHVWLF VRXUFHVZKLFK[did] QRW´Id. at 1331 &RPPHUFHUHDVRQHGWKDW³WKHODUJHUGHQRPLQDWRU RQWKHFRVW-VLGH>LHWRWDOSURGXFWLRQ@UHVXOWHGLQDVPDOOHUDGMXVWPHQWWRQRUPDOYDOXH WKDQ86SULFH´FRQVHTXHQWO\LWGHWHUPLQHGWKDW³HTXDOL]LQJWKHGHQRPLQDWRUVXVHGLQ HDFKDGMXVWPHQW´HQVXUHGWKDWDQHTXDODPRXQWZRXOGEHDGGHGWR86SULFHDQG QRUPDOYDOXHDQGWKHDJHQF\ZRXOGFRPSDUHWKHWZRYDOXHVRQD³GXW\QHXWUDO´EDVLV Id. at 1331. ,QWKHDGPLQLVWUDWLYHSURFHHGLQJXQGHUO\LQJErdemir II&RPPHUFHXVHGWKLV PRGLILHGGXW\GUDZEDFNPHWKRGRORJ\WRFDOFXODWHWKHDGMXVWPHQWWR86SULFHDQG PDNHDFRUUHVSRQGLQJHTXDOXSZDUGDGMXVWPHQWRQWKHFRVWVLGHSXUVXDQWWRSaha Thai. See VW5HPDQG5HVXOWVat 11–12, 20–217KHFRXUWUHPDQGHGWKHGXW\ GUDZEDFNDGMXVWPHQWWR86SULFH—VSHFLILFDOO\&RPPHUFH¶VDOORFDWLRQRIWKH H[HPSWHGGXWLHVRYHUWRWDOSURGXFWLRQ—DV³LQFRQVLVWHQWZLWKWKHVWDWXWRU\OLQNDJH EHWZHHQ>WKHIRUHJRQH@GXWLHVDQGH[SRUWHGPHUFKDQGLVH´Erdemir II)6XSSG at 1333 FROOHFWLQJFDVHVUHDFKLQJWKHVDPHFRQFOXVLRQ 7KHFRXUWUHDVRQHGWKDW ³&RQJUHVV . . . FOHDUO\LQWHQGHGWKHDGMXVWPHQWWRFDSWXUHWKHDPRXQWRIGXWLHV dRODNR÷OXZRXOGKDYHSDLGRQLWV H[SRUWVDOHVEXWIRUWKHH[SRUWDWLRQRIWKDW PHUFKDQGLVH´WKXV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 8 of 27
&RQVRO&RXUW1R 16-00218 3DJH9 [a]OORFDWLQJdRODNR÷OX¶V H[HPSWHGGXWLHVRYHUWRWDOSURGXFWLRQ FRQWUDYHQH>G@WKHSODLQODQJXDJHRI86& D F % EHFDXVHLW DWWULEXWH[d] VRPHRIWKH>GXW\@GUDZEDFNWRGRPHVWLFVDOHVZKLFKGRQRW HDUQGUDZEDFNDQGIDLO>HG@ WRDGMXVWH[SRUWSULFHE\WKHDPRXQWRIWKH LPSRUWGXWLHVH[HPSWHGE\UHDVRQRIH[SRUWDWLRQ Id. LQWHUQDOTXRWDWLRQPDUNVDQGFLWDWLRQRPLWWHG 7KHFRXUWIXUWKHUUHMHFWHG &RPPHUFH¶VUHOLDQFHRQSaha Thai WRVXSSRUWLWVUHYLVHGPHWKRGRORJ\Id. at 13. :KLOHWKHFRVW-VLGHDGMXVWPHQWDSSURYHGE\WKHSaha Thai FRXUW³HQVXUH>V@ WKDWQRUPDO YDOXHDQG86SULFHDUHFRPSDUHGRQDPXWXDOO\-GXW\-LQFOXVLYHEDVLV´WKHDSSHOODWH FRXUW³QHYHUVWDWHGRURWKHUZLVHLQIHUUHGWKDWWKHDGMXVWPHQWVWR>86SULFH@ DQGQRUPDO YDOXHPXVWEHHTXDO . . . LQRUGHUWRUHQGHUWKHFRPSDULVRQEHWZHHQ86SULFHDQG QRUPDOYDOXH GXW\QHXWUDO´Id. LQWHUQDOFLWDWLRQVDQGLQWHUQDOTXRWDWLRQPDUNVRPLWWHG 7KHFRXUWUHPDQGHGWKHLVVXH³WRWKHDJHQF\WRUHYLVHLWVFDOFXODWLRQRIWKHGXW\ GUDZEDFNDGMXVWPHQWXVLQJH[SRUWVDVWKHGHQRPLQDWRUUDWKHUWKDQWRWDOSURGXFWLRQ´ Id. B. Commerce’s Calculation Methodology on Remand from Erdemir II ,QDFFRUGDQFHZLWKErdemir II, &RPPHUFHUHFDOFXODWHGWKHGXW\GUDZEDFN DGMXVWPHQWXVLQJH[SRUWVDVWKHGHQRPLQDWRU2nd 5HPDQG5HVXOWVDW6,Q DGGLWLRQKRZHYHU&RPPHUFHPDGHDFLUFXPVWDQFHRIVDOHDGMXVWPHQWWRQRUPDOYDOXH WRDGGWKHVDPHSHU-XQLWDPRXQWRIGXW\³LQRUGHUWRDFKLHYHDIDLUFRPSDULVRQ´Id. at see also id. at 16. dRODNR÷OX LPSRUWHGVHYHUDOLQSXWVVXEMHFWWRYDU\LQJGXWLHVDQGSXUFKDVHGWKH VDPHLQSXWVIURPGRPHVWLFVRXUFHVId. at 12. dRODNR÷OX SDUWLFLSDWHGLQDGXW\ H[HPSWLRQSURJUDPDQGWKXVGLGQRWUHFRUGOLDELOLW\IRUWKHLPSRUWGXWLHVLQitV ERRNV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 9 of 27
&RQVRO&RXUW1R 16-00218 3DJH10 and UHFRUGVId. at $FFRUGLQJWR&RPPHUFHZKHQVXEMHFWPHUFKDQGLVHFDQEH SURGXFHGIURPYDULRXVLQSXWVRQO\VRPHRIZKLFKDUHGXWLDEOHLPSRUWVRUIURPLQSXWV WKDWDUHSURFXUHGIURPIRUHLJQDQGGRPHVWLFVRXUFHV³WKHSUHVXPSWLRQWKDWWKHQRUPDO YDOXHLQFOXGHVWKHIXOOGXW\SURSRUWLRQDWHWRWKHIXOOGXW\GUDZEDFNLVXQFHUWDLQ´Id. at . &RPPHUFHDVVHUWVWKDWPRVWFRXQWULHVSHUPLWVXEVWLWXWLRQRILQSXWVZKLFKPHDQVWKDW ³ZKLOHWKHDFWXDOLPSRUWHGPDWHULDOVXEMHFWWRGXW\LVIXQJLEOHDQG FDQEHFRQVXPHGLQ DQ\RIWKHILQLVKHGJRRGVLWLVDVVLJQHGE\WKHFRPSDQ\WRH[SRUWHGILQLVKHGJRRGVIRU SXUSRVHVRIWKHSURJUDP´Id. 7KXVZKLOHWKHVWDWXWHUHTXLUHV&RPPHUFHWRLQFUHDVH 86SULFHWRDFFRXQWIRUWKHGXWLHVH[HPSWHGE\UHDVRQRIH[SRUWDWLRQWKHUHLVDOHVVHU DPRXQWRI RUQR LPSRUWGXWLHVUHIOHFWHGLQQRUPDOYDOXHId. at –8&RPPHUFH SURYLGHG³WKHIROORZLQJH[DPSOHZKHUHLQRQHXQLWRILQSXWLVGRPHVWLFDOO\VRXUFHGIRU DQGRQHXQLWRILQSXWLVLPSRUWHGIRUSOXVDGXW\´ 8QGHUWKHVWDQGDUGZD\RIGHWHUPLQLQJFRVWVIRUJHQHUDODFFRXQWLQJ SXUSRVHVWKHFRPSDQ\¶VDYHUDJHFRVWIRUWKHLQSXWVSHUXQLWLVWKH GRPHVWLFLQSXWRISOXVWKHLPSRUWHGLQSXWRI GLYLGHGE\ WZRXQLWVRILQSXWZKLFKHTXDOV i.e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d. at 8. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 10 of 27
