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BI-NATIONAL PANEL REVIEW PURSUANT TO THE
NORTH
AMERICAN FREE TRADE AGREEMENT
ARTICLE 1904
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In the matter of: Certain top-mount
electric refrigerators, electric household dishwashers, and gas or
electric laundry dryers, originating in or exported from the United States
of America and produced by, or on behalf of White Consolidated Industries,
Inc. and Whirlpool Corporation, their respective affiliates, successors
and assigns |
Secretariat File No.:
CDA-USA-2000-1904-03 |
(Continuation)
V. THE COMPLAINT OF WHIRLPOOL CORPORATION AND
INGLIS LIMITED
In their complainants’ brief, Whirlpool and Inglis ask this Panel to determine
whether the Commissioner committed reviewable errors of jurisdiction, of law or
of fact when it:
(i) refused to conduct an independent analysis of the existence of other
source of injurious dumping and refused to extend its investigation to all
exporters of subject goods from the United States of America, including those
with which the Canadian industry had corporate or commercial affiliation;
(ii) refused to conduct a country-specific, as opposed to a company-specific,
investigation;
(iii) conducted its investigation with respect to three separate and distinct
products which are not like goods and are not a “product”;
(iv) selectively employed different methodologies for the determination of
export price such as to maximize the amount of dumping found;
(v) applied amounts for profit that were not “reasonable” as required by
paragraph 19(b) of the SIMA;
(vi) made deductions from the importer’s resale price for general selling and
administrative expenses of the importer in calculating section 25 export prices;
and
(vii) inflated the margins of dumping for Whirlpool by not taking into
consideration undumped goods.
This decision will deal with each of the above issues in turn. In their
briefs and in their arguments before this Panel, Whirlpool and Inglis grouped
issues (i) and (ii) above into one issue which they referred to as the
“targeting issue”. Similarly, this Panel will deal with issues (i) and (ii)
together.
(a)
Issue Estoppel, Abuse of Process,
Mootness and Standing
Before dealing with the
issues raised by Whirlpool and Inglis, this Panel considered
several preliminary arguments raised by Camco and by the participant
Maytag in respect of the complaint of Whirlpool and Inglis.
1. Issue Estoppel, Abuse of Process
As mentioned above under the heading “Administrative History and Panel
Proceedings”, on April 7, 2000, Whirlpool and Inglis filed an application for
judicial review in the Federal Court of Canada – Trial Division seeking to quash
the Preliminary Determination of the Commissioner. In the context of their
application for judicial review, Whirlpool and Inglis filed a notice of motion
for interim relief seeking, inter alia, an interlocutory stay of the Preliminary
Determination and a direction that no provisional duties be collected until the
disposition of the application for judicial review. The interlocutory motion of
Whirlpool and Inglis was dismissed by Madame Justice Hansen of the Federal Court
after two days of oral hearings. In her decision to dismiss the motion, Madame
Justice Hansen stated that she was not persuaded that Whirlpool and Inglis had
raised a serious issue to be tried.[18] Following the disposition of the
interlocutory motion of Whirlpool and Inglis, the application for judicial
review proceeded until it was discontinued by Whirlpool and Inglis on consent of
the parties on September 1, 2000.
Camco argues in its brief filed in response to the complaint of Whirlpool and
Inglis, and in a notice of motion filed with this Panel on April 30, 2001, that
by virtue of the doctrine of issue estoppel, Whirlpool and Inglis are estopped
from raising the same issues before this panel that were raised in the
application for judicial review and in the interlocutory motion therein. Camco
further alleges that Whirlpool and Inglis are engaging in abuse of process by
relitigation by raising before this Panel the same grounds which were raised by
them in their application for judicial review.
The Panel is not convinced that the rule of issue estoppel applies in this case.
