An Giang Fisheries Import & Export Joint Stock Co. v. United States
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Opinion
OPINION AND ORDER
Kelly, Judge
This consolidated action comes before the court on USCIT Rule 56.2 motions for judgment on the agency record, challenging the U.S. Department of Commerce’s (“Department” or “Commerce”) determination in the ninth administrative review of the antidumping duty order covering certain frozen fish fillets from the Socialist Republic of Vietnam (“Vietnam”). See Certain Frozen Fish Fillets From the Socialist Republic of Vietnam, 79 Fed. Reg. 19,053 (Dep’t Commerce Apr. 7, 2014) (final results of antidumping duty administrative review and new shipper review; 2011-2012) (“Final Results”), as amended, 79 Fed. Reg. 37,714 (Dep’t Commerce July 2, 2014) (“Amended Final Results”); see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Issues and Decision Memorandum for the Final Results of the Ninth Administrative Review and Aligned Shipper Review, A-552-801, (Mar. 28, 2014), available at http://ia.ita.doc.gov/frn/ summary/vietnam/2014-07714-l.pdf (last visited May 26, 2016) (“Final Decision Memo”).
An Giang Fisheries Import and Export Joint Stock Company, Asia Commerce Fisheries Joint Stock Company, Cuu Long Fish Joint Stock Company, Hiep Thanh Seafood Joint Stock Company, International Development and Investment Corporation, NTSF Seafoods Joint Stock Company, QVD Food Company Ltd., Southern Fishery Industries Company, Ltd., and Vinh Hoan Corporation (collectively “Agifish”) commenced this action pursuant to section 516A of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a (2012).1 See Summons, May 5, 2014, ECF No. 1. The court consolidated Agifish’s challenge with actions filed by: (1) Catfish Farmers of America, an association of U.S. catfish processors and growers, and individual U.S. catfish processors, America’s Catch, Alabama Catfish Inc., Heartland Catfish Company, Magnolia Processing, Inc., and Simmons Farm Raised Catfish, Inc. (collectively “CFA”); (2) Binh An Sea[1261]*1261food Joint Stock Company (“Binh An”); and (3) Vietnam Association of Seafood Exporters and Producers, a trade association comprised of Vietnamese seafood producers and/or exporters (“VASEP”). See Order, Aug. 26, 2014, ECF No. 32. Each of the above named parties filed Rule 56.2 motions challenging Commerce’s final determination. .See An Giang Fisheries Import and Export Joint Stock Company, Asia Commerce Fisheries Joint Stock Company, Cuu Long Fish Joint Stock Company, Hiep Thanh Seafood Joint Stock Company, International Development and Investment Corporation, NTSF Seafoods Joint Stock Company, QVD Food Company, Ltd., Southern Fishery Industries Company Ltd., and Vinh Hoan Corporation’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 48; Pis. Catfish Farmers of America, et al.’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 49; Consolidated PI. Binh An Seafood Joint Stock Co. Ltd.’s Mot. J. Agency R., Jan. 27, 2015, ECF No. 47; PL’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 46. In addition, CFA filed a response, as a defendant-intervenor, in opposition to motions by Agifish, VASEP, and Binh An. See Def.-Intervenors’ Resp. Opp’n Pis.’ Rule 56.2 Mots. J. Agency R., July 29,2015, ECF No. 79.
BACKGROUND
On September 26, 2012, Commerce initiated this ninth antidumping duty (“AD”) administrative review covering subject imports entered during the period of review (“POR”), August 1, 2011 through July 31, 2012. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part, 77 Fed. Reg. 59,168, 56,169 (Dep’t Commerce Sept. 26,2012).
In its preliminary determination, Commerce selected Indonesia as the primary surrogate country for obtaining surrogate values (“SV”) for respondents’ factors of production (“FOP”) used to produce the subject merchandise. See Certain Frozen Fish Fillets From the Socialist Republic of Vietnam, 78 Fed. Reg. 55,676 (Dep’t Commerce Sept. 11, 2013) (preliminary results of the antidumping duty administrative review and new shipper review; 2011-2012) (“Prelim. Results”); see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Decision Memorandum for the Preliminary Results of the 2011-2012 Antidumping Duty Administrative Review and New Shipper Review at 18, A-552-801, (Sept. 3, 2013), available at http://ia.ita.doc. gov/frn/summary/vietnam/2013-22123-l.pdf (last visited May 26, 2016) (“Prelim. Decision Memo”). Commerce selected Vinh Hoan Corporation (“Vinh Hoan”) and Hung Vuong Group (“HVG”) as mandatory respondents, Prelim. Results, 78 Fed. Reg. at 55,676, initially assigning them weighted-average dumping margins of $0.42 per kilogranr.and $2.15 per kilogram, respectively. Id. at 55,677. Commerce assigned the average of these rates, $0.99 per kilogram, to the separate rate respondents that were not individually examined. Id. Commerce also assigned a weighted-average dumping margin of $2.11 per kilogram to those exporters subject to the order who did not rebut the presumption of government control (the “Vietnam-Wide Rate”). Id.
In its final determination, Commerce continued to select Indonesia as the primary surrogate country for valuing respondents’ FOPs. Final Decision Memo at 7, 16. Commerce calculated final weighted-average dumping margins of $0.03 per kilogram for Vinh Hoan and $1.20 for HVG, from which Commerce assigned a rate of $0.42 per kilogram to the separate rate respondents. Final Results, 79 Fed. Reg. at 19,055. Commerce published amended final results on July 2, 2014, which altered the weighted-average dumping margin assigned to mandatory respondent Vinh [1262]*1262Hoan to $0.00 per kilogram. Amended Final Results, 79 Fed. Reg. at 37,714. Commerce also changed the weighted-average dumping margin assigned to separate rate respondents to $1.20 per kilogram.2 Id. The Vietnam-Wide Rate remained unaltered. Id.
Agifish, VASEP, and Binh An challenge Commerce’s selection of Indonesia as the primary surrogate country. See Mem, Law Supp. Pis.’ Rule 56.2 Mot. J. Upon Agency R. 10-15, Jan. 27, 2015, ECF No. 48 (“Agifish Br.”); Mem. Law Supp. PL’s Rule 56.2 Mot. J. Upon Agency R. 7-85, Jan. 27, 2015, ECF No. 46 (“VASEP Br.”); Mem. Law Supp. Consolidated Pl.’s Binh An Seafood Joint Stock Co., Ltd.’s Mot. J. Upon Agency R. 12-18, Jan. 27, 2015, ECF No. 47-1 (“Binh An Br.”). Agifish also challenges Commerce’s selection of SV data sources to value various FOPs used to produce the subject merchandise, including whole live fish, fingerlings, various fish farming FOPs, various byproducts, labor, and various expenses related to shipping, brokerage and handling. See Agifish Br. 16-45. Agifish challenges Commerce’s decision to apply a “cap” or constructed value (“CV”), to obtain a SV for Vinh Hoan’s fish oil byproduct rather than using Indonesian import data as is. See Agifish Br. 45-49. Agifish also challenges Commerce’s consideration of arguments raised by CFA in its rebuttal case brief relating to SV data sources for certain FOPs. See Agifish Br. 49-51. CFA. challenges Commerce’s SV data selection .to value respondents’ .panga-sius feed FOP. See Am. Mem. Supp. Pis. Catfish Farmers of America, et al.’s Rule 56.2 Mot. J. Upon Agency R. 26-38, Jan. 29, 2015, ECF No. 54 (“CFA Br.”). Finally, CFA challenges Commerce’s determination to decline to adjust Vinh Hoan’s margin calculation to exclude glazing weight.3 Defendant United States (“Defendant”), responds that the court should sustain Commerce’s surrogate country selection and SV data selections. See Def.’s Resp.
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OPINION AND ORDER
Kelly, Judge
This consolidated action comes before the court on USCIT Rule 56.2 motions for judgment on the agency record, challenging the U.S. Department of Commerce’s (“Department” or “Commerce”) determination in the ninth administrative review of the antidumping duty order covering certain frozen fish fillets from the Socialist Republic of Vietnam (“Vietnam”). See Certain Frozen Fish Fillets From the Socialist Republic of Vietnam, 79 Fed. Reg. 19,053 (Dep’t Commerce Apr. 7, 2014) (final results of antidumping duty administrative review and new shipper review; 2011-2012) (“Final Results”), as amended, 79 Fed. Reg. 37,714 (Dep’t Commerce July 2, 2014) (“Amended Final Results”); see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Issues and Decision Memorandum for the Final Results of the Ninth Administrative Review and Aligned Shipper Review, A-552-801, (Mar. 28, 2014), available at http://ia.ita.doc.gov/frn/ summary/vietnam/2014-07714-l.pdf (last visited May 26, 2016) (“Final Decision Memo”).