&RQVRO&RXUW1R 16-00218 3DJH11 $VGLVFXVVHG&RPPHUFHLQLWLDOO\DWWHPSWHGWRUHPHG\WKLVSHUFHLYHGGLVWRUWLRQ E\OLPLWLQJWKHGXW\GUDZEDFNDGMXVWPHQWWRWKHDPRXQWRIGXWLHVLPSXWHGRQWKHFRVW- VLGHId. at 9,QUHVSRQVHWRVHYHUDORSLQLRQVIURPWKLVFRXUWKROGLQJWKDWWKHUHGXFHG dXW\GUDZEDFNDGMXVWPHQWZDVXQODZIXO&RPPHUFHGHYHORSHGDQHZPHWKRGRORJ\ See id. at 9–10 & n.36 FROOHFWLQJFDVHV 6SHFLILFDOO\LQWKRVHFDVHV&RPPHUFH DSSOLHGWKHIXOOGXW\GUDZEDFNDGMXVWPHQWWR86SULFHDSSOLHGWKHFRVW-VLGH DGMXVWPHQWSXUVXDQWWRSaha ThaiDQGDOVRPDGHD&26DGMXVWPHQWWRQRUPDOYDOXH— XOWLPDWHO\LPSXWLQJWKHVDPHDPRXQWRISHU-XQLWGXWLHVWRQRUPDOYDOXHWKDWZHUHDGGHG WR86SULFHId. at 10,QRWKHUZRUGVXVLQJWKHH[DPSOHDERYH&RPPHUFHDGGHG SHUXQLWRILPSRUWGXWLHVWR86SULFH SHUXQLWWRFRVWDQG SHU XQLWWRQRUPDOYDOXHDVD&26DGMXVWPHQWId. 8SRQUHYLHZE\DQRWKHUMXGJHRIWKLVFRXUWWKHFRXUWGHWHUPLQHGWKDWWKHDJHQF\ LPSURSHUO\GRXEOH-FRXQWHGWKHDPRXQWRIGXWLHVLQFOXGHGZLWKLQ QRUPDOYDOXH. Id. at 10 & n.38 FLWLQJUttam Galva Steels Ltd. v. United States, &,7BBBBBB) 6XSS G 7DNLQJWKDWFRXUWRSLQLRQLQWRDFFRXQWZKLOHDOVRDVVHUWLQJWKDW WKHGRXEOH-FRXQWLQJILQGLQJZDVLQHUURU&RPPHUFHIXUWKHUFKDQJHGLWVPHWKRGRORJ\LQ WKLVFDVHWRSURYLGHIRUWZR&26DGMXVWPHQWVWKHILUVW&26DGMXVWPHQWUHPRYHVDOO GXWLHVIURPQRUPDOYDOXHDQGWKHVHFRQG&26DGMXVWPHQW³DGG>V@WRWKHQRUPDOYDOXH WKHVDPHSHU-XQLWDPRXQWRIGXW\DGGHGWR86SULFH´Id. DW&RPPHUFHH[SODLQHG WKDWWKHVHFRQG&26DGMXVWPHQWLVQHFHVVDU\EHFDXVH: . . . WKHLPSRUWGXW\SURJUDPDQGGUDZEDFNSURYLVLRQLPSRVHDGLIIHUHQW VHWRIDFFRXQWLQJDQGGXW\WUHDWPHQWVGHSHQGHQWXSRQZKLFKPDUNHWWKH ILQLVKHGJRRGZDVVROGDQGWKHPDUNHWVIURPZKLFKWKHLPSRUWHGLQSXWLV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 11 of 27
&RQVRO&RXUW1R 16-00218 3DJH12 VRXUFHGDQG WKHHIIHFWRIWKHGLIIHUHQWVRXUFLQJRILQSXWVDQG DVVRFLDWHGGXW\FRVWVDQGKRZWKHGXW\GUDZEDFNLVWUHDWHGIRUWKH86 DQGKRPHPDUNHWVDOHV Id. at 137KHFRPELQHGHIIHFWRIDGXW\H[HPSWLRQVFKHPHDQGGRPHVWLFVRXUFLQJRI LQSXWVIRUIRUHLJQ-OLNHSURGXFWVROGLQWKHKRPHPDUNHWDFFRUGLQJWR&RPPHUFHLVWR ³SHUPLW>@WKHDVVLJQPHQWRILPSRUWHGLQSXWVDQGWKHDVVRFLDWHGLPSRUWGXWLHVWRH[SRUW VDOHVZKLOHDWWULEXWLQJWKHGRPHVWLFSXUFKDVHVH[FOXVLYHRIGXW\WRGRPHVWLFVDOHV´Id. DW 7KLVWUHDWPHQWGLIIHUV³IURPVWDQGDUGFRVWDFFRXQWLQJDQGWKHUHVSRQGHQW¶V QRUPDOERRNVDQGUHFRUGVZKLFKFDOFXODWHDQDQQXDOZHLJKWHG-DYHUDJHSULFHRILQSXWV DQGLVDOORFDWHGWRRYHUDOOSURGXFWLRQYHUVXVPDUNHW-VSHFLILFSURGXFWLRQ´Id. $FFRUGLQJ WR&RPPHUFHWKLVUHVXOWVLQDGXW\-LQFOXVLYH86SULFHEHLQJFRPSDUHGWRDQRUPDO YDOXHWKDWUHIOHFWVOHVVRUQRGXWLHVId. ,QWKH2nd 5HPDQG5HVXOWVDWLVVXHKHUH&RPPHUFHH[SODLQHGWKDWLWGLGQRW PDNHWKHILUVW&26DGMXVWPHQWWRUHPRYHERRNHGGXWLHVEHFDXVHdRODNR÷OX SDUWLFLSDWHGLQDGXW\H[HPSWLRQSURJUDPDQGWKXVFRQVWUXFWHGYDOXHDQGKRPHPDUNHW SULFHVDUHGXW\-H[FOXVLYHSee id. DW &RPPHUFHGLGKRZHYHUPDNHWKHVHFRQG &26DGMXVWPHQWWRDGGWRQRUPDOYDOXHWKHVDPHSHU-XQLWDPRXQWRIGXWLHVWKHDJHQF\ DGGHGWR86SULFH³HQVXULQJWKDWERWKVLGHVRIWKHGXPSLQJHTXDWLRQFRQWDLQWKHVDPH DPRXQWRISHU-XQLWLPSRUWGXWLHV´Id. at 1. 9 9 &RPPHUFHGLGQRWLPSXWHH[HPSWHGLPSRUWGXWLHVWRWKHFRVWRISURGXFWLRQDVZRXOG EHFRQVLVWHQWZLWKSaha Thai. See QG5HPDQG5HVXOWVDW,QVWHDG&RPPHUFH PDGHD&26DGMXVWPHQWWRQRUPDOYDOXH UHJDUGOHVVRIZKHWKHULWZDVEDVHGRQKRPH PDUNHWVDOHVRUFRQVWUXFWHGYDOXH Id. at 16. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 12 of 27
&RQVRO&RXUW1R 16-00218 3DJH13 ,QWKHUHPDQGSURFHHGLQJdRODNR÷OX FKDOOHQJHG&RPPHUFH¶VUHOLDQFHRQLWV DXWKRULW\WRDGMXVWQRUPDOYDOXHSXUVXDQWWRWKHFLUFXPVWDQFHRIVDOHSURYLVLRQSee id at 20&RPPHUFHH[SODLQHGWKDWLWPDGHWKH&26DGMXVWPHQW³WRDFFRXQWIRU GLIIHUHQFHVQRWRWKHUZLVHDFFRXQWHGIRULQWKHVWDWXWH´Id. at . 