Ad Hoc Shrimp Trade Action Committee v. United States

882 F. Supp. 2d 1366, 2012 CIT 145, 34 I.T.R.D. (BNA) 2276, 2012 Ct. Intl. Trade LEXIS 146, 2012 WL 5974201
United States Court of International Trade·Decided November 30, 2012·No. Slip Op. 12-145; Court 11-00335·Published·Cited by 16 cases

Opinion

OPINION AND ORDER

POGUE, Chief Judge:

This action seeks review of four determinations by the United States Department of Commerce (“Commerce”) in the fifth administrative review of the antidumping duty order on certain frozen warmwater shrimp from the People’s Republic of China (“China” or the “PRC”). 1 Before the *1369 court is Plaintiffs motion pursuant to US-CIT Rule 56.2 for judgment on the agency record. By its motion, Plaintiff Ad Hoc Shrimp Trade Action Committee (“AHS-TAC”) seeks a remand to the agency for reconsideration of Commerce’s I) exclusive reliance on certain data obtained from U.S. Customs and Border Protection (“Customs” or “CBP”) to select respondents for individual examination in this review (“mandatory respondents”); II) selection of India as the primary surrogate country for China, which Commerce treats as a non-market economy (“NME”); III) decision to use Indian data as the exclusive source for valuing the labor factor of production (“FOP”); and IV) determination not to exclude imports from North Korea when using Indian import statistics to calculate surrogate FOP values. See Mem. of Law in Supp. of PL [AHSTACj’s Rule 56.2 Mot. for J. on the Agency R., ECF No. 39 (“Pl.’s Br.”). The court has jurisdiction pursuant to Section 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2006), 2 and 28 U.S.C. § 1581(c) (2006).

As explained below, I) Commerce’s mandatory respondent selection is sustained; II) Commerce’s surrogate country selection is remanded; and III) and IV) judgment regarding Commerce’s labor valuation, as well as Commerce’s decision not to exclude data on Indian imports from North Korea when calculating surrogate FOP values, is deferred pending Cornmerce’s reconsideration of its primary surrogate country selection.

STANDARD OF REVIEW

When reviewing Commerce’s anti-dumping decisions under 19 U.S.C. § 1516a(a)(2), this Court sustains Commerce’s determinations, findings, or conclusions unless they are “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i). Substantial evidence review analyzes whether the challenged determination, finding, or conclusion is reasonable given the record as a whole. Nippon Steel Corp. v. United States, 458 F.3d 1345, 1351 (Fed.Cir.2006).

DISCUSSION

I. Respondent Selection

AHSTAC first challenges Commerce’s selection of the mandatory respondent in this review, Hilltop International (“Hilltop”). Pl.’s Br. at 38-40. Commerce selected Hilltop for mandatory individual examination because, based on entry data obtained from Customs, Hilltop was the largest Chinese exporter of the subject merchandise, by volume, during the period of review (“POR”). 3 Certain Frozen Warmwater Shrimp from the People’s Republic of China, 76 Fed. Reg. 8,338, 8,338 (Dep’t Commerce Feb. 14, 2011) (preliminary results and preliminary partial rescission of fifth antidumping duty administrative review), Admin. R. Pub. Doc. 97 (“Preliminary Results ”). 4

*1370 AHSTAC argues that Commerce’s selection was not supported by substantial evidence because, in the course of a prior review of this antidumping duty order, Commerce discovered that some entries of subject merchandise had been misclassified by their importer as merchandise not covered by the order. 5 See Pl.’s Br. at 39. As this misclassification was not detected by Customs, CBP import data for that prior review period inaccurately reported entry volumes of subject merchandise. AHSTAC contends that Commerce should have inferred from this pre-POR discovery that importers similarly misclassified subject entries during the POR at issue, and therefore that the CBP entry data are unreliable for determining the actual volume of subject merchandise entered by each respondent during the POR. See id.

This Court has previously held that, “[i]n the absence of evidence in the record that the CBP data — for merchandise entered during the relevant POR and subject to the [antidumping] duty order at issue — are in some way inaccurate or distortive, the agency [may] reasonably eonclude[] that such data, collected in the regular course of business under penalty of law for fraud and/or negligence, presents reliably accurate information.” Pakfood Pub. Co. v. United States, — CIT -, 753 F.Supp.2d 1334, 1345 (2011) (emphasis added, footnote and citations omitted). Nonetheless, AHSTAC contends that misclassification of a respondent’s entries during the period of the third review constitutes evidence that Customs data for entries made during the period of the fifth review is inaccurate. PL’s Br. at 39.

This precise issue was already decided in Ad Hoc Shrimp Trade Action Comm. v. United States, — CIT -, 828 F.Supp.2d 1345, 1351 (2012). That decision concluded that Commerce adequately considered the effect of the misclassification, in the third review, on the quality of the data used in subsequent reviews of this antidumping duty order. Id. Specifically, in the fourth review, Commerce verified that misclassifications identified during the third review- — -the very same misclassifications that form the sole evidentiary basis for AHSTAC’s present argument, PL’s Br. at 39 — were no longer continuing. Ad Hoc Shrimp Trade Action Comm., — CIT at-, 828 F.Supp.2d at 1351. Commerce thus reasonably resolved any question arising from these misclassifications regarding the continued accuracy of CBP entry volume data for respondents subject to this antidumping duty order. Id.

Because AHSTAC presents no new evidence to impugn the accuracy of Customs entry volume data for the POR at issue here, see PL’s Br. at 39, Commerce reasonably concluded that these data were reliable for purposes of mandatory respondent selection in this review. See Pakfood, — CIT at -, 753 F.Supp.2d at 1345; Ad Hoc Shrimp Trade Action Comm., — CIT at -, 828 F.Supp.2d at 1351. Thus, as AHSTAC presents no further *1371 basis on which to challenge Commerce’s mandatory respondent selection, see Pl.’s Br. at 38-40, Commerce’s determination in this regard is sustained.

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Ad Hoc Shrimp Trade Action Committee v. United States, 882 F. Supp. 2d 1366, 2012 CIT 145, 34 I.T.R.D. (BNA) 2276, 2012 Ct. Intl. Trade LEXIS 146, 2012 WL 5974201 (cit 2012).

882 F. Supp. 2d 1366 (Ad Hoc Shrimp Trade Action Committee v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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