An Giang Fisheries Import and Export Joint Stock Company, Asia Commerce Fisheries Joint Stock Company, Cuu Long Fish Joint Stock Company, Hiep Thanh Seafood Joint Stock Company, International Development and Investment Corporation, NTSF Seafoods Joint Stock Company, QVD Food Company Ltd., Southern Fishery Industries Company, Ltd., and Vinh Hoan Corporation (collectively “Agifish”) commenced this action pursuant to section 516A of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a (2012).1 See Summons, May 5, 2014, ECF No. 1. The court consolidated Agifish’s challenge with actions filed by: (1) Catfish Farmers of America, an association of U.S. catfish processors and growers, and individual U.S. catfish processors, America’s Catch, Alabama Catfish Inc., Heartland Catfish Company, Magnolia Processing, Inc., and Simmons Farm Raised Catfish, Inc. (collectively “CFA”); (2) Binh An Sea[1261]*1261food Joint Stock Company (“Binh An”); and (3) Vietnam Association of Seafood Exporters and Producers, a trade association comprised of Vietnamese seafood producers and/or exporters (“VASEP”). See Order, Aug. 26, 2014, ECF No. 32. Each of the above named parties filed Rule 56.2 motions challenging Commerce’s final determination. .See An Giang Fisheries Import and Export Joint Stock Company, Asia Commerce Fisheries Joint Stock Company, Cuu Long Fish Joint Stock Company, Hiep Thanh Seafood Joint Stock Company, International Development and Investment Corporation, NTSF Seafoods Joint Stock Company, QVD Food Company, Ltd., Southern Fishery Industries Company Ltd., and Vinh Hoan Corporation’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 48; Pis. Catfish Farmers of America, et al.’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 49; Consolidated PI. Binh An Seafood Joint Stock Co. Ltd.’s Mot. J. Agency R., Jan. 27, 2015, ECF No. 47; PL’s Rule 56.2 Mot. J. Upon Agency R., Jan. 27, 2015, ECF No. 46. In addition, CFA filed a response, as a defendant-intervenor, in opposition to motions by Agifish, VASEP, and Binh An. See Def.-Intervenors’ Resp. Opp’n Pis.’ Rule 56.2 Mots. J. Agency R., July 29,2015, ECF No. 79.
BACKGROUND
On September 26, 2012, Commerce initiated this ninth antidumping duty (“AD”) administrative review covering subject imports entered during the period of review (“POR”), August 1, 2011 through July 31, 2012. See Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part, 77 Fed. Reg. 59,168, 56,169 (Dep’t Commerce Sept. 26,2012).
In its preliminary determination, Commerce selected Indonesia as the primary surrogate country for obtaining surrogate values (“SV”) for respondents’ factors of production (“FOP”) used to produce the subject merchandise. See Certain Frozen Fish Fillets From the Socialist Republic of Vietnam, 78 Fed. Reg. 55,676 (Dep’t Commerce Sept. 11, 2013) (preliminary results of the antidumping duty administrative review and new shipper review; 2011-2012) (“Prelim. Results”); see also Certain Frozen Fish Fillets from the Socialist Republic of Vietnam: Decision Memorandum for the Preliminary Results of the 2011-2012 Antidumping Duty Administrative Review and New Shipper Review at 18, A-552-801, (Sept. 3, 2013), available at http://ia.ita.doc. gov/frn/summary/vietnam/2013-22123-l.pdf (last visited May 26, 2016) (“Prelim. Decision Memo”). Commerce selected Vinh Hoan Corporation (“Vinh Hoan”) and Hung Vuong Group (“HVG”) as mandatory respondents, Prelim. Results, 78 Fed. Reg. at 55,676, initially assigning them weighted-average dumping margins of $0.42 per kilogranr.and $2.15 per kilogram, respectively. Id. at 55,677. Commerce assigned the average of these rates, $0.99 per kilogram, to the separate rate respondents that were not individually examined. Id. Commerce also assigned a weighted-average dumping margin of $2.11 per kilogram to those exporters subject to the order who did not rebut the presumption of government control (the “Vietnam-Wide Rate”). Id.
In its final determination, Commerce continued to select Indonesia as the primary surrogate country for valuing respondents’ FOPs. Final Decision Memo at 7, 16. Commerce calculated final weighted-average dumping margins of $0.03 per kilogram for Vinh Hoan and $1.20 for HVG, from which Commerce assigned a rate of $0.42 per kilogram to the separate rate respondents. Final Results, 79 Fed. Reg. at 19,055. Commerce published amended final results on July 2, 2014, which altered the weighted-average dumping margin assigned to mandatory respondent Vinh [1262]*1262Hoan to $0.00 per kilogram. Amended Final Results, 79 Fed. Reg. at 37,714. Commerce also changed the weighted-average dumping margin assigned to separate rate respondents to $1.20 per kilogram.2 Id. The Vietnam-Wide Rate remained unaltered. Id.
Agifish, VASEP, and Binh An challenge Commerce’s selection of Indonesia as the primary surrogate country. See Mem, Law Supp. Pis.’ Rule 56.2 Mot. J. Upon Agency R. 10-15, Jan. 27, 2015, ECF No. 48 (“Agifish Br.”); Mem. Law Supp. PL’s Rule 56.2 Mot. J. Upon Agency R. 7-85, Jan. 27, 2015, ECF No. 46 (“VASEP Br.”); Mem. Law Supp. Consolidated Pl.’s Binh An Seafood Joint Stock Co., Ltd.’s Mot. J. Upon Agency R. 12-18, Jan. 27, 2015, ECF No. 47-1 (“Binh An Br.”). Agifish also challenges Commerce’s selection of SV data sources to value various FOPs used to produce the subject merchandise, including whole live fish, fingerlings, various fish farming FOPs, various byproducts, labor, and various expenses related to shipping, brokerage and handling. See Agifish Br. 16-45. Agifish challenges Commerce’s decision to apply a “cap” or constructed value (“CV”), to obtain a SV for Vinh Hoan’s fish oil byproduct rather than using Indonesian import data as is. See Agifish Br. 45-49. Agifish also challenges Commerce’s consideration of arguments raised by CFA in its rebuttal case brief relating to SV data sources for certain FOPs. See Agifish Br. 49-51. CFA. challenges Commerce’s SV data selection .to value respondents’ .panga-sius feed FOP. See Am. Mem. Supp. Pis. Catfish Farmers of America, et al.’s Rule 56.2 Mot. J. Upon Agency R. 26-38, Jan. 29, 2015, ECF No. 54 (“CFA Br.”). Finally, CFA challenges Commerce’s determination to decline to adjust Vinh Hoan’s margin calculation to exclude glazing weight.3 Defendant United States (“Defendant”), responds that the court should sustain Commerce’s surrogate country selection and SV data selections. See Def.’s Resp. Consolidated Pis.’ Rule 56.2 Mot. J. Upon Agency R., July 29, 2015, ECF No. 75 (“Def.’s Resp. Br.”). However, Defendant requests a voluntary remand to revisit its normal value (“NV”) calculation with respect to glazing for Vinh Hoan. Id. at 92.
The court sustains Commerce’s selection of Indonesia as the primary surrogate country. The court also sustains Commerce’s determination to consider arguments relating to SV data selection raised by CFA in its rebuttal brief before the agency. The court sustains Commerce’s SV data selections for the following FOPs: (1) whole live fish; (2) fingerlings; (3) fish feed; (4) sawdust; (5) labor; (6) fish waste byproducts; (7) fresh broken fillets; (8) brokerage and handling; and (9) truck freight. However, the court remands Commerce’s SV data selections for rice husk and Vinh Hoan’s fish oil byproduct for further consideration and explanation. Lastly, the court grants Defendant’s voluntary remand request for Commerce to. reconsider its NV calculation with respect to glazing for Vinh Hoan.
[1263]*1263JURISDICTION AND STANDARD OF REVIEW
The court has jurisdiction pursuant to 19 U.S.C. § 1516a(a)(2)(B)(iii) and 28 U.S.C. § 1581(c) (2012), which grant the court authority to review actions contesting the final determination in an administrative review of an antidumping duty order. “The 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).
