CIT Denies Bid for Stay in Case Over PMS Adjustment in Sales-Below-Cost Test

The Court of International Trade denied defendant-intervenors California Steel Industries' and Welspun Tubular's bid to stay an antidumping duty case concerning a particular market situation adjustment to a respondent's cost of production for the sales-below-cost test, in a Jan. 21 order. Since the U.S. Court of Appeals for the Federal Circuit already ruled against the practice, Judge Claire Kelly said she couldn't be sure a stay would do anything more than just delay the proceedings of the case.

The case, brought by lead plaintiff NEXTEEL Co., concerns the Commerce Department's final results in the third administrative review of the antidumping duty order on welded line pipe from South Korea. In December, the Federal Circuit held that Commerce cannot make a PMS adjustment in the sales-below-cost test (see 2112100039). California Steel Industries, Inc. and Welspun Tubular LLC nonetheless argued for the stay, saying it would promote judicial economy. The trade court, though, found this to be "speculative." CSI and Welspun said that the Federal Circuit could grant a rehearing for this decision, but, as Kelly pointed out, rehearing has yet to even be sought in the case.

"Therefore, the court cannot be certain that granting a stay at this time would serve any purpose other than to delay the resolution of this case in contravention of the Court’s objective to ensure the 'just, speedy, and inexpensive determination of every action and proceeding,'" the opinion said.

(NEXTEEL Co. v. United States, Slip Op. 22-5, CIT Consol. #20-03898, dated 01/21/22, Judge Claire Kelly. Attorneys: Elizabeth Drake of Schagrin Associates for defendant-intervenors California Steel Industries, Inc. and Welspun Tubular LLC; J. David Park for plaintiff NEXTEEL; Jeffery Winton of Winton & Chapman for consolidated plaintiff SeAH Steel Corporation; Jarrod Goldfeder of Trade Pacific PLLC for consolidated plaintiff and plaintiff-intervenor Hyundai Steel Company; Donald Cameron of Morris Manning for plaintiff-intervenor Husteel Co., Ltd.)