China Manufacturers Alliance, LLC v. United States

2023 CIT 75
United States Court of International Trade·Decided May 16, 2023·No. Consol. 15-00124·Published

Opinion

SlipȱOp.ȱ23Ȭ75ȱ

UNITEDȱSTATESȱCOURTȱOFȱINTERNATIONALȱTRADEȱ

CHINAȱMANUFACTURERSȱ ALLIANCE,ȱLLCȱandȱDOUBLEȱCOINȱ HOLDINGSȱLTD.,ȱetȱal.,ȱ

Plaintiffs,ȱ Before:ȱTimothyȱC.ȱStanceu,ȱJudgeȱ v.ȱ Consol.ȱCourtȱNo.ȱ15Ȭ00124ȱ UNITEDȱSTATES,ȱ Defendant.ȱ

OPINIONȱANDȱORDERȱ

[EffectuatingȱtheȱmandateȱofȱtheȱCourtȱofȱAppealsȱforȱtheȱFederalȱCircuitȱandȱ adjudicatingȱtheȱremainingȱclaimȱinȱthisȱlitigation,ȱinȱwhichȱpartiesȱcontestedȱanȱagencyȱ determinationȱconcludingȱanȱadministrativeȱreviewȱofȱanȱantidumpingȱdutyȱorderȱonȱ offȬtheȬroadȱtiresȱfromȱtheȱPeople’sȱRepublicȱofȱChina]ȱ

Dated:ȱMayȱ16,ȱ2023ȱ

DanielȱL.ȱPorter,ȱCurtis,ȱMalletȬPrevost,ȱColtȱ&ȱMosleȱLLP,ȱofȱWashington,ȱD.C.,ȱ forȱplaintiffsȱChinaȱManufacturersȱAlliance,ȱLLCȱandȱDoubleȱCoinȱHoldingsȱLtd.ȱȱWithȱ himȱonȱtheȱbriefsȱwereȱJamesȱP.ȱDurling,ȱMatthewȱP.ȱMcCullough,ȱandȱTungȱA.ȱNguyen.ȱ

NedȱH.ȱMarshak,ȱGrunfeld,ȱDesiderio,ȱLebowitz,ȱSilvermanȱ&ȱKlestadtȱLLP,ȱofȱ Washington,ȱD.C.,ȱforȱplaintiffsȱGuizhouȱTyreȱCo.,ȱLtd.ȱandȱGuizhouȱTyreȱImportȱandȱ ExportȱCo.,ȱLtd.ȱȱWithȱhimȱonȱtheȱbriefsȱwereȱBrandonȱM.ȱPetelin,ȱDharmendraȱN.ȱ Choudhary,ȱAndrewȱT.ȱSchutz,ȱandȱJordanȱC.ȱKahn.ȱ

JohnȱJ.ȱTodor,ȱSeniorȱTrialȱCounsel,ȱCommercialȱLitigationȱBranch,ȱCivilȱDivision,ȱ U.S.ȱDepartmentȱofȱJustice,ȱofȱWashington,ȱD.C.,ȱforȱdefendant.ȱȱWithȱhimȱonȱtheȱbriefsȱ wereȱBrianȱM.ȱBoynton,ȱPrincipalȱDeputyȱAssistantȱAttorneyȱGeneral,ȱPatriciaȱM.ȱ McCarthy,ȱDirector,ȱandȱFranklinȱE.ȱWhite,ȱJr.,ȱAssistantȱDirector.ȱȱOfȱcounselȱwasȱPaulȱK.ȱ

Consol.ȱCourtȱNo.ȱ15Ȭ00124ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȱȱȱȱȱPageȱ2ȱ ȱ Keith,ȱAttorney,ȱOfficeȱofȱtheȱChiefȱCounselȱforȱTradeȱEnforcementȱ&ȱCompliance,ȱU.S.ȱ DepartmentȱofȱCommerce,ȱofȱWashington,ȱD.C.ȱ