The preconditions to the operation of issue estoppel are as follows:
(i) that the same question has been decided;
(ii) that the judicial decision which is said to create the estoppel was final;
and
(iii) that the parties to the judicial decision or their privies were the same
persons as the parties to the proceedings in which the estoppel is raised or
their privies.[19]
Despite the many authorities relied upon by Camco as support for their argument,
this Panel is not persuaded that the decision of Madame Justice Hansen in the
interlocutory motion was one which finally determined the issues between the
parties to the application for judicial review. The only issue before Madame
Justice Hansen was whether a stay of the Preliminary Determination was warranted
pending a determination on the merits of the application for judicial review.
The application for judicial review continued to proceed following the dismissal
of the interlocutory motion and was discontinued by Whirlpool and Inglis on
September 1, 2000 before the Federal Court had an opportunity to determine the
issues raised therein. Thus, the second part of the test for issue estoppel,
that the judicial decision which is said to create the estoppel must be final,
has not been met. Having determined that the finality aspect of the test for
issue estoppel has not been met, it is not necessary for this Panel to review in
any detail the other two portions of that test as all three parts of the test
must be met before issue estoppel may apply.
Camco has also failed to convince this Panel that Whirlpool and Inglis have
engaged in abuse of process by relitigation by requesting a NAFTA Panel review
of the Commissioner’s Final Determination. The discretionary jurisdiction to
stay or dismiss an action on the ground that the action is an abuse of the
process will only be exercised by a court, or by this Panel, in the clearest of
cases where it is plain and obvious the case cannot succeed .[20] Given that
Camco failed to address this test at all in its arguments, and given this
Panel’s finding that the decision of Madame Justice Hansen of the Federal Court
was not determinative of the issues raised in the application for judicial
review, this Panel rejects Camco’s abuse of process arguments.
2. Standing
Maytag raised the argument in its participant’s brief that Whirlpool and Inglis
have no standing to request that this Panel compel the Commissioner to expand
its investigation to include exporters that Camco did not include in its
original antidumping complaint.
Subsection 77.011(2) of the SIMA provides as follows:
(2) Any person who, but for section 77.012, would be entitled to apply under the
Federal Court Act or section 96.1 of this Act, or to appeal under section
61 of this Act, in respect of a definitive decision may, in accordance with
paragraph 4 of Article 1904 of the North American Free Trade Agreement, file
with the Canadian Secretary a request that the definitive decision be reviewed
by a panel.
Subsection 96.1(3) of the SIMA reads as follows:
(3) Subject to subsection 77.012(2), an application may be made under this
section by any person directly affected by the determination, decision, order
or finding by filing a notice of the application in the Federal Court of
Appeal within thirty days after the time the determination, decision, order or
finding was first communicated to that person by the Commissioner or the
Tribunal, or within such further time as the Federal Court of Appeal or a judge
thereof may, before or after the expiration of those thirty days, fix or allow.
[emphasis added]
It is clear that Whirlpool and Inglis are parties directly
affected by the Final Determination. They are, therefore, entitled to utilize
the complaint process set out in the SIMA to request a review of that Final
Determination. Having determined that Whirlpool and Inglis are entitled to
request a review, they are free to request that this Panel review the Final
Determination based on any of the aforementioned grounds set out in subsection
18.1(4) of the Federal Court Act. In asking this Panel to compel the
Commissioner to expand its investigation to include exporters that Camco did not
include in its antidumping complaint, Whirlpool and Inglis have suggested, inter
alia, that the Commissioner failed to observe procedural requirements under law
or that it otherwise erred in law, two grounds explicitly set out in subsection
18.1(4) of the Federal Court Act.
3. Mootness
Camco has also argued that the complaint of Whirlpool and Inglis became moot in
light of the findings of the Canadian International Trade Tribunal (the “CITT”)
during its injury inquiry following the Final Determination.
This Panel points out that the statutory right to request a review of the Final
Determination exists notwithstanding, and without reference to, any decision of
the CITT following the injury inquiry. This Panel’s review of the Final
Determination has not become moot, and Whirlpool and Inglis have not lost their
statutory right to request a review of the Final Determination because of the
decision of the CITT in the subsequent injury inquiry.
