Citations
- 180 F. Supp. 3d 1137
Full opinion text
OPINION
EATON, Judge:
Before the court is the motion for judgment on the agency record, pursuant to USCIT Rule 56.2, of the Coalition for Fair Trade of Hardwood Plywood (“plaintiff’ or the “Coalition”), an association of domestic hardwood plywood manufacturers. See Pl.’s Rule 56.2 Mem. in Supp. for J. Upon the Agency R. (ECF Dkt. No. 42-1) (“Pl.’s Br.”). By its motion, plaintiff contests the final negative material injury and threat of material injury determinations of the United States International Trade Commission («ITC” or the “Commission”) in its anti-dumping and countervailing duty investigations of hardwood plywood from the People’s Republic of China (“China”). See Hardwood Plywood From China, 78 Fed. Reg. 76,857 (Int’l Trade Comm’n Dee. 19, 2013) (determinations) (“Final Determinations”).
■ The Commission opposes plaintiffs motion, asking the court to sustain its determinations. Def. ITC’s Opp’n to Pl.’s Mot. for J. on the Agency R. (ECF Dkt. No. 49) (“Def.’s Br.”). Defendant-intervenors, the China National Forest Products Industry Association and its individual members (the “Chinese defendant-intervenors”), all of which are Chinese producers and exporters of hardwood plywood, and the American Alliance for Hardwood Plywood and other American hardwood plywood importers (the “American defendant-inter-venors”) join the Government in opposing plaintiffs motion. See Chinese Def.-Ints.’ Resp. in Opp’n to the Coalition’s Mot. for J. on the Agency R. (ECF Dkt. No. 55) (“Chinese Def.-Ints.’ Br.”); Def.-Ints. Am. Alliance for Hardwood Plywood’s Resp. in Opp’n to Pl.’s Rule 56.2 Mot, for J. on the Agency R (ECF Dkt. Ño. 53) (“Am. Def-inís.’ Br.”). For the reasons discussed herein, the Final Determinations are remanded.
BACKGROUND
The antidumping and countervailing duty investigations at issue involved hardwood plywood from China (“subject imports”). “Hardwood plywood is a wood panel product made by gluing two or more layers of wood veneer[] to a core thát may itself be composed of veneers or other types of wood material such as medium density fiberboard[J ... particleboard, lumber, or oriented strand board.” Views of the Commission (Final) at 8, CD 343 at bar code 522998 (Int’l Trade Comm’n Nov. 25, 2013) (ECF Dkt. No. 28-1) (“Views”). It is manufactured in a variety of thicknesses and is typically used in “furniture, kitchen cabinets, architectural woodwork, wall paneling, manufactured homes, and recreational vehicles,” Id. at 9. “Hardwood plywood products are differentiated by species, quality of veneer, thickness, num-bér of plies, type of core (veneer, particleboard, [medium density fiberboard], or other), and the type of adhesive used in the manufacturing process.” Id.
On September 27,-2012, members of the Coalition filed an antidumping and countervailing duty petition with the United States Department of Commerce (“Commerce”) and the ITC. Petition for the Imposition of Antidumping and Countervailing Duties, Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) CD 1 at bar code 491972 (Sept. 27, 2012) (“the Petition”), Thereafter, Commerce and the ITC initiated anti-dumping and countervailing duty investigations of imports of hardwood plywood from China. See Hardwood and Decorative Plywood From China, 77 Fed. Reg. 65,172 (Dep’t of Commerce Oct. 25, 2012) (initiation of antidumping duty investigation); Hardwood and Decorative Plywood From China, 77 Fed. Reg. 64,955 (Dep’t of Commerce Oct. 24, 2012) (initiation of countervailing duty investigation). Commerce sought to determine whether hardwood and decorative plywood from China was being sold at less than fair value, and whether the industry was receiving coun-tervailable subsidies.
On September 23, 2013, Commerce found that subject merchandise was indeed being sold at less than fair value, and determined final dumping margins ranging from 55.76 percent to 121.65 percent. Hardwood and Decorative Plywood From China, 78 Fed. Reg. 58,273, 58,276-82 (Dep’t of Commerce Sept. 23, 2013) (final determination of sales at less than fair value). Commerce also made an affirmative countervailing duty determination, finding all but three mandatory respondents were receiving subsidies, and determining countervailing duty rates ranging from 13.58 percent to 27.16 percent. Hardwood and Decorative Plywood from China, 78 Fed. Reg. 58,283, 58, 283-84 (Dep’t of Commerce Sept. 23, 2013) (final affirmative countervailing duty determination).
The ITC simultaneously conducted an investigation to determine whether a domestic industry was materially injured or threatened with material injury by reason of imports of subject merchandise. The Commission’s period of investigation (“POi”) was january 2010 through June 30,2013, extending back two years prior to the Coalition’s filing of the Petition. Views at 4. During the Commission’s investigation, domestic industry data was collected from the questionnaire responses of eight domestic producers that produced nearly all of the U.S. hardwood plywood in 2012. See Views at 4; Final Staff Report, Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) at III-2, CD 337 at bar code 520495 (Oct. 25, 2013) (ECF Dkt. No. 28-2) (“Final Staff Report”). Ú.S. import information was based on Commerce’s import statistics and the questionnaire responses of forty-two U.S. importers of hardwood plywood from China, representing 66.3 percent of total imports from China. Views at 4; Final Staff Report at IV-1. The Views of the Commission were also based on questionnaire responses from eighty-nine foreign producers that collectively produced approximately 52.4 percent of hardwood plywood imported into the United States from China in 2012. Views at 4; Final Staff Report at VII-3.
