Calgon Carbon Corp. v. United States

190 F. Supp. 3d 1224, 2016 CIT 107, 38 I.T.R.D. (BNA) 1917, 2016 Ct. Intl. Trade LEXIS 108
United States Court of International Trade·Decided November 18, 2016·No. Consol. 14-00326·Published·Cited by 3 cases

Opinion

OPINION

Restani, Judge:

Before the court are the Department of Commerce’s (“Commerce”) Final Results of Redetermination Pursuant to Court Remand, ECF No. 97 (“Remand Results”), concerning the sixth annual administrative review of the antidumping (“AD”) duty order on certain activated carbon from the People’s Republic of China (“PRC”). See Notice of Antidumping Duty Order: Certain Activated Carbon from the People’s Republic of China, 72 Fed. Reg. 20,988, 20,988 (Dep’t Commerce Apr. 27, 2007). The court previously remanded Commerce’s selection of a surrogate value (“SV”) for anthracite' coal and Commerce’s assignment of an all-others rate to Shanxi DMD Corporation (“Shanxi DMD”). Calgon Carbon Corp. v. United States, 145 F.Supp.3d 1312, 1328 (CIT 2016) (“Calgon”) (remanding Commerce’s decision in Certain Activated Carbon from the People’s Republic of China: Final Results of Antidumping Duty Administrative Review; 2012-2013, 79 Fed. Reg. 70,163, 70,163 *1227 (Dep’t Commerce Nov. 25, 2014) (“Final Results”)). For the reasons stated below, Commerce’s Remand Results are sustained in part and remanded in part.

BACKGROUND

The court presumes familiarity with the facts of the case as discussed in Calgon, 145 F.Supp.3d at 1316-19; however, for convenience, the court summarizes below the facts relevant to the Remand Results.

To calculate the dumping margin in anti-dumping (“AD”) duty cases involving a non-market economy (“NME”), Commerce compares the goods’ normal value, 1 derived from factors of production (“FOPs”) as valued in a surrogate market economy (“ME”), to the goods’ export price. 2 19 U.S.C. § 1677b(c). Commerce must use the “best available information” in selecting surrogate data for which to value FOPs. Id. The surrogate data must “to the extent possible” be from an ME country that is “at a level of economic development comparable to that of the [NME] country” and is a “significant producer[ ] of comparable merchandise.” 19 U.S.C. § 1677b(c)(4)(A)-(B).

For this review, Commerce selected Jacobi Carbons AB (“Jacobi”) and Ningxia Guanhua Cherishmet Activated Carbon Co., Ltd. (“Cherishmet”) as the two mandatory respondents for the period of review (“POR”) of April 1, 2012, through March 31, 2013. See Certain Activated Carbon from the People’s Republic of China: Preliminary Results of Antidumping Administrative Review; 2012-2013, 79 Fed. Reg. 29,419, 29,419 (Dep’t Commerce May 22, 2014) (“Preliminary Results”); Decision- Memorandum for the Prelim. Results of Antidumping Duty Administrative Review: Certain Activated Carbon from the People’s Republic of China at 3-4, PD 265 (May 16, 2014) (“Preliminary I & D Memo”).

In the Preliminary Results, Commerce selected the Philippines as the primary surrogate country and selected an SV for anthracite coal, the main input in activated carbon, by using Global Trade Atlas (“GTA”) data contemporaneous with the present sixth POR (“POR6-contemporaneous”), resulting in an SV of $1.19 per kilogram. Calgon, 145 F.Supp.3d at 1317; Preliminary I & D Memo at 16. Based on this SV, Commerce calculated Jacobi’s and Cherishmet’s AD rates as $3.77 per kilogram ánd $2.05 per kilogram, respectively, resulting in a separate rate of $3.13 per kilogram. Calgon, 145 F.Supp.3d at 1318. Commerce continued to select a PRC-wide rate of $2.42 per kilogram. Id.

For the . Final Results, Commerce switched from using POR6-contemporaneous Philippine GTA data to a value of $0.05 per kilogram, which was derived from Philippine GTA data contemporaneous with the fifth POR (“POR5-contemporaneous”). Id. at 1317; see also Certain Activated Carbon from the People’s Republic of China: Issues and Decision Memorandum for the Final Results of the Sixth Antidumping Duty Administrative Review *1228 at 37-38, PD 310 (Nov, 18, 2014) (“I & D Memo”). Commerce made this change because of new information suggesting that the type of anthracite coal underlying the POR6-eontemporaneous Philippine GTA data was not specific to the type used by the mandatory respondents, and no one had challenged the POR5-contemporaneous Philippine GTA value in the previous review. Calgon, 145 F.Supp.3d at 1317-18. Thus, the SV for anthracite coal fell from $1.19 per kilogram to $0.05 per kilogram. Id. at 1317. For this reason, Jacobi’s and Cherishmet’s dumping margins dropped from $3.77 per kilogram and $2.05 per kilogram, respectively, to $0.04 per kilogram each. Id. at 1318. Similarly, the resulting separate rate decreased from $3.13 per kilogram to $0.04 per kilogram. Id. The PRC-wide rate remained at $2.42 per kilogram. Id.

Although Shanxi DMD had filed a separate rate certification in the fifth administrative review, .it did not do so for the present sixth administrative review. Id. at 1322. After Commerce determined in the Preliminary Results that the presumption of state control applied to Shánxi DMD and thereby assigned Shanxi DMD the PRC-wide rate, which at the time was a more favorable rate than the separate rate, no party contested Commerce’s state control determination prior to the Final Results. Id. at 1318, 1322. Thus, in the Final Results, Commerce, in addition to calculating a new separate rate, continued to find that “[t]he PRC-wide entity in-elude[d] Shanxi DMD ...." Id. at 1318 (quoting Final Results, 79 Fed. Reg. at 70,164 n.26).

The parties made several challenges to Commerce’s Final Results. Respondent Carbon Activated Corporation (“CAC”) challenged Commerce’s Final Results in court on the basis that, among other things, Commerce’s presumption of state control applied to Shanxi DMD was not supported by substantial evidence. Id. Plaintiffs Calgon Carbon Corp. (“Calgon”) and Cabot Norit Americas, Inc. (“Cabot”) (collectively “Petitioners”) also ..challenged Commerce’s selection of the POR5-con-temporaneous Philippine GTA SV for anthracite coal. Id. at 1323-28. On the presumption of state control issue, the court agreed with CAC, holding that the government’s and Petitioners’ decision not to address the merits of CAC’s arguments by briefing the issue as required by court rules, or by taking other opportunities to rectify the omission, left the court with no other option than to sustain CAC’s challenge. Id. at 1322. And, on the SV issue, the court ruled that “Commerce improperly selected the SV derived from POR5-contemporaneous Philippine GTA data (1) without placing any of the underlying data on the record to support the value and (2) without addressing contemporaneous surrogate data on the record from non-primary surrogate country sources.” Id. at 1328. For these reasons, the court remanded the Final Results for Commerce to assign Shanxi DMD a separate rate and to “reconsider its selection of an SV for anthracite coal.” Id.

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Calgon Carbon Corp. v. United States, 190 F. Supp. 3d 1224, 2016 CIT 107, 38 I.T.R.D. (BNA) 1917, 2016 Ct. Intl. Trade LEXIS 108 (cit 2016).

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