DISCUSSION
I. Primary Surrogate Country Selection
A. Factual Background
Since Commerce treats Vietnam as a nonmarket economy (“NME”), Commerce initiated its process of selecting a surrogate market economy country to value the FOPs used to produce the subject imports by requesting that its Office of Policy (“OP”) issue a list of potential surrogate countries. See Letter to All Interested Parties re: 9th Administrative Review of Frozen Fish Fillets from the Socialist Republic of Vietnam: Surrogate Country List, PD 42, bar code 3105149-01 (Nov. 8, 2012). The list included the following six countries: Bangladesh, Pakistan, Nicaragua, India, Bolivia, and the Philippines. See id. at Attach. I (“OP List”). After considering comments from interested parties, Commerce selected Indonesia, which was not among the countries on the OP List, as the primary surrogate country for its preliminary results. See Prelim. Results, 78 Fed. Reg. at 55,677; see' also Prelim. Decision Memo at 18.
in its preliminary determination, Commerce noted the per capita gross national income (“GNI”) values of the countries on the OP List, and found that all countries on the OP List are at an equal level of economic development. Prelim. Decision Memo at 13. Commerce found Indonesia’s per capita GNI places it at “a higher and, thus, less comparable level of economic development than that represented by the six countries on the initial surrogate country candidate list, but still comparable to that of Vietnam.”4 Id at 14. Commerce found Indonesia, and all of the countries on the OP List except Bolivia, to be significant producers of comparable merchandise. Id. at 15. Commerce relied upon data quality considerations to preliminarily select Indonesia as the primary surrogate country to value respondents’ FOPs. See id. at 16-18.
Thereafter, the parties continued to submit additional SV data and comments on the issue of surrogate country selection. See Catfish Farmers of America Surrogate Value Data, PD 290-294, bar codes 3167326-01-05 (Dec. 6, 2013) (“CFA SV Data”); Agifish, Vinh Hoan Post-Preliminary Surrogate Value Data, PD 295-296, bar codes 3167265-01-02 (Dec. 9, 2013) (“Respondents’ Post-Prelim. SV Data”); Vinh Hoan, Agifish, VASEP Supplemental Surrogate Value Submission, PD 298, bar code 3167703-01 (Dec. 11, 2013); Respondents’ Rebuttal Surrogate Value Data, PD 305-309, bar codes 3172989-01-05 (Jan. 10, 2014); Catfish Farmers of America Rebuttal Surrogate Value Data, PD 310-311, bar codes 3173134-01-02 (Jan. 10, 2014) (“CFA Rebuttal SV Data”). After the submission [1264]*1264of case briefs, Commerce issued its final determination maintaining its selection of Indonesia as the primary surrogate country. See Final Decision Memo at 15-16.
B. Legal Framework
In NME AD proceedings, Commerce generally calculates NV using the best available information to value respondents’ FOPs and other costs and expenses “in a market economy country or countries considered to-be appropriate by [Commerce].” 19 U.S.C. § 1677b(c)(l). To the extent possible, Commerce uses- FOPs from market economy countries that are—“(A) at a level of economic development comparable to that of :the nonmarket economy country, and (B) significant producers of comparable merchandise.”-19 U.S.C. § 1677b(c)(4). The statute does not define economic comparability, nor does it provide a methodology or criteria for evaluating the other statutory surrogate country selection standards.
Although Commerce may use multiple surrogate countries to calculate NV, Commerce’s regulatory preference is to “value all factors in a single'-surrogate country.” 19 C.F.R. § 351.408(e)(2) (2013).5 To implement this preference: (1) the OP assembles “a list of potential surrogate countries that are at a comparable level of economic development to the NME country,” whose per capita GNIs fall within a range of comparability to the GNI of the NME country;6 (2) Commerce identifies countries from the OP List' that produce comparable merchandise; (3) Commerce “determines whether any of the countries which produce comparable merchandise are ‘significant’ producers of that comparable merchandise”; and, (4) if more than one country satisfies steps (1)—(3), Commerce will select the country with the best factors data. See Import Admin., U.S. Dep’t Commerce, Non-Market Economy Surrogate Country Selection Process, Policy Bulletin 04.1 (2004), available at http://enforcement. trade.gov/policy/bull04-l.html (last visited May 26, 2016) (“Policy Bulletin 04.1”).
According to Commerce’s practice, the surrogate countries on the list “are not ranked and should be considered equivalent in terms of economic comparability.” Id. at 2. If more than one country is economically comparable to the NME country and a significant producer of comparable merchandise,. Commerce selects the country with the best factors data as the primary surrogate country to value FOPs. Id. at 4. Commerce selects the country with the best factors data based upon the data’s: (1) specificity to the input; (2) tax and import duty exclusivity; (3) contemporaneity with the period of review; and (4) public availability. Id.
C. Analysis
1. Economic Comparability
VASEP, Agifish, and Binh An argue that Commerce selected a primary surrogate country that is not economically [1265]*1265comparable to Vietnam. See VASEP Br. 13-20; Agifish Br. 12-13; Binh An Br. 12-13. Defendant argues that Commerce reasonably determined that Indonesia is economically comparable to Vietnam despite the fact it is not among the countries on the OP List. See Def.’s Resp. Br. 19-26. The court agrees with Defendant.
It is not unreasonable for Commerce to consider countries proposed by interested parties that are not included on the OP List so long as Commerce satisfies its statutory mandate of choosing an economically comparable country to the extent possible. Commerce emphasized that the OP List advised parties that it is not an exhaustive list, and noted that there are other countries that could reasonably be viewed as “being at Vietnam’s level of economic development.” See Prelim. Decision .Memo at 13; see also OP List at 2. Commerce considered the GNI information placed on the record relating to the countries on the OP List as well as for Indonesia and acknowledged that Indonesia was at a “higher and, thus, less eompa-rable level of economic development than that represented by the six countries on the initial surrogate country candidate list, but still comparable to that of Vietnam.”7 Final Decision Memo at 6-7 (quoting Prelim. Decision Memo at 14). The court cannot say that Commerce unreasonably concluded that Indonesia was at a level of economic development comparable to Vietnam.8
VASEP, Agifish and Binh Ah argue that Commerce’s selection of a potential surrogate country not on the OP List amounts to an impermissible expansion of the statutory economic comparability requirement. See VASEP Br. 13-14; Agifish Br. 12-13; Binh An’s Br. 12-13. VASEP argues that, in the ninth administrative review, the OP consciously removed Indonesia because of its “galloping GNI that placed Indonesia outside of the GNI bookends established by the Department’s OP memoranda.”9 VASEP Br. 15. VASEP’s argument is speculative and.unsupported in the record. VASEP, Agifish and Binh An cite no authority that prevents Commerce from se[1266]*1266lecting off-list potential surrogate countries whose GNI fall outside what VASEP characterizes as the bookends set by the OP List.10 VASEP ignores the notion that the size of the OP List and its range of per capita GNIs may vary from review to review and that the size of the list is also a function of how broadly or narrowly Commerce defines its initial list. See OP List; see also Prelim. Decision Memo at 13. VASEP cites to nothing in the statute or in Commerce’s practice that requires economic comparability to be defined by the GNI range of the potential surrogate countries on the OP List,11 None of the cases cited by VASEP support the notion that Commerce’s OP List sets the outer limits of economic comparability.12
2. Significant Producer of Comparable Merchandise
Commerce reasonably concluded that Indonesia is a significant producer of comparable merchandise because export information from Fisheries Statistics, an online data source published by the Food.and Agriculture Organization of the United Nations, indicates that Indonesia, along with Bangladesh, India, Nicaragua, Pakistan, and the Philippines, are exporters of fish fillets. ■ No party challenges . Com[1267]*1267merce’s finding that Bangladesh, India, Indonesia, Nicaragua, and Pakistan are significant producers of comparable merchandise. However, Agifish challenges Commerce’s finding that the Philippines, is a significant producer of comparable merchandise, citing Commerce’s finding in its preliminary results that the Philippines produced only 72 metric tons (“mt”) of pangasius fish in 2011. Agifish Br. 13. Since Commerce did not select the Philippines as its primary surrogate country, the court need not review Commerce’s determination that the Philippines was a significant producer of comparable merchandise because the court sustains Commerce’s surrogate country selection of Indonesia.
3. Data Quality
Agifish, VASEP, and Binh An argue that Commerce’s finding that Indonesian data was the best available data for valuing respondents’ FOPs is not supported by substantial evidence. See Agifish Br. 14-16, VASEP’s Br. 28-35, Binh An’s Br. 14-18. Commerce reasonably determined that Indonesian data for valuing respondents’ FOPs is superior to the other SV data alternatives.