On November 13, 2012, the ITC issued a unanimous preliminary affirmative material injury determination. See Hardwood Plywood From China, 77 Fed. Reg. 71,-017, 71,017 (Int’l Trade Comm’n Nov. 28, 2012) (preliminary determination) (“On the basis of the record developed in the subject investigations, the [Commission] determines ... there is a reasonable indication that a [United States] industry is materially injured by reason of imports of hardwood plywood from China that are allegedly subsidized and sold in the United States at less than fair value .... ”). Prior to making its final material injury determination, the ITC held a public hearing on September 19, 2013, and the interested parties submitted pre- and post-hearing briefs. Final Phase Hearing Transcript, Inv. Nos. 701-TA-49Ó and 731-TA-1204 (Final) PD 173 at bar code 518726 (Sept. 20, 2013) (ECF Dkt. Nos. 58-2, 58-3) (“Final Phase Hearing Tr.”); Pl.’s Pre-Hearing Br., Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) PD 152 at bar code 518098 (Sept. 12, 2013) (EOF Dkt. No. 58-1) (“PL’s Pre-Hearing Br.”); Am. Def.-Ints.’ Pre-Hearing Br., Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) CD 322 at bar code 518031 (Sept. 11, 2013) (ECF Dkt. No. 58-1) (“Am, Def.-Ints.’ Pre-Hear-ing Br.”); Pl.’s Post-Hearing Br., Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) CD 329 at bar code 519156 (Sept. 25, 2013) (ECF Dkt. No. 44 Tab 3) (“PL’s Post-Hearing Br.”); Am. Def.-Jnts.’ Post-Hearing Br., Inv. Nos. 701-TA-490 and .731-TA-1204 (Final) CD 325 at -bar code 519112 (Sept. 25, 2013) (ECF Dkt. No. 58-3) (“Am. Def.-Ints.’ Post-Hearing Br.”); Chinese Def.-Ints.’ Post-Hearing Br., Inv. Nos. 701-TA-490 and 731-TA-1204 (Final) CD 326 at bar code 519113 (Sept. 25, 2013) (ECF Dkt. No. 61 Tab 2) (“Chinese Def.-Ints.’ Post-Hearing Br.”). The Commission issued its Final Staff Report on October 25, 2013. See Final Staff Report.
On November 5, 2013, the ITC reversed course and determined that the plywood industry in the United States was not materially injured or threatened by material injury by reason of hardwood plywood imports from China. See Final Determinations, 78 Fed. Reg. at 76,857 (“On the basis of the record developed in the subject investigations, the [Commission], determines ... that an industry in the United States is not materially injured or threatened with material injury.”). Plaintiff contests the Commission’s final negative material injury and threat of material injury determinations before this court
This court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2012).
STANDARD OF REVIEW
When reviewing the Commission’s material injury determinations, “[t]he court shall hold unlawful any determination, finding, or conclusion found ... to be unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i) (2012). “Substantial evidence is defined as ‘more than a mere scintilla,’ as well as evidence that a ‘reasonable mind might accept as adequate to support a conclusion.’ ” Mukand, Ltd. v. United States, 767 F.3d 1300, 1306 (Fed.Cir.2014) (quoting Consol. Edison Co. of N.Y. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)).
DISCUSSION
I. Legal FRamework
In an unfair trade proceeding, the Department of Commerce determines whether the subject merchandise was sold at less than fair value in the United States and/or whether the subject merchandise has benefited from countervailing subsidies. If the goods are sold at less than fair value, Commerce will calculate an antidumping duty rate. See 19 U.S.C. § 1673 (“If [Commerce] determines that a class or kind of foreign merchandise is ... sold in the United States at less than its fair value, and the Commission determines that an industry in the United States is materially injured, or is threatened with material injury ... by reason of imports of that merchandise ... then there shall be imposed upon such merchandise an anti-dumping duty.”). If the subject goods are found to be unlawfully subsidized by a foreign government, Commerce will calculate a countervailing duty rate. See id. § 1671(a) (“If [Commerce] determines that the government of a country ... is providing ... a countervailable subsidy with respect to the manufacture, production, or export of a class or kind of merchandise imported ... into the United States, and ... the Commission determines that an industry in the United States is materially injured, or threatened with material injury ... by reason of imports of that merchandise ... then there shall be imposed upon such merchandise a countervailing duty.”).
The Commission’s role is to determine whether the subject merchandise that was sold at less than fair value, or benefited from countervailing subsidies, materially injured or threatens to materially injure a domestic industry. Suriff-Train Co. v. United States, 793 F.3d 1355, 1359 (Fed. Cir.2015). When making an affirmative material injury determination, “the Commission must find: (1) a ‘present material injury or a threat thereof,’ and (2) causation of such harm by reason of subject imports.” Tropicana Prods., Inc. v. United States, 31 CIT 548, 550, 484 F.Supp.2d 1330, 1333 (2007) (quoting Hynix Semiconductor, Inc. v. United States, 30 CIT 1208, 1210, 431 F.Supp.2d 1302, 1306 (2006)). To determine whether a domestic industry is materially injured or threatened by material injury by reason of subject imports, the Commission must consider “(I) the volume of imports of the subject merchandise, (II) the effect of imports of that merchandise on prices ... for domestic like products, and (III) the impact of imports of such merchandise on domestic producers of domestic like products ... in the context of production operations within the United States.” 19 U.S.C. § 1677(7)(B)(i)(I)-(III) (emphases added). The statute further provides that the ITC “may consider such other economic factors as are relevant to the determination regarding whether there is material injury by reason of imports,” and “shall ... identify each factor ... and explain in full its relevance to the determination.” Id, § 1677(7)(B)(ii) (emphases added).
When analyzing material injury, “substitutability is one factor in the evaluation of volume and price.” R-M Indus., Inc. v. United States, 18 CIT 219, 226 n.- 9, 848 F.Supp. 204, 210 n.9 (1994) (“Analysis of substitutability varies according to the context of its application.”). Importantly, the Commission is required to evaluate the impact of the imports “within the context of the business cycle and conditions of competition that are distinctive to the affected industry.” 19 U.S.C. §.1677(7)(C)(iii)(V); Gen. Motors Corp. v. United States, 17 CIT 697, 707, 827 F.Supp. 774, 784 (1993) (finding that price effects were not significant because “competition in the' [domestic] industry was more a matter of features than price,” and “when products are highly differentiated, price is less likely to determine product selection.”); see generally Feldspar Corp. v. United States, 17 CIT 617, 622, 825 F.Supp. 1095, 1099 (1993).
II. The Commission’s Moderate Substituta-bility Determination Is Supported by • Substantial Evidence
In its Final Determinations, the Commission determined the domestic hardwood' plywood industry was neither materially injured nor threatened by material injury by reason of the subject imports. Views at 3. As part of its determinations, the Commission evaluated several “conditions of competition,” and in particular substitutability. Views at 21, 23; see 19 U.S.C. § 1677(7)(C)(iii)(V).
