Tokyo Kikai Seisakusho, Ltd. v. United States

In this antidumping case, we are asked to determine the scope of the Department of Commerce’s (“Commerce’s”) authority to reopen proceedings tainted by fraud. Following Commerce’s receipt of information indicating that Tokyo Kikai Seisakusho, Ltd. and TKS (U.S.A.), Inc. (collectively, “TKS”) had provided false information during yearly administrative reviews of an existing antidumping duty order to which they were subject, Commerce initiated a “changed circumstances review.” It initiated that proceeding to reconsider the administrative reviews themselves, as well as its revocation of the antidumping duty order, which was based in part on the results of those administrative reviews. In the final results of the changed circumstances review, Commerce concluded that TKS had provided false information during one of the administrative reviews and modified the result of that review accordingly. Because the result of that review originally led Commerce to revoke-in-part the antidumping duty order as it applied to TKS, Commerce reinstated that portion of the antidumping duty order. Finally, Commerce also stated its intention to reopen in a future, separate proceeding the sunset review that had revoked the antidumping duty order in its entirety.

The Court of International Trade (“the trial court”) concluded that Commerce possessed authority to conduct the changed circumstances review, Tokyo Kikai Seisakusho, Ltd. v. United States, 473 F. Supp. 2d 1349, 1355 (Ct. Int’l Trade 2007) (“TKS”), but concluded, after determining that the issue was ripe, that Commerce lacked authority to reopen the sunset review for reconsideration, id. at 1361-62. The United States and Goss International Corporation (collectively, “Appellants”) appeal the trial court’s decision, arguing that the issue of whether Commerce has authority to reopen the sunset review is not ripe, and alternatively, that Commerce possesses such authority. TKS cross-appeals the trial court’s decision, arguing that Commerce lacks authority to conduct a changed circumstances review in the circumstances of this case for the purpose of reconsidering the yearly administrative reviews or the revocation of the antidumping duty order.