7KHQRUPDOYDOXHSURYLVLRQRIWKHVWDWXWHJLYHV&RPPHUFHWKHDXWKRULW\WR LQFUHDVHRUGHFUHDVHQRUPDOYDOXH³E\WKHDPRXQWRIDQ\GLIIHUHQFH RUODFNWKHUHRI EHWZHHQ´86SULFHDQGQRUPDOYDOXH³RWKHUWKDQDGLIIHUHQFHIRUZKLFKDOORZDQFHLV RWKHUZLVHSURYLGHGXQGHUWKLVVHFWLRQ´WKDW&RPPHUFHGHWHUPLQHVLV³ZKROO\RUSDUWO\ GXHWRRWKHU GLIIHUHQFHVLQWKHFLUFXPVWDQFHVRIVDOH´86& E D & LLL &RPPHUFHH[SODLQHGWKDWWKH&26SURYLVLRQLVWKHRQO\SURYLVLRQ WKDW³DGGUHVV>HV@GLIIHUHQFHVLQWKHKRPHPDUNHWSULFHUHODWLQJWRLPSRUWGXWLHV´E\ ZKLFK&RPPHUFHPHDQV³WD[HV LPSRVHGRQO\RQSDUWLFXODULQSXWVDWSDUWLFXODUUDWHV IURPSDUWLFXODUPDUNHWVLQSXWLQWRSDUWLFXODUJRRGVZKLFKFDQEHFODLPHGDQGUHEDWHG RQO\ZKHQUHVROGWRSDUWLFXODUPDUNHWV´2nd 5HPDQG5HVXOWVDW,QWKLVFDVH &RPPHUFHH[SODLQHGdRODNR÷OX LPSRUWV VXEVWLWXWDEOHLQSXWVWKDW³LQFXULPSRUWGXWLHVDW GLIIHUHQWUDWHV RUQRWDWDOO ZKLOHWKHGRPHVWLFDOO\VRXUFHGLGHQWLFDOLQSXWVLQFXUQR GXWLHV´Id7KH7XUNLVKGXW\GUDZEDFNVFKHPHSHUPLWVdRODNR÷OX ³WRDVVXPHWKDWWKH H[SRUWHGSURGXFWFRQVXPHGWKHLQSXWVVXEMHFWWRGXWLHV´DQGWKHGXW\GUDZEDFN SURYLVLRQ86&D F % OLNHZLVH³LPSOLHVWKDWLPSRUWHGLQSXWVVXEMHFW WRLPSRUWGXWLHVZHUHFRQVXPHGLQPDNLQJWKHH[SRUWHGSURGXFWV´Id. &RPPHUFH GHVFULEHGWKHGLIIHUHQW³FLUFXPVWDQFHRIVDOH´DVWKHDVVLJQPHQWRIGXW\FRVWVWR SDUWLFXODUSURGXFWV³EDVHGRQZKHUHWKH\DUHVROG´Id. at 26. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 13 of 27
&RQVRO&RXUW1R 16-00218 3DJH $V&RPPHUFHH[SODLQVLWWKHDJHQF\FRQIURQWHGWKHIROORZLQJ WKH UHTXLUHPHQWWRLQFUHDVH86SULFHWRDFFRXQWIRULPSRUW GXWLHVIRUHJRQHE\UHDVRQRI H[SRUWDWLRQRIWKHVXEMHFWPHUFKDQGLVHLQRUGHU³WRPDNHDIDLUSULFHFRPSDULVRQ´WRD QRUPDOYDOXHWKDWLV³SUHVXPDEO\VHWWRUHFRYHUVXFKLPSRUWGXWLHV´RQJRRGVVROG GRPHVWLFDOO\ DQRUPDOYDOXHWKDWGRHVQRWFRQWDLQDQ\LPSRUWGXWLHVEHFDXVH GXWLDEOHLQSXWVDUHDOORFDWHGWRH[SRUWVDOHVDQG DVWDWXWHWKDWLVVLOHQWRQZKDW &RPPHUFHVKRXOGGRLQWKDWVLWXDWLRQId. at &RPPHUFHGHWHUPLQHGWKDW³>W@KH μRWKHUGLIIHUHQFHVLQWKHFLUFXPVWDQFHVRIVDOH¶SURYLVLRQLV WKHRQO\PHDQV´DWLWV GLVSRVDO³WRHQVXUHDIDLUFRPSDULVRQ´EHWZHHQDGXW\-H[FOXVLYHQRUPDOYDOXHDQGGXW\- LQFOXVLYH86SULFHId. at 26. C. Commerce’s COS Adjustment Contravenes the Plain Language of the Applicable Statute and Regulation dRODNR÷OXUDLVHV VHYHUDOFKDOOHQJHVWR&RPPHUFH¶V 2nd 5HPDQG5HVXOWV IRUHPRVWRIZKLFKLVWKDWWKHVWDWXWRU\&26SURYLVLRQDORQJZLWK&RPPHUFH¶V LPSOHPHQWLQJUHJXODWLRQGRQRWMXVWLI\DQRIIVHWWRWKHVWDWXWRU\GXW\GUDZEDFN DGMXVWPHQWdRODNR÷OX¶V &PWVDW10–12. 7KHFRXUWDJUHHV. See +DEDú, :/ , at *6–11. &RQJUHVVDXWKRUL]HG&RPPHUFHWRDGMXVWQRUPDOYDOXHIRUGLIIHUHQFHVEHWZHHQ QRUPDOYDOXHDQG86SULFHWKDWDUHQRWRWKHUZLVHSURYLGHGIRULQWKHVWDWXWHDQGDUH GXHWR³RWKHUGLIIHUHQFHVLQWKH FLUFXPVWDQFHVRIVDOH´86& E D & LLL ,QWKH6WDWHPHQWRI$GPLQLVWUDWLYH$FWLRQ ³6$$´ DFFRPSDQ\LQJWKH8UXJXD\5RXQG Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 14 of 27
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reprinted in 86&&$110 &RQVLVWHQW ZLWKWKH6$$&RPPHUFH¶VUHJXODWLRQVOLPLW&26DGMXVWPHQWVFRQVLVWHQWZLWK86& E D & LLL WR³GLUHFWVHOOLQJH[SHQVHVDQGDVVXPHGH[SHQVHV´ZLWKRQH H[FHSWLRQIRUFRPPLVVLRQVSDLGLQRQHPDUNHWWKDWLVQRWUHOHYDQWKHUH&)5 E SURYLGLQJIRU&26DGMXVWPHQWV³RQO\IRUGLUHFWVHOOLQJH[SHQVHVDQG DVVXPHGH[SHQVHV´ 'LUHFWVHOOLQJH[SHQVHVDUHGHILQHGDV³H[SHQVHVVXFKDV FRPPLVVLRQVFUHGLWH[SHQVHVJXDUDQWHHVDQGZDUUDQWLHVWKDWUHVXOWIURPDQGEHDUD dLUHFWUHODWLRQVKLSWRWKHSDUWLFXODUVDOHLQTXHVWLRQ´Id. F $VVXPHG H[SHQVHVDUHGHILQHGDV³VHOOLQJH[SHQVHVWKDWDUHDVVXPHGE\WKHVHOOHURQEHKDOIRI WKHEX\HUVXFKDVDGYHUWLVLQJH[SHQVHV´Id. 1 G $FFRUGLQJWRdRODNR÷OX, ³>Q@RWKLQJLQWKHODZUHJXODWLRQVRUSDVWFDVHVVXJJHVWV WKDWLPSRUWGXWLHVWKDWKDYHQRWEHHQFROOHFWHG—RQLQSXWVGHVWLQHGIRUH[SRUWVDOHV— 10 7KH6$$³VKDOOEHUHJDUGHGDVDQDXWKRULWDWLYHH[SUHVVLRQE\WKH8QLWHG6WDWHV FRQFHUQLQJWKHLQWHUSUHWDWLRQDQGDSSOLFDWLRQRIWKH8UXJXD\5RXQG$JUHHPHQWVDQG WKLV$FWLQDQ\MXGLFLDOSURFHHGLQJLQZKLFKDTXHVWLRQDULVHVFRQFHUQLQJVXFK LQWHUSUHWDWLRQRUDSSOLFDWLRQ´ 86& G Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 15 of 27
