Federal-Mogul Corp. v. US, 92-06-00422
| Decision Date | 26 August 1994 |
| Docket Number | No. 92-06-00422,Slip Op. No. 94-136.,92-06-00422 |
| Parties | FEDERAL-MOGUL CORPORATION, Plaintiff, The Torrington Company, Plaintiff-Intervenor, v. UNITED STATES, Defendant, SKF USA Inc., SKF France S.A., SKF GmbH, SKF Industrie, S.p.A., SKF (U.K.) Limited and SKF Sverige, AB; FAG Kugelfischer Georg Schafer KGaA, FAG Cuscinetti SpA, FAG (UK) Limited, Barden Corporation (UK) Limited, FAG Bearings Corporation, the Barden Corporation and Barden Precision Bearings Corporation; RHP Bearings and RHP Bearings Inc.; Peer Bearing Company; Koyo Seiko Co., Ltd. and Koyo Corporation of U.S.A.; NSK Ltd. and NSK Corporation; SNR Roulements; NTN Bearing Corporation of America, American NTN Bearing Manufacturing Corporation, NTN Corporation and NTN Kugellagerfabrik (Deutschland) GmbH, Defendant-Intervenors. |
| Court | U.S. Court of International Trade |
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Frederick L. Ikenson, P.C., Frederick L. Ikenson, J. Eric Nissley, Joseph A. Perna, V and Larry Hampel, Washington, DC, for plaintiff, Federal-Mogul Corp.
Stewart and Stewart, Eugene L. Stewart, Terence P. Stewart, Wesley K. Caine and Robert A. Weaver, Washington, DC, for plaintiff-intervenor the Torrington Co.
Frank W. Hunger, Asst. Atty. Gen., David M. Cohen, Director, Commercial Litigation Branch, Civ. Div., U.S. Dept. of Justice, Marc E. Montalbine; Stephen J. Claeys, Craig R. Giesze, Dean A. Pinkert, Thomas H. Fine and Alicia Greenidge, Atty.-Advisors, Office of the Chief Counsel for Import Admin., U.S. Dept. of Commerce, of counsel, Washington, DC, for defendant.
Howrey & Simon, Herbert C. Shelley, Alice A. Kipel, Juliana M. Cofrancesco and Thomas J. Trendl, Washington, DC, for defendant-intervenors SKF USA Inc., SKF France S.A., SKF GmbH, SKF Industrie, S.p.A., SKF (U.K.) Ltd. and SKF Sverige, AB.
Grunfeld, Desiderio, Lebowitz & Silverman, Max F. Schutzman, Andrew B. Schroth, David L. Simon and Matthew L. Pascocello, New York City, for defendant-intervenors FAG Kugelfischer Georg Schafer KGaA, FAG Cuscinetti SpA, FAG (UK) Ltd., Barden Corp. (UK) Ltd., FAG Bearings Corp., the Barden Corp. and Barden Precision Bearings Corp.
Covington & Burling, Harvey M. Applebaum, David R. Grace and Thomas A. Robertson, Washington, DC, for defendant-intervenors RHP Bearings and RHP Bearings Inc.
Venable, Baetjer, Howard & Civiletti, John M. Gurley and Lindsay B. Meyer, Washington, DC, for defendant-intervenor Peer Bearing Co.
Powell, Goldstein, Frazer & Murphy, Peter O. Suchman, Neil R. Ellis, T. George Davis and Niall P. Meagher, Washington, DC, for defendant-intervenors Koyo Seiko Co., Ltd. and Koyo Corp. of U.S.A.
Coudert Brothers, Robert A. Lipstein, Matthew P. Jaffe, Nathan V. Holt, Grace W. Lawson and Alice E.M. Aragones, Washington, DC, for defendant-intervenors NSK Ltd. and NSK Corp.
Grunfeld, Desiderio, Lebowitz & Silverman, Bruce M. Mitchell, David L. Simon, Philip S. Gallas, Jeffrey S. Grimson, Andrew B. Schroth and Matthew L. Pascocello, New York City, for defendant-intervenor SNR Roulements.
Barnes, Richardson & Colburn, Robert E. Burke, Donald J. Unger, Kazumune V. Kano and Diane A. MacDonald, Chicago, IL, for defendant-intervenors NTN Bearing Corp. of America, American NTN Bearing Mfg. Corp., NTN Corp. and NTN Kugellagerfabrik (Deutschland) GmbH.
Plaintiff, Federal-Mogul Corporation ("Federal-Mogul"), challenges certain aspects of the Department of Commerce, International Trade Administration's ("ITA") determination in Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France; et al.; Final Results of Antidumping Duty Administrative Reviews ("Final Results"), 57 Fed.Reg. 28,360 (1992). Amendments to the Final Results did not alter the results in any respect relevant to the issues discussed herein. Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Romania, Singapore, Sweden, Thailand, and the United Kingdom; Amendment to Final Results of Antidumping Duty Administrative Reviews, 57 Fed.Reg. 32,969, (1992); Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France, Germany, Italy, Japan, Sweden, and the United Kingdom; Amendment to Final Results of Antidumping Duty Administrative Reviews, 57 Fed.Reg. 59,080 (1992).