Stanceu,ȱJudge:ȱInȱthisȱconsolidatedȱcase,ȱplaintiffsȱcontestedȱaȱfinalȱ determinationȱtheȱInternationalȱTradeȱAdministration,ȱU.S.ȱDepartmentȱofȱCommerceȱ (“Commerce”ȱorȱtheȱ“Department”)ȱissuedȱuponȱtheȱconclusionȱofȱtheȱfifthȱperiodicȱ administrativeȱreviewȱ(“FifthȱReview”)ȱofȱanȱantidumpingȱdutyȱorderȱonȱcertainȱoffȬ theȬroadȱpneumaticȱtiresȱ(theȱ“subjectȱmerchandise”)ȱfromȱtheȱPeople’sȱRepublicȱofȱ Chinaȱ(“China”ȱorȱtheȱ“PRC”).ȱ ThisȱOpinionȱandȱOrderȱisȱissuedȱtoȱeffectuateȱtheȱmandateȱofȱtheȱCourtȱofȱ AppealsȱforȱtheȱFederalȱCircuitȱ(“CourtȱofȱAppeals”),ȱCAFCȱMandateȱinȱAppealȱ #ȱ20Ȭ1159ȱ(Aug.ȱ2,ȱ2021),ȱECFȱNo.ȱ253,ȱinȱChinaȱMfrs.ȱAlliance,ȱLLCȱv.ȱUnitedȱStates,ȱ 1ȱF.4thȱ1028ȱ(Fed.ȱCir.ȱ2021)ȱ(“CMAȱIV”)ȱandȱtoȱadjudicateȱtheȱsoleȱclaimȱthatȱremainsȱatȱ issueȱinȱthisȱlitigation.ȱ I.ȱȱBACKGROUNDȱ

BackgroundȱonȱthisȱcaseȱisȱpresentedȱinȱtheȱpriorȱopinionsȱofȱthisȱCourtȱandȱtheȱ CourtȱofȱAppealsȱandȱisȱsupplementedȱherein.ȱȱSeeȱCMAȱIV,ȱ1ȱF.4thȱatȱ1030–35;ȱChinaȱ Mfrs.ȱAlliance,ȱLLCȱv.ȱUnitedȱStates,ȱNo.ȱ19Ȭ115,ȱ2019ȱWLȱ4165274,ȱatȱ*1–3ȱ(Ct.ȱInt’lȱTradeȱ Sept.ȱ3,ȱ2019)ȱ(“CMAȱIII”);ȱChinaȱMfrs.ȱAlliance,ȱLLCȱv.ȱUnitedȱStates,ȱ43ȱCITȱ__,ȱ__,ȱ357ȱ F.ȱSupp.ȱ3dȱ1364,ȱ1365–68ȱ(2019)ȱ(“CMAȱII”);ȱChinaȱMfrs.ȱAlliance,ȱLLCȱv.ȱUnitedȱStates,ȱ 41ȱCITȱ__,ȱ__,ȱ205ȱF.ȱSupp.ȱ3dȱ1325,ȱ1329–32ȱ(2017)ȱ(“CMAȱI”).ȱ

ȱ

Consol.ȱCourtȱNo.ȱ15Ȭ00124ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȱȱȱȱȱPageȱ3ȱ ȱ Theȱadministrativeȱdeterminationȱcontestedȱinȱthisȱcase,ȱreferredȱtoȱhereinȱasȱtheȱ

“FinalȱResults,”ȱappearedȱinȱtwoȱFederalȱRegisterȱpublications.ȱȱCertainȱNewȱPneumaticȱ OffȬtheȬRoadȱTiresȱFromȱtheȱPeople’sȱRepublicȱofȱChina:ȱAmendedȱFinalȱResultsȱofȱ AntidumpingȱDutyȱAdministrativeȱReview;ȱ2012Ȭ2013,ȱ80ȱFed.ȱReg.ȱ26,230ȱ(Int’lȱTradeȱ Admin.ȱMayȱ7,ȱ2015)ȱ(correctingȱaȱministerialȱerrorȱinȱanȱearlierȱpublishedȱdecision,ȱ CertainȱNewȱPneumaticȱOffȬtheȬRoadȱTiresȱFromȱtheȱPeople’sȱRepublicȱofȱChina:ȱFinalȱResultsȱ ofȱAntidumpingȱDutyȱAdministrativeȱReview;ȱ2012Ȭ2013,ȱ80ȱFed.ȱReg.ȱ20,197ȱ(Int’lȱTradeȱ Admin.ȱApr.ȱ15,ȱ2015)).ȱ TheȱplaintiffsȱinȱthisȱcaseȱareȱChinaȱManufacturersȱAllianceȱLLCȱandȱDoubleȱ CoinȱHoldingsȱLtd.ȱ(collectively,ȱ“DoubleȱCoin”),ȱandȱGuizhouȱTyreȱCo.,ȱLtd.ȱandȱ GuizhouȱTyreȱExportȱandȱImportȱCo.,ȱLtd.ȱ(collectively,ȱ“GTC”).ȱȱDoubleȱCoinȱandȱGTCȱ wereȱtheȱexporters/producersȱthatȱCommerceȱselectedȱasȱtheȱmandatoryȱrespondentsȱinȱ theȱFifthȱReview.ȱȱDefendantȱisȱtheȱUnitedȱStates.ȱ II.ȱȱDISCUSSIONȱ