The record supports Commerce’s conclusion that Indonesian data is superior to both Philippine and Bangladeshi data to value respondents’ whole live fish FOP. First, Commerce found that Indonesian Aquaculture Statistics (“IAS”) data is the only of the three sources that meets the full breadth of Commerce’s criteria for SV data selection. Final Decision Memo at 15. Second, Commerce relied upon the declining quality of the Bangladeshi Department of Agriculture Marketing (“DAM”) data relative to that submitted in past reviews. Id. at 15, 21-23. Third, Commerce found IAS data is the most representative of a broad market average because the Philippine Fishery Statistics (“FS”) data has much lower production volumes (490,000 mt for IAS versus 72 mt for Philippine FS), id. at 20, and the Bangladeshi DAM data is missing data for the largest panga-sius producing district, Mymensingh, which accounted for two-thirds of all pan-gasius produced during the POR.13 Id. at 21 (citing Issues and Decision Memorandum for the Final. Results of the Eighth Administrative Review of and Aligned New Shipper Reviews for Certain Frozen Fish Fillets from the Socialist Republic of Vietnam at 20-22, A-552-801, (Mar. 13, 2013), available at ■http://enforcement. trade.gov/frn/summary/VIETNAM/2013-06550-l.pdf (last visited May 26, 2016)). Commerce also found that the DAM data [1268]*1268only represents 25 of 68 districts in Bangladesh and 730 data points representing 39,000 mt,. whereas IAS data contains data for 31 .of 33 districts in Indonesia representing 490,000 mt.14 Id. at 21-22.
■ Commerce also concluded that the DAM data is not reliable because of inadequate vetting procedures and missed statistical anomalies.15 Id. at 26. Commerce concluded that the DAM data is less specific because Commerce credited record evidence indicating that the DAM data contained dead fish over other record evidence that it did not.16 Id. at 23-24. Commerce weighed the record evidence and concluded that the inclusion of dead fish in the DAM data distorts the SV for this FOP.17 Id. at 24. VASEP points to no evidence that detracts from these conclusions.
VASEP argues that other studies on the record corroborate the DAM data, which undermines Commerce’s findings about the unreliability of the DAM. data and its lack of broad coverage. See VASEP Br. 33. However, as discussed in more detail below, Commerce was not persuaded that these sources adequately filled gaps in the DAM data. The court cannot say that Commerce’s conclusion that Bangladeshi DAM data suffers from reliability issues is unreasonable in light of the record evidence supporting its finding.
Commerce also noted that, because of increased integration in the Vietnamese pangasius industry, SV data sources of FOPs other than whole fish, including fingerlings and fish feed, are significant con-sidei-ations in surrogate country selection and the data on the record for these FOPs supports selecting Indonesia as the primary surrogate country.18 Final Decision Memo at 14-15. Commerce pointed to rec[1269]*1269ord evidence that the Indonesian sources for these FOPs satisfy the breadth of its criteria while the competing Bangladeshi sources fail to meet several data selection criteria. See id. at 29-35; see also Prelim. Decision Memo at 16-18: Commerce also noted its preference for valuing respondents’ FOPs using import statistics given that they generally meet Commerce’s data selection criteria. Final Decision Memo at 14. Commerce is able to value 80 percent of respondents’ FOPs (34 of 43) using contemporaneous import statistics from Indonesia, whereas Commerce stated that no party has submitted contemporaneous import statistics from Bangladesh. Id. at 14-15.
VASEP’s • argument that Bangladeshi data offers the best available SV data sources for respondents’ farming factors asks the court to reweigh the evidence. See VASEP Br. 34. At no point does VA-SEP point to any record evidence that detracts from the reasonableness of Commerce’s determination that Indonesian SV data sources are superior on the whole to Bangladeshi data sources. Therefore, Commerce reasonably concluded that Indonesian data is the best available information for the widest range of FOPs in this administrative review.19
4. Conclusion
For the reasons discussed above, Commerce’s selection of Indonesia as the primary surrogate country is reasonable. Commerce reasonably found that Indonesia was economically comparable to Vietnam, a significant producer of comparable merchandise, and offered the best available information for valuing respondents’ FOPs. While Commerce acknowledged that Indonesia is less economically comparable to Vietnam as compared to the countries on the OP List, Commerce reasonably concluded that data considerations, particularly those relating to the primary input: for the subject merchandise—whole live fish—“outweigh the fact that Indonesia is not at the same level of economic development as Vietnam.” Final Decision Memo at 7. Therefore, Commerce’s primary surrogate country selection is sustained.
II. Consideration of Arguments Raised By CFA for the First Time in its Rebuttal Case Brief
Agifish argues that Commerce abused its discretion by declining to strike non-responsive portions of CFA’s rebuttal [1270]*1270brief from the administrative record.20 See Agifish Br. 49-51. The court concludes that Commerce did not abuse its discretion in not rejecting portions of CFA’s rebuttal brief.
On January 22, 2014, Agifish, Vinh Hoan, VASÉP, and certain of its pangasius fillet exporting members, filed their initial case brief before Commerce objecting to Commerce’s SV data sources for various FOPs in its preliminary determination. See Respondents’ Case Brief, PD 314, bar code 3175397-01 (Jan. 22, 2014) (“Respondents’ Case Brief’). On February 22, 2014, CFA submitted a rebuttal case brief to Commerce supporting the SV data selections Commerce made in its preliminary determination. See Rebuttal Brief on Behalf of Catfish Farmers of America; America’s Catch; Alabama Catfish Inc. dba Harvest Select Catfish, Inc.; Heartland Catfish Company; Pride of the Pond; and Simmons Farm Raised Catfish, Inc., CD 232, bar code 3180220-01 (Feb. 10, 2014) (“CFA Rebuttal Case Brief’).
On February 26, 2014, Agifish, VASEP, and Vinh Hoan filed a letter requesting that Commerce strike the pages from CFA’s rebuttal case brief relating to its arguments concerning alternative SV data selections for various FOPs including fingerlings, labor, fish oil, fish meal, and fish waste. See Letter from Respondents Requesting Hearing and to Strike Petitioners’ Arguments, PD 331, bar code 3184050-01 (Feb. 26, 2014) (“Letter Requesting Strike”). They' argued that CFA could not raise affirmative arguments for Commerce’s final determination that had not been raised in Respondents’ Case Brief. Id. In response, CFA filed a letter objecting that their rebuttal case brief rebutted “Respondents’ positions as to what constitutes the best available surrogate values on the record if the Department should accept Respondents’ premise that the values used in the preliminary results are not the; best values.” Letter from Petitioners Responding to Respondents’ Request to Strike at 2, PD 334, bar code 3184738-01 (Feb. 28,2014).
On March 7, 2014, Commerce denied the request to strike portions of CFA’s rebuttal case brief. Commerce Letter to Interested Parties Rebuttal Brief Rejection Request, PD 338, bar code 3186776-01 (Mar. 7, 2014) (“Commerce Denial Letter”). Commerce found that the .arguments in CFA’s rebuttal case brief are “limited to the arguments .., raise[d] in [the] case brief. ... The fact that [CFA’s] rebuttal brief addresses other record evidence relating to the same issues ... does not cause it to run afoul of the Department’s regulation.” Id. (citing 19 C.F.R. § 351.309(d)(2)).
Commerce’s regulations governing the submission of administrative case briefs provide that “[t]he case brief must present all arguments that continue in the submitter’s view to be relevant to [Commerce’s] final determination or final results.” 19 C.F.R. § 351.309(c)(2). Further, Commerce’s regulations regarding rebuttal briefs provide that “[t]he rebuttal brief may respond only to arguments raised in case briefs and should identify the arguments to which it is responding.” Id. § 351.309(d)(2). Here, Commerce declined to reject CFA’s rebuttal case brief because [1271]*1271it found that the arguments CFA raised wei’e all responsive to arguments raised by Agifish, VASEP, and Vinh Hoan in their initial case brief. See Commerce Denial Letter. This. determination was not an abuse of discretion.