&RQVRO&RXUW1R 16-00218 3DJH16 TXDOLI\DVD&26OHWDORQHDVDVHOOLQJH[SHQVH´dRODNR÷OX¶V&PWVDW dRODNR÷OX IXUWKHUDUJXHVWKDWWKH 86&RXUWRI$SSHDOVIRUWKH )HGHUDO&LUFXLW ³)HGHUDO&LUFXLW´ KDVGHWHUPLQHGWKDWD&26DGMXVWPHQWPD\QRWEHPDGHWR³QXOOLI\D86SULFH DGMXVWPHQW´Id. at 12 FLWLQJZenith Electronics Corp. v. United States)G )HG&LU 7KH*RYHUQPHQWDUJXHVWKDW³7XUNH\¶VGXW\GUDZEDFNVFKHPHDQGWKHVWDWXWRU\ GXW\GUDZEDFNSURYLVLRQ[] . . . WUDQVIRUPHG WKHLPSRUWGXWLHVVXEMHFWWRWKHGXW\ GUDZEDFNVFKHPHLQWRDGLUHFWVHOOLQJH[SHQVH´*RY¶W¶V5HSO\&PWVDW10 FLWLQJ2nd 5HPDQG 5HVXOWVDW Q 7KH*RYHUQPHQWIXUWKHUDUJXHVWKDW&RPPHUFH¶V&26 DGMXVWPHQWLVDXWKRUL]HGE\WKHVWDWXWRU\UHTXLUHPHQWWRHQVXUHD³IDLUFRPSDULVRQ´ EHWZHHQ86SULFHDQGQRUPDOYDOXHId. DW FLWLQJ86& E D see also id. at 12. 7KH*RYHUQPHQWDOVR DUJXHVWKDW&RPPHUFH¶VPHWKRGRORJ\LVQRWSUHFOXGHGE\ WKHZenith OLQHRIFDVHVId. at 12–13. 'HIHQGDQW-,QWHUYHQRUVDUJXHWKDWdRODNR÷OXWUHDWVLPSRUWVGXWLHVDV³aNLQWR VHOOLQJH[SHQVHV´DQGWKXV&RPPHUFH¶V&26DGMXVWPHQW FRPSOLHV ZLWKWKHDJHQF\¶V UHJXODWLRQ'HI-,QWV¶5HSO\&PWVDW–16see also id. DW ³>,@QFXUULQJLPSRUWGXWLHV DQGWKHH[HPSWLRQRUUHEDWHRIWKRVHGXWLHVLVDQHFRQRPLFDFWLYLW\WKDWRFFXUVLQWKH KRPHPDUNHW.´ 'HIHQGDQW-,QWHUYHQRUVFRQFXUZLWKWKH *RYHUQPHQWWKDWWKH&26 DGMXVWPHQWIXUWKHUVWKHVWDWXWRU\SXUSRVH RIPDNLQJDIDLUFRPSDULVRQId. DW &RPPHUFH¶V&26DGMXVWPHQWWRQRUPDOYDOXHFRQWUDYHQHVERWKWKHVWDWXWRU\ SURYLVLRQDQGWKHDJHQF\¶VLPSOHPHQWLQJUHJXODWLRQ%HJLQQLQJZLWKWKHVWDWXWHWKH FRXUW¶VUHYLHZRI&RPPHUFH¶VLQWHUSUHWDWLRQDQGLPSOHPHQWDWLRQRIDVWDWXWRU\VFKHPH Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 16 of 27
&RQVRO&RXUW1R 16-00218 3DJH LVJXLGHGE\Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc.86 )LUVWWKHFRXUWPXVWGHWHUPLQH³ZKHWKHU&RQJUHVVKDVGLUHFWO\VSRNHQWR WKHSUHFLVHTXHVWLRQDWLVVXH´ Chevron86DW ,I&RQJUHVV¶VLQWHQWLVFOHDU ³WKDWLVWKHHQGRIWKHPDWWHU´DQGWKHFRXUW³PXVWJLYHHIIHFWWRWKHXQDPELJXRXVO\ H[SUHVVHGLQWHQWRI&RQJUHVV´ Id. DW– 2QO\ ³LIWKHVWDWXWHLVVLOHQWRU DPELJXRXV´PXVWWKHFRXUWGHWHUPLQHZKHWKHUWKHDJHQF\¶VDFWLRQ³LVEDVHGRQD SHUPLVVLEOHFRQVWUXFWLRQRIWKHVWDWXWH´ Id. DW. 7KHFRXUWPD\ILQGWKDW³&RQJUHVV KDVH[SUHVVHGXQDPELJXRXVLQWHQWE\H[DPLQLQJ μWKHVWDWXWH¶VWH[WVWUXFWXUHDQG OHJLVODWLYHKLVWRU\DQGDSSO\WKHUHOHYDQWFDQRQVRILQWHUSUHWDWLRQ¶´Gazelle v. Shulkin, )G )HG&LU TXRWLQJHeino v. Shinseki)G )HG&LU &RPPHUFHGHWHUPLQHGWKDWDGMXVWPHQWVWRQRUPDOYDOXHSXUVXDQWWR86& E³GRQRWDGGUHVVGLIIHUHQFHVLQWKHKRPHPDUNHWSULFHUHODWLQJWRLPSRUWGXWLHV RWKHUWKDQWKURXJKWKH&26SURYLVLRQ´2nd 5HPDQG5HVXOWVDWDQG³WKHμRWKHU GLIIHUHQFHVLQWKHFLUFXPVWDQFHVRIVDOH¶SURYLVLRQLVWKHRQO\PHDQVWRHQVXUHDIDLU FRPSDULVRQ´id. at 261RWZLWKVWDQGLQJ&RPPHUFH¶VFODLPVWKHVWDWXWRU\&26 SURYLVLRQ³LVQRWDQRPQLEXVSURYLVLRQWREHXVHGIRUZKDWHYHUDGMXVWPHQW>WKH DJHQF\@VHHN>V@WRHIIHFW´Zenith Electronics Corp. v. United States&,7 )6XSS 7KLVPRUHOLPLWHGXQGHUVWDQGLQJRIWKH&26SURYLVLRQLVFRQILUPHGE\WKH OHJLVODWLYHKLVWRU\7KH6HQDWHUHSRUWDFFRPSDQ\LQJWKHHQDFWPHQWRIWKH&26 SURYLVLRQOLVWVDVDGMXVWDEOHGLIIHUHQFHV³WHUPVRIVDOHFUHGLWWHUPVDQGDGYHUWLVLQJDQG Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 17 of 27
&RQVRO&RXUW1R 16-00218 3DJH18 VHOOLQJFRVWV´DOORIZKLFKDUHDWWHQGDQWWRWKHVDOHRIWKHPHUFKDQGLVH65HS1R- DW :KHQ&RQJUHVVHQDFWHGWKH85$$LQFOXGLQJVHFWLRQELQLWV FXUUHQWIRUPLWLQWHQGHGIRU³&RPPHUFH¶VFXUUHQWSUDFWLFHZLWKUHVSHFWWR>WKH&26@ DGMXVWPHQWWRUHPDLQXQFKDQJHG´ ZLWKWKHH[FHSWLRQRIWKH³FRQVWUXFWHGH[SRUWSULFH RIIVHW´WKDWLVQRWUHOHYDQWKHUH 6$$DWreprinted in 86&&$1 DW 3ULRUWRHQDFWPHQWRIWKH85$$&RPPHUFH¶V&26UHJXODWLRQSURYLGHGWKDWGLIIHUHQFHV LQWKHFLUFXPVWDQFHVRIVDOHIRUZKLFKLWZRXOG³PDNHUHDVRQDEOHDOORZDQFHVQRUPDOO\ >ZHUH@WKRVHLQYROYLQJGLIIHUHQFHVLQFRPPLVVLRQVFUHGLWWHUPVJXDUDQWHHVZDUUDQWLHV WHFKQLFDODVVLVWDQFHDQGVHUYLFLQJ´LQDGGLWLRQWR³GLIIHUHQFHVLQVHOOLQJFRVWV VXFKDV DGYHUWLVLQJ LQFXUUHGE\WKHSURGXFHURUUHVHOOHU´JHQHUDOO\WRWKHH[WHQWWKRVHFRVWV ZHUHDVVXPHG³RQEHKDOIRIWKHSXUFKDVHU´&)5 D $OWKRXJKWKHH[DPSOHVOLVWHGLQWKHUHJXODWLRQDQGOHJLVODWLYHKLVWRU\DUHQRW H[KDXVWLYHWKH\DUHDOOH[DPSOHVRI³H[SHQVHVPDGHWRVXSSRUWDQGSURPRWHVDOHV´ Torrington Co. v. United States)G )HG&LU $UFKHU- GLVVHQWLQJ GLVDJUHHLQJWKDWFHUWDLQIUHLJKWFRVWVFRQVWLWXWHGVHOOLQJH[SHQVHV $GMXVWPHQWVIRUWKHVHW\SHVRIVHOOLQJH[SHQVHVDUHQHFHVVDU\LQRUGHUWRFRPSDUH QRUPDOYDOXHDQG86SULFH³DWDVLPLODUSRLQWLQtKH FKDLQ RI FRPPHUFH.´ Maverick Tube Corp. v. Toscelik Profil, )G )HG&LU FLWDWLRQRPLWWHG &RPPHUFH¶VDGMXVWPHQWIRUDQDVVHUWHGGLIIHUHQFHLQGXW\FRVWVDULVLQJIURP3ODLQWLIIV¶ GLIIHUHQWVRXUFLQJRILQSXWVDQGWKHVWDWXWRU\GXW\GUDZEDFNDGMXVWPHQWSXUVXDQWWR 86&D F % LVQRWDFLUFXPVWDQFHVXUURXQGLQJWKHVDOHRIWKHPHUFKDQGLVH 1RWZLWKVWDQGLQJ&RPPHUFH¶VVWUDLQHGDWWHPSWWRGHVFULEHLWVPHWKRGXVLQJWHUPV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 18 of 27
