Changzhou Trina Solar Energy Co. v. United States

2019 CIT 143
Procedural entryThis page is a short order in Changzhou Trina Solar Energy Co. v. United States. Read the opinion of the Court — 352 F. Supp. 3d 1316
United States Court of International Trade·Decided November 18, 2019·No. Consol. 17-00246·Published

Opinion

Slip Op. 19-

UNITED STATES COURT OF INTERNATIONAL TRADE

CHANGZHOU TRINA SOLAR ENERGY CO., LTD., ET AL., and SOLARWORLD AMERICAS, INC.,

Plaintiffs, and Consolidated Plaintiffs, Before: Jane A. Restani, Judge v.

UNITED STATES, Consol. Court No. 17-00246

Defendant, PUBLIC VERSION SOLARWORLD AMERICAS, INC., CHANGZHOU TRINA SOLAR ENERGY CO., LTD., and CHANGZHOU TRINA SOLAR ENERGY CO., LTD.,

Defendant-Intervenor and Consolidated Defendant- Intervenor.

OPINION AND ORDER

Dated: November, 2019

[Commerce’s Remand Redetermination in the Administrative Review of Commerce’s Countervailing Duty Order pertaining to Crystalline Silicon Photovoltaic Products from the People’s Republic of China is remanded for reconsideration consistent with this opinion.]

Robert G. Gosselink, Jonathan M. Freed, and Kenneth Hammer Trade Pacific, PLLC, of Washington, D.C., for Plaintiffs and Consolidated Plaintiffs Changzhou Trina Solar Energy Co., Ltd., Trina Solar Limited, Trina Solar (Changzhou) Science & Technology Co., Ltd., Yancheng Trina Solar Energy Technology Co., Ltd., Changzhou Trina Solar Yabang Energy Co., Ltd., Hubei Trina Solar Energy Co., Ltd., Turpan Trina Solar Energy Co., Ltd., and Changzhou Trina PV Ribbon Materials Co., Ltd. (collectively “Trina”).

Jeanne E. Davidson, Tara K. Hogan, and Justin R. Miller, International Trade Field Office, U.S. Department of Justice, of New York, NY for defendant United States. Of counsel on the brief was Paul Keith, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C. Consol. Court No. 17-00246 Page 2 Public Version

Timothy C. Brightbill, Laura El-Sabaawi, and Usha Neelakantan, Wiley Rein, LLP, of Washington, D.C., for Defendant-Intervenor SolarWorld Americas, Inc.

Restani, Judge: This action concerns the U.S. Department of Commerce’s (“Commerce”)

remand redetermination filed pursuant to the court’s order in Changzhou Trina Solar Energy Co.

v. United States, Ct. No. 17-146, Slip Op. 18-167, 2018 WL 6271653 (CIT Nov. 30, 2018)

(“Remand Order”); see Final Results of Redetermination Pursuant to Court Remand, ECF No.

103-1 (Apr. 25, 2019) (“Remand Results”).

In the Remand Order, the court determined that remand was necessary for Commerce to

further explain some of its decisions in the underlying review, or else alter its review. Specifically,

the court remanded for Commerce to explain and/or reconsider its decision that respondent

benefitted from the People Republic of China’s (“PRC”) Export Buyer’s Credit Program

(“EBCP”) and whether to include potentially overbroad United Nations Comtrade data in

Commerce’s calculations of aluminum extrusion and solar glass benchmarks were appropriate. On

remand, Commerce has attempted to clarify its decisions, but its ultimate decisions remain largely

unaltered.

