Baroque Timber Indus. (Zhongshan) Co. v. United States

2025 CIT 36
CourtUnited States Court of International Trade
DecidedApril 3, 2025
Docket23-00136
StatusPublished

This text of 2025 CIT 36 (Baroque Timber Indus. (Zhongshan) Co. 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.

Bluebook
Baroque Timber Indus. (Zhongshan) Co. v. United States, 2025 CIT 36 (cit 2025).

Opinion

Slip Op. 25-36

UNITED STATES COURT OF INTERNATIONAL TRADE

BAROQUE TIMBER INDUSTRIES (ZHONGSHAN) CO., LTD. AND RIVERSIDE PLYWOOD CORPORATION, Before: Timothy M. Reif, Judge Plaintiffs, Court No. 23-00136 v.

UNITED STATES,

Defendant.

OPINION AND ORDER

[Remanding Commerce’s final results in the tenth administrative review of the countervailing duty order covering multilayered wood flooring from the People’s Republic of China.]

Dated: April 3, 2025

Andrew T. Schutz, Grunfeld Desiderio Lebowitz Silverman & Klestadt, LLP, of Washington, D.C., argued for plaintiffs Baroque Timber Industries (Zhongshan) Co., Ltd. and Riverside Plywood Corporation. With him on the briefs were Francis J. Sailer, Jordan C. Kahn and Michael S. Holton.

Brendan D. Jordan, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C., and JonZachary Forbes, Of Counsel, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C., argued for defendant United States. With them on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. McCarthy, Director and Tara K. Hogan, Assistant Director, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C.

*** Court No. 23-00136 Page 2

Reif, Judge: Before the court is the motion for judgment on the agency record by

plaintiffs Baroque Timber Industries (Zhongshan) Co., Ltd. and Riverside Plywood

Corporation (collectively, “Baroque” or “plaintiff”). 1

Plaintiff invokes this Court’s subject matter jurisdiction under 28 U.S.C. § 1581(c)

and seeks review of the final results of the tenth administrative review by the U.S.

Department of Commerce (“Commerce”) of the countervailing duty (“CVD”) order on

multilayered wood flooring (“MLWF” or “subject merchandise”) from the People’s

Republic of China (“China”), published as Multilayered Wood Flooring from the People’s

Republic of China: Final Results of Countervailing Duty Administrative Review; 2020, 88

Fed. Reg. 34,828 (Dep’t of Commerce May 31, 2023) (“Final Results”), PR 367, and

accompanying Issues and Decision Memorandum (Dep’t of Commerce May 24, 2023)

(“IDM”), PR 361.

Plaintiff alleges that Commerce’s Final Results were not supported by substantial

evidence on the record and were otherwise not in accordance with law in regard to

Commerce’s: (1) calculation of the benchmark price for plywood; and (2) application of

adverse facts available (“AFA”) to find certain of Baroque’s input suppliers to be

government authorities. See Pls.’ Mot. for J. on the Agency R. (“Baroque Br.”), ECF

Nos. 27-28.

For the reasons discussed below, the court remands Commerce’s calculation of

the plywood benchmark and application of AFA to find certain of Baroque’s input

suppliers to be government authorities.

1 Baroque Timber is a cross-owned affiliate of Riverside Plywood. Court No. 23-00136 Page 3

BACKGROUND

On December 8, 2011, Commerce issued a CVD order on MLWF from China.

Multilayered Wood Flooring from the People’s Republic of China: Countervailing Duty

Order, 76 Fed. Reg. 76,693 (Dep’t of Commerce Dec. 8, 2011), amended by

Multilayered Wood Flooring from the People’s Republic of China: Amended

Antidumping and Countervailing Duty Orders, 77 Fed. Reg. 5,484 (Dep’t of Commerce

Feb. 3, 2012). 2

On February 4, 2022, Commerce initiated an administrative review of the CVD

order on MLWF from China for the period of review (“POR”) January 1, 2020, through

December 31, 2020. Initiation of Antidumping and Countervailing Duty Administrative

Reviews, 87 Fed. Reg. 6,487 (Dep’t of Commerce Feb. 4, 2022), PR 13.

