Viraj Group, Ltd. v. U.S.

• Decision Date: 09 September 2003
• Docket Number: No. 03-1061.,03-1061.
• Citation: 343 F.3d 1371
• Parties: VIRAJ GROUP, LTD., Plaintiff, v. UNITED STATES, Defendant-Appellant, and Carpenter Technology Corporation, Empire Specialty Steel, Inc., and The United Steel Workers of America, AFL-CIO/CLC, Defendants.
• Court: U.S. Court of Appeals — Federal Circuit

343 F.3d 1371

VIRAJ GROUP, LTD., Plaintiff, v. UNITED STATES, Defendant-Appellant, and Carpenter Technology Corporation, Empire Specialty Steel, Inc., and The United Steel Workers of America, AFL-CIO/CLC, Defendants.

No. 03-1061.

United States Court of Appeals, Federal Circuit.

September 9, 2003.

COPYRIGHT MATERIAL OMITTED

Michael D. Panzera, Attorney, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, DC, argued for defendant-appellant. On the brief were David M. Cohen, Director; and Lucius B. Lau, Assistant Director. Of counsel on the brief were John D. McInerney, Chief Counsel for Import Administration; Berniece A. Brown, Senior Counsel; and David W. Richardson, Senior Attorney, Department of Commerce, of Washington, DC. Of counsel was Christine Sohar, Attorney, Department of Commerce.

Before LOURIE, SCHALL, and LINN, Circuit Judges.

LOURIE, Circuit Judge.

The United States appeals from the decision of the United States Court of International Trade affirming the Department of Commerce's third remand redetermination of a dumping margin. Viraj Group, Ltd. v. United States, 217 F.Supp.2d 1359 (Ct. Int'l Trade 2002) ("Viraj IV"). Because we conclude that the court failed to give priority to an express statutory provision, we reverse.

BACKGROUND

Viraj manufactures stainless steel wire rod in India and imports the same into the United States. The United States Department of Commerce initiated an antidumping investigation. It concluded that Viraj was dumping that merchandise onto the United States market at a margin of 11.88%, and that an antidumping duty rate of the same percentage should be applied to Viraj's imports. Viraj Group, Ltd. v. United States, 162 F.Supp.2d 656, 658 (Ct. Int'l Trade 2001) ("Viraj I"). Commerce calculated that dumping margin based upon the rupee-dollar exchange rate on November 3, 1997, the date of a Viraj purchase order, which Commerce determined established the date of sale. Id. at 660.

Viraj appealed to the Court of International Trade, asserting, inter alia, that Commerce inaccurately computed the dumping margin for its imports by failing to take account of fluctuations in the rupee-dollar exchange rate. Id. at 661. More specifically, Viraj contended that, because the rupee had devalued over 10% in relation to the dollar over the period of the investigation after November 3, 1997, Commerce's selection of an earlier exchange rate distorted the dumping margin. Id. According to Viraj, Commerce's computation was entirely due to its erroneous choice of an exchange rate. Id.

The court was not satisfied with Commerce's choice of an exchange rate date. While "not disput[ing] that Commerce adhered to its regulatory and statutory obligations to utilize the exchange rate in effect on the date of sale," id., the court stated that "[m]ere compliance with regulations cannot trump what appears to be an absurd result," id. at 662. The court held that "Commerce is under a duty to determine dumping rates as accurately as possible" and, according to the court, it was not clear whether Commerce had done so. Id. at 662-63. Accordingly, the court held that Commerce's failure to justify its choice of an exchange rate was contrary to law, and it remanded for Commerce to provide either a justification for its choice or a recalculation of the dumping margin. Id. at 663-64.

On remand, Commerce explained its reasons for believing that its choice of exchange rates, besides being statutorily required, resulted in an accurate dumping margin. Viraj Group, Ltd. v. United States, 193 F.Supp.2d 1331, 1334 (Ct. Int'l Trade 2002) ("Viraj II"). Viraj again appealed, and the court found that Commerce's explanation was inadequate and again remanded. Id. at 1339. Commerce filed in the court a second remand redetermination further supporting its original determination; the court again found it unsatisfactory and remanded yet again. Viraj Group, Ltd. v. United States, 206 F.Supp.2d 1340, 1344 (Ct. Int'l Trade 2002) ("Viraj III").

In its third remand redetermination, Commerce acquiesced and recalculated the dumping margin utilizing the exchange rate on the date of payment, not the November 3, 1997 date of sale. The new result was a dumping rate of zero for Viraj. However, Commerce noted that the methodology forced upon it by the court did not improve accuracy and that it in fact distorted the dumping determination. Finally, Commerce complained that the court-ordered methodology was "inconsistent with the statute." The court affirmed while not endorsing Commerce's reasoning. Viraj IV at 1361.