(b) The Targeting
Issue -- Scope of the Investigation, Improper Targeting and Abdication of
Investigative Responsibility
Whirlpool and Inglis have challenged the manner in which, according to their
allegations, the Commissioner confined the scope of its investigation to the
four corners of Camco’s dumping complaint, without any independent
investigation of other potential sources of injurious dumping. Whirlpool and
Inglis allege that the Commissioner’s focusing of its investigation to the
specific companies set out in Camco’s complaint is contrary to the
Commissioner’s obligation to initiate a country-specific investigation
rather than a company-specific investigation. Specifically, Whirlpool and
Inglis have asked this Panel to decide whether the Commissioner has
committed reviewable errors of jurisdiction, of law or of fact when,
according to Whirlpool and Inglis, it:
(i) refused to conduct an independent analysis of the existence of other
source of injurious dumping and refused to extend its investigation to all
exporters of subject goods from the United States of America, including
those with which the Canadian industry had corporate or commercial
affiliation; and
(ii) refused to conduct a country-specific, as opposed to a
company-specific, investigation.
As discussed above, in their briefs and in their arguments before this
Panel, Whirlpool and Inglis grouped issues (i) and (ii) above into one issue
which they referred to as the “targeting issue”. This Panel will deal
similarly with these two issues and will refer to them together as the
“targeting issue”.
In support of their arguments in respect of the targeting issue, Whirlpool
and Inglis point to the SIMA, the SIMR and the SIMA Handbook as well as the
Commissioner’s past and contemporary practice, Canada’s international
obligations and their own interpretation of certain amendments to the SIMA
passed by the Canadian Parliament in 1994.
Among the provisions in the SIMA upon which Whirlpool and Inglis rely is
subsection 41(1) which deals with Final Determinations. Subsection 41(1) of
the SIMA reads as follows:
41. (1) Within ninety days after making a preliminary determination
under subsection 38(1) in respect of goods of a country or countries, the
Commissioner shall
(a) if, on available evidence, the Commissioner is satisfied, in relation to
the goods of that country or countries in respect of which the investigation
is made, that
(i) the goods have been dumped or subsidized, and
(ii) the margin of dumping of, or the amount of subsidy on, the goods of
that country or any of those countries is not insignificant,
make a final determination of dumping or subsidizing with respect to the
goods after specifying, in relation to each exporter of goods of that
country or countries in respect of which the investigation is made…
(b) where, on the available evidence, there is no exporter described in
paragraph (a) with respect to whom the Commissioner is satisfied in
accordance with that paragraph, cause the investigation to be terminated
with respect to the goods.
Whirlpool and Inglis, in their briefs, have argued that subsection 41(1) of
the SIMA requires the Commissioner to conduct a country-specific rather than
company-specific investigation. They argue that the references in subsection
41(1) of the SIMA to “goods” of a “country or countries” can only be
interpreted to mean that the Commissioner must conduct an investigation into
all goods of a country or countries and not just those goods of a particular
exporter from that country or countries. This Panel is not convinced that
the narrow interpretation of subsection 41(1) of the SIMA advocated by
Whirlpool and Inglis is necessary, nor that such a limited reading should be
extended to the SIMA generally. In fact, the way in which the words “country
or countries” are used throughout subsection 41(1) seems to be just as, or
more consistent with the concept of limiting the outside scope of the
Commissioner’s investigation, rather than defining the investigation’s
starting point. In other words, subsection 41(1) of the SIMA provides a
ceiling, but not a floor. A reading of paragraph 41(1)(b) of the SIMA
implies that paragraph 41(1)(a) is describing investigations in respect of
particular exporters rather than particular countries. Rather than requiring
that a “country” be the minimum unit of reference when initiating an
investigation, this Panel believes that the better interpretation of
subsection 41(1) of the SIMA, or at least an interpretation of subsection
41(1) which is equally as plausible as that put forward by Whirlpool and
Inglis, is that it requires that a “country” be the maximum unit of
reference when initiating an investigation.