According to the Commission, the record indicated that the domestic product and the subject imports often have different end uses, and imports of Chinese plywood are largely used in the lower-end of the market. Def.’s Br, 1; Views at 26 (“[Sub-stitutability between the domestic like product and subject imports is limited because of variations in various product characteristics, resulting in reports by importers and purchasers that the domestic like product and the subject imports are often used for different applications.”). The Commission argues that it took into account overall thickness, core material, and face veneer thickness, as well as the views of U.S. producers, importers, and purchasers when reaching its findings. Def.’s Br. 16-21. Specifically, defendant notes -that in addition to overall thickness, core material, and face veneer thickness, it analyzed the producers’, importers’, and purchasers’ questionnaire responses regarding specific physical characteristics of the hardwood plywood. This included lengths and widths, wood species, core construction, face and back veneer thickness, panel strength, tolerances for moisture content, glues, quality, and availability, which led to the ITC’s ultimate finding that the subject merchandise is only moderately substitutable with the domestic product. Def.’s Br. 16; Views at 26. The Commission concluded that, although a finding of substitutability was supported by its findings that pricing was an important factor in purchasing decisions and there was some overlap in the products’’ panel thicknesses, these; factors were outweighed by product differences in core material, face veneer thickness, and overall quality. Def.’s Br. 17; Final Staff Report at 11-37 (“Substitutability is enhanced by the fact that price was a very important factor in purchasing, but is constrained by quality being the most important factor for more purchasers. Also, there are clear differences in face thickness and core material between U.S.-produced product and subject imports from China.”). In other words, even though the Commission found that the overall thicknesses of the two products overlapped in some instances, it found the two products were, not highly substitutable because of the domestic and Chinese products other differentiating physical characteristics, variations in quality, and different end-use applications.
■ Plaintiffs primary argument is that, while the Chinese plywood is not directly substitutable in all cases, the products are similar enough that U.S, purchasers buy the lower-priced and lower-quality Chinese plywood in place of the more expensive, higher-quqlity U.S. plywood—making price, not physical characteristics, the most important substitutability consideration. See PL’s Br. 7,16; Pl.’s Post-Hearing Br. 4 (“Petitioners believe that many purchasers make similar calculations for many end-uses, seeking out the lowest-priced product that meets the requirements of the application, and finding that the Chinese product is that lowest-price product.”). Put another way, for the Coalition, while the Chinese plywood may not be suitable for decorative applications requiring sanding or other modifications, the Chinese plywood has displaced the U.S. produced plywood in the remaining areas of the market, i.e. non-decorative applications. Importantly, to' plaintiff, had the ITC concluded the goods were directly substitutable, its subsequent conclusions regarding volume, effect of imports on price, and impact of imports on domestic producers would have led to a different conclusion, i.e., that Chinese products caused' material injury to the domestic industry. See Pl.’s Br. 17.
A. The Commission’s Selection of Cabinetry as the End-Use Analyzed to Determine Substitutability Is Supported by Substantial Evidence
As an initial matter, the Coalition objects to the Commission’s reliance on only, the plywood that is used to make cabinets,' and argues for an analysis that examines the rest of the plywood market. PL’s Reply to Def. & Def.-Ints.’ Resps. in Opp’n to PL’s Rule 56.2 Mot. for J, Upon the Agency R. 7 n.7 (ECF Dkt. No. 64) (“PL’s Reply Br.”) (“[A]s acknowledged by the Commission, no more than one-third' of imported hardwood plywood (and 30 percent of domestically-manufactured hardwood plywood) is used for cabinetry. That leaves a substantial portion of the end-use markets—representing the majority of the hardwood plywood in the commercial market—unaddressed.” (citation omitted)). Plaintiff further contends that the issue of cabinetry comprising only 30 percent of domestically-manufactured hardwood plywood is similar to the issue that “was central to the Federal Circuit’s affirmation of this Court’s remand to the Commission for further discussion and evaluation in Diamond Sawblades Manufacturers Coalition v. United States.” Pl.’s Reply Br. 7 n.7; see Diamond Sawblades Mfrs. Coal, v. United States, 612 F.3d 1348, 1359 (Fed. Cir.2010) (“[T]he [Cjourt pointed out that the data to which the Commission cited in support of its finding that ‘nearly half of the subject shipments were in smaller sized blades ..,. also showed that the other half of both subject and domestic imports were concentrated in the two middle diameter ranges,” and, therefore, the Court’s remand of the ITC’s “confusing and potentially incorrect analysis was not an abuse of discretion” (citation omitted)).
The court finds that the Commission reasonably based its substitutability analysis on the cabinetry market, and its finding is supported by substantial evidence in the record. See Views at 21; Final Staff Report at II-9 (“Petitioners and respondents indicate that cabinets are the largest end use for both domestic and imported products. Many producers, importers, and purchasers reported that this end use was among their top three end uses.”). The Commission further found that “cabinets [are]' the largest market segment in which imported hardwood plywood is used and the second largest in which U.S. produced [hardwood plywood] is used.” Defi’s Br. 17; Final Staff Report at 11-10 fig. II-l. The ITC’s discussion is particularly reasonable' considering the fragmentation of the remainder of the hardwood plywood market. The only application that approximates cabinets in terms of consumption of domestic hardwood plywood is that for retail fixtures (i.e., shop displays), which comprises 35 percent of the U.S. market.' No other application comprises more than 13 percent of the market. The ITC based its analysis on the finding that 30 percent of Ü.S. hardwood plywood is used in cabinetry and 34 percent of imported Chinese hardwood plywood is used in cabinetry. See id. That is, the data reflect that the U.S. cabinet market was the largest segment of the market where the domestic and Chinese products overlapped, and, accordingly, the Commission reasonably relied on information from this segment of the market to determine substitutability.
In Diamond Sawblades, the Federal Circuit affirmed this Court’s finding that the Commission’s explanation “that ‘nearly half of the domestic shipments were in smaller sized blades, while ‘nearly half of domestic shipments were of larger sized blades” did not justify its limited competition finding. See Diamond Sawblades, 612 F.3d at 1359. Hence, the Federal Circuit affirmed the CIT’s decision to remand, finding that, in addition to blade size, “neither blade type nor manufacturing process significantly limited competition.” See id. Unlike in Diamond Sawblades, here, the Commission has explained, in detail, and supported with substantial evidence, the physical differences and purchasing considerations that distinguish the two products from one another. Using the- cabinet industry as a lens to view these distinctions was reasonable because it was the largest overlapping market segment of both the domestic and imported products, and it was a market in which the Chinese hardwood plywood was focused. See Views at 21 (“The largest market segment for U.S. importers of hardwood plywood, and one of the largest for U.S. producers as well, is cabinetry.”).