The government timely appealed to this court, and our jurisdiction is based on 28 U.S.C. § 1295(a)(5).

DISCUSSION

We review decisions of the Court of International Trade reviewing Commerce's antidumping determinations by applying "anew" that court's standard of review set forth in 19 U.S.C. § 1516a(b)(1)(B)(i). Ta Chen Stainless Steel Pipe, Inc. v. United States, 298 F.3d 1330, 1335 (Fed.Cir.2002), cert. denied, ___ U.S. ___, 123 S.Ct. 2073, 155 L.Ed.2d 1059 (2003). Accordingly, we will uphold Commerce's determination unless it is "unsupported by substantial evidence on the record, or otherwise not in accordance with law." 19 U.S.C. § 1516a(b)(1)(B)(i) (2000). In reviewing Commerce's interpretation of an antidumping statute, we afford Commerce Chevron deference. Pesquera Mares Australes Ltda. v. United States, 266 F.3d 1372, 1382 (Fed.Cir.2001) (citing United States v. Mead, 533 U.S. 218, 229, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001)). Under the Chevron paradigm, if a statute unambiguously addresses the question at issue, we will follow that unambiguous guidance, but if Congress's intent is unascertainable or ambiguous, we must defer to the agency's interpretation, as set forth in a regulation adopted by notice-and-comment rulemaking, provided that it is reasonable in light of the overall statutory scheme. Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). Additionally, in recognition of Commerce's expertise in the generally complex field of antidumping investigations, we afford the same sort of deference to Commerce's antidumping determinations "even when ... there is no applicable regulation." Pesquera, 266 F.3d at 1379.

On appeal, the government argues that its attempt to utilize the sale-date exchange rate complied with 19 U.S.C. § 1677b-1 and 19 C.F.R. § 351.415, and that substantial evidence supports its finding that none of the exceptions to those provisions is applicable. The government further contends that the goal of achieving an accurate dumping margin is general and hortatory and does not displace Congress's specific command to use a sale-date exchange rate. Even if Commerce could ignore the language of the statute in order to achieve a more accurate dumping margin, according to the government, using the sale-date exchange rate achieves that goal, whereas the Court of International Trade's methodology based on post-sales events is distortive.

Viraj did not file a responsive brief and has not participated in this appeal.

A preliminary issue is whether this case presents a case or controversy that we can adjudicate. The Constitution establishes that "[t]he judicial power shall extend to cases ... [or] controversies...." U.S. Const. art. III, § 2, cl. 1. That clause has been interpreted as a prohibition against federal courts' rendering decisions in cases in which the parties bringing the case lack standing. See Pandrol USA, LP v. Airboss Ry. Prods., Inc., 320 F.3d 1354, 1367 (Fed.Cir.2003) (citing Lewis v. Casey, 518 U.S. 343, 349 n. 1, 116 S.Ct. 2174, 135 L.Ed.2d 606 (1996)). We pause to consider whether this is such a case, even though no party has raised the issue. Id. (citing Nat'l Org. of Women, Inc. v. Scheidler, 510 U.S. 249, 255, 114 S.Ct. 798, 127 L.Ed.2d 99 (1994) ("[T]he court sua sponte can raise the issue of standing for the first time at any stage of the litigation, including on appeal.")); see also Arizonans for Official English v. Arizona, 520 U.S. 43, 64, 117 S.Ct. 1055, 137 L.Ed.2d 170 (1997) (holding that the standing requirement must be satisfied by persons seeking appellate review). We do so because this appeal comes to us in a strange posture: The government has appealed from the court's decision affirming the government agency's determination; in other words, the winner has appealed because its determination was affirmed by the trial court only on the basis of reasoning with which it disagrees.

When questioned at oral argument whether it has standing to appeal as the prevailing party, the government responded that it could not have appealed from one of the court's earlier decisions because the court's judgments in those earlier decisions were remands, which are nonappealable. The government's premise is correct in that the general rule is that decisions by a court remanding a matter to an agency are nonfinal and not appealable to a reviewing court. Cabot Corp. v. United States, 788 F.2d 1539, 1542 (Fed.Cir. 1986). However, there are certain exceptions to the general rule, and the question remains whether the government, under one of those exceptions, should have appealed from one of the court's earlier decisions, and whether its failure to do so deprives it of standing in this appeal.

One of the exceptions to the finality requirement is the collateral order doctrine, which permits an appeal from a nonfinal decision that conclusively adjudicates an issue completely separate from the merits, if that issue would be effectively unreviewable after a later final judgment. Travelstead v. Derwinski, 978 F.2d 1244, 1247 n. 7 (Fed.Cir.1992) (citing Cohen v. Beneficial Indus. Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 93 L.Ed. 1528 (1949)). Another exception more specific to judicial review of agency determinations is one in which (1) a court's remand decision makes an important legal...