In further support of their arguments that the SIMA mandates a
country-specific rather than a company-specific investigation by the
Commissioner, Whirlpool and Inglis point to a series of amendments to the
SIMA passed by the Canadian Parliament in 1994[21] and which came into force
in 1995. Whirlpool and Inglis rely on these amendments as conclusive
evidence of Parliament’s intention to require that the Commissioner perform
only country-specific investigations. However, aside from pointing to the
amendments themselves, Whirlpool and Inglis have failed to provide any
evidence of Parliament’s intentions. This Panel was not directed to any
evidence of commission reports, legislative debates, briefs or other
materials forming part of the legislative history of the amendment upon
which it could reasonably base an opinion as to Parliament’s intent. This
Panel believes that if Parliament’s intention had truly been to prevent the
Commissioner from performing company-specific investigations, something that
the Commissioner had done on multiple occasions, it would have made such
intention explicit, or in the very least, Parliament would have made its
intention much more evident than can be found in the amendments upon which
Whirlpool and Inglis rely. In the absence of any additional evidence as to
Parliamentary intention, this Panel does not accept the submission that the
1994/1995 amendments to the SIMA were intended by Parliament to require
country-specific investigations.
Whirlpool and Inglis also argue that the Commissioner committed a reviewable
error by abdicating its jurisdiction through its reliance on Camco’s dumping
complaint to dictate the scope of the investigation and by, according to
Whirlpool and Inglis, refusing to conduct an independent analysis of the
existence of other source of injurious dumping and refusing to extend its
investigation to all exporters of subject goods from the United States of
America. In response, Camco and the Commissioner have referred this Panel to
subsection 31(1) of the SIMA as authority for the
proposition that once the Commissioner receives a properly documented
complaint, it is required to launch an investigation into the dumping or
subsidizing that is the subject of the complaint. Subsections 31(1) and
31(2) of the SIMA read as follows:
31. (1) The Commissioner shall cause an investigation to be initiated
respecting the dumping or subsidizing of any goods and whether there is a
reasonable indication that such dumping or subsidizing has caused injury or
retardation or is threatening to cause injury, forthwith on the
Commissioner’s own initiative or, subject to subsection (2), where the
Commissioner receives a written complaint respecting the dumping or
subsidizing of the goods, within thirty days after the date on which written
notice is given by or on behalf of the Commissioner to the complainant that
the complaint is properly documented, if the Commissioner is of the opinion
that there is evidence
a) that the goods have been dumped or subsidized; and
(b) that discloses a reasonable indication that the dumping or subsidizing
has caused injury or retardation or is threatening to cause injury.
(2) No investigation may be initiated under subsection (1) as a result of a
complaint unless
a) the complaint is supported by domestic producers whose production
represents more than fifty per cent of the total production of like goods by
those domestic producers who express either support for or opposition to the
complaint; and
(b) the production of the domestic producers who support the complaint
represents twenty-five per cent or more of the total production of like
goods by the domestic industry.
The Commissioner contends that it had no discretion under subsection 31(1)
once it determined that Camco’s dumping complaint was properly documented
and that it was required to launch an investigation into the dumping
disclosed in Camco’s complaint. This Panel agrees with the Commissioner that
it is required to cause an investigation upon receipt of a properly
documented complaint that meets all of the requirements of subsection 31(1)
of the SIMA. This Panel does not, however, agree that subsection 31(1)
mandates that the Commissioner limit the scope of its investigation to the
scope of the properly documented complaint.
The scope of the investigation to be performed pursuant to subsection 31(1)
of the SIMA is a matter of some discretion on the part of the Commissioner,
based on the evidence contained in the complaint and upon other evidence
that it gathers of its own accord. The investigation could, for example, be
launched with a scope that is broader than that which is found in the
properly documented complaint. Nevertheless, the SIMA does not oblige the
Commissioner to expand that scope.