Agifish argues that Commerce’s determination is unfair, and therefore an abuse of discretion, because it denies them an opportunity to rebut the arguments raised for the first time in CFA’s rebuttal case brief. However, Agifish did not request an opportunity to respond to petitioners’ arguments. See Letter Requesting Strike. Moreover, Agifish continues to challenge Commerce’s selection of SV data sources for all of these FOPs before the. court, which the court reviews for substantial evidence. Defendant is not arguing that these arguments should be precluded by exhaustion. If the court deems Commerce’s determinations unsupported by substantial evidence, then the determination would be remanded to the agency for further explanation in light of the detracting record evidence cited by Agifish. Therefore, Commerce’s determination to decline to strike CFA’s arguments in its rebuttal case brief did not deny Agifish, VASEP, and Vinh Hoan a right to judicial relief.
III. Commerce’s Analysis of Specific Surrogate Values
Agifish and ■ Binh An challenge Commerce’s SV selections for whole live fish, fingerlings, rice husk, labor, sawdust, fish waste byproducts, fresh broken meat, trucking, brokerage and handling expenses, and fish oil.21 See Agifish Br. 16-49; Binh An Br. 18-19. CFA challenges Commerce’s SV selection for pangasius feed as unsupported by substantial evidence and contrary to law. See CFA Br. 26-38. Defendant- refutes all these challenges; See Def.’s Resp. Br. 31-91 The court sustains Commerce’s SV data selections for whole live fish, fingerlings, fish feed, sawdust, labor, fish waste, fish belly, and fish skin byproducts, fresh broken fillets, brokerage and handling, and truck freight. However, the court remands Commerce’s SV. data selections for rice husk and fish oil for further consideration and explanation.
A. Whole Live Fish
Agifish challenges the selection of IAS data to value respondents’ whole live fish FOP.- See Agifish Br. 16-23. Defendant counters that the record supports Commerce’s determination that there are serious flaws with regard to the specificity and reliability of the Bangladeshi. DAM Data for whole live pangasius fish. See Defl’s Resp. Br. 33-42. Commerce’s determination that IAS data is the best available data for valuing whole live fish is supported by substantial evidence.
Commerce found that both IAS data and Bangladeshi DAM data are equally contemporaneous, publicly available, and tax and duty exclusive. Final Decision Memo at 20. Commerce, however, found that IAS data is more representative of a broad market average, more specific and more reliable than Bangladeshi DAM or Philippine FS data.22 See id. at 20-27. As to [1272]*1272specificity,-Commerce concluded the inclusion of dead fish in the DAM Data “distorts the SV for whole, live fish, rendering it not as specific as Indonesian AS.” Id at 24. Commerce also found that, although Philippines FS data is species-specific, the data is not specific to whole live pangasius because it includes prices for fish that may be further processed, which causes price distortions. Id. at 23.
Commerce reasonably found that Bangladeshi DAM data is not reliable, while it found IAS and Philippine FS data are. Id. at 26-27. Commerce concluded that the DAM data is unreliablé because the DAM data shows statistical anomalies and inadequate vetting procedures.23 Id at 26. Commerce also recognized data anomalies because prices from a particular district in Bangladesh share one-third of the POR average and those of another district are one-tenth of that average. Id. In contrast, Commerce found no similar reliability concerns with 'IAS data because IAS data is collected in stages at the household, village, and municipal level úsing random sampling and because the data is' córrected and revised when necessary. Id. at 27.
Agifish and VASEP argue that other official data sources corroborate the DAM data, which they argue undermines Commerce’s reliability and broad market average findings. Agifish' Br. 20-22; VASEP Br. 32-33. Agifish and VASEP argue these sources- corroborate the DAM price surveys and fill the gaps in the DAM data. Agifish Br. 20; VASEP Br. 33. Agifish also argues that numerous sources explain the apparent gaps in data. Agifish Br. 19. Commerce considered, but was not persuaded by the sources relied upon to explain the gaps in the DAM data and to corroborate the survey prices. Final Decision Memo at 22-23. Commerce concluded that the sources failed to explain why DAM data coverage decreased as Bangladeshi production increased. Id. at 22. Moreover, the sources did not explain why there had “been no data for any pangasius sales for two years in Bangladesh’s largest pangasius producing district.” Id. Commerce therefore found the DAM data unreliable and unrepresentative, and the cóurt will not reweigh the evidence. Therefore,' Commerce’s selection of IAS data is supported by substantial evidence because Commerce reasonably concluded that IAS data best satisfied the data selection criteria.
B. Fingerlings
Agifish challenges Commerce’s selection of the affidavit of Dr. Djumbuh Rukmono (“Rukmono Affidavit”), an official from the Indonesian Directorate General of Aquaculture, to value fingerlings as [1273]*1273unreliable. See Agifish Br. 23-28. Commerce’s selection of the Rukmono Affidavit is supported by substantial evidence because Commerce reasonably concluded that the Rukmono Affidavit meets the breadth of its SV data selection criteria.24
Agifish claims that the Rukmono Affidavit is not rehable because Commerce has not addressed record evidence that reveals significant errors converting fish lengths to weights. Agifish Br. 24. Specifically, Agifish argues that a comparison of the prices generated by the affidavits oh the record provided by Dr. Rukmono and Dr. Soetrisno, another official from the same Indonesian ministry, show too wide a range of prices per kilogram to be accurate. Id. In support of this argument, Agifish provides a chart showing conversions from price per piece to price per kilogram using these data sources, which it argues yield prices ranging from over $1,000.00 per kilogram for 0.5 to 1.0 inch fingerlings to $1.44 per kilogram for 5.0 to 6.0 inch fingerlings. Id. at 25, Ex.l. The price range alone, without some benchmark from an economically comparable country to compare it to, is insufficient to render the data source aberrational. In the absence of such record evidence, Commerce’s conclusion is not unreasonable.
Agifish also argues that Commerce has failed to address inconsistencies between the Rukmono Affidavit and the Soetrisno Affidavit in . per kilogram prices for the same size bands. Id. at 25. However, Agifish’s argument, regarding the reliability of the Rukmono Affidavit rests, on comparing prices in that source to those from an unreliable source.25 An unreliable source cannot logically be used to question the reliability of another source. Without other relevant and reliable data points, Agifish’s complaint that the prices in the Rukmono Affidavit are aberrational is speculative and unpersuasive.
Agifish also argues that the Rukmono Affidavit is unreliable because it requires Commerce to make assumptions regarding fingerling sizes consumed by respondents. Agifish Br. 26-27. Agifish argues these assumptions distort respondents’ fingerling values, as‘highlighted by the fact that Commerce assigned different values to the fingerlings consumed by each mandatory respondent where no record evidence supports doing so. Id. at 27. However, Commerce’s assignment of different values to the fingerlings of each mandatory respondent results from the fact that Vinh Hoan’s affiliate, Van Due Tien Giang (“VDTG”), did not record the size of the fingerlings it purchased, see Surrogate Values for the Final Results at 2-3, PD 345, bar code 3192913-01 (Mar. 28, 2014) (“Final SV Memo”), not from inaccuracies in the Ruk-mono Affidavit.26 Agifish offers no record [1274]*1274evidence that undermines the accuracy of the values assigned to either mandatory respondent. Moreover, Agifish does not cite any record evidence indicating that the mandatory respondents consumed fingerlings of the same size, so the fact that Commerce used different values for fingerlings consumed by the two mandatory respondents does not indicate the Rukmono Affidavit is unreliable or that using its conversion data results in distorted values for fingerlings. Therefore, Commerce’s reliance on the Rukmono Affidavit to value fingerlings is reasonable.
C. Fish Feed
CFA’s challenge to Commerce’s selection of an article-in the Atrobos Aqua publication to value respondents’ fish feed, see CFA Br. 26-38, must-fail. Commerce found the article published in Atrobos Aqua is publicly available, contemporaneous, tax and duty exclusive, and representative of a broad market average. Final Decision Memo at 35. Commerce acknowledged that the article does not mention protein content of the feed, but it nonetheless found the data source specific because the article lists prices for pangasius feed. Id. Commerce also noted that the Atrobos Article, which includes data from Indonesian producers, would “most likely be inclusive of the [Indonesian price quote] data submitted by the parties, as these companies are Indonesian producers of pangasi-us feed.”. Id.
While Commerce concluded that the Rukmono Affidavit’s prices for fish feed are publicly available and tax and duty exclusive, it also found this source neither contemporaneous nor representative of a broad market average. Id at 34. Commerce also concluded that the Rukmono Affidavit’s prices had broad geographic coverage but lacked broad temporal coverage because they only cover two months of data. Id. Commerce concluded that the Bangladeshi Aquaculture Study on the record is non-contemporaneous because, although published in 2011, the data is gathered in September and October of 2007. Id. Like the Rukmono Affidavit, these statistics have broad geographic coverage, but lack broad temporal coverage because they only include two months of data. Id. Because Commerce found that the Atrobos Aqua article is the only source on the record that fully satisfied the breadth of its data selection criteria, Commerce’s data selection to value fish feed is reasonable.
