The Court of International Trade (CIT) has officially remanded the AntiDumping case on Chinese engineered flooring back to the International Trade Commission (ITC) stating the Commission had completed both an insufficient economic analysis and an incomplete review of the domestic industry when reaching their original decision and “thus the conclusion of material injury is not supported by substantial evidence.”
The strongly worded order outlined multiple areas where the CIT found “the legal and factual analysis performed by the Commission in this instance misses the mark and thus the conclusion of material injury is not supported by substantial evidence.” In particular, the Court determined the ITC used too low a standard in determining that the imports cause any injury to the US industry.
Jonathan Train, President of the Alliance for Free Choice and Jobs in Flooring (AFCJF), stated, “We are very pleased by the Court’s decision. Our Alliance, along with the other respondents, worked very hard to prove the inaccuracy of the Petitioners’ claims. All the data clearly showed that imported flooring is a benefit to the industry as a whole and has not injured the Petitioners and we are not surprised that the CIT agreed with every issue we raised regarding the original decision.
“Among other issues, the CIT noted the Commission failed to appropriately consider the impact of a wide variety of economic factors including the overall economic conditions and available substitutions (be it laminate or LVT or imports from other countries). The Court also questioned if the domestic industry was properly surveyed as well and certainly we know that support of the order is not universal among domestic manufacturers, many of whom who rely heavily on imported content in their own production. Furthermore, the CIT acknowledged that there was a legitimate question if the finding of underselling was even accurate.”
Bill Perry, attorney for the Alliance, said, “We are confident that the Commission, which includes several new members, will see that when all the economic factors are considered, that imports are not a cause of injury to the domestic industry. The Commission will now have to use a higher causation standard and consider the greater economic condition in the United States, including the fall of the housing market, on the US industry.”
Train confirmed “Our Alliance members and all other importers play a vital role in supplying a wide range of construction types, species, and price points to the market.” Talking about the Alliance efforts, he added, “We have worked hard to minimize the negative impacts of this order on our industry and will continue to do so even while we seek to permanently end this order.”
The Order against engineered flooring remains in force during the proceeding. The case is currently in its first review period. New entry rates and the retroactive liquidation rates for entries made last year are expected to be announced in the summer of 2014.