On March 10, 2022, Commerce selected Baroque as well as Jiangsu Senmao

Bamboo and Wood Industry Co., Ltd. (“Senmao”) as mandatory respondents in the

administrative review. Memorandum from U.S. Department of Commerce to Office of

DIR/EC Pertaining to Interested Parties Respondent Selection (Mar. 10, 2022), CR8,

PR 63.

On December 22, 2022, Commerce published its preliminary results, in which it

calculated a preliminary countervailable subsidy rate of 15.93 percent for Baroque.

Multilayered Wood Flooring from the People’s Republic of China: Preliminary Results

and Partial Recission of Countervailing Duty Administrative Review; 2020, 87 Fed. Reg.

2 The amendment consisted of removing an incorrect Harmonized Tariff Schedule of the United States (“HTS”) number from the scope of the orders. Multilayered Wood Flooring from the People’s Republic of China: Amended Antidumping and Countervailing Duty Orders, 77 Fed. Reg. 5,484, 5,485 (Dep’t of Commerce Feb. 3, 2012). Court No. 23-00136 Page 4

78,644 (Dep’t of Commerce Dec. 22, 2022) (“Preliminary Results”), PR 321, and

accompanying Preliminary Decision Memorandum (Dep’t of Commerce Dec. 15, 2022)

(“PDM”), PR 316.

In its preliminary results, Commerce calculated a benchmark price for plywood,

an input used to produce MLWF, by taking an average of two datasets in the record: a

dataset from the International Tropical Timber Organization (“ITTO”) containing plywood

data from Ghana, Brazil and Peru and a global dataset from the United Nations

Comtrade database (“UN Comtrade”). PDM at 45-49. Additionally, Commerce

preliminarily determined to apply an adverse inference that Baroque’s input suppliers

were authorities of the Government of China (“GOC”) because the GOC withheld

information that Commerce deemed necessary for analyzing Chinese Communist Party

(“CCP”) involvement in those suppliers. Id. at 14-18.

On May 31, 2023, Commerce published its Final Results, in which it calculated a

final countervailable subsidy rate of 17.06 percent for Baroque. Final Results, 88 Fed.

Reg. at 34,829. In its Final Results, Commerce continued to use both UN Comtrade

and ITTO data to calculate the plywood benchmark. 3 IDM at 76. Regarding the

application of AFA to find Baroque’s input suppliers to be government authorities,

Commerce made no changes from the preliminary results. See id. at 54.

3 Commerce included also in its plywood benchmark calculation Stats.NZ export data. See IDM at 76. In its briefing, Baroque considers the Stats.NZ data and the UN Comtrade data to be “essentially the same” and refers only to the UN Comtrade data for “convenience.” Baroque Br. at 11 n.1. The court does the same. Court No. 23-00136 Page 5

On June 30, 2023, and on July 31, 2023, Baroque filed summons and complaint,

respectively, before the Court seeking judicial review of certain aspects of the Final

Results. Summons, ECF No. 1; Complaint, ECF No. 13.

On February 23, 2024, plaintiff filed its motion for judgment on the agency record.

Baroque Br.

On February 27, 2025, the court heard oral argument. See Oral Arg. Tr., ECF

No. 42.

As noted, in its motion, plaintiff maintains that Commerce’s Final Results were

not supported by substantial evidence on the record and were otherwise not in

accordance with law regarding Commerce’s: (1) calculation of the benchmark price for

plywood; and (2) application of AFA to find certain input suppliers to be government

authorities. See Baroque Br. at 1-2.

JURISDICTION AND STANDARD OF REVIEW

Whether a court has subject matter jurisdiction to hear an action is a “threshold”

inquiry. Steel Co. v.

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