Changzhou Hawd Flooring Co. v. United States

77 F. Supp. 3d 1351, 2015 CIT 71, 37 I.T.R.D. (BNA) 1671, 2015 Ct. Intl. Trade LEXIS 72, 2015 WL 4072343
United States Court of International Trade·Decided July 6, 2015·No. Slip Op. 15-71; Court 12-00020·Published·Cited by 1 cases

Opinion

*1353 OPINION

POGUE, Senior Judge:

This action is again before the court following a fourth remand and redetermi-nation. 1 - The only issue remaining for review is the antidumping (“AD”) duty rate assigned to one separate rate respondent — Changzhou Hawd Flooring Co., Ltd., (“Changzhou Hawd” or “Plaintiff’). 2

Previously, in the second and partial third redeterminations, the Department of Commerce (“Commerce”) had, belatedly, sought to individually investigate Chang-zhou Hawd. 3 However, this decision was challenged as 4 and found to be arbitrary and capricious. Changzhou Hawd Flooring Co. v. United States, — CIT-, 44 F.Supp.3d 1376, 1388-90 (2015). On remand, Commerce determined that the separate rate, and therefore Changzhou Hawd’s rate, was more than de minimis. Rather than then calculate a rate for Changzhou Hawd, however, Commerce decided to continue applying the company’s current cash deposit rate, as established in the original final determination, 5 pending the final results of the Second Administrative Review, where Changzhou Hawd is again a separate rate respondent. 6 Final Results of Redetermination Pursuant to Ct. Order, ECF No. 130 (“Fourth Redeter-mination”). Plaintiff challenges this determination as not in accordance with law, not supported by substantial evidence, and not compliant with the court’s previous *1354 remand order. 7

Because Commerce’s decision is based on a reasonable reading of the law and of the evidentiary record, satisfying the court’s previous remand instructions, the determination is affirmed.

BACKGROUND

Previous litigation of the separate rate in this investigation has produced two court opinions 8 and two corresponding re-determinations by Commerce, 9 a voluntary remand and redetermination, 10 a third court opinion, 11 and now a fourth redeter-mination by Commerce. 12 While the court presumes familiarity with the progression of this case, the immediately pertinent facts are summarized below.

In the second and supplementing partial third redeterminations, Commerce inferred that, because there were 110 non-cooperative respondents in the investigation, the separate rate was more than de minimis. Second Redetermination, ECF No. 52, at 3-7. Commerce, however, declined to calculate a specific separate rate. Id. at 7-8. Instead, the agency assigned seven of the Plaintiffs 13 the rate calculated for them in the First Administrative Review (which had already, by that time, been completed), 14 as limited by the provisional measures deposit cap. 15 Id. Chang-zhou Hawd, however, did not have a rate from the First Administrative Review. 16 Commerce, concluding that it did not have enough data on the record to calculate a rate reflective of Changzhou Hawd’s economic reality, belatedly initiated an individual investigation of the company. Id. at 8-9; Third Redetermination, ECF No. 107. 17 While the court affirmed as reason-

*1355 able Commerce’s inference of a more than de minimis separate rate and use of rates from the First Administrative Review, Changzhou Hawd, - CIT at -, 44 F.Supp.3d at 1385-88, it found Commerce’s decision to individually investigate Changzhou Hawd at such a late date in the ■proceeding — and after repeatedly refusing to investigate a would-be voluntary respondent, claiming lack of administrative resources — to be arbitrary and capricious, and remanded accordingly. Id. at 1388-91.

On remand, Commerce again inferred that the separate rate was more than de minimis, but declined, as it did previously, to calculate a separate rate. Fourth Redetermination, ECF No. 130, at 4-5. Instead, because of “the limited time for which Changzhou Hawd’s specific margin will be effective, and in the continued interest of conserving administrative resources,” 18 Commerce has proposed to continue applying the 3.30 percent cash deposit rate as calculated in the Inv. Amended Final Determination, 76 Fed. Reg. at 76,691-92, 19 until the Second Administrative Review, where Changzhou Hawd is again a separate rate respondent, sets Changzhou Hawd’s assessed rate. 20 *1356 Fourth Redetermination, ECF No. 130, at 5-6. Commerce’s deadline for the completion of the Second Administrative Review is July 8, 2015. Id. at 5.

STANDARD OF REVIEW

The court will sustain Commerce’s determination on remand if it is accordance with law, supported by substantial evidence on the record, and complies with the court’s remand order. 19 U.S.C. § 1516a(b)(l)(B)(i); Jinan Yipin Corp., Ltd. v. United States, 33 CIT 934, 936, 637 F.Supp.2d 1183, 1185 (2009).

DISCUSSION

I. Commerce’s Methodology

Lacking more specific statutory guidance, Commerce follows 19 U.S.C. § 1673d(c)(5) (the “[m]ethod for determining [the] estimated all-others rate”) to establish the separate rate. See Fourth Redetermination, ECF No. 130, at 4. Generally, the separate rate is equal to the weighted average of the rates ealcu-lated for individually investigated respondents, “excluding any zero and de min-imis margins, and any margins [based entirely on facts otherwise available].” 19 U.S.C. § 1673d(c)(5)(A). However, where, as here, all individually investigated rates are zero, de minimis, or based entirely on facts otherwise available, the statute allows Commerce to use “any reasonable method to establish the estimated [separate rate].” 19 U.S.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Changzhou Hawd Flooring Co. v. United States, 77 F. Supp. 3d 1351, 2015 CIT 71, 37 I.T.R.D. (BNA) 1671, 2015 Ct. Intl. Trade LEXIS 72, 2015 WL 4072343 (cit 2015).

77 F. Supp. 3d 1351 (Changzhou Hawd Flooring Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Changzhou Hawd Flooring Co. v. United States
848 F.3d 1006 (Federal Circuit, 2017)