B. The Commission’s Findings as to Overall Thickness Are Supported by Substantial Evidence
When comparing the physical characteristics of U.S. and Chinese hardwood plywood, the Commission found that the domestically-produced plywood is generally thicker (at least 16 mm in overall thickness) than the imported product and is used for cabinet fronts and sides, whereas the Chinese hardwood plywood is generally thinner (less than 6.5 mm in overall thickness) and is used for “interiors, backs, and drawer bottoms of cabinets.” Views at 25; see Final Staff Report at D-6 tbl. D-4. In its overall thickness finding, the Commission compared the percentage of domestic production of hardwood plywood of various thicknesses to the percentage of imported subject merchandise of various thicknesses to determine the degree of overlap in thicknesses. Views at 25. In its findings, the Commission acknowledged there was some overlap in thicknesses between the two products, but found that any overlap in thickness was outweighed by other distinguishing factors between the two products. Def.’s Br. 17 (“ ‘[S]ome overlap in panel thickness does suggest substi-tutability between U.S.-produced product and imports from China, [however], this is moderated by the higher importance of quality and importance and differences in veneer thickness and core material.’ ” (quoting Final Staff Report at 11-37—38) (emphasis omitted)); see also Final Staff Report at D-6 tbl. D-4 (reflecting U.S. producers’, U.S. importers’, and Chinese producers’ commercial shipments by overall thickness of the plywood).
The ITC found that thickness, in particular, was important in determining the end use of the plywood. Although the overall thicknesses of plywood ranged from 6.5 mm or less to 20 mm or more, the Commission’s analysis focused on thicknesses of 6.5 mm or less and 16 mm or more; This was based on its conclusion that the Chinese product is predominately produced with a thickness of 6.5 mm, while U.S. producers predominately produce plywood of 16 mm. See Views at 25; Final Staff Report at D-6 tbl. D-4. Thus, the Commission concluded that different overall thicknesses led to different end uses, and these different end uses were concentrated in different areas of the market: “thicker plywood is used in cabinet fronts and sides, while thinner plywood is used for cabinet backs, drawer bottoms, paneling, and un-derlayment.” Views at 25.
The Commission supported its finding of moderate substitutability by considering questionnaire responses that reflected that thickness largely dictates end use. See id. The responses relied upon by the Commission were those of U.S. importers, Chinese producers of subject U.S. imports, and domestic producers. Id. at 4. For example, for the 2012 calendar year, the Commission compared total U.S. production of 16 mm plywood, which constituted 58 percent of production, to the total percentage of U.S. importers’ commercial shipments of Chinese plywood of that same thickness, which was 21 percent of total imports. Id. at 25; Final Staff Report at D-6 tbl. D-4. The Commission also found the data reflected that “U.S. producers’ shipments of thin plywood (less than 6.5 ham) accounted for 21 percent of their total shipments in 2012, as compared to 45 percent of U.S. importers’ commercial shipments of [Chinese plywood].” Views at 25; Final Staff Report at D-6 tbl. D-4. For the Commission, because only 21 percent of U.S. production had a thickness of 6.5 mm or less, production of thin plywood only slightly overlapped with U.S. importers’ commercial shipments of Chinese plywood. See Views at 26.
Additionally, the Commission’s undisputed finding that the U.S. and Chinese products have different end uses based on overall thickness was based on surveys of U.S. purchasers. See Final Staff Report-at E-3-E-6 tbl. E-l; Pl/s Pre-Hearing Br. 17 (“Petitioners acknowledge that there may be a subset of end-use applications for which there is a functional or other non-price reason for a U.S. purchaser to purchase plywood with ... a particular overall thickness, and that in certain of these cases the required product may be available only from Chinese sources.”). In other words, at least with respect to cabinetry, the parties agree that the plywood’s overall thickness largely determines how and where the plywood will be used in the market.
The parties disagree, however, about the weight that the Commission assigned to the Chinese producers’ production of thicker plywood, and the U.S. producers’ production of thinner plywood. Pl.’s Br. 12-13. Specifically, the Coalition argues that thickness is the most important physical characteristic of hardwood plywood, and the overlap in overall thickness, recognized by the Commission, should have been enough for the Commission to find that the goods were substitutable. Pl.’s Br. 12-13. The Coalition further argues that the data relied on by the Commission shows there is a more significant overlap in production of certain thicknesses between the domestic product and the subject imports than the Commission acknowledges. PL’s Br. 13.
In 2012, more of U.S. producers’ commercial shipments (58 percent) were reported to be of thicker plywood (at least 16 mm) than were U.S. importers’ commercial shipments of subject Chinese imports (21 percent) and Chinese producers’ U.S. exports (42 percent). U.S. producers’ shipments of thin plywood (less than 6.5 mm) accounted for 21 percent of their total shipments in 2012, as compared to 45 percent of U.S. importers’ commercial shipments of subject imports and 33 percent of Chinese producers’ U.S. exports to the United States.
Views at 25.
Although seemingly accepting the percentages cited by the ITC, the Coalition disputes the idea that the numbers indicate only a moderate overlap of plywood by thickness. For the Coalition, “the percentages cited do not support the subsidiary finding that domestically-manufactured hardwood plywood is geared toward thicker products, while subject imports are predominant in thinner plywood.” PL’s Br. 12. Thus, the Coalition contends that a proper analysis of this data requires that the U.S. producers’ total production be compared with the Chinese producers’ total U.S. exports, not the U.S. importers’ imports. PL’s Br. 12-13 (“[It] comes down to the difference between 58 percent versus 42 percent for ‘thicker’ plywood, and 21 percent versus 33 percent for ‘thinner’ plywood.”); PL’s Pre-Hearing Br. 15 (arguing both parties possess a “significant ‘market share’ in each segment”); Final Phase Hearing Tr. at 61 (“Even for products where either the domestic industry or subject imports are relatively more concentrated, the other has a substantial presence. For example, in thicknesses 20 millimeters and above, despite a relatively high domestic concentration, subject imports still supplied 19.8 percent of the volume over the POI.”). Thus, interpreting the same data, the Coalition argues the degree of overlap is more significant than the Commission’s findings reflect, and this significant overlap suggests a greater degree of substitutability.
