British Steel plc v. US

• Citation: 924 F. Supp. 139
• Decision Date: 02 April 1996
• Docket Number: and 93-09-00567-CVD thru 93-09-00570-CVD.,Slip Op. 96-60. Court No. 93-09-00550-CVD,93-09-00558-CVD
• Parties: BRITISH STEEL PLC, Plaintiff, v. UNITED STATES, Defendant. USINAS SIDERURGICAS de MINAS GERAIS, S.A., et al., Plaintiffs, v. UNITED STATES, Defendant. INLAND STEEL INDUSTRIES, INC., et al., Plaintiffs, v. UNITED STATES, Defendant. LTV STEEL CO., INC., et al., Plaintiffs, v. UNITED STATES, Defendant. LACLEDE STEEL CO., et al., Plaintiffs, v. UNITED STATES, Defendant. LUKENS STEEL CO., INC., et al., Plaintiffs, v. UNITED STATES, Defendant.
• Court: U.S. Court of International Trade

924 F. Supp. 139

BRITISH STEEL PLC, Plaintiff, v. UNITED STATES, Defendant.

USINAS SIDERURGICAS de MINAS GERAIS, S.A., et al., Plaintiffs, v. UNITED STATES, Defendant.

INLAND STEEL INDUSTRIES, INC., et al., Plaintiffs, v. UNITED STATES, Defendant.

LTV STEEL CO., INC., et al., Plaintiffs, v. UNITED STATES, Defendant.

LACLEDE STEEL CO., et al., Plaintiffs, v. UNITED STATES, Defendant.

LUKENS STEEL CO., INC., et al., Plaintiffs, v. UNITED STATES, Defendant.

Slip Op. 96-60. Court Nos. 93-09-00550-CVD, 93-09-00558-CVD, and 93-09-00567-CVD thru 93-09-00570-CVD.

United States Court of International Trade.

April 2, 1996.

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Foreign Producers British Steel plc, Usinas Siderurgicas de Minas Gerais, S.A., Altos Hornos de Mexico, S.A. de C.V., and AG der Dillinger Hüttenwerke challenge Commerce's remand determination on the issue of privatization which arose from methodologies set forth in the General Issues Appendix appended to Certain Steel Products from Austria, 58 Fed.Reg. 37,225, 37,259-73 (Dep't Comm.1993) (final determ.) (General Issues Appendix), as well as the application of those methodologies in Certain Steel Products from Brazil, 58 Fed.Reg. 37,295 (Dep't Comm.1993) (final determ.), Certain Steel Products from Mexico, 58 Fed.Reg. 37,352 (Dep't Comm.1993) (final determ.), Certain Steel Products from the United Kingdom, 58 Fed.Reg. 37,393 (Dep't Comm. 1993) (final determ.), and Certain Steel Products from Germany, 58 Fed.Reg. 37,315 (Dep't Comm.1993) (final determ.). Domestic Producers AK Steel Corporation,^* Bethlehem Steel Corporation, Geneva Steel, Gulf States Steel Incorporated of Alabama, Inland Steel Industries, Incorporated, Laclede Steel Company, LTV Steel Company, Incorporated, Lukens Steel Company, National Steel Corporation, Sharon Steel Corporation, U.S. Steel Group a Unit of USX Corporation, and WCI Steel, Incorporated support Commerce's remand determination on privatization.

Additionally, the parties to LTV Steel Co., Inc. et al. v. United States, Consol. Court No. 93-09-00568-CVD, Lukens Steel Co., et al. v. United States, Consol. Court No. 93-09-00570-CVD, Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Consol. Court No. 93-09-00558-CVD, and British Steel plc v. United States, Consol. Court No. 93-09-00550-CVD, separately present a number of challenges specific to their respective determinations. Domestic Producers have also submitted a motion to strike in Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Consol. Court No. 93-09-00558-CVD.