&RQVRO&RXUW1R 16-00218 3DJH19 UHOHYDQWWRD&26DGMXVWPHQW&RPPHUFHLQIDFWPDGHWKHDGMXVWPHQWWRUHPHG\ZKDW LWFKDUDFWHUL]HGDVDGLVWRUWLRQ11 WKDWDURVHE\RSHUDWLRQRIWKHVWDWXWRU\GUDZEDFN DGMXVWPHQWRQDSDUWLFXODUVHWRIIDFWVSee 2nd 5HPDQG5HVXOWVDW8, 11, 22,QVR GRLQJ&RPPHUFHGLUHFWO\DQGFRPSOHWHO\QXOOLILHGWKHGXW\GUDZEDFNDGMXVWPHQWWR86 SULFHE\DGGLQJWRQRUPDOYDOXHWKHVDPHSHU-XQLWDPRXQWRIH[HPSWHGGXWLHVDGGHGWR 86SULFHId. at 1&RPPHUFHPD\QRWKRZHYHUXVHWKH&26SURYLVLRQWR ³HIIHFWLYHO\ZULW>H@>DVHSDUDWHDGMXVWPHQW@VHFWLRQRXWRIWKHVWDWXWH´Zenith, 988 F.2d DW12 &RPPHUFH¶VFLUFXPYHQWLRQRIWKHVWDWXWRU\VFKHPHFDQQRWEHVDYHGE\LWV DSSHDOWRWKHQHHG³WRHQVXUHDIDLUFRPSDULVRQ´2nd 5HPDQG5HVXOWVDWcf. 11 ,QErdemir IIWKHFRXUWQRWHGWKDW&RPPHUFH¶VFRQFHUQUHJDUGLQJGLVWRUWLRQLVEDVHG RQWKHXQVXEVWDQWLDWHGDVVXPSWLRQWKDW³WKHFRVWRIWKHGRPHVWLFDOO\-VRXUFHGLQSXWV DSSUR[LPDWHVWKHLPSRUWGXW\-H[FOXVLYHFRVWRIWKHIRUHLJQ-VRXUFHGLQSXW´) 6XSS 3d at Q HPSKDVLVRPLWWHG 7KHFRXUWREVHUYHGWKDWDGRPHVWLFVXSSOLHURID GXWLDEOHLQSXW³ZRXOGSULFHLWVSURGXFWDWDOHYHOFRPSHWLWLYHZLWKWKHGXW\-LQFOXVLYHFRVW RIWKHLPSRUWHGLQSXW´DQGWKDW³>L@QVXFKDVFHQDULRLWLVGLIILFXOWWRXQGHUVWDQGWKH PDUJLQHIIHFWRIDSURSHUGXW\GUDZEDFNDGMXVWPHQWDVGLVWRUWLYH´Id. &RPPHUFH¶V H[SODQDWLRQRIWKHGLVWRUWLRQWKDWDULVHVE\RSHUDWLRQRIWKHGXW\GUDZEDFNDGMXVWPHQWLQ WKH2nd 5HPDQG5HVXOWVLQGHHGDVVXPHVWKDWGRPHVWLFDOO\-VRXUFHGDQGIRUHLJQ- VRXUFHGLQSXWVVKDUHWKHVDPHXQLWSULFH ZLWKRXW UHJDUGWRDQ\PDUNHWHIIHFWIURP WKHSHUFHQWGXW\LQ&RPPHUFH¶VH[DPSOH2nd 5HPDQG5HVXOWVDW8&RPPHUFH GRHVQRWH[SODLQZK\WKLVLVVRQRUGRHV&RPPHUFHDGGUHVVWKHFRXUW¶VREVHUYDWLRQLQ WKH2nd 5HPDQG5HVXOWVDQGWKHUHFRUGGRHVQRWRWKHUZLVHVXSSRUWWKHDJHQF\¶V DVVXPSWLRQSee id. 12 dRODNR÷OXDQGWKH*RYHUQPHQWGLVDJUHHRQ WKHDSSOLFDELOLW\RIZenith WRWKHFRXUW¶V UHYLHZRI&RPPHUFH¶VGHWHUPLQDWLRQKHUHSee dRODNR÷OX¶V&PWVDW12*RY¶W¶V5HSO\ &PWVDW2–13cf. 2nd 5HPDQG5HVXOWVDW22–:KLOHZenith DGGUHVVHG &RPPHUFH¶VXVHRID&26DGMXVWPHQWWRUHPHG\WKHHIIHFWRQWKHDQWLGXPSLQJPDUJLQ RIDVHSDUDWHSUH-85$$VWDWXWRU\SURYLVLRQUHODWLQJWRGRPHVWLFWD[HVWKHFRXUW¶V VWDWHPHQWV UHJDUGLQJ&RPPHUFH¶VDXWKRULW\SXUVXDQWWRWKH&26SURYLVLRQUHPDLQ LQVWUXFWLYHLIQRWELQGLQJKHUHSee Zenith)GDW–82. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 19 of 27
&RQVRO&RXUW1R 16-00218 3DJH20 *RY¶W¶V5HSO\&PWV at 9, 12'HI-,QWV.¶ 5HSO\&PWVDW6HFWLRQEUHTXLUHVWKDW ³DIDLUFRPSDULVRQVKDOOEHPDGHEHWZHHQWKHH[SRUWSULFHRUFRQVWUXFWHGH[SRUWSULFH DQGQRUPDOYDOXH´86& E D $VWKH)HGHUDO&LUFXLWKDVUHFRJQL]HGWKH VWDWXWHH[SUHVVO\VHWV RXWKRZWRGHWHUPLQHQRUPDOYDOXH³>L@QRUGHUWRDFKLHYHDIDLU FRPSDULVRQZLWKWKH H[SRUWSULFHRUFRQVWUXFWHGH[SRUWSULFH´Timken Co. v. United States)G )HG&LU FKDUDFWHUL]LQJWKHHQXPHUDWHG UHTXLUHPHQWVDQGDGMXVWPHQWVWRQRUPDOYDOXHLQVXEVHFWLRQV E D – DV ³H[KDXVWLYH´ 7KXVWKH³IDLUFRPSDULVRQ´UHTXLUHPHQWLVPHWZKHQQRUPDOYDOXHLV FDOFXODWHGLQDFFRUGDQFHZLWKWKHVWDWXWHDQGGRHVQRWSURYLGH&RPPHUFHZLWK DGGLWLRQDODXWKRULW\WRPDNHDGMXVWPHQWV³EH\RQGWKRVHH[SOLFLWO\HVWDEOLVKHGLQWKH VWDWXWH´Id.; cf. Micron Tech., Inc. v. United States)G )HG&LU ZKHQ86SULFHLVEDVHGRQFRQVWUXFWHGH[SRUWSULFHD³IDLUFRPSDULVRQ´WR QRUPDOYDOXHLVDFKLHYHGE\PDNLQJVWDWXWRU\DGMXVWPHQWVLQRUGHUWRDUULYHDWWKH DSSURSULDWHOHYHORIWUDGH &RPPHUFHLWVHOIPDGHWKLVSRLQWZKHQLWSURPXOJDWHGWKH UXOHLQLWVFXUUHQWIRUPSee Antidumping Duties; Countervailing Duties)HG5HJ 'HS¶W&RPPHUFH)HE SURSRVHGUXOH H[SODLQLQJWKDWWKH VWDWXWHDQGWKH$QWLGXPSLQJ$JUHHPHQW³VSHFLI\LQGHWDLOWKHPHWKRGVE\ZKLFK>WKH IDLUQHVV@UHTXLUHPHQWLVVDWLVILHG´DQGGHFOLQLQJ WRLQXUHWRLWVHOIWKHDXWKRULW\WRJR IXUWKHU 7KURXJKRXWWKHDOPRVW\HDUVRIDGPLQLVWUDWLRQDQGOLWLJDWLRQSXUVXDQWWRWKH 8UXJXD\5RXQG$JUHHPHQWV$FWYHUVLRQRIWKH7DULII$FWRIDQGLQWKH\HDUVWKDW SUHFHGHGSDUWLHVKDYHDUJXHGIRUDQGDJDLQVWYDULRXVH[WUD-VWDWXWRU\DGMXVWPHQWVDV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 20 of 27