The court finds that the ITC’s thickness conclusion used in its substitutability findings was supported by substantial evidence. See Views at 26 (“[S]ubstitutability between the domestic like product and subject imports is limited because of variations in various product characteristics, resulting in reports by importers and purchasers that the domestic like product and the subject imports are often used for different applications.”). Initially, the Commission and plaintiff agree that there is some overlap with regard to the thickness of the domestic and Chinese product, such that both producers supply the United States with products of similar thicknesses. Additionally, both parties agree that depending on the plywood’s overall thickness, these products potentially have different end uses. After considering the information in the questionnaire responses, the ITC found that, while both U.S. and Chinese producers make products of various thicknesses, each country generally concentrated production on different thicknesses of plywood. In other words, even though 21 percent of the domestically-produced plywood had an overall thickness of 6.5 mm and below, over half of the domestic plywood production was greater than 16 mm. This finding was borne out by the data. Moreover, it was reasonable for the ITC to rely on data comparing the domestic producers’ overall production to official U.S. import data, rather than the Chinese producers’ overall production. This information gives a more accurate picture of the subject merchandise in the U.S. market. Even taking into account plaintiff’s view of the information, it is clear that domestic U.S. production is concentrated toward the higher-end of the thickness range, while imports were concentrated toward to the thinner end. See Final Staff Report at D-6 tbl. D-4 (table reporting percentages of overall thicknesses from U.S. purchasers, U.S. importers, and Chinese producers).
Accordingly, while recognizing some overlap in plywood thickness, it is clear that U.S. production is concentrated in plywood with greater thicknesses, Chinese imports are concentrated in the thinner product, and overall thickness dictates end use. Therefore, as to overall thickness, the ITC has supported with substantial evidence its conclusion that “substitutability between the domestic like product and subject imports is limited because of variations in various product characteristics,” but that “there is some overlap between the domestic like product and the subject imports across many of these product characteristics.” See Views at 26.
C. The Commission’s Findings as to Core Material Composition Are Supported by Substantial Evidence
The Commission found that the two product’s core material composition is a distinguishing characteristic because the Chinese product’s core material is composed of different types of wood, and is manufactured differently from the domestic product. Views at 23-24. The Commission further found that the core material affects end-use applications and appropriate thicknesses of face veneers. Id. (“[For the Chinese product,] smaller logs are typically utilized to manufacture veneer for the plywood core, and the quality of veneer is typically lower than for the domestically produced product. The Chinese product is typically manufactured utilizing more labor and less automation .... Depending on the market segment in which hardwood plywood is used, various attributes may be preferable or required.”). Based on these observations, the ITC found that core composition also tended, to support a finding of limited substitutability. Id. at 25-26.
First, the Commission found that the core materials directly differ. Id. at 25; Def.’s Br. 18-19 (“The record also indicates that type of core (veneer, particleboard, [medium density fiberboard], or other material) is one of the ways in which [hardwood plywood] products are differentiated”). It found that domestic plywood core tended to be softwood plywood, where the Chinese plywood core is generally hardwood. Views at 25. The ITC further found that differences in core material direct different end use applications. M; Final Staff Report at 11-85 (“Three purchasers pointed to differences in the core material and/or the thinner veneer face of the subject product that make it[] more suitable for applications hot requiring sanding and finishing.”). In its Views, the Commission relied on the testimony from an importer that indicated that the Chinese product consistently lacked core quality, resulting in plywood of lower quality that easily, breaks and warps. Views at 24 n.83.
Second, the Commission found the Chinese and domestic product’s core is manufactured differently, and' this manufacturing impacts core material composition. Id. at 23 (“The Chinese product is typically manufactured utilizing more labor and less automation, particularly for repairing defects, preparing veneers, and laying up veneer sheets for pressing.”); Final Staff Report at I-15-I-16 (“Smaller logs are typically utilized to manufacture veneer for the plywood core and the quality of veneer is typically lower.”); Final Phase Hearing Tr. at 179 (testimony of Greg-Simon, Vice President of Far East American, Inc.) (“Simon Testimony”) (“[T]he Chinese product uses a large number of thinner layers of veneer. The domestic core veneer layers are much thicker and there are fewer of them.”).
Significantly, hearing testimony relied on in the Final Staff Report shows that producers of the subject imports use a two-step process that involves manually piecing the core together, and then running the plywood through a calibration sander. Simon Testimony at 175-76; Final Phase Hearing Tr. at 224. The domestic producers, on the other hand, use a one-step process employing core composing machines. Simon Testimony at 176-77. The Commission further found that the use of different types of wood and different manufacturing processes partially determines whether the product has a thick or thin face veneer. Views at 25.
Defendant-intervenor’s argument further draws a correlation between core material composition and face veneer thickness: “The domestic producers utilizing softwood for core veneers are limited to thicker plies which lead to a core platform that is not smooth enough to use a thin-gauge face veneer. This difference in the raw material used to make the core translates directly into differences in the manner in which the finished products can be used Am. Def.-Ints.’ Pre-Hearing Br. 11-12. Further, for the American defendant-intervenors, the record supports that differences in core composition, i.e. how the core is manufactured, determines the face veneer thickness. See Am. Def-inís.’ Pre-Hearing Br. 13-16. Therefore, according to the American defendant-in-tervenors, the type of core favored by U.S. manufacturers requires application of a thick face veneer, the kind of veneer better suited for sanding and finishing, and hence is used in higher-end applications.
The Coalition asserts there is no evidence demonstrating that core material is significant in purchasing decisions. Pl.’s Br. 13. Put another way, for plaintiff, the differences in core material and the manufacturing processes do not impact how the imported and domestic products are used, and do not cause a purchaser to buy the Chinese product rather than the domestic product. Specifically, plaintiff argues that only one-third of respondents ranked core material as “very important.” Pl.’s Pre-Hearing Br. 17. Plaintiff also asserts that fifteen out of thirty-one purchasers reported comparable core material between the domestic and Chinese products. PL’s Pre-Hearing Br. 17. Last, the Coalition argues that although the Commission pointed to differences in core material composition between the two products, it failed to show how these differences affect end use. PL’s Br. 13; Final Staff Report at E-3-E-6 tbl. E-l (stating that “core thickness” can determine whether to use the product as cabinet fronts, not specifically mentioning core material, and reiterating that overall thickness is the most determinative physical characteristic for end use).
