Opinion ID: 761512
Heading Depth: 2
Heading Rank: 1

Heading: Electrical Expenses

Text: 8 The production of magnesium requires a great deal of electricity, and the cost of that electricity constitutes a significant part of the cost of magnesium production. See MagCorp I, 938 F.Supp. at 892-93. Commerce stated in its Preliminary Determination that it used information reported by the United States Consulate in Belo Horizonte, Brazil. See Preliminary Determination, 59 Fed.Reg. at 55,431. However, the information provided by the Consulate was not publicly available published information (PAPI). See MagCorp I, 938 F.Supp. at 892-93. The use of PAPI is preferred in Commerce determinations. See id. at 894. In its Final Determination, Commerce relied on several PAPI sources that reported the electrical rates paid by Brazilian aluminum producers because aluminum production was considered as energy intensive as magnesium production. See Final Determination, 60 Fed.Reg. at 16, 446; see also MagCorp I, 938 F.Supp. at 894-95. The PAPI sources upon which Commerce relied included an American Metal Market article on the rates paid by Brazilian aluminum producers, the Tariff Bulletin published by the Brazilian Ministry of Mines and Energy showing electricity rates provided by Electrobras, 3 and the Diaro Official. 4 See id. at 893 n. 32. 9 MagCorp challenges the propriety of using rates paid by Brazilian aluminum producers as surrogates for rates paid by Russian magnesium producers because the Russian magnesium producers do not use enough electricity to qualify for the lowest industrial rates available to Brazilian aluminum producers. In its surrogate calculation, Commerce is required to determine the FMV of the merchandise at issue and can do so on the basis of the production costs of merchandise which is comparable to the merchandise under investigation. 19 U.S.C. § 1677b(c)(2). Based on this section, it was reasonable for Commerce to treat both Russian magnesium producers and Brazilian aluminum producers as large industrial users of electricity. Indeed, MagCorp has invited the comparison between magnesium and aluminum production at other stages of this action. 5 Commerce found that the Russian magnesium producers' minimum peak usage was enough to qualify for the large industrial user rate paid by Brazilian aluminum producers. See Final Determination, 60 Fed.Reg. at 16,446. Although aluminum producers may actually consume more electricity, Commerce did show that the Russian magnesium producers' electricity needs crossed the threshold required for the large industrial user rate. See MagCorp I, 938 F.Supp. at 894. Thus, we reject MagCorp's challenge to Commerce's use of electric rates paid by Brazilian aluminum producers as this finding is supported by substantial evidence. 10 In addition to PAPI, Commerce also received information from a private firm, CSA Energy Consulting (CSA), on the relationship between electric rates and electricity consumption, and between electricity consumption and line tension. See MagCorp I, 938 F.Supp. at 893. MagCorp consulted CSA as well and, based on a letter from a CSA employee, requested correction of alleged ministerial errors in the Final Determination, allegations subsequently rejected by Commerce. See id. 11 MagCorp challenges the use of electric rate information from the CSA on the grounds that it was not PAPI and that Commerce violated MagCorp's due process rights in consulting CSA. The Court of International Trade held that Commerce did not rely on information from CSA in making its final determination. See id. at 894-95. We agree. Commerce did not rely on the CSA information in making its Final Determination because the Final Determination issued before CSA responded to Commerce's request for information. See id. at 895. Rather, Commerce relied on the PAPI described above in accordance with its preference for such PAPI. 12 As for MagCorp's due process challenge, although Commerce did not inform MagCorp of its request to CSA or allow MagCorp to review CSA's findings, it is clear that MagCorp was well aware of Commerce's consultation with CSA. See id. MagCorp had actual knowledge of Commerce's communication with CSA and had a full opportunity to comment on the data presented therein. See id. MagCorp was participating fully in the proceedings before Commerce, which is sufficient to overcome any constitutional challenge to the proceeding. See Timken v. United States, 699 F.Supp. 300, 309 (1988), aff'd, 894 F.2d 385 (Fed.Cir.1990). Therefore, MagCorp's due process rights were not violated. 13 In summary, we affirm the judgment of the Court of International Trade affirming Commerce's determination regarding electric rates.