&RQVRO&RXUW1R 16-00218 3DJH21 QHFHVVDU\WRD³IDLUFRPSDULVRQ´RUDOORZLQJIRU³DQDSSOHV-WR-DSSOHV´FRPSDULVRQ *HQHUDOO\VSHDNLQJGRPHVWLFLQWHUHVWHGSDUWLHVKDYHDVVHUWHGWKDWFHUWDLQDGMXVWPHQWV OHDGLQJWRKLJKHUGXPSLQJPDUJLQVDUHQHHGHGWREHIDLUDQGUHVSRQGHQWLQWHUHVWHG SDUWLHVKDYHDVVHUWHGWKDWRWKHUDGMXVWPHQWVOHDGLQJWRORZHUGXPSLQJPDUJLQVDUH QHHGHGWREHIDLU+RZHYHUZKHUHDVKHUH&RQJUHVVKDVSURYLGHGIRUDQDGMXVWPHQW LQRQHSDUWRIWKHGXPSLQJFDOFXODWLRQDQGQRWDQRWKHULWLVQRWIRU&RPPHUFHRUWKH FRXUWWRFLUFXPYHQWWKHOHJLVODWLYHIUDPHZRUNHYHQLIWKHSXUSRUWHGJRDOLVWRUHQGHUDQ DOOHJHGO\IDLUHUFRPSDULVRQSee, e.g., Ad Hoc Comm. of AZ-NM-TX-FL Prods. of Gray Portland Cement v. United States)G– )HG&LU $FFRUGLQJO\ &RPPHUFH¶V&26DGMXVWPHQWWRRIIVHWWKHHIIHFWRIWKHVWDWXWRU\GXW\GUDZEDFN DGMXVWPHQWPXVWEHUHMHFWHGDVLQFRQVLVWHQWZLWKWKHVWDWXWH13 :KLOHUHJXODWRU\FRQVLVWHQF\FDQQRWVDYHDQDGMXVWPHQWRWKHUZLVHLQFRQVLVWHQW ZLWKWKHVWDWXWHWKHFRXUWQRWHVWKDW&RPPHUFH¶V&26DGMXVWPHQWDOVRFRQWUDYHQHVWKH SODLQODQJXDJHRILWVUHJXODWLRQ 7KH)HGHUDO&LUFXLWKDVKHOGWKDW&RPPHUFH¶V 13 'HIHQGDQW-,QWHUYHQRUV¶UHOLDQFHRQBudd Co., Wheel & Brake Div. v. United States, &,7–603, )6XSS1093–1100 WRVXSSRUWWKHSURSRVLWLRQ WKDW&RPPHUFHPD\PDNHD&26DGMXVWPHQWJHQHUDOO\WRUHPHG\ ³DQLPEDODQFHLQWKH GXPSLQJFDOFXODWLRQ´LVXQSHUVXDVLYHSee 'HI-,QWV¶&PWVDW ,QBudd Co., WKH FRXUWXSKHOGD&26DGMXVWPHQWLQWHQGHG WRUHPHG\ FXUUHQF\IOXFWXDWLRQVWKDWUHVXOWHG IURP &RPPHUFH¶VDSSOLFDWLRQRILWVFXUUHQF\FRQYHUVLRQUHJXODWLRQV&,7DW602– )6XSSDW1099–1103. Budd Co. LVIDFWXDOO\LQDSSRVLWHQRQ-ELQGLQJ and SUHGDWHVVHYHUDO)HGHUDO&LUFXLWRSLQLRQVFLWHGKHUHLQLQFOXGLQJZenith, Timken Co., and Ad Hoc Committee of AZ-NM-TX-FL ProducersZKLFKGLVFXVVLQGHWDLO &RPPHUFH¶VDXWKRULW\WRPDNH&26DGMXVWPHQWVDQGREOLJDWLRQWRUHQGHUD³IDLU FRPSDULVRQ´$FFRUGLQJO\WKHFRXUW DGKHUHVWRWKRVHDXWKRULWLHV. &RPPHUFH¶VUHJXODWLRQSURYLGHVIRUD&26DGMXVWPHQW³RQO\IRUGLUHFWVHOOLQJ H[SHQVHVDQGDVVXPHGH[SHQVHV´&)5 E :KLOH&RPPHUFHGLGQRW VSHFLI\ZKLFKRIWKHWZRFDWHJRULHVLWFRQVLGHUHGWKHDGMXVWPHQWDWLVVXHWRIDOOZLWKLQLW Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 21 of 27
&RQVRO&RXUW1R 16-00218 3DJH22 LGHQWLILFDWLRQRIDSDUWLFXODUFRVWDVD³VHOOLQJH[SHQVH>@SURSHUO\WKHVXEMHFWRID&26 DGMXVWPHQW´UHSUHVHQWVDQLQVWDQFHRIWKHDJHQF\³VLPSO\LQWHUSUHWLQJLWVRZQ UHJXODWLRQV´WRZKLFKWKHFRXUWRZHV³VXEVWDQWLDOGHIHUHQFH´Torrington Co., )G at FLWLQJThomas Jefferson Univ. v. Shalala, 86 see also Auer v. Robbins86 –62 DFFRUGLQJGHIHUHQFHWRDQDJHQF\¶V³IDLU DQGFRQVLGHUHG´LQWHUSUHWDWLRQRILWVRZQDPELJXRXVUHJXODWLRQ 0RUHUHFHQWO\ KRZHYHUWKH866XSUHPH&RXUWFDXWLRQHGWKDW³DFRXUWVKRXOGQRWDIIRUGAuer GHIHUHQFHXQOHVVWKHUHJXODWLRQLVJHQXLQHO\DPELJXRXV´Kisor v. Wilkie, 139 S. &W ³>%@HIRUH FRQFOXGLQJWKDWDUXOHLVJHQXLQHO\DPELJXRXV, DFRXUW PXVWH[KDXVWDOOWKH‘WUDGLWLRQDOWRROV¶ RIFRQVWUXFWLRQ´Id. TXRWLQJ Chevron, 86at Q 7KRVH³WRROV´FRQVLVWRI³WKHWH[WVWUXFWXUHKLVWRU\DQGSXUSRVHRID UHJXODWLRQ´Id. 7XUQLQJILUVWWRWKHSODLQODQJXDJHRIWKHUHJXODWLRQWKHFRXUWPXVW³FRQVLGHUWKH WHUPVLQDFFRUGDQFHZLWKWKHLUFRPPRQPHDQLQJ´ Mass. Mut. Life Ins. Co. v. United States)G )HG&LU TXRWLQJLockheed Corp. v. Windnall, 113 F.3d )HG&LU $³GLUHFWVHOOLQJH[SHQVH´PXVWEH DQ³H[SHQVH>@´ WKDW ³UHVXOW>V@IURPDQGEHDU>V@DGLUHFWUHODWLRQVKLSWRWKHSDUWLFXODUVDOHLQ TXHVWLRQ´&)5 F &RPPHUFH¶VUHJXODWLRQLQFOXGHV³FRPPLVVLRQV VRXJKWWR H[SODLQZK\FHUWDLQ³GXW\FRVWV´³DUHGLUHFWO\UHODWHGWRWKHVDOHVLQGLIIHUHQW PDUNHWV´2nd 5HPDQG5HVXOWVDW26)URPWKLVWKHFRXUWGLVFHUQVWKDW&RPPHUFH FRQVLGHUVWKH&26DGMXVWPHQWWRIDOOZLWKLQWKHFDWHJRU\IRUGLUHFWVHOOLQJH[SHQVHV See &)5 F GHILQLQJ³GLUHFWVHOOLQJH[SHQVHV´DVH[SHQVHV³WKDWUHVXOW IURPDQGEHDUDGLUHFWUHODWLRQVKLSWRWKHSDUWLFXODUVDOHLQTXHVWLRQ´ Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 22 of 27