AllȱissuesȱpertainingȱtoȱtheȱclaimsȱbroughtȱbyȱGTCȱinȱthisȱlitigationȱhaveȱbeenȱ resolved.ȱȱAsȱtoȱDoubleȱCoin,ȱtheȱcourtȱfirstȱmustȱinterpretȱtheȱscopeȱofȱtheȱmandateȱofȱ theȱCourtȱofȱAppealsȱinȱCMAȱIV,ȱonȱwhichȱDoubleȱCoinȱandȱdefendantȱUnitedȱStatesȱ disagree,ȱasȱshownȱbyȱsubmissionsȱtheyȱmadeȱtoȱtheȱcourtȱfollowingȱtheȱissuanceȱofȱthatȱ mandate.ȱȱTheȱcourtȱthenȱmustȱdecideȱwhatȱissues,ȱifȱany,ȱremainȱtoȱbeȱlitigatedȱasȱtoȱ theȱclaimsȱofȱDoubleȱCoin.ȱ

ȱ

Consol.ȱCourtȱNo.ȱ15Ȭ00124ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȱȱȱȱȱPageȱ4ȱ ȱ A.ȱȱDoubleȱCoin’sȱClaimȱConcerningȱControlȱbyȱtheȱGovernmentȱofȱtheȱPRCȱHasȱNotȱ BeenȱAdjudicatedȱ

ȱ DoubleȱCoinȱarguesȱthatȱremainingȱtoȱbeȱadjudicatedȱisȱitsȱclaimȱthatȱCommerceȱ

erredȱinȱfindingȱthatȱDoubleȱCoinȱfailedȱtoȱrebutȱtheȱDepartment’sȱpresumptionȱthatȱ DoubleȱCoinȱisȱcontrolledȱbyȱtheȱgovernmentȱofȱtheȱPRC.ȱȱJointȱStatusȱReportȱandȱ ProposedȱBriefingȱScheduleȱ1–3ȱ(Sept.ȱ17,ȱ2021),ȱECFȱNo.ȱ255.ȱȱDisagreeing,ȱdefendantȱ arguesȱthatȱthisȱclaimȱalreadyȱhasȱbeenȱadjudicatedȱinȱitsȱfavor.ȱ Accordingȱtoȱdefendant,ȱtheȱCourtȱofȱAppealsȱheldȱinȱCMAȱIVȱthatȱ“Commerce’sȱ applicationȱofȱtheȱ105.31%ȱPRCȬwideȱentityȱrateȱtoȱDoubleȱCoinȱwasȱnotȱcontraryȱtoȱlawȱ andȱwasȱreasonableȱonȱtheȱfactsȱofȱthisȱcase.”ȱȱId.ȱatȱ4ȱ(quotingȱCMAȱIV,ȱ1ȱF.4thȱatȱ1040).ȱȱ DefendantȱinterpretsȱthisȱstatementȱinȱtheȱCMAȱIVȱopinionȱtoȱmeanȱthatȱtheȱCourtȱofȱ AppealsȱhasȱadjudicatedȱtheȱclaimȱatȱissueȱonȱtheȱmeritsȱandȱthatȱCommerce,ȱonȱ remand,ȱmustȱassignȱDoubleȱCoinȱtheȱ105.31%ȱrateȱCommerceȱdeterminedȱforȱtheȱPRCȬ wideȱentityȱinȱtheȱFinalȱResults,ȱwhichȱrateȱtheȱCourtȱofȱAppeals,ȱreversingȱthisȱCourt’sȱ decisionȱandȱjudgmentȱinȱCMAȱIII,ȱruledȱwasȱaccordingȱtoȱlawȱasȱappliedȱtoȱthatȱentity.ȱȱ Ifȱdefendantȱisȱcorrect,ȱnoȱissuesȱremainȱtoȱbeȱdecidedȱinȱthisȱlitigation.ȱȱIfȱDoubleȱCoinȱ isȱcorrect,ȱthenȱtheȱcourtȱnowȱmustȱadjudicateȱitsȱclaimȱcontestingȱtheȱDepartment’sȱ determinationȱthatȱDoubleȱCoinȱfailedȱtoȱrebutȱtheȱpresumptionȱofȱcontrolȱbyȱtheȱPRCȱ governmentȱandȱtheȱDepartment’sȱresultingȱdecisionȱtoȱincludeȱDoubleȱCoinȱwithinȱtheȱ PRCȬwideȱentity.ȱȱWereȱDoubleȱCoinȱtoȱprevailȱonȱthatȱclaim,ȱCommerceȱwouldȱbeȱ requiredȱonȱremandȱtoȱassignȱtoȱDoubleȱCoinȱtheȱrateȱCommerceȱcalculatedȱforȱDoubleȱ

