Ad Hoc Shrimp Trade Action Committee v. United States

992 F. Supp. 2d 1302, 2014 CIT 57, 36 I.T.R.D. (BNA) 433, 2014 Ct. Intl. Trade LEXIS 75, 2014 WL 2938192
CourtUnited States Court of International Trade
DecidedMay 27, 2014
DocketSlip Op. 14-57; Court 12-00290
StatusPublished
Cited by1 cases

This text of 992 F. Supp. 2d 1302 (Ad Hoc Shrimp Trade Action Committee v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ad Hoc Shrimp Trade Action Committee v. United States, 992 F. Supp. 2d 1302, 2014 CIT 57, 36 I.T.R.D. (BNA) 433, 2014 Ct. Intl. Trade LEXIS 75, 2014 WL 2938192 (cit 2014).

Opinion

OPINION

POGUE, Chief Judge:

This action arises from the sixth administrative review by the United States De *1305 partment of Commerce (“Commerce”) of the antidumping duty order on certain frozen warmwater shrimp from the People’s Republic of China (“PRC” or “China”). 2 Plaintiff Ad Hoc Shrimp Trade Action Committee (“AHSTAC”) — an association of domestic warmwater shrimp producers that participated in this review 3 — challenges Commerce’s determinations to I) limit its examination to two mandatory respondents; II) rely exclusively on certain entry data obtained from United States Customs and Border Protection (“CBP”) to make relative sales volume determinations when selecting respondents for individual review; and III) use data from a single surrogate country to value the labor factor of production when calculating normal values. 4

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), 5 and 28 U.S.C. § 1581(c) (2006).

As explained below, Commerce’s determinations to limit its examination of respondents pursuant to 19 U.S.C. § 1677f-1(c)(2)(B); rely on Type 03 CBP data to make relative sales volume determinations when selecting respondents for individual examination; and value surrogate wage rates using data from the chosen primary surrogate country are each affirmed.

STANDARD OF REVIEW

The court upholds Commerce’s antidumping determinations if they are in accordance with law and supported by substantial evidence. 19 U.S.C. § 1516a(b)(l)(B)(i). Where, as here, the antidumping statute does not directly address the question before the agency, the court will defer to Commerce’s construction of its authority if it is reasonable. Timken Co. v. United States, 354 F.3d 1334, 1342 (Fed.Cir.2004) (relying on Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984)).

Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion,” Consol. Edison Co. of N.Y. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938), and “can be translated roughly to mean ‘is [the determination] unreasonable?’ ” Nippon Steel Corp. v. United States, 458 F.3d 1345, 1351 (Fed. Cir.2006) (citation omitted, alteration in the original).

DISCUSSION

I. Commerce’s Determination to Limit Individual Examination to Two Mandatory Respondents

AHSTAC’s challenge to Commerce’s determination to limit its examination to two mandatory respondents, AHSTAC’s Br. at 30-35, is rooted in Commerce’s statutory obligation to “determine the individual weighted average dumping margin for each known exporter and producer of the *1306 subject merchandise” when conducting administrative reviews of antidumping duty-orders. 19 U.S.C. § 1677f-1(c)(l). But the statute also permits Commerce to limit its examination if the review “involve[s]” a “large number of exporters or producers.” Id. at § 1677f-1(e)(2) (the “large number exception”). Pursuant to the large number exception, Commerce may limit its examination to, inter alia, “exporters and producers accounting for the largest volume of the subject merchandise from the exporting country that can be reasonably examined.” Id. at § 1677f-1(c)(2)(B). 6

AHSTAC contends that Commerce improperly invoked the large number exception here because the number of exporters or producers “involved” in this review was not a “large number.” AHSTAC’s Br. at 32-35. Athough the review was initiated for 84 producers or exporters, 7 AHSTAC asserts that the number of respondents “involved” in the review should be determined based on CBP import data, which AHSTAC contends show that significantly fewer than 84 producers or exporters exported subject merchandise to the United States during the period of review (“POR”). AHSTAC’s Br. at 33-35. 8 Commerce, on the other hand, maintains that the number of producers or exporters “involved” in the review is the number for which review was initiated and not subsequently rescinded. See I & D Mem. cmt. 8 at 41. 9

The first question before the court, therefore, is the meaning of the phrase “involved in the ... review.” 19 U.S.C. § 1677f-l(c)(2). Because the statute itself does not unambiguously define this contested term, 10 Commerce’s construction is *1307 entitled to deference if it is reasonable. See Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778.

Commerce submits that each producer or exporter for whom review is initiated and not subsequently rescinded is involved in the review. See I & D Mem. cmt. 8 at 41. This construction is consistent with the statute’s Statement of Administrative Action (“SAA”), 11 which affirms that § 1677f — 1(c) codified Commerce’s preexisting practice of “attempt[ing] to calculate individual dumping margins for all producers and exporters ... for whom an administrative review is requested.” H.R. Doc. 103-316, at 872 (1994), reprinted in 1994 U.S.C.C.A.N. 4040, 4200 (emphasis added). Thus the SAA supports Commerce’s reading that the phrase “each known exporter and producer of the subject merchandise,” to which the phrase “exporters or producers involved in the ... review” refers, see 19 U.S.C. § 1677f-1

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992 F. Supp. 2d 1302, 2014 CIT 57, 36 I.T.R.D. (BNA) 433, 2014 Ct. Intl. Trade LEXIS 75, 2014 WL 2938192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ad-hoc-shrimp-trade-action-committee-v-united-states-cit-2014.