Appealed from: U.S. Court of International Trade. Judge Tsoucalas.
Before Archer, Chief Judge, Rich, Circuit Judge, Nies, Senior Circuit Judge.*fn*
NIES, Senior Circuit Judge.
NTN Bearing Corporation, American NTN Bearing Manufacturing Corp. and NTN Corporation (collectively "NTN") appeal from the final judgment of the United States Court of International Trade entered December 8, 1993 (No. 91-08-00577). We affirm-in-part, reverse-in-part and remand to the International Trade Administration (ITA) for consideration of the clerical errors alleged by NTN.
Before the Court of International Trade (trial court), NTN challenged the ITA's final results of antidumping duty administrative reviews respecting antifriction bearings. 56 Fed. Reg. 31,754 (1991). NTN contested, inter alia, ITA's failure to correct clerical errors and ITA's calculation of depreciation for idled equipment and loss on disposal of fixed assets.
In response to ITA's preliminary determinations, NTN submitted a timely response arguing against some bases for the ITA's determination. NTN also requested ITA to correct two clerical errors made by NTN in its earlier submission that it alleged caused a substantial increase in the dumping margins. First, NTN alleges that it made a clerical error in listing the family code for certain part numbers sold to a United States customer. The code incorrectly showed the parts met high precision bearing tolerances, rather than the standard precision bearing tolerances. The other error involved the listing of four sales to Canadian customers as sales to United States customers, again caused by clerical misreading of a code. The effect of these mistakes was compounded because ITA used a sampling method to determine the extent of dumping, and the sample data contained the clerical errors. NTN submitted documentary and testimonial evidence to establish the fact of error. The trial court rejected NTN's request for a remand for ITA to consider these corrections. Finding that the errors were not obvious from the record and that the deadline for submitting new information had expired at the time NTN made the request (19 C.F.R. § 353.31), the trial court upheld ITA's refusal to correct the alleged clerical mistakes. NTN Bearing Corp. v. United States, 826 F. Supp. 1435, 1439 (Ct. Int'l Trade 1993).
The trial court further found that ITA properly included costs associated with depreciation for idled machinery and losses for disposal of fixed assets. Reasoning that the costs were incurred in the ordinary course of business and that "to not include [the cost] would distort the company's financial position," the trial court found that ITA acted reasonably and in accordance with law. Id. at 1442.
After remand on grounds not pertinent to this appeal, judgment was entered upholding ITA's review and the parties appealed to this court. See Cabot Corp. v. United States, 788 F.2d 1539, 1542-43 (Fed. Cir. 1986) (A final judgment is a prerequisite for appeal.).
Idled Equipment and Loss on Disposal
The ITA determinations challenged on the merits in this appeal must be upheld unless the determination is "unsupported by substantial evidence on the record, or otherwise not in accordance with law." Tariff Act of 1930, § 516A, 19 U.S.C. § 1516a(b)(1)(B) (1988); Rhone Poulenc, Inc. v. United States, 899 F.2d 1185, 1189 (Fed. Cir. 1990). Substantial evidence "means such relevant evidence as a reasonable mind might accept as adequate to support a Conclusion." Matsushita Elec. Indus. Co. v. United States, 750 F.2d 927, 933 (Fed. Cir. 1984) (citing Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 95 L. Ed. 456, 71 S. Ct. 456 (1951)). Moreover, under traditional principles of judicial deference to agency interpretation of statutes and regulations which the agency administers, our review questions whether the agency's interpretation is reasonable. Chevron, U.S.A. Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 844, 81 L. Ed. 2d 694, 104 S. Ct. 2778 (1984); Daewoo Elec. Co. v. United States, 6 F.3d 1511, 1516 (Fed. Cir. 1993).
NTN argues that ITA erred by including depreciation expenses and disposal losses in calculating cost of production and constructed value. Japanese Generally Accepted Accounting Principles (GAAP) do not require companies to record such expenses in their books. In contrast, the government argues that it need not adhere to the home country's GAAP when those accounting practices do not recognize actual ...