The court finds that the Commission’s consideration of core material composition as a factor limiting substitutability is supported by substantial evidence. The record demonstrates that the types of wood used for the core material in U.S. and Chinese plywood are different. Views at 26. In 2012, core material data showed 68.1 percent of domestically-produced hardwood plywood was reported to have a softwood veneer core, compared with only 8.3 percent of Chinese hardwood plywood. Id. Likewise, only 3.8 percent of domestically-produced hardwood plywood was reported to have a hardwood veneer core, compared with 88.4 percent of Chinese hardwood plywood. Id. The evidence also reflects that different softwood and hardwood core material have different advantages; for example, “Chinese plywood cores [have] several advantages over typical domestic softwood cores, including: less weight; increased strength; greater bending strength; and greater screw withdrawal ability.” Am. Def.-Ints.’ Pre-Hear-ing Br. 10-11.
In addition, as will be discussed, the record further supports the Commission’s finding that differences in core composition, and how the eore is manufactured, determine the plywood’s face veneer thickness, thus limiting substitutability. Cf. Views at 25 (“Some purchasers pointed to differences in the core material/quality and/or the thinner veneer face of the subject product as making it more suitable for applications not requiring sanding and finishing or for laminated applications.”). Thus, because it is better suited for sanding and finishing, the thicker face veneer required for the type of core preferred by the U.S. market makes the product better suited for the exterior of cabinets.
Further, hearing testimony reflects that the two products are manufactured differently. Simon Testimony at 175-77. The record supports that the differences in manufacturing processes of the core material is a reason why U.S. plywood has a thicker face veneer and Chinese plywood has a thinner face veneer. Am. Def.-Ints.’ Pre-Hearing Br. Ex. 4, Aff. of George Simon ¶ 11 (“Simon Aff.”). As a result of the two manufacturing processes and face veneer thicknesses, core material imperfections are not a concern for the domestic producers because their plywood has a thick face veneer, allowing for repair of any imperfections. Simon Testimony at 177.
Finally, the record demonstrates that this difference in core material composition matters to purchasers. Data in the record shows only three U.S, purchasers ranked core material composition as not important, nineteen ranked it as “very important,” and eighteen ranked it as “somewhat important.” Final Staff Report at II-19 tbl. II-7, 11-37 (“Core material species was a very important factor to just under one-half of responding purchasers and at least a somewhat important factor to all but three purchasers.”). Moreover, the record reflects that “[flmporters and purchasers reported that interchangeability between various sources including domestic and Chinese hardwood plywood is limited by ... differing characteristics such as wood species [and] core construction.” Id. at 11-28.
Accordingly, the Commission’s findings that the two products used different types of wood for the core material, that this difference in. material together with differences in manufacturing processes lead to different face veneer thicknesses, and that the resulting products are preferred for different end-uses, are supported by substantial evidence.
D. The Commission’s Finding as to Face Veneer Thickness Limiting Substitutability Is Supported by Substantial Evidence
As noted, the Commission found that face veneer thickness is a distinguishing characteristic and a significant purchasing factor between domestic and Chinese hardwood plywood. The Commission’s findings reflect that the Chinese product’s face veneer is almost always thinner than the domestic product’s face veneer, which makes the Chinese product better for laminating applications and the domestic product more suitable for decorative applications. Views at 24-25 (“[Domestic and Chinese hardwood plywood[ ] is limited by factors that include ... face and back veneer thicknesses,” and “the thinner veneer face of the subject product [makes] it more suitable for applications not requiring sanding and finishing or for laminated applications.”).
First, the Commission argues that its finding was supported by substantial evidence because the data shows that face veneer thickness is “very important” or “somewhat important” for every U.S. purchaser surveyed. Final Staff Report at II-19 tbl. II-7 (Twenty-five respondents answering “very important” and fourteen respondents answering “somewhat important.”). In addition, although the basic steps in the manufacturing process were similar, the Commission found there were some differences in manufacturing with regard to the face and back veneers. Views at 23 (“[T]he record shows that Chinese manufacturers use thinner face and back veneers that are laid up moist or wet to prevent splitting or breaking prior to being pressed. ... The Chinese product is typically manufactured utilizing more labor and less automation, particularly for repairing defects, preparing veneers, and laying up veneer sheets for pressing.”).
It is end use, however, that most distinguishes products having thick and thin face veneers. For the Commission, substantial evidence in the record, having to do with how the domestic versus the Chinese product is employed, demonstrated that face veneer thickness is a determinative factor in end-use applications. That is, thicker face veneers are used in higher-end products and thinner face veneers are used in lower-end products. Views at 25; Final Staff Report at 11-35, E-3 tbl. E-l; Def.’s Br. 19 (“Because of the differences between the domestically produced product and subject imports, including core material/quality and/or thinner veneer face of the subject product, some purchasers indicated that the two products are often used for different components of the same end product, particularly in cabinets.”).
For example, because of the thin face veneer and core construction, the Chinese product is “ideal for applying a UV clear-coat, vinyl overlays, and other laminating processes. Final Phase Hearing Tr. 189 (Bill Weaver, CEO of Canyon Creek Cabinet Company) (“Weaver Testimony”) (noting, by way of contrast, that the domestic product is superior, and preferable for finishing processes that include sanding, staining, and further cosmetic work); Views at 25 (“Some purchasers pointed to differences in the ... thinner veneer face of the subject product as making it more suitable for applications not requiring sanding and finishing or for laminated applications.”).