On this issue, Camco and the Commissioner referred this Panel to the
decision of the Federal Court of Canada in Hyundai Motor Co. v. Canada
(Attorney General)[22]. The
Hyundai case dealt with a complaint with respect
to dumping of automobiles imported into Canada by Hyundai Motor Co. The
complaints of Hyundai Motor Co. included allegations that the then Deputy
Minister of National Revenue for Customs and Excise had committed reviewable
errors by (i) failing to inform Hyundai Motor Co. prior to deciding to
launch an investigation, (ii) by deciding to initiate an investigation only
against the goods of Hyundai Motor Co. without including those of other
importers or without including all automobiles imported from Korea, the
country of origin for the goods of Hyundai Motor Co., and (iii) by relying
heavily on the terms of the complaint for the purpose of defining the
subject-goods and for the information upon which the Deputy Minister relied
to launch the investigation. The parallels to the present situation are
significant. Whirlpool and Inglis have argued that the decision in Hyundai
is no longer persuasive by pointing out that it was handed down prior to the
1994/1995 amendments to the SIMA. Whirlpool and Inglis have argued that,
through those amendments, Parliament has expressed a contrary intention to
that of the Federal Court in Hyundai. As stated above, this Panel is not
persuaded of that interpretation of the 1994/1995 amendments to the SIMA and
is not convinced that they were intended by Parliament to require
country-specific investigations. Therefore, this Panel finds that the
decision of the Federal Court in Hyundai is binding and persuasive on the
proceedings herein.
The decision of this Panel that the Commissioner has some amount of
discretion in launching an investigation is supported by the decision in
Hyundai. Strayer J. wrote in Hyundai that:
…the decision whether or not to launch an investigation is a “threshold”
decision for the Deputy Minister, an administrative act in respect of which
he can fix his own procedure subject to any requirements of the Act.[23]
This Panel adopts the reasoning of Strayer J in the above passage and finds
that the Commissioner had discretion as to the scope and subject of the
investigation. The Commissioner had no statutory obligation to perform any
research or supplemental investigation prior to launching the investigation
and the Commissioner had no obligation to request submissions from Whirlpool
or Inglis prior the launching of the investigation.
Further support for this Panel’s decision on this issue can be found within
subsection 31(2) of the SIMA. Subsection 31(2) requires, as a precondition
to the launching of an investigation, that the complaint is supported by
domestic producers whose production represents more than fifty per cent of
the total production of like goods by those domestic producers who express
either support for or opposition to the complaint, and the production of the
domestic producers who support the complaint represents twenty-five per cent
or more of the total production of like goods by the domestic industry. No
person or company would be in a better position to determine the existence
and effects of dumping in the Canadian market than the Canadian domestic
producers themselves. If producers of at least twenty-five per cent of the
total production of like goods in the Canadian domestic industry support the
dumping complaint, the complaint carries with it a certain level of
credibility that it may not otherwise have. As it was put by Strayer J. in
Hyundai:
It is not entirely surprising that an investigation was launched on the
basis of the particular complaint which has been made. The whole purpose of
the investigation is to determine whether the complaint is supportable in
fact and law…
At most, what the applicants have demonstrated is that the Deputy Minister
might have defined the class of goods differently or might have taken into
account other evidence, some of which was inconsistent with the evidence he
apparently relied on and some of which was not really inconsistent… But he
clearly had some evidence before him upon which he could base his conclusion
that an investigation should be initiated and there was certainly no basis
for saying that he acted on clearly irrelevant considerations.[24]
In the present situation, Camco is the only Canadian producer of the subject
goods. Camco’s dumping complaint, therefore, met the threshold tests of
subsections 31(1) and 31(2) of the SIMA. The Commissioner was required to
launch an investigation into the alleged dumping activities. The scope of
the investigation was subject to the discretion of the Commissioner, and it
was not unreasonable for the Commissioner to limit the investigation to the
alleged dumping activities and to the companies set out in the properly
documented complaint.
In respect of the arguments of Whirlpool and Inglis that a company-specific
investigation is contrary to the Commissioner’s past and contemporary
practices, a number of cases have been raised
by Camco and the Commissioner in which, they argue, the Commissioner has
launched company-specific rather than country-specific investigations.