&RQVRO&RXUW1R 16-00218 3DJH23 FUHGLWH[SHQVHVJXDUDQWHHVDQGZDUUDQWLHV´DVH[DPSOHVRIGLUHFWVHOOLQJH[SHQVHV Id$OORIWKHVHH[DPSOHVLQYROYHDQDFWXDORULPSXWHGH[SHQGLWXUHE\WKHUHVSRQGHQW &RPPHUFH¶VGHWHUPLQDWLRQLQWKHUHPDQGSURFHHGLQJLVLQFRQVLVWHQWZLWKWKH plain ODQJXDJHRIWKHUHJXODWLRQDQGWKXVPHULWVQRGHIHUHQFH&RPPHUFH¶V DGMXVWPHQWIRUGLIIHUHQFHVLQLPSRUWGXWLHVsee 2nd 5HPDQG5HVXOWVDW13–, LJQRUHVWKHIDFWWKDWdRODNR÷OX ³did not incur and record any actual duty costs in LWV QRUPDOERRNVDQG UHFRUGV 5DWKHUDQ‘RII-WKH-ERRNV¶ OLDELOLW\ZDVJHQHUDWHGZKHQ LQSXWVZHUHLPSRUWHGXQGHUWKH,35 SURJUDPand that liability was later reversed XSRQ H[SRUWDWLRQRIVXEMHFWPHUFKDQGLVHWRWKH 8QLWHG6WDWHVDQGRWKHUPDUNHWV´Id. at HPSKDVLVDGGHG see also id. ³dRODNR÷OX did not pay RU UHFRUGDVDFRVWany duties DVVRFLDWHGZLWKWKH,35H[HPSWLRQSURJUDP.´ HPSKDVLVDGGHG +HUHWKHUHFRUGLV FOHDUWKDWdRODNR÷OX LQFXUUHGno expense UHVSHFWLQJLPSRUWGXWLHVRQLQSXWVFRQVXPHG LQWKHSURGXFWLRQRIVXEMHFWPHUFKDQGLVHSee id. &RPPHUFHIRFXVHGRQWKHIDFWWKDW86SULFHLVXOWLPDWHO\GXW\-LQFOXVLYHDVWKH EDVLVIRUWKH&26DGMXVWPHQWKRZHYHUVXFKLVWKHFDVHE\RSHUDWLRQRIWKHGXW\ GUDZEDFNDGMXVWPHQWId. at –26&RPPHUFHRIIHUVQRH[SODQDWLRQDVWRKRZD VWDWXWRU\DGMXVWPHQWWR86SULFHFRQVWLWXWHVDQ³H[SHQVH´DVWKHWHUPLVFRPPRQO\ XQGHUVWRRGRULQGHHGDFLUFXPVWDQFHRIVDOH7KHGXW\GUDZEDFNDGMXVWPHQWUHVXOWHG &UHGLWH[SHQVHVDUHW\SLFDOO\LPSXWHGH[SHQVHVIRUWKHVHOOHUUHSUHVHQWLQJWKHWLPH YDOXHRIPRQH\IRUWKHSHULRGEHWZHHQVKLSPHQWDQGSD\PHQWSee generally ,PSRUW $GPLQ3ROLF\%XOOHWLQ,PSXWHG&UHGLW([SHQVHVDQG,QWHUHVW5DWHV )HE available at KWWSVHQIRUFHPHQWWUDGHJRYSROLF\EXOO-KWP ODVWYLVLWHG2FW 2, 2019 6XFKH[SHQVHVUHFRJQL]HWKHYDOXHWRWKHEX\HUDQGWKHFRVWWRWKHVHOOHU RIH[WHQGLQJSD\PHQWWHUPVId. Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 23 of 27
&RQVRO&RXUW1R 16-00218 3DJH IURPWKHRSHUDWLRQRIODZLWZDVQRWLQFXUUHGDVSDUWRIWKHVDOHVSURFHVV:KHQ &RPPHUFHSURPXOJDWHGWKHFXUUHQWUXOHLWH[SOLFLWO\UHMHFWHGGUDIWLQJWKHUHJXODWLRQ³LQ VXFKDZD\DVWRHVVHQWLDOO\IXQFWLRQDVDFDWFK-DOOSURYLVLRQWRDFKLHYHμIDLUQHVV¶´ ILQGLQJWKHDSSURDFKLQFRQVLVWHQWZLWKWKHFDUHIXOO\FUDIWHG VWDWXWRU\VFKHPH16 Antidumping Duties; Countervailing Duties)HG5HJDW,Q DWWHPSWLQJWRGR VRQRZ&RPPHUFHKDVGRQHZKDWWKH6XSUHPH&RXUWVDLGLWFRXOGQRWGR³FUHDW>LQJ@ de facto DQHZUHJXODWLRQ´³XQGHUWKHJXLVHRILQWHUSUHWLQJDUHJXODWLRQ´Kisor, 39 S. &W at FLWDWLRQRPLWWHG 16 7KHFRXUWLVFRQFHUQHGE\WKH*RYHUQPHQW¶VPLVOHDGLQJDOWHUDWLRQRIWKHUHJXODWLRQLQ LWVUHSO\FRPPHQWVWRZLW³7KHUHJXODWLRQVIXUWKHUFODULI\WKDW μ>L@QJHQHUDOWKH 6HFUHWDU\ZLOOPDNHFLUFXPVWDQFHRIVDOHDGMXVWPHQWVRQO\IRUGLUHFWVHOOLQJ H[SHQVHVDQGDVVXPHGH[SHQVHV¶´*RY¶W¶V5HSO\&PWVDW10 DOWHUDWLRQVLQRULJLQDO TXRWLQJ&)5 E 7KH*RYHUQPHQW¶VDOWHUDWLRQVXJJHVWVWKDWWKH SKUDVH³LQJHQHUDO´IRUPVSDUWRIWKHVHQWHQFHGHVFULELQJWKHDGMXVWPHQWVPDGH SXUVXDQWWRWKHUHJXODWLRQLQVXFKPDQQHUWKDWLWDSSHDUVWREURDGHQWKHVFRSHRIWKH UHJXODWLRQ7KHUHJXODWLRQDFWXDOO\SURYLGHV E ,QJHQHUDO:LWKWKHH[FHSWLRQRIWKHDOORZDQFHGHVFULEHGLQSDUDJUDSK H RIWKLVVHFWLRQFRQFHUQLQJFRPPLVVLRQVSDLGLQRQO\RQHPDUNHWWKH >DJHQF\@ ZLOOPDNHFLUFXPVWDQFHVRIVDOHDGMXVWPHQWVXQGHU>86& E@ & LLL . . . RQO\IRUGLUHFWVHOOLQJH[SHQVHVDQGDVVXPHG H[SHQVHV &)5 E 7KXVWKHSKUDVH³,QJHQHUDO´LVWKHKHDGLQJWRVXEVHFWLRQ E QRWSDUWRIWKHWH[W5DWKHUWKDQVSHDNLQJWRWKHVFRSHRIWKHSHUPLVVLEOHDGMXVWPHQWVLW VSHDNVWRWKHVFRSHRIWKHUHJXODWLRQZKLFKZLWKWKHH[FHSWLRQRIFHUWDLQFRPPLVVLRQV SHUPLWVDGMXVWPHQWV³only IRUGLUHFWVHOOLQJH[SHQVHVDQGDVVXPHGH[SHQVHV´Id. HPSKDVLVDGGHG ,WLVDZHOO-VHWWOHGLQWHUSUHWLYHUXOHWKDW³WKHKHDGLQJRIDVHFWLRQ FDQQRWXQGRRUOLPLWWKDWZKLFKWKHWH[WPDNHVSODLQ´Brotherhood of R. R. Trainmen v. Baltimore & Ohio R. Co., 86 FRQVWUXLQJDVWDWXWH see also Aqua Prods., Inc. v. Matal)G )HG&LU SULQFLSOHVRIVWDWXWRU\ LQWHUSUHWDWLRQDSSO\OLNHZLVHWRUHJXODWLRQV 7KH*RYHUQPHQW¶VDOWHUDWLRQZKLFKVHHNV WRQHJDWHWKHH[SOLFLWOLPLWDWLRQWKHZRUG³RQO\´SODFHVRQWKHW\SHVRISHUPLVVLEOH DGMXVWPHQWVLVWKHUHIRUHPLVOHDGLQJDQGHUURQHRXV Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 24 of 27