The Coalition argues that face veneer thickness is not a distinguishing factor in purchasing decisions, and that overall thickness is determinative for substituta-bility, Plaintiff points to the fact that “31 of 37 purchasers indicated that panel thickness is a very important factor in their purchases.” PL’s Pre-Hearing Br. 14 (internal quotation marks omitted); Final Staff Report at 11-19 tbl. II-7 (responses of U.S. purchasers reflected thirty-three out of forty purchasers ranked panel thickness as “very important,” seven out of forty ranked panel thickness as “somewhat important,” but only twenty-five out of forty ranked veneer thickness as “very important,” and fourteen out of forty ranked it as “somewhat important”). Moreover, for the Coalition, the overall functionality’ of hardwood plywood depends on its overall thickness, not face veneer thicknesses. Pl.’s Pre-Hearing Br. 14-15, 30. Plaintiff, in support of its argument, quotes a portion of the hearing transcript stating “[a] thin-faced veneer is acceptable in certain instances.” PL’s ' Post-Hearing Br. 5 (quoting Weaver Testimony at 237); Final Phase Hearing Tr. at 54 (The “face veneer thickness assertion is simply a red herring. You buy it because of the look and the thickness. This is U.S.-made, less than .4 [mm] of veneer thickness; Chinese made, .4 [mm] veneer thickness. You can’t tell the difference. You’re buying the look.”); Final Phase Hearing Tr. 56-56 (“I’ve never seen a label on a Chinese hardwood plywood that specified a thin-faced veneer. [For example,] [t]his hardwood plywood is .4 millimeter or .3 millimeter face. ... What I do see are nominal thicknesses designated three-quarter inch, 23/32ns, half-inch, et cetera, or in millimeters, 5.0, 5.5, 9.0,15.”).
The court finds that the Commission’s conclusion that face veneer thickness is a determinative physical characteristic for substitutability is supported by substantial evidence. Questionnaire responses report that “the [imported] subject product is better suited for laminated applications,” which makes the plywood more suitable for cabinet interiors. Final Staff Report at 11-35.
While domestically produced plywood may be sufficient in many applications, there are just as many areas where U.S. produced product is over engineered. Where thick face is not required to achieve the same end result. In many cases domestically produced products with thicker face veneerfs] are used in highly visible areas of the finished product, where the manufacturer will need to do more sanding and surface preparation prior to finishing.[ ] Imported products from China will normally be used in interiors of cabinets where there is less emphasis on veneer preparation. These interior parts may also be prefinished, so no additional preparation is required
Final Staff Report at E-4 tbl. E-l (“[The] Chin[ese] product is used for laminating paper. [The] U.S. product is for finished veneer.”; “Chinese plywood is preferred in lamination applications as the overall thickness consistency tends to be better. For face applications, the two countries offer different advantages. ... Thicker face veneer offers higher repair functionality as more veneer to sand. Either can be used, however the impact on process costs are very different.”); Simon Testimony at 78 (“Domestic hardwood plywood manufacturers do not peel or slice veneer as thin as they do in China because it would deprive them of their main value-added product attribute, the ability for end users to sand and stain the product for decorative applications.”); Final Phase Hearing Tr. 200 (“[T]he face veneers are substantially thicker, permitting appropriate sanding for the best finished surface on the completed cabinet. It’s this great appearance on the outside that attracts customers.”).
The record supports the assertion that U.S. plywood is more suitable for decorative uses that are visible because it can be sanded and painted, while Chinese plywood is a lesser quality product which is suitable for lamination, or for the interior or non-visible part of a product. The evidence cited by the Coalition simply does not overcome, or seriously call into question, the ITC’s finding that plywood of thicker face veneer is more suitable for certain applications than that of thinner face veneer. Thus, the record supports the conclusion that face veneer thickness is a distinguishing characteristic between domestic and Chinese plywood.
Next, as has been noted, the ITC’s conclusions on differences in the manufacturing process are supported by substantial evidence in the record. The hearing testimony described that the different manufacturing processes of the core material require the Chinese product’s face veneer to be manufactured differently, making the Chinese product better equipped for laminating applications, and the domestic product more suitable for decorative applications. See Simon Testimony at 176-77. According to this testimony, because the Chinese product’s core is manufactured differently, the product’s face veneer is put on differently too. Id.; Am. Def.-Ints.’ Pre-Hearing Br. 18 (“[F]or technical reasons, there is a hard line at 0.4 mm veneer thickness that differentiates two very different production processes and that yields hardwood plywood faces and backs that are very different and that have different end uses. For veneer that is rotary cut or plain sliced to 0.4mm’s and above, a manufacturer can use an automated composer machine to stitch together the pieces of veneers in a dry lay up. For face and back veneers that are rotary cut or plain sliced below 0.4mm, the veneer pieces must be combined by hand using a wet veneer lay up. ... For veneer thicknesses below 0.4mm, it would be impossible to use a machine composer. The domestic industry uses the machine-composer and therefore must cut veneer at thicknesses above 0.4mm.” (quoting Simón Aff. ¶ 11)). ■
Moreover, information on the record also shows that U.S. producers did not manufacture hardwood plywood with a face veneer thickness below 0.4 mm during 2010 through interim 2013, while on average, 94 percent of U.S. imports of the Chinese plywood had face veneer thicknesses below 0.4 mm. See Final Staff Report at D-5 tbl. D-3. In other words, the record supports the finding that the face veneer manufacturing processes of the domestic and Chinese plywood differed, and because of these different processes, the domestic and Chinese producers were producing physically distinguishable products.
The Commission’s findings were based on questionnaire responses and hearing testimony reflecting that face veneer thickness determines whether the plywood is appropriate for sanding or finishing, or conversely, laminating and painting. Further, the production of different face veneer thicknesses differs between domestic and Chinese producers. For these reasons, the Commission’s conclusion that face veneer thickness is a distinguishing factor in its substitutability determination is supported by substantial evidence.
E. The Commission’s Finding that Other Purchasing Factors Outweighed Price-Driven Substituta-bility Is Supported by Substantial Evidence
In its Views, the Commission found that “[although price is an important factor in purchasing decisions, quality and availability[] are other top factors.” Views at 27. This finding was the result of only six out of forty surveyed purchasers responding that price was the most important factor. Id.; see Final Staff Report at 11-19 tbl. II-6. The Commission found, however, that “[s]ubject imports undersold the domestic like product in 83 of 84 price comparisons, with margins of underselling ranging from 0.9 to 56.5 percent.” Views at 30.
The Coalition argues that the Commission should have compared the pricing data during the POI and after the Petition was filed in its substitutability finding, and that this comparison reflects a post-petition decrease in Chinese imports, which demonstrates purchasers’ sensitivity to price. Pl.’s Pre-Hearing Br. 17-19. In other words, for plaintiff, the importance of price as a purchasing factor is demonstrated by the increased volume of Chinese products during the first part of the POI resulting from the Chinese producers’ low prices, followed by a decrease in volume following the filing of the Petition, because of the well understood potential for price increases for the Chinese product resulting from antidumping duties. Notably, plaintiff acknowledges that there may be instances where “there is a functional or other non-price reason for a U.S. purchaser to purchase plywood with, for example, a thin face veneer, or a core made from a particular material, or a particular overall thickness” from Chinese producers. Pl.’s Pre-Hearing Br. 17. The Coalition insists, however, that this “niche” purchasing cannot explain the increase in volume of imports of Chinese products during the beginning of the POI, and the observed decrease after the filing of the Petition, but that the differences in price can. PL’s Pre-Hearing Br. 17-18.