BACKGROUND

The court assumes familiarity with the facts of this case as discussed in the Remand Order,

and accordingly recounts relevant facts only as necessary below. This matter involves a challenge

made by Changzhou Trina Solar Energy Co., Ltd., Trina Solar Limited, Trina Solar (Changzhou)

Science & Technology Co., Ltd., Yancheng Trina Solar Energy Technology Co., Ltd., Changzhou

Trina Solar Yabang Energy Co., Ltd., Hubei Trina Solar Energy Co., Ltd., Turpan Trina Solar

Energy Co., Ltd., and Changzhou Trina PV Ribbon Materials Co., Ltd. (collectively “Trina”)

against Commerce’s remand redetermination in the First Administrative Review of Commerce’s Consol. Court No. 17-00246 Page 3 Public Version Countervailing Duty Order pertaining to photovoltaic products from the PRC. SolarWorld

Americas. Inc. (“SolarWorld”) is a defendant-intervenor. 1

JURISDICTION AND STANDARD OF REVIEW

The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) and 19 U.S.C. § 1516a(a)(2)

(2012). The court will uphold Commerce’s remand redetermination unless “unsupported by

substantial evidence on the record, or otherwise not in accordance with law[.]” 19 U.S.C. §

1516a(b)(1)(B)(i).

DISCUSSION

I. Export Buyer’s Credit Program

Lately, the Export Buyer’s Credit Program (“EBCP’) has been a subject of frequent litigation

in the court. See Clearon Corp. v. United States, 359 F. Supp. 3d 1344, 1358–60 (CIT 2019)

(collecting cases). The EBCP promotes PRC exports by providing preferential loan rates to foreign

purchasers of PRC goods. See id. at 1347. Commerce found that following the 2013 revisions to

the program, it appeared that the prior $2 million-dollar contract minimum requirement had been

repealed and that EBCP loans might be routed through third-party banks and not simply issued

from the EX-IM Bank as previously understood. See Decision Memorandum for the Preliminary

Results of the Administrative Review of the Countervailing Duty Order on Certain Crystalline

Silicon Photovoltaic Products from the People’s Republic of China; 2014-2015, C-570-011, POR:

6/10/2014-12/31/2015, at 30 (“Prelim. I&D Memo”). The Government of China (“GOC”) refused

to provide requested information on the 2013 revisions, including internal guidelines. See Id.

1 Although SolarWorld filed a response to plaintiff and plaintiff-intervenors’ comments objecting to the remand results, its response is simply a statement of agreement with Commerce’s decision on the EBCP, except for the rate applied to the program, and to reiterate its positions taken in prior briefing. See SolarWorld’s Response to Comments on Final Results of Redetermination Pursuant to Court Order, ECF No. 81 (Aug. 9, 2019). Consol. Court No. 17-00246 Page 4 Public Version Because of the GOC’s non-cooperation, Commerce found that it was unable to verify respondent’s

certificates of non-use. See id. at 29–31; Decision Memorandum for Final Results and Partial

Rescission of Countervailing Duty Administrative Review: Crystalline Silicon Photovoltaic

Products from the People's Republic of China; 2014-2015, C-570-011, POR:6/10/2014-

12/31/2015 at 31–34 (“I&D Memo”). Accordingly, Commerce found that respondent, through the

application of AFA, 2 had used the program despite their cooperation in the review. I & D Memo

at 33–34.

The court remanded this issue concluding that Commerce did not demonstrate that

respondent’s certifications were unverifiable. Remand Order Slip Op. 18-167 at 8. The court held

that although Commerce may apply AFA in a way that collaterally affects a cooperating party,

Commerce had not attempted to avoid that undesirable consequence. See id. Additionally,

Commerce did not explain “why it was necessary for it to fully understand the EBCP in order to

ascertain claims of non-use.” Id. at 7.

On remand, Commerce continues to find the certifications unverifiable and imputes usage

of the EBCP based on the application of AFA. Remand Results at 7–19. Commerce admits that it

previously verified non-use of the program, but says it can no longer do so now that it is unsure of

the minimum contract size and whether loans are routed through third-party banks. See id. at 8–

15. Commerce cites a discussion with an EX-IM Bank official who apparently indicated that the

2013 revisions eliminated the contract minimum. See Remand Results at 13; see also

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