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Nexteel Co. v. United States

Nexteel Co. v. United States

United States Court of Appeals for the Federal Circuit

March 11, 2022, Decided

2021-1334, 2021-1430

Opinion

 [*1231]  Hughes, Circuit Judge.

This appeal arises out of the United States Department of Commerce's administrative review of its antidumping order on oil country tubular goods from the Republic of Korea.

Calculating constructed value, Commerce found five circumstances that created a "particular market situation" affecting inputs to oil country tubular goods. The Court of International Trade determined that this finding was not supported by substantial evidence and "direct[ed] Commerce to reverse its finding of a particular market situation." NEXTEEL Co. v. United States, 450 F. Supp. 3d 1333, 1343, SLIP OP. 2020-69 (Ct. Int'l Trade 2020). We find that three of the five circumstances Commerce relied on to show a particular market situation are not supported by substantial evidence. Thus, with modified reasoning, we affirm the trial court's conclusion that substantial evidence does not support Commerce's finding. But because the Court of International Trade lacks authority to reverse Commerce, we vacate the trial court's opinion to the extent that it directs Commerce to reach a certain outcome.

Comparing normal value to export price, Commerce relied on its "differential pricing [**3]  analysis" methodology. In Stupp Corp. v. United States, 5 F.4th 1341 (Fed. Cir. 2021), we vacated aspects of Commerce's differential pricing analysis over concerns about Commerce's use of statistical methodologies when certain preconditions for their use are not met. Id. at 1360. Commerce's analysis here raises identical concerns, so we vacate the trial court's decision upholding the methodology and remand for reconsideration in view of Stupp.

Seeing no error in the other methodologies that Cross-Appellant challenges, we otherwise affirm.

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28 F.4th 1226 *; 2022 U.S. App. LEXIS 6325 **

NEXTEEL CO., LTD., Plaintiff-Appellee, SEAH STEEL CORP., Plaintiff-Cross-Appellant v. UNITED STATES, MAVERICK TUBE CORPORATION, TENARIS BAY CITY, INC., Defendants-Appellees, UNITED STATES STEEL CORPORATION, Defendant-Appellant

Prior History:  [**1] Appeals from the United States Court of International Trade in No. 1:18-cv-00083-JCG, Judge Jennifer Choe-Groves.

NEXTEEL Co. v. United States, 392 F. Supp. 3d 1276, 2019 Ct. Intl. Trade LEXIS 74, SLIP OP. 2019-73 (Ct. Int'l Trade, June 17, 2019)

Disposition: AFFIRMED IN PART, VACATED IN PART, AND REMANDED.

CORE TERMS

freight, prices, export, calculate, cap, producers, merchandise, methodology, Steel, substantial evidence, subsidies, costs, sales, alliances, differential, distortions, restructuring, ordinary course, circumstances, constructed, electricity, Products, vacate, strategic, factors, administrative review, countervailing, antidumping, comparing, expenses

Business & Corporate Compliance, Exports & Imports, Antidumping, Antidumping Act, International Trade Law, Trade Agreements Act, Dumping Margin, US Department of Commerce, Investigations & Proceedings, Countervailing Duties, Administrative Law, Judicial Review, Standards of Review, Substantial Evidence, Judicial Review, US International Trade Commission Proceedings, Deference to Agency Statutory Interpretation, Duties, Fees & Taxes, Custom Duties, Arbitrary & Capricious Standard of Review, Tariff Act, Investigations