Held: Regarding LTV Steel Co., Inc. et al. v. United States, Consol. Court No. 93-09-00568-CVD: the Court's consideration of the Privatization Remand as it pertains to Certain Steel Products from Germany, and of all issues related to or dependent upon privatization in LTV Steel Co., Inc., et al. v. United States, Consol. Court No. 93-09-00568-CVD, consisting of LTV Steel Co., Inc., et al. v. United States, Court No. 93-09-00568-CVD, Thyssen Stahl AG, et al. v. United States, Court No. 93-09-00585-CVD, AG der Dillinger Hüttenwerke v. United States, Court No. 93-09-00596-CVD, and Fried. Krupp AG Hoesch-Krupp and Krupp Hoesch Stahl AG v. United States, Court No. 93-09-00603-CVD, is stayed pending this Court's jurisdiction pursuant to the remand from the Court of Appeals in Saarstahl AG v. United States, 78 F.3d 1539 (Fed.Cir.1996), rev'g and remanding Saarstahl, AG v. United States, 18 CIT ___, 858 F.Supp. 187 (1994);

Regarding Lukens Steel Co., et al. v. United States, Consol. Court No. 93-09-00570-CVD: (1) Commerce's Privatization Remand

as it pertains to AHMSA is sustained; (2) on AHMSA's country-specific brief, (a) AHMSA's first challenge concerning the application of Commerce's repayment methodology to a "loan" provided to AHMSA by the Government of Mexico (GOM) in 1991 has been effectively mooted, (b) Commerce's use of the loan-based methodology, including the mortgage payment schedule aspect, to amortize the benefits accruing from pre-privatization subsidies to AHMSA is sustained, (c) Commerce's verification method and use of BIA to determine AHMSA received a subsidy from the GOM's 1988 and 1990 purchase of AHMSA's debt held by foreign creditors is sustained, (d) Commerce's determination that AHMSA was unequityworthy in the years 1979 through 1987, and 1990 and 1991, is based on substantial evidence and is otherwise in accordance with law; (3) the issues raised by Domestic Producers' country-specific Rule 56.2 brief have been subsumed by British Steel plc v. United States, 19 CIT ___, 879 F.Supp. 1254 (1995), and the present opinion regarding privatization; (4) Lukens Steel Co., et al. v. United States, Consol. Court No. 93-09-00570-CVD, consisting of Lukens Steel Co., et al. v. United States, Court No. 93-09-00570-CVD, Altos Hornos de Mexico, S.A. de C.V. v. United States, Court No. 93-09-00618-CVD, and Industrias Monterrey S.A. de C.V. v. United States, Court No. 93-09-00632-CVD, is hereby dismissed;

Regarding Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Consol. Court No. 93-09-00558-CVD: (1) Commerce's Privatization Remand as it pertains to USIMINAS is sustained; (2) On USIMINAS's country-specific motion, (a) Commerce's adoption and application of the dollarization methodology to equity infusions in this investigation is sustained as based on substantial evidence and is otherwise in accordance with law, (b) Commerce's determination that the IPI rebate program provided benefits specific to the Brazilian steel industry and that these benefits are countervailable is sustained as based on substantial evidence and is otherwise in accordance with law, and (c) USIMINAS's country-specific challenge regarding privatization and repayment has been subsumed by the present opinion and by British Steel; (3) Domestic Producers' motion to strike in Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Consol. Court No. 93-09-00558-CVD, is denied as moot; and (4) Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Consol. Court No. 93-09-00558-CVD, consisting of Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Court No. 93-09-00558-CVD, Gulf States Steel, Inc. of Alabama, et al. v. United States, Court No. 93-09-00574-CVD, and Usinas Siderurgicas de Minas Gerais, S.A. v. United States, Court No. 93-09-00578-CVD, is dismissed;