Again, Whirlpool and Inglis rely on the argument that the cases raised in
this regard are distinguishable from the present situation in light of the
1994/1995 amendments to the SIMA. It is not necessary for the Panel to
restate its opinion in respect of the 1994/1995 amendments to the SIMA
except to say that it is not convinced that the cases cited by Camco and the
Commissioner are distinguishable from the present case simply by reason of
those amendments. While this Panel notes that a number of the cases cited by
Camco and the Commissioner are in fact distinguishable from the present case
on their facts and circumstances, and as such this Panel did not rely on all
of the cases so cited, the cases cited by Camco and the Commissioner do
establish enough of a history to convince this Panel that company-specific
investigations, while not standard practice, are not uncommon.
Whirlpool and Inglis, in their briefs and in argument before this Panel,
have gone to great lengths to point out that if Canada allows
company-specific dumping investigations, it is alone or in the minority in
doing so among other industrialized countries. Whirlpool and Inglis have
also pointed to Canada’s international obligations as a source of authority
for their assertion that a country-specific investigation is mandatory.
However, as each of Camco and the Commissioner has pointed out, the
Commissioner is bound by the laws of Canada currently in effect. Likewise,
this Panel is required by NAFTA Article 1911 to rely on Canadian domestic
statutes, legislative history, regulations, administrative practice and
judicial precedents to the extent that a court of Canada would rely on such
materials in reviewing a final determination of the Commissioner[25].
Therefore, this Panel must work on the basis that Canadian anti-dumping laws
are the foremost authority and it may only look to Canada’s international
obligations to the extent that they have been incorporated into Canadian
statute, or to the extent that they do not conflict with or limit the
application of existing Canadian laws.
To summarize this Panel’s decision on the targeting issue raised by
Whirlpool and Inglis, this Panel finds that there was no obligation in
Canadian law for the Commissioner to launch a country-specific rather than a
company-specific investigation, and the reliance by the Commissioner on the
terms of Camco’s complaint was within its discretion and, thus, this Panel
will not remand on this issue.
(c) The Scope of the
Investigation, Definition of Subject Goods
The second major issue raised by Whirlpool and Inglis is their submission
that the Commissioner committed a jurisdictional error or alternatively,
erred in law, in conducting a single investigation and issuing a single
Preliminary Determination and Final Determination with respect to three
disparate products, namely top-mount refrigerators, dishwashers and dryers.
Whirlpool and Inglis argue that the Commissioner is required to limit its
dumping investigations to a single product, defined as narrowly as possible.
In the alternative, Whirlpool and Inglis argue that if the Commissioner is
permitted to group three disparate goods into one dumping investigation, the
Commissioner should have determined one margin of profit to be applied to
all subject goods, rather than determining separate profitability factors
for each of refrigerators, dishwashers and dryers.
This Panel will deal with the main argument of Whirlpool and Inglis first
and then will turn to the alternative argument.
Whirlpool and Inglis argue that the Commissioner was required to conduct a
separate investigation into each of the three subject goods. However, they
have failed to point to a single Canadian legislative or other binding
authority that, in the view of this Panel, supports their position in this
regard. Whirlpool and Inglis rely on provisions in the SIMA Handbook and the
WTO Anti-Dumping Agreement to support their arguments. Specifically, in the
SIMA Handbook, Whirlpool and Inglis rely on section 4.1.3.1 which provides
as follows:
The product covered by the complaint must be clearly defined for the purpose
of the investigation. It is important that the product description be well
defined in order to avoid any ambiguity or uncertainty in the course of the
investigation, should one be initiated. Product definitions that are to
broad or are ambiguous will inevitably lead to difficulties in the
investigation as well as in the CITT’s examination of injury.
Similarly, under the WTO Anti-dumping Agreement, Whirlpool and Inglis point
to Article 5.2 which provides as follows:
…a complete description of the allegedly dumped product, the names of the
country or countries of origin or export in question, the identity of each
known exporter or foreign producer and a list of known persons importing the
product in question.