For the Coalition, “if demand for Chinese hardwood plywood was driven not by price but by demand in niche applications such [as] those that require thin-veneered plywood as a functional characteristic, then the volume of U.S. imports of the subject merchandise would not have dropped so precipitously’’ after the Petition was filed. Id. at 18-19; see also id. at 24 (“Subject import volume declined by 27 percent in Q4 2012 (after the filing of the case in Q3), another 21 percent in Q1 2013, and yet another 26 percent in Q2 2013 (after the announcement of the Preliminary Commerce margins).... If Chinese producers truly offered a differentiated product unavailable (or even largely unavailable) from domestic and other sources, they would have continued to ship it to the U.S. market, and customers would have continued to purchase it.”).. In making its argument, the Coalition claims that this data demonstrates price, not any physical characteristic of the plywood, is the most important purchasing factor and should have been given significant weight by the Commission in its substitutability analysis.
In its papers, plaintiff also presents testimony from the hearing that it claims illustrates that the U.S. producers have the capability and the capacity to produce the same products as the Chinese, but argues that they cannot compete with Chinese prices, See Final Phase Hearing Tr. 34 (“Domestic producers can make the exact same product as the Chinese, but not at the same price. Come to our mills and see for yourself. The samples on the table that we have provided are just examples to prove that point.”), 37 (“[T]he importers of Chinese hardwood plywood have not found a new use or a new application of their plywood. On the contrary, it’s just cheaper. Regretfully, in these especially tough economic times cheap wins.”), 39 (“We can and do manufacture thin plywood every day and can do it with thin faced veneers.”), 47 (“[Thin face veneers] cannot be sourced from domestic they say. This is a false statement. American hardwood plywood mills and veneer manufacturers have the tools, the teehnology[,] and the workforce to produce plywood.”). Put another way, the Coalition argues the only reason domestic products are more concentrated in the higher-end of the market is because it is the only market segment in which they can compete with Chinese prices. The domestic industry, however, plaintiff insists, has the capacity to manufacture thinner products as well.
It is apparent that the ITC has supported with substantial evidence its conclusion that the importance of price as a purchasing factor is outweighed by other purchasing factors such as quality, availability, and end-use. The ITC considered price as a condition of competition and found that it was an important purchasing consideration. Views at 27. It also found, however, that its importance was mitigated by other factors. Id.; Final Staff Report at 11-37 (“Substitutability is enhanced by the fact that price was a very important factor in purchasing, but is constrained by quality being the most important factor for more purchasers”). The data reflected that “[o]nly six of [forty] responding purchasers indicated price was the most important factor;” Views at 27. •
Further, the Commission found that other purchasing considerations were more significant than price. Id. at 24 (“More than two-thirds of responding importers and purchasers, but less than one-half of U.S. producers, found that differences other than price between U.S. and Chinese hardwood plywood were always or frequently significant”). For example, the ITC notes that every single purchaser ranked availability as “very important” or “somewhat important,” and twenty-three purchasers ranked availability as une of its top three purchasing factors. Final Staff Report at 11-19 tbls. II-6 & II-7. As to quality, thirty-three purchasers ranked quality as among the top three purchasing considerations, and thirty-five out of forty purchasers ranked “[q]uality exceeding] industry standards” as “very important” or “somewhat important.” Id. In addition, “[m]ore than two-thirds of responding importers and purchasers, but less than half of U.S. producers ([three] of [seven]), found that differences other than price between U.S. and Chinese hardwood plywood were ‘always’ or ‘frequently significant.’ ” Id. at 11-31.
The Commission’s finding that price was outweighed by other purchasing decisions such as quality and availability is supported by substantial evidence. As part of its investigation, the ITC found that “[t]he price of hardwood plywood products is a function of the panel size, face species, quality, thickness, and finish.” Id. at 1-20. The record also reflects that the domestic product was superior in terms of other identified important purchasing considerations, namely quality (and hence end-use) and availability. Id. at E-4 tbl. E-l (“We have used both [products], have experienced significant issues with Chinese plywood, it was used in the same applications as we use domestic now. The quality - is superior and the amount of re-work is far less.”); id. at. E-4 tbl; E-l (“Domestic quality tends to go on visible areas. Imports tends [sic] to go in framework and box construction”). In its evaluation of purchasing decisions, the Commission found “[qjuality was most frequently cited by purchasers as their top factor in purchasing plywood, and 33 of 40 purchasers indicated that quality was one of the three most important factors.” Id. at 11-18. Because other factors such as quality and availability are also important considerations, and the record reflects that the domestic product was superior in quality and availability, the Commission reasonably considered the role of price in purchasing considerations and found these other factors outweighed any price factors.
Accordingly, the Commission’s finding that other purchasing factors outweighed price-driven substitutability is supported by substantial evidence.
F. Conclusion
The court holds that the Commission’s finding of moderate substitutability is supported by substantial evidence, as it was reasonably based on survey and questionnaire responses from importers, and domestic' and Chinese producers, evaluating both purchasing decisions and differences in physical characteristics. Views at 4. The U.S. and Chinese plywood products physically differ to a degree limiting sub-stitutability. Overall thickness generally differed between- U.S. plywood and Chinese products, which contributed to different end uses. The record also reflects that the domestic product and Chinese product’s cores are composed of different types of wood, and the manufacturing processes for each type of plywood differ extensively. Further, these core material manufacturing processes make the plywood more suitable for different face veneer thicknesses, contributing to different end uses. Moreover, the products face veneer thicknesses significantly differ, due in part to the plywood’s core material composition. Distinctions between face veneer thickness determine whether the plywood is more suitable for decorative uses or laminate end uses— the major separation between the two products.
As to price, the Commission considered price as another “condition of competition,” and found that while price was an important purchasing factor, other factors such as quality and availability were also important. Plaintiff has failed to demonstrate that price