ȱ

Consol.ȱCourtȱNo.ȱ15Ȭ00124ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱȱȱȱȱȱȱPageȱ5ȱ ȱ CoinȱinȱtheȱFinalȱResults,ȱwhichȱwasȱaȱdeȱminimisȱrateȱofȱ0.14%.ȱȱIssuesȱandȱDecisionȱ

MemorandumȱforȱFinalȱResultsȱofȱAntidumpingȱDutyȱAdministrativeȱReview:ȱCertainȱNewȱ PneumaticȱOffȬtheȬRoadȱTiresȱfromȱtheȱPeopleȇsȱRepublicȱofȱChina;ȱ2012Ȭ2013ȱatȱ12ȱ(Int’lȱ TradeȱAdmin.ȱApr.ȱ8,ȱ2015),ȱP.R.ȱ293ȱ(“FinalȱI&DȱMem.”).1ȱ TheȱcourtȱconcludesȱthatȱDoubleȱCoinȱisȱcorrectȱasȱtoȱtheȱinterpretationȱofȱtheȱ mandateȱofȱtheȱCourtȱofȱAppeals.ȱȱCMAȱIVȱheldȱthatȱitȱisȱpermissibleȱforȱCommerceȱtoȱ determineȱaȱ“countryȬwideȱNMEȱ[nonmarketȱeconomy]ȱentityȱrate”ȱandȱtoȱ“assignȱsuchȱ aȱrateȱtoȱtheȱunitaryȱgroupȱofȱexportersȱinȱanȱNMEȱcountryȱthatȱhaveȱfailedȱtoȱrebutȱtheȱ presumptionȱofȱgovernmentȱcontrol.”ȱȱCMAȱIV,ȱ1ȱF.ȱ4thȱatȱ1039.ȱȱCommerceȱdeterminedȱ thatȱDoubleȱCoinȱfailedȱtoȱrebutȱtheȱpresumptionȱandȱthusȱwasȱamongȱtheȱunitaryȱ groupȱofȱexporters,ȱbutȱthatȱdetermination,ȱwhichȱDoubleȱCoinȱcontestedȱinȱoneȱofȱtheȱ claimsȱitȱassertedȱinȱthisȱaction,ȱhasȱnotȱbeenȱadjudicatedȱbyȱthisȱCourt.ȱȱAsȱdefendantȱ acknowledges,ȱthisȱCourtȱ“didȱnotȱmakeȱanyȱfindingsȱinȱCMAȱIȱregardingȱDoubleȱ Coin’sȱsubstantialȱevidenceȱchallengeȱtoȱCommerce’sȱconclusionȱthatȱDoubleȱCoinȱ failedȱtoȱrebutȱtheȱpresumptionȱofȱdeȱfactoȱChineseȱgovernmentȱcontrol.”ȱȱDef.’sȱResp.ȱtoȱ Pls.’ȱMot.ȱforȱJ.ȱonȱtheȱAdmin.ȱR.ȱ5ȱ(Feb.ȱ4,ȱ2022),ȱECFȱNo.ȱ264;ȱseeȱCMAȱI,ȱ41ȱCITȱatȱ__,ȱ 205ȱF.ȱSupp.ȱ3dȱatȱ1344.ȱȱTheȱissueȱofȱwhetherȱsubstantialȱevidenceȱsupportedȱthatȱ agencyȱdecisionȱwasȱnotȱbeforeȱtheȱCourtȱofȱAppealsȱinȱCMAȱIV,ȱthisȱCourtȱnotȱhavingȱ

ȱ