Numerous defendant-intervenors oppose plaintiff's challenge.
On June 28, July 19 and August 14, 1991, the ITA announced its initiation of administrative reviews of respondents' ball bearing, cylindrical roller bearing and spherical plain bearing imports. Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From the Federal Republic of Germany, France, Italy, Japan, Romania, Singapore, Sweden, Thailand, and the United Kingdom; Initiation of Antidumping Administrative Reviews, 56 Fed.Reg. 29,618 (1991); Initiation of Antidumping and Countervailing Duty Administrative Reviews, 56 Fed.Reg. 33,251 (1991); Initiation of Antidumping and Countervailing Duty Administrative Reviews, 56 Fed.Reg. 40,305 (1991).
On March 31, 1992, the ITA published its preliminary determinations in the second administrative reviews. Antifriction Bearings (Other Than Tapered Roller Bearings) and Parts Thereof From France; Preliminary Results of Antidumping Duty Administrative Reviews and Partial Termination of Administrative Reviews, 57 Fed.Reg. 10,859 (1992); 57 Fed.Reg. 10,862 (1992) (Federal Republic of Germany); 57 Fed.Reg. 10,865 (1992) (Italy); 57 Fed.Reg. 10,868 (1992) (Japan); 57 Fed.Reg. 10,875 (1992) (Sweden); 57 Fed.Reg. 10,878 (1992) (United Kingdom).
On June 24, 1992, the ITA published the consolidated Final Results of nine administrative reviews. Final Results, 57 Fed.Reg. at 28,360.
Federal-Mogul now moves pursuant to Rule 56.1 of the Rules of this Court for partial judgment on the agency record. Plaintiff alleges that the following actions by the ITA, with respect to Germany, France, Italy, Japan, Sweden and the United Kingdom, were unsupported by substantial evidence on the administrative record and not in accordance with law: (1) the ITA's use of a methodology for adjusting United States price ("USP")1 and foreign market value ("FMV")2 for value added tax ("VAT") that (A) improperly allowed a USP adjustment and misapplied best information available ("BIA"), (B) incorrectly calculated tax base for U.S. sales, (C) failed to measure the tax incidence or "pass through" of tax to the home market consumer, (D) failed to impose a cap on the VAT adjustment to USP, and (E) granted a circumstance of sale ("COS") adjustment to FMV to achieve tax neutrality; (2) allowance of a COS adjustment for currency hedging expenses; (3) incorrect treatment of commissions on purchase price ("PP") transactions in the calculation of FMV; (4) incorrect calculation of cash deposit rates; (5) application of a new "all other" rate for cash deposits to unreviewed companies; (6) failure to remove home market commission expenses from sales price before making the sales price to cost of production ("COP") comparison in the calculation of FMV for SKF GmbH ("SKF-Germany"); (7) incorrect calculation of home market credit expenses for SKF Industrie, S.p.A. ("SKF-Italy"); (8) failure to correct a clerical error in FAG Cuseinetti SpA's ("FAG-Italy") reported financial expenses; (9) failure to add an amount for profit to the data FAG-Italy submitted in lieu of related-party transfer prices for purposes of constructed value ("CV") and COP analyses; (10) allowance of a COS adjustment to FMV for FAG-Italy for expenses incurred by FAG Kugelfischer Georg Schafer KGaA ("FAG-Germany"); (11) allowance of a direct COS adjustment to home market price for FAG-Italy's technical services and warranty expenses; (12) removal of home market packing costs from SNR's home market price in the calculation of FMV; (13) incorrect treatment of SKF-Italy's warehouse expense; (14) allowance of a duty drawback adjustment to USP for SKF-Italy; (15) incorrect calculation of Meter, S.p.A.'s ("Meter") credit expenses; and (16) allowance of an adjustment to USP for FAG-Italy, FAG (UK) Limited ("FAG-UK") and FAG-Germany for freight expenses reimbursed. Federal-Mogul Corporation's First Motion for Partial Judgment Upon the Agency Record at 10-124 ("Plaintiff's Brief").
The Court has jurisdiction over this matter pursuant to 19 U.S.C. § 1516a(a)(2) (1988) and 28 U.S.C. § 1581(c) (1988).
This Court must uphold the ITA's final 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) (1988). Substantial evidence is Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 459, 95 L.Ed. 456 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 217, 83 L.Ed. 126 (1938)). "It is not within the Court's domain either to weigh the adequate quality or quantity of the evidence for sufficiency or to reject a finding on grounds of a differing interpretation of the record." Timken Co. v. United States, 12 CIT 955, 962, 699 F.Supp. 300, 306 (1988), aff'd, 894 F.2d 385 (Fed.Cir.1990).
Adjustments to USP for consumption taxes forgiven on merchandise which is exported to the United States are governed by 19 U.S.C. § 1677a(d)(1)(C) (1988) which states:
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