Regarding British Steel plc v. United States, Consol. Court No. 93-09-00550-CVD: (1) Commerce's Privatization Remand as it pertains to BS plc is sustained except for Commerce's final subsidy rate for BS plc; (2) the issues raised by Domestic Producers' country-specific Rule 56.2 brief have been subsumed by British Steel and the present opinion regarding privatization; (3) the Court will enter final judgment pursuant to Rule 54(b) in the country-specific case British Steel plc. v. United States, Consol. Court No. 93-09-00550-CVD, consisting of British Steel plc v. United States, Court No. 93-09-00550-CVD and Geneva Steel, et al. v. United States, Court No. 93-09-00572-CVD, as to (a) the first, second, third, and fourth causes of action of the complaint of the Domestic Producers who filed a complaint in Geneva Steel, et al. v. United States, Court No. 93-09-00572-CVD, and (b) counts I, II, III, and IV in the complaint of British Steel plc in British Steel plc v. United States, Court No. 93-09-00550-CVD.

Regarding British Steel plc v. United States, Consol. Court No. 93-09-00550-CVD: Steptoe & Johnson (Richard O. Cunningham, Peter Lichtenbaum), (Sheldon E. Hochberg, William L. Martin, II), on brief, (Richard O. Cunningham, Sheldon E. Hochberg), on oral argument, Counsel for British Steel plc; Morgan, Lewis & Bockius (Mark R. Joelson), (Marcela B. Stras, Roger C. Wilson), on brief, Counsel for the Government of the United Kingdom, et al.; Dewey Ballantine (Michael H. Stein), (Alan Wm. Wolff, Thomas R. Howell, Martha J. Talley, John A. Ragosta, Guy C. Smith, John R. Magnus, Jeffrey D. Nuechterlein, Philip Karter, Michael R. Geroe, Jennifer Danner Riccardi), on brief, (Martha J. Talley, John A. Ragosta), on oral argument, Counsel for Geneva Steel, et al.; Skadden, Arps, Slate, Meagher & Flom (John J. Mangan, Robert E. Lighthizer), (D. Scott Nance, Barry J. Gilman), on brief, (D. Scott Nance, Barry J. Gilman), on oral argument, Counsel for Geneva Steel, et al.

Regarding Usinas Siderurgicas de Minas Gerais, S.A., et al. v. United States, Consol. Court No. 93-09-00558-CVD: Willkie Farr & Gallagher (Christopher S. Stokes), (William H. Barringer, Nancy A. Fischer), on brief, (Christopher S. Stokes), on oral argument, Counsel for USIMINAS; Dickstein Shapiro & Morin (Arthur J. Lafave, III, Douglas N. Jacobson), Counsel for Companhia Siderurgica Nacional; Skadden, Arps, Slate, Meagher & Flom (Robert E. Lighthizer, John J. Mangan), (Barry J. Gilman, D. Scott Nance), on brief, (Barry J. Gilman, Scott Nance), on oral argument, Counsel for Gulf States Steel, Inc., et al.; Dewey Ballantine (Michael H. Stein), (Alan Wm. Wolff, John A. Ragosta, Guy C. Smith, Michael R. Geroe), on brief, (John A. Ragosta), on oral argument, Counsel for Gulf States Steel, Inc., et al.

Regarding Inland Steel Industries, Inc., et al. v. United States, Consol. Court No. 93-09-00567-CVD: Dewey Ballantine (Michael H. Stein), (Alan Wm. Wolff, Martha J. Talley, John A. Ragosta, John R. Magnus, Jeffrey D. Nuechterlein, Jennifer Danner Riccardi), on brief, (Martha J. Talley, John A. Ragosta, John R. Magnus), on oral argument, Counsel for Inland Steel Indus., Inc., et al.; Skadden, Arps, Slate, Meagher & Flom (John J. Mangan, Robert E. Lighthizer), (D. Scott Nance), on brief, (Barry J. Gilman, D. Scott Nance), on oral argument, Counsel for Inland Steel Indus., Inc., et al.; Weil, Gotshal & Manges LLP (Stuart M. Rosen), (M. Jean Anderson, Jeffrey P. Bialos, Diane M. McDevitt, Scott Maberry; and Stuart M. Rosen, Mark F. Friedman, Jonathan Bloom),...