&RQVRO&RXUW1R 16-00218 3DJH &RPPHUFH¶VUHOLDQFHRQSaha Thai WRVXSSRUWWKHDJHQF\¶VXVHRID&26 DGMXVWPHQWDOVRIDLOVSee QG5HPDQG5HVXOWVDW ³0RUHRYHUWKH)HGHUDO &LUFXit in Saha Thai UXOHGWKDW&RPPHUFHKDVWKHDXWKRULW\WRDGMXVW>QRUPDOYDOXH@ ZKHQWKHGXWLHVDWLVVXHDUHQRWSDLGRULQFOXGHGLQDUHVSRQGHQW¶VERRNVDQG UHFRUGV.´ ,QSaha ThaiWKH)HGHUDO&LUFXLWDIILUPHG&RPPHUFH¶VLQWHUSUHWDWLRQRIFRVW- UHODWHGSURYLVLRQVRIWKHQRUPDOYDOXHVWDWXWHWRLQFOXGH³LPSOLHGFRVWV´ LH XQERRNHGH[HPSWHGGXW\FRVWV DVZHOODV³DFWXDOFRVWV´IRUSXUSRVHVRIFDOFXODWLQJD GXW\-LQFOXVLYHQRUPDOYDOXHWRFRPSDUHWRD86SULFH VXEMHFWWRWKHGXW\GUDZEDFN DGMXVWPHQW)GDW–,QFRQWUDVWWRWKHFRVW-VLGHDGMXVWPHQWDIILUPHGLQ Saha ThaiWKH&26SURYLVLRQDGMXVWVQRUPDOYDOXHHYHQZKHQQRUPDOYDOXHLVEDVHG RQKRPHPDUNHWVDOHVDQGWKDWVDOHVSULFHLVJUHDWHUWKDQWKHFRVWRISURGXFWLRQSee 86& E D % D & LLL E 7KLVDSSURDFKLVGLVWLQFWIURPSaha Thai EHFDXVHLWSUHVXPHVWKDWDWKHRUHWLFDOGXW\OLDELOLW\KDVDSULFHHIIHFWRQKRPH PDUNHWVDOHV6XFKDSUHVXPSWLRQLVFRQWUDU\WRWKHSaha Thai FRXUW¶VREVHUYDWLRQWKDW ³>D@Q LPSRUWGXW\H[HPSWLRQJUDQWHGRQO\IRUH[SRUWHGPHUFKDQGLVHKDVno HIIHFWRQ KRPHPDUNHWVDOHVSULFHV´DQGWKXV³WKHGXW\H[HPSWLRQVKRXOGKDYHno HIIHFWRQ >QRUPDOYDOXH@´)GDW HPSKDVLVDGGHG 7KXVZKLOH&RPPHUFHSURSHUO\ PD\LQFOXGHH[HPSWHGGXWLHVLQLWVcost FDOFXODWLRQVid. DW–Saha Thai FDQQRW VXSSRUWD&26DGMXVWPHQWWRSULFH-EDVHGQRUPDOYDOXH$FFRUGLQJO\WKHFRXUWILQGV WKDW&RPPHUFH¶V&26DGMXVWPHQWLVDOVREDUUHGE\WKHXQDPELJXRXVODQJXDJHRIWKH Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 25 of 27
&RQVRO&RXUW1R 16-00218 3DJH26 UHJXODWLRQ 7KLVLVVXHZLOOEHUHPDQGHGWRWKHDJHQF\IRUUHFRQVLGHUDWLRQFRQVLVWHQW ZLWKWKHIRUHJRLQJ CONCLUSION AND O RDER ,QDFFRUGDQFHZLWKWKHIRUHJRLQJLWLVKHUHE\ ORDERED WKDW&RPPHUFH¶V2nd 5HPDQG5HVXOWVDUHUHPDQGHGLWLVIXUWKHU ORDERED WKDW, RQUHPDQG&RPPHUFHVKDOOFRQVLVWHQWZLWKWKLV2SLQLRQ UHFDOFXODWHQRUPDOYDOXHZLWKRXWPDNLQJDFLUFXPVWDQFHRIVDOHDGMXVWPHQWUHODWHGWR WKHGXW\GUDZEDFNDGMXVWPHQWPDGHWRH[SRUWSULFH RUFRQVWUXFWHGH[SRUWSULFH LWLV IXUWKHU ORDERED WKDW&RPPHUFHVKDOOILOHLWVUHPDQGUHGHWHUPLQDWLRQRQRUEHIRUH 1/27/2020LWLVIXUWKHU %HFDXVHWKHFRXUWILQGVWKDW&RPPHUFH¶V&26DGMXVWPHQWZDVFRQWUDU\WRWKH UHOHYDQWVWDWXWRU\DQGUHJXODWRU\SURYLVLRQVLWQHHGQRWUHVROYHdRODNR÷OX¶V UHPDLQLQJ FKDOOHQJHVWRWKHDGMXVWPHQWV7KHFRXUWILQGVKRZHYHUWKDWdRODNR÷OX¶V DUJXPHQW WKDW&RPPHUFHIDLOHGWRFRPSO\ZLWKWKHFRXUW¶VLQVWUXFWLRQLQErdemir II UHJDUGLQJWKH DSSURSULDWHGHQRPLQDWRUWRXVHLQFDOFXODWLQJWKHGXW\GUDZEDFNDGMXVWPHQWODFNVPHULW See dRODNR÷OX¶V &PWVDW3–7RVXSSRUWWKLVDUJXPHQWdRODNR÷OXFLWHV &RPPHUFH¶V DPHQGHGILQDOFDOFXODWLRQPHPRUDQGDIURPWKHILUVWDQGVHFRQGUHPDQGSURFHHGLQJV. See id. DW FLWLQJ'UDIW5HVXOWVRI6HFRQG5HGHWHUPLQDWLRQ3XUVXDQWWR6HFRQG 5HPDQGRI&HUWDLQ+RW-5ROOHG6WHHO3URGXFWVIURPWKH5HSXEOLFRI 7XUNH\$P. Final &DOFXODWLRQ0HP. IRUdRODNR÷OX'LV7LFDUHW$6DQGLWV$IILOLDWHV 0D\ ³dRODNR÷OX&DOF0HP´ at 3, 2nd &55&5-$7DE)LQDO5HVXOWVRI 5HGHWHUPLQDWLRQ3XUVXDQWWR5HPDQGRI&HUWDLQ+RW-5ROOHG6WHHO3URGXFWVIURPWKH 5HSXEOLFRI 7XUNH\$P)LQDO&DOFXODWLRQ0HPIRUdRODNR÷OX'LV7LFDUHW$6DQGLWV $IILOLDWHV -XO\ DW–, VW&55&5-$7DE . 7KHFDOFXODWLRQ PHPRUDQGXPUHOHYDQWWRWKHVHFRQGUHPDQGSURFHHGLQJ VKRZV WKDW&RPPHUFH DGMXVWHG86SULFH LQDFFRUGDQFHZLWKdRODNR÷OX¶VVHOI-UHSRUWHGGXW\GUDZEDFN YDULDEOHdRODNR÷OX&DOF0HPDWZKLFKdRODNR÷OXFDOFXODWHGE\GLYLGLQJH[HPSWHG GXWLHV E\WRWDOH[SRUWTXDQWLW\QG5HPDQG5HVXOWVDW. 7KXV&RPPHUFHFRPSOLHG ZLWKWKHFRXUW¶VLQVWUXFWLRQLQWKLVUHJDUG Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 26 of 27
&RQVRO&RXUW1R 16-00218 3DJH ORDERED WKDWVXEVHTXHQWSURFHHGLQJVVKDOOEHJRYHUQHGE\86&,75XOH K and LWLVIXUWKHU ORDERED WKDWDQ\FRPPHQWVRUUHVSRQVLYHFRPPHQWVPXVWQRWH[FHHG ZRUGV. V 0DUN$%DUQHWW 0DUN$%DUQHWW, -XGJH 'DWHG October 29, 2019 1HZ<RUN1HZ<RUN Case 1:16-cv-00218-MAB Document 143 Filed 10/29/19 Page 27 of 27
Wondering how this text applies to your situation?
Free consultation, no commitment
Describe your situation. Our team will contact you by email about your consultation.
Continue your research in ChatGPT or Claude
Connect Omnilex to search the legal corpus from your AI assistant.