Changzhou Wujin Fine Chemical Factory Co. v. United States

942 F. Supp. 2d 1333, 2013 CIT 127, 35 Int'l Env't Rep. (BNA) 2104, 2013 WL 5718459, 2013 Ct. Intl. Trade LEXIS 131
CourtUnited States Court of International Trade
DecidedOctober 2, 2013
DocketConsol. 09-00216
StatusPublished
Cited by3 cases

This text of 942 F. Supp. 2d 1333 (Changzhou Wujin Fine Chemical Factory 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.

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Changzhou Wujin Fine Chemical Factory Co. v. United States, 942 F. Supp. 2d 1333, 2013 CIT 127, 35 Int'l Env't Rep. (BNA) 2104, 2013 WL 5718459, 2013 Ct. Intl. Trade LEXIS 131 (cit 2013).

Opinion

OPINION

BARZILAY, Senior Judge:

This case returns to the court following a remand to the U.S. Department of Commerce (“Commerce”) for further proceedings in accordance with the Federal Circuit’s decision in Changzhou Wujin Fine Chemical Factory Co. v. United States, 701 F.3d 1367 (Fed.Cir.2012) {“Changzhou”). 1 The Federal Circuit instructed Commerce to reconsider its approach in calculating the separate rate assigned to Plaintiff Jiangsu Jianghai Chemical Group, Ltd. (“Jiangsu”). 2 On remand, Commerce changed its approach by abandoning the simple average methodology from the investigation 3 and adopting a different *1335 methodology that relied on inferences about Kewei’s (an uncooperative respondent) actual dumping margin to conclude that Jiangsu’s rate would have been above de minimis. See Final Results of Redetermination Pursuant to Court Order, Docket Entry No. 81 (May 18, 2013) (“Remand Redetermination ”). Commerce, however, did not calculate a specific rate for Jiangsu because it concluded that doing so would have been an unnecessary expenditure of administrative resources given that the entries covered by the underlying investigation have already been liquidated. Jiangsu claims that the Remand Redetermination does not comply with the Federal Circuit’s remand instructions. The court has jurisdiction pursuant to 28 U.S.C. § 1581(c). For the reasons set forth below, Commerce’s Remand Re-determination is sustained.

I. STANDARD OF REVIEW

When reviewing Commerce’s anti-dumping determinations under 19 U.S.C. § 1516a(a)(2)(B)(iii) and 28 U.S.C. § 1581(c), the U.S. Court of International Trade sustains Commerce’s “determinations, findings, or conclusions” unless they are “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i). More specifically, when reviewing agency determinations, findings, or conclusions for substantial evidence, the court assesses whether the agency action is “reasonable and supported by the record as a whole.” Nippon Steel Corp. v. United States, 458 F.3d 1345, 1352 (Fed.Cir.2006) (internal quotations and citation omitted). Substantial evidence has been described as “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Dupont Teijin Films USA v. United States, 407 F.3d 1211, 1215 (Fed.Cir.2005) (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). Substantial evidence has also been described as “something less than the weight of the evidence, and the possibility of drawing two inconsistent conclusions from the evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Consolo v. Fed. Mar. Comm’n, 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966).

Separately, the two-step framework provided in Chevron, U.S.A, Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-45, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), governs judicial review of Commerce’s interpretation of the antidumping statute. See United States v. Eurodif S.A., 555 U.S. 305, 316, 129 S.Ct. 878, 172 L.Ed.2d 679 (2009) (Commerce’s “interpretation governs in the absence of unambiguous statutory language to the contrary or unreasonable resolution of language that is ambiguous.”).

II. DISCUSSION

In calculating a separate rate for non-individually investigated respondents in nonmarket economy investigations, Commerce normally relies on 19 U.S.C. § 1673d(c)(5), which defines the all-others rate used in market economy investigations. See Bristol Metals L.P. v. United States, 34 CIT -, -, 703 F.Supp.2d 1370, 1378 (2010) (citation omitted). The statute instructs Commerce to weight-average the rates calculated for the investigated parties, excluding de minimis or zero rates and excluding rates based on facts available, to determine the separate rate. 19 U.S.C. § 1673d(c)(5)(A). However, “[i]f the estimated weighted average dumping margins established for all exporters and producers individually investigated are zero or de minimis margins, or are determined entirely [on the basis of facts available], the administering authori *1336 ty may use any reasonable method to establish the estimated all-others rate for exporters and producers not individually investigated, including averaging the estimated weighted average dumping margins determined for the exporters and producers individually investigated.” § 1673d(c)(5)(B). The Statement of Administrative Action provides that the “expected method in such cases will be to weight-average the zero and de minimis margins and margins determined pursuant to the facts available, provided that volume data is available.” Uruguay Round Agreements Act, Statement of Administrative Action, H.R. Doc. No. 103-316, vol. 1, at 873 (1994), reprinted in 1994 U.S.C.C.A.N. 4040, 4201. It goes on to state that “if this method is not feasible, or if it results in an average that would not be reasonably reflective of potential dumping margins for non-investigated exporters or producers, Commerce may use other reasonable methods.” Id.

In this case, Commerce originally calculated the separate rate by taking a simple average of the rates assigned to the two mandatory respondents. One mandatory respondent (Wujin Water) received a de minimis rate (0%) and the other mandatory respondent (Kewei) failed to cooperate and received a rate based on total adverse facts available (72.42%). This yielded a separate rate of 36.21%, which Commerce assigned to the separate rate respondents (Jiangsu and Changzhou). They appealed Commerce’s separate rate determination to this court.

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942 F. Supp. 2d 1333, 2013 CIT 127, 35 Int'l Env't Rep. (BNA) 2104, 2013 WL 5718459, 2013 Ct. Intl. Trade LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/changzhou-wujin-fine-chemical-factory-co-v-united-states-cit-2013.