CFA argues that protein content information is necessary to find a SV data source for fish feed specific because respondents reported purchasing feed of a specific protein content.27 CFA Br, 29-31, However, while CFA points to record evi[1275]*1275dence that feed prices differ depending on protein content, see id. CFA does not argue that any of the feed values on the record differ so significantly that they are aberrational. Therefore, the fact the article does not specify protein content of the fish feed does not render Commerce’s specificity finding unreasonable.28 CFA also argues the Atrobos Aqua article is neither representative of a broad market average nor reliable because it provides no information on its methodologies or how its prices reflect sales throughout Indonesia. CFA Br. 32-33. In the absence of record evidence showing the source is unreliable or not representative of a broad market average, the court concludes Commerce’s findings are reasonable.29
D. Rice Husk
Agifish argues that the import data in HTS category 1213.00 results in an aberrational value for rice husk. Agifish Br. 30. Commerce must reconsider its choice of Indonesian import data under HTS category 1213.00 to value rice husk because Commerce has failed to adequately address Agifish’s arguments that this data source is not specific and contains aberrational prices.
Agifish argues that the SV derived from this import data resulted in a value of $0.66 per kilogram, which it argues is much too high when compared to Indonesian values for rice for the same POR. Id. Agifish points out that rice husk is simply a waste material from the hulling of rice. Id. Agifish separately points to values for rice placed on the record ranging from $0.22 per kilogram to $0.27 per kilogram for domestic rice prices in Indonesia during the POR. Id. (citing Respondents’ Post-Prelim. SV Data at Ex. 11F). Without data on the record to suggest that rice husk can trade for more than rice, Commerce must explain on remand why it is its SV for rice husk, a waste byproduct of rice, is not abberational.
Commerce acknowledged that rice husk is a byproduct of rice and “should not be at the same price level as the main input.” Final Decision Memo at 40. Nonetheless, Commerce explains that it could not deter[1276]*1276mine whether the domestic rice prices are specific to the type of rice that generated the specific husks used by respondents. Id. at 37. Commerce’s explanation is non-responsive. It is unclear to the court how the type of rice the rice husk is derived from matters given the use of the rice husk, he., as an energy source to heat the waste byproducts to extract the oil.
Commerce points to no information indicating that rice husk derived from rice of one type has a significantly different price than rice of another type.30 On remand, it must do so or otherwise explain why the SV generated for rice husk, a fuel source for heating fish waste to produce fish oil and fish meal byproducts, is not aberrational in light of record evidence cited by Agifish. Commerce’s focus on specificity and the HTS category description, which covers “Cereal Straw and Husks, unprepared, Whether or Not Chopped, Ground, Pressed, or in the Form of Pellets,” does not address the evidence that detracts from its finding that the data obtained from this import data is aberrational. The HTS description, by its terms, also includes items other than rice husk.
Agifish also argues that the aberrational nature of Indonesian import data is significantly highlighted by the fact that the import statistics in this HTS category reflect imports from one country in a single month.’ Agifish Br. 29, 31. The court agrees. Commerce has not explained why data reflecting imports over only one month, October of 2012, and from only one country, Australia, are representative of a broad market average. Commerce’s explanation that the quantity of 21,403 kilograms is commercially significant, see Final Decision Memo at 37, does not explain why the data reflects a broad base either temporally or geographically in this case.31 [1277]*1277On remand, Commerce must reconsider its reliance on the import data to value rice husk or explain why it is reasonable to conclude this data is representative of a broad market average and non-aberrational.
E. Sawdust
Agifísh challenges Commerce’s selection of Indonesian import data under HTS 4401.30 to value sawdust as not specific and aberrational. See Agifish Br. 34-36. Defendant counters that Commerce reasonably found the category is specific, non-aberrational and otherwise meets its SV data selection criteria. See Def.’s Resp. Br. 57-64. Commerce’s selection of Indonesian import data to value respondents’ sawdust FOP is supported by substantial evidence.
Commerce found that Indonesian import data under HTS 4401.30, which covers “Sawdust and Wood Waste and Scrap,” is specific to the “pressed sawdust” used by respondents because the HTS category, by its terms, covers the input. Final Decision Memo at 57 (citing Vinh Hoan Section D Questionnaire Response at 40, PD 122, bar code 3131530-01 (Apr. 22, 2013) (“Vinh Hoan Sec. D Resp.”)). Commerce also concluded that the Indonesian import data meets its other data selection criteria. Id at 57-58. Commerce dismissed the argument that the Indonesian import data is aberrational because only non-comparable benchmark data was submitted to the record.32 Id. at 58. Commerce reasonably concluded these benchmarks are unsuitable because they are not comparable to sawdust.
Commerce found that the Pt. Serba Dowel price quote from Indonesia is specific, publicly available, and tax and duty free but not contemporaneous or representative of a broad market average. Final Decision Memo at 58. Commerce also found this price quote unreliable because it is not “addressed to anyone and it is un[1278]*1278clear how the Respondents acquired the price quote .” Id. Commerce reasonably concluded that the- Indonesian import data satisfies the breadth of its SV data source criteria, so it selected Indonesian import data under HTS 4401.30 to value sawdust.
Agifísh argues that-the Indonesian import data is not specific because, although the HTS category includes sawdust, it also éovers “wood waste and scrap.” Agifísh Br. 35. However, Agifish offers no evidence that the HTS import data significantly consisted of non-specific merchandise whose prices differed significantly from the pressed sawdust used by respondents. Although Agifish argues that the range of prices included in this import data is too wide to be sawdust and not a higher value-added product, id., its evidence is misleading. 33 If a tiny subset of the total imports in the category from only one country are excluded; the range of prices shrinks to $1.10 per kilogram to $1.73 per kilogram. Defendant argues that it would be “absurd to disqualify data for 81,964 kg of imports because 17 of those kg were likely too expensive to be sawdust.” Def.’s Resp. Br. 62. The court agrees.34
F. Labor
Agifish challenges Commerce’s use of Indonesian ILOSTAT Chapter 5 “Fishing, Operation of Fish Hatcheries and Fish Farms; Service Activities Incidental to Fishing” data to value labor. Agifish Br. 32-34. Commerce’s use of ILOSTAT data is reasonable because the data met all of Commerce’s data selection criteria and Commerce reasonably relied upon its practice of using industry-specific labor data from the primary surrogate country.
Commerce found the ILOSTAT data more specific than Indonesian International Labor Organization (“ILO”) Chapter 5B data because the ILOSTAT data covers the fishing industry whereas ILO Chapter 5B data covers a broader spectrum of industries. Final Decision Memo at 47. Consistent with its practice, Commerce preferred the Indonesian ILOSTAT data because it is the most industry-specific data from the primary surrogate country.35 Id. at 44. Commerce did not select the Mymensingh District pangasius farms human labor costs data (“Mymen-singh Data”) or Bangladeshi labor cost by pangasius farming system/feeding practice [1279]*1279(“Bangladeshi Labor Data”) because they are not from the primary surrogate country and because they suffer from numerous deficiencies.36 H. at 45. It is reasonable for Commerce to prefer data from the primary surrogate country where such data satisfies its selection criteria because doing so creates consistency with the values for other FOPs, and therefore, also enhances accuracy. Id. at 44-45.
Agifish argues that specificity is a special concern for valuing labor, which Commerce failed to consider adequately. Agifish Br. 33 (citing Dorbest Ltd. v. United States, 604 F.3d 1363 (Fed.Cir.2010); Allied Pac. Food (Dalian) Co. v. United States, 32 CIT 1328, 587 F.Supp.2d 1330 (2008)). The cases Agifish argues support its argument are inapposite. Both Dorbest and Allied Pac, invalidated Commerce’s use of its regression based labor methodology that contradicted the statutory command given to it by Congress. See Dorbest, 604 F.3d at 1372-73; Allied Pac., 32 CIT at 1364, 587 F.Supp.2d at 1361. Here, Commerce used its present labor selection methodology and selected an industry-specific labor data source from the primary surrogate country in accordance with its practice. Agifish does not argue that Commerce’s practice is unreasonable generally or as applied in this review.