This Panel would not interpret either provision as prohibiting the
Commissioner from conducting a single investigation into more than one
distinct product. The two provisions relied upon by Whirlpool and Inglis are
more akin to instructions to potential complainants in dumping cases that
they should be careful to clearly define the allegedly dumped goods. If the
definition of the allegedly dumped goods set out in a dumping complaint is
not clear, the Commissioner may have difficulty in establishing the scope if
the investigation. These provisions do not prevent the Commissioner from
launching one investigation if it is reasonable to do so following the
receipt of a single dumping complaint that alleges dumping in respect of
three separate categories of clearly defined goods.
In the present case, there was good reason for Camco to frame its complaint
in respect of the three separate goods, and there was equally good reason
for the Commissioner to combine those goods into one investigation. As Camco
points out in its respondent’s brief, these three goods are often sold
together as part of a package of appliances and all three categories of
subject goods were sold through the same channels of distribution by the
same companies and the same importers.
It was not argued before this Panel that the single investigation into three
categories of subject goods directly resulted in any error in calculations
or otherwise. In fact, Whirlpool and Inglis acknowledge at paragraph 140 of
their complainants’ brief that the Commissioner and the CITT effectively
managed to conduct three separate investigations in one.[26]
Given the failure by Whirlpool and Inglis to point to a single Canadian
authority that, in the opinion of this Panel, supports their position, this
Panel finds that the Commissioner’s combination of these three goods into
one investigation is not a reviewable error of law. There is nothing
unreasonable or illegal about the Commissioner’s investigation of these
three goods under the “umbrella” of a single investigation so long as the
Commissioner was able to segregate each of the goods within the
investigation and perform all of the processes involved in parallel for each
good. This is what appears to have been done by the Commissioner, and later
by the CITT, in this instance.
The Panel also considered the alternative argument of Whirlpool and Inglis
that if the Commissioner is permitted to conduct an investigation into three
disparate goods, it must apply a
single margin of profit to all subject goods, rather than determining
separate profitability factors for each of refrigerators, dishwashers and
dryers. Whirlpool and Inglis suggest that the only way in which the
Commissioner could investigate into dumping in respect of refrigerators,
dishwashers and dryers under one investigation would be to define those
three goods as “like goods”. If the three goods are “like goods”, Whirlpool
and Inglis argue, the SIMA and the SIMR require that the Commissioner
generate a single margin of profit to be applied to all.
Whirlpool and Inglis have argued that the SIMR only provides for the use of
one amount of profit. They rely on paragraph 11(1)(b) of the SIMR which
reads as follows:
(b) the expression "a reasonable amount for profits", in relation to any
goods, means an amount equal to…
Whirlpool and Inglis suggest that the reference to “a” reasonable amount for
profit in the above referenced paragraph is conclusive evidence that only
one amount for profit must be used. This Panel is not convinced that
paragraph 11(1)(b) of the SIMR could not be used to calculate “a” reasonable
amount for profit for each of the three separate goods that were the subject
of the Commissioner’s investigation in this case. Again, that appears to be
exactly what the Commissioner did, by the admission of Whirlpool and Inglis
themselves.
Whirlpool and Inglis have not convinced this Panel that if three separate
categories of subject goods are combined under one investigation they must
be “like goods” and that a single amount for profit must be used.
This Panel finds that the combination of three categories of subject goods
into one investigation, and the use of three separate sets of calculations
in respect of those goods, including three different amounts for profit, are
not reviewable errors by the Commissioner and this Panel will not remand on
this issue.
Notes:
| [18] |
|
| [19] |
Angle v. Canada (Minister of National Revenue – M.N.R.), [1975] 2
S.C.R. 248. |
| [20] |
Reply Brief of
the Complainants Whirlpool Corporation and Inglis Limited, at paragraph
94. Also see Aluma Systems Canada Inc. v. Straight Crossing Inc.,
[2000] P.E.I.J. No. 43. |
| [21] |
S.C. 1994, c. 47. |
| [22] |
|
| [23] |
Hyundai,
supra, at 337. |
| [24] |
Hyundai, supra,
at 339 to 343. |
| [25] |
NAFTA Article 1904(2). |
| [26] |
Complainants
Brief of Whirlpool and Inglis, at paragraph 140. |
|