G. Fish Waste Byproducts
Agifish argues the average of price quotes from two Philippine pangasius processors, Vitarich Corporation (“Vita-rich”) and Bluebay Aquaculture Inc. (“Bluebay”), used by Commerce to value respondents’ fish waste, fish belly and fish skin byproducts is unreliable and aberrational. Agifish Br. 37-38. Agifish’s arguments are unpersuasive, and Commerce’s selection of the Philippine price quotes is reasonable.
Commerce concluded that the Vitarich and Bluebay price quotes are specific because together these price quotes cover the full range of fish waste byproducts sold by respondents. Final Decision Memo at 54 (citing Vinh Hoan Sec. D Resp. at 41; HVG Section D Questionnaire Response at 21, Ex. D.8, PD 120-121, bar codes 3131496-01-02 (Apr. 22, 2013); CFA SV Data at Ex. 13)). Commerce acknowledged that the price quotes are not as representative of a broad market average as other data sources, but it found them to be publicly available and tax and duty, exclusive. Id. Commerce also acknowledged the price quotes are not contemporaneous since the Vitarich quote is from April of 2010 and the Bluebay quote is from July of 2013. Id. Commerce reasonably concluded that in this case the. superior specificity of these price quotes outweighs their lack of con[1280]*1280temporaneity and inferior representativeness.
Agifish asks the court to reweigh the evidence to find the Vitarich price quote unreliable and aberrational. See Agifish Br. 37. Commerce found the Vita-rich price quote consistent with other benchmarks on the record, including price quote data submitted by respondents. Final Decision Memo at 55 (citing CFA Rebuttal Case Br. at 195-196). Commerce accorded little weight to an affidavit questioning the reliability of the price quote.37 See id. at 55; see also Post-Prelim Direct Surrogate Value Submission at Ex. 2, PD 295-96, bar codes 3167265-01-02 (Sept. 6, 2013). Commerce also found any doubts as to the reliability of the Vitarich and Blue-bay price quotes are outweighed by then-superior specificity relative to other data sources, public availability, and tax and duty exclusivity. Final Decision Memo at 55.
In contrast, Commerce found that the Indonesian import data under HTS 0511.90, which includes “Products & Dead Fish, Molluscs Etc., Inedible Nesoi,” does not list the products sold by respondents and includes non-specific material in the form of molluscs and other unspecified sea creatures.38 Id. Commerce also relied upon the fact that the range of Indonesian import prices is too wide to be specific and non-aberrational.39 Id.
Commerce also reasonably determined the Philippine price quotes are superior to the Asian Seafood price quote from Bangladesh, which includes a narrower range of fish waste byproducts, he., only waste, belly and skin, and does not contain individualized prices for multiple kinds of fish waste products. Id. Commerce also found it is unclear whether these price quotes are tax and duty exclusive. Id. Commerce, therefore, reasonably selected the Philip[1281]*1281pine price quotes to value respondents’ fish waste byproducts.
H. Fresh Broken Fillets
Agifish challenges Commerce’s use of Vitarich and Bluebay price quotes to value respondents’ fresh broken fillet byproduct. Agifish Br. 39. Agifish reiterates the same arguments made with respect to the reliability of these price quotes to value respondents’ fish waste-byproducts. Id. Commerce’s SV data selection for fresh broken fillet is reasonable.
Commerce concluded that the .Vitarich and Bluebay price quotes are specific because they cover the exact byproduct sold by respondents, he., fish trimmings. Final Decision Memo at 56. Commerce recognized these price quotes are not as representative of a broad market average as other sources, but found the quotes are publicly available, tax and duty exclusive, and reliable for the same reasons discussed above. Id. Finally, as it had in its fish waste analysis, Commerce found that in this ease the superior specificity of the price quotes outweighed other deficiencies.40 Id. Commerce weighed the reliability of record evidence and reasonably concluded the price quotes are reliable.
Agifish argues that Commerce lacked substantial evidence to conclude that fresh broken fillets are a waste byproduct. PL’s Reply Opp’n Resps. Mot. J. Agency R. 12, Nov. 6, 2015, EOF No. 104. However, Vinh Hoan described this product as derived from the trimming step. See Vinh Hoan Sec. D Resp. at 41-42. Agifish points to no record evidence to suggest that trimmings and fresh broken meat are not the same or to support its contention that its fish meat is a high value-added product.
I. Fish Oil Byproduct
Agifish challenges Commerce’s determination to “cap” the value of fish oil by constructing a value. Agifish Br. 45-49. Agifish argues that Commerce’s use of the word “cap” is a misnomer because Commerce simply calculated a CV using the inputs consumed in Vinh Hoan’s byproduct production process with no reference to the import data under Indonesian HTS category 1504.20, which includes “Fish Fats & Oils & Their Fractions Exc Liver, Refined Or Not, Not Chemically Mod.” Id. at 48-49. Defendant responds that Commerce’s determination to apply a CV as a cap to value Vinh Hoan’s’fish oil byproduct is reasonable because: (1) the' value of its fish oil input exceeded the value of the main input if the raw’import data were used; and (2) the HTS 'category, by its terms, includes refined fish oil, and record evidence indicates the fish oil produced by Vinh Hoan is unrefined. Def.’s Resp. Br. 89-90. Commerce’s purported “cap” is in fact a rejection of the import data in favor [1282]*1282of a- CV. Commerce has not explained the reasonableness of its decision to favor a CV over any other SV data source on the record.41 The court therefore remands this issue to Commerce for further consideration and explanation,
Commerce has broad discretion in deciding what constitutes the best available information because the term is not defined in the statute. See QVD Food Co. v. United States, 658 F.3d 1318, 1323 (Fed.Cir.2011). However, Commerce must ground its selection of the best available information in the overall purpose of the AD statute, calculating accurate dumping margins. See CS Wind Vietnam Co. v. United States, 38 CIT -, -, 971 F.Supp.2d 1271, 1277 (2014) (citing Rhone Poulenc, Inc. v. United States, 899 F.2d 1185, 1191 (Fed.Cir.1990)); see also Parkdale Int’l v. United States, 475 F.3d 1375, 1380 (Fed.Cir.2007).
Commerce found that Indonesian import data under HTS 1504.20 is publicly available, broadly representative, tax and duty exclusive, contemporaneous, and specific. See Final Decision Memo at 83. Commerce found that the import data is specific to Vinh Hoan’s “unrefined” fish oil because “unrefined” fish oil is one of the items listed in the HTS heading. Id. at 82. Commerce concluded that Vinh Hoan’s fish oil is unrefined based upon Vinh Hoan’s descriptions of its fish oil, Commerce’s observations at verification from the eighth administrative review, as well as an affidavit Commerce found reliable from the Secretary General of the Association of Indonesian Catfish Entrepreneurs indicating that fish oil from pangasius does not contain free fatty acid and Omega-3 oil. Id. at 81 (citing CFA Rebuttal SV Data at Exs. 4, 10; CFA Rebuttal Surrogate Value Data at Ex. 10, PD 310-311, bar codes 3173134-01-02 (Jan. 10, 2014)).
However, Commerce also concluded that the import data in the HTS is overly broad because it includes refined, as well as unrefined fish oil. See id. at 82 (citing Petitioner’s Submission of Rebuttal Factual Information at Ex. 7, PD 125-130, bar codes 3133680-01-06 (May 2, 2013)). Commerce found the presence of refined fish oil prices within the import category resulted in a SV of $1.73 per kilogram, which it found too high relative to the SV of the subject merchandise from which this byproduct is derived, he., $1.63 per kilogram. Id. at 82. Commerce “capped” the price at the CV of the FOPs and ratios to make fish oil rather than using import data from the HTS category. Id.
Although Commerce purports to be following its practice of choosing the best SV data source, it has actually taken a different approach. In its final determination, Commerce stated that it
will continue to value fish oil using the Indonesian GTA import data under HTS 1504.20.9000 because it is the most specific of the available Indonesian HTS categories on the record and, by its terms, encompasses “unrefined” fish oil. Moreover, the GTA data is contemporaneous with the POR. And, as stated above, the Department previously found GTA data to be publicly available, free of taxes and duties, and representative of broad market averages. However, because of the concerns articulated in the immediately-preceding paragraph, the [1283]*1283Department will “cap” the price of HTS 1504.20.9000 at the calculated CV of the FOPs and ratios used by Vinh Hoan to make fish oil, i.e., fish wage, labor and energy, plus surrogate ratios, to ensure that it is a fully-loaded fish oil value.
Id. at 83 (citations omitted). Commerce acknowledges that it has .constructed a value for fish oil rather than relying upon data from the Indonesian HTS category. See Oral Arg. 02:14:50-2:15:05, Mar. 17, 2016, ECF No. 125.42 Therefore, the “cap” value bore no relation to the import data Commerce purported to consider the best available information for valuing fish oil. It is unclear why Commerce continues to invoke the Indonesian GTA import data when the value it has chosen has no relationship to it. Commerce’s explanation of why the HTS import data is superior to the other SV data sources on the record is thus irrelevant to its calculation of a SV for Vinh Hoan’s fish oil byproduct. Although the court cannot say Commerce unreasonably concluded that Vinh Hoan’s fish oil is unrefined fish oil (a low value-added product), see Final Decision Memo at 81, Commerce has not explained why it is reasonable to depart from its normal methodology of choosing the best SV data source to value respondents’ byproduct. In fact, Commerce seems to assert that it is following its normal methodology.
Commerce explained that using the SV drawn from Indonesian import statistics without manipulation would have yielded an illogically high value for Vinh Hoan’s unrefined fish oil, see id. at 82, but it does not even try to explain how the cap best ameliorates these issues. Commerce may have good reason to go beyond its stated methodology and construct a value instead of choosing the best available SV data source on the record to value fish oil. If so, Commerce needs to state what it is doing and explain why this alternative methodology is reasonable so that the court may review Commerce’s methodology and determination. For these reasons, the court remands Commerce’s fish oil determination for further consideration and explanation.
J. Brokerage and Handling Expenses
Agifish challenges Commerce’s selection of the World Bank’s “Doing Business 2012: Indonesia” report to value respondent’s brokerage and handling because the report is not specific to prices for brokerage and handling of pangasius fillets. See Agifish Br. 43-44. Defendant responds that Commerce reasonably determined the report is- the best available information for valuing this FOP. See Def.’s Resp. Br. 83-84. Commerce’s selection is reasonable.
Commerce found that the “Doing Business 2012: Indonesia” report is publicly available and representative of a broad market average because it is a broad-based survey of costs in the Indonesian market published by the World Bank. Final Decision Memo at 64. Commerce also concluded that the source is contemporaneous with the POR and tax and duty exclusive. Id, With regard to specificity, Commerce acknowledged that, while the price quote issued by Indonesian company PT Jayantara Setia Sejahtera (“Jayan-tara”), is “arguably more specific than Doing Business,” the price quote does not meet any of the other SV criteria. Id. Commerce also noted that it does not choose price quotes where a broad market average source is available that meets its SV data selection criteria. Id. at 64-65, Commerce reasonably preferred the Indo[1284]*1284nesian “Doing Business” report to the same report from Bangladesh- because it favors a source from the primary surrogate country where it otherwise satisfies its SV data selection criteria. Id. at -64.
Agifish argues the report is not specific because it does not reflect brokerage and handling prices for the pangasius industry. Agifish Br. 43. Agifish argues this is the ease because the report contains data only for leading industries, and the pangasius industry is not a leading industry in Indonesia. Id. Commerce acknowledged the Indonesian data is less specific relative to price quote data, but nonetheless concluded it is contemporaneous, representative of a broad market average, tax and duty free, and publicly available.43 Final Decision Memo at 64. Commerce’s finding .is therefore reasonable.
K. Truck Freight
Agifish raises precisely the same specificity objections with regard to Commerce’s selection of the World Bank’s “Doing Business 2012: Indonesia” source to value respondents’ truck freight FOP as it raised in connection with the same source to value respondents’ brokerage and handling. See Agifish Br. 40-41. Commerce’s selection is supported by substantial evidence.
Commerce found the “Doing Business 2012: Indonesia” report contemporaneous with the POR because it is from 2012. Final Decision Memo at 60. Commerce also found this report publicly available and representative of a broad market average because it is a broad-based survey of costs in the Indonesian market with an official nature published by the World Bank. Id. Commerce concluded not only that this report is specific to respondents’ trucking expenses, but also that it is as specific as the Jayantara price quote. Id. Commerce questioned the reliability of the Indonesian price quote on the record because it covers from a secondary source, not the company itself. Id. As with brokerage and handling, Commerce concluded that the Jayantara price quote data is not representative of a broad market average. Id. Commerce found the Indonesian price quote to be specific, but no more so than the Indonesian “Doing Business” report because, although the price quote would be specific to the trucking expenses associated with respondents’ production of panga-sius fillets, it would not be specific to the many other FOPs consumed in their production process. Id. Commerce found the “Bangladeshi Statistics Yearbook” is no more specific than the “Doing Business” report, and non-contemporaneous since it is from 2005. Id. Commerce’s specificity finding as well as its SV data selection for truck freight are reasonable.
IV. Commerce’s Normal Value Calculation for Vinh Hoan
CFA challenges Commerce’s determination not to adjust Vinh Hoan’s NV to exclude glazing weight from the ratio reflecting total quantity of FOPs consumed per kilogram of finished product. See CFA Br. 5-26. Defendant requests a voluntary remand for Commerce to reconsider its comparison calculation. See Def.’s Resp. Br. 92. The court grants Defendant’s request for voluntary remand for Commerce to reconsider its margin calculation.
[1285]*1285The court has discretion to grant a remand request when Commerce wishes to reconsider its previous position without confessing error. See SKF USA Inc. v. United States, 254 F.3d 1022, 1029 (Fed.Cir.2001). “Generally, a request for a voluntary remand due to substantial and legitimate agency concerns should be granted.” Timken Co. v. United States, 38 CIT —, -, Slip Op. 14-51, at *5 (May 2, 2014) (citing SKF USA Inc., 254 F.3d at 1029). Commerce has substantial and legitimate concerns if (1) there is a compelling justification for remand, (2) that justification is not outweighed by the need for finality, and (3) the scope of the requested remand is appropriate. Ad Hoc Shrimp Trade Action Comm. v. United States, 37 CIT -, -, 882 F.Supp.2d 1377, 1381 (2013).
Here, Defendant’s request for voluntary remand satisfies the test, and Commerce’s concerns are substantial and legitimate. A remand request for Commerce to correct a potentially erroneous calculation of a dumping margin is a compelling justification. Baroque Timber Industries (Zhongshan) Co. v. United States, 37 CIT -, -, 925 F.Supp.2d 1332, 1339 (2013) (citing Parkdale Int’l, 475 F.3d at 1380). The need for finality here does not outweigh the need to calculate accurate margins, especially in the context of an administrative review. Id. at - - -, 925 F.Supp.2d at 1338-39. No party has objected to Defendant’s request for voluntary remand. Lastly, the scope of Defendant’s remand request, he., for Commerce tó reconsider its export price and NV comparisons for Vinh Hoán and to reopen the record if necessary; is appropriate for this issue. Accordingly, Defendant’s remand request is based on a substantial and legitimate concern. Therefore, the court grants Defendant’s request for voluntary remand to reconsider its margin calculations in light of the concerns raised by CFA.
CONCLUSION AND ORDER
In accordance with the foregoing, it is hereby
ORDERED that Commerce’s Final Determination is sustained with respect to the selection of Indonesia as the primary surrogate country, consideration of arguments raised in Catfish Farmers of America et al.’s rebuttal case brief, and selection of surrogate value data sources to value whole live fish, fingerlings, fish feed, sawdust, labor, fish waste byproducts, fresh broken fillets, brokerage and handling, and truck freight; and it is further
ORDERED that this action is remanded to Commerce to clarify or reconsider, as appropriate, the selection of surrogate value data sdurces to value rice husk and Vinh Hoan’s fish oil byproduct; and it is further
ORDERED that Defendant’s request for voluntary remand is granted for Commerce to reconsider, as appropriate, Vinh Hoan’s margin calculation, which compared combined sales and expense data for glazed and unglazed fillets; and it is further
ORDERED that Commerce shall-file its remand redetermination with the court within. 60 days of this date; and it is further
ORDERED that the parties shall have 30 days thereafter to file comments on the remand redetermination; and it is further
ORDERED that the parties shall have Í5 days to file their replies to comments on the remand redetermination.
Related
Cite This Page — Counsel Stack
179 F. Supp. 3d 1256, 38 I.T.R.D. (BNA) 1221, 2016 Ct. Intl. Trade LEXIS 57, Counsel Stack Legal Research, https://law.counselstack.com/opinion/an-giang-fisheries-import-export-joint-stock-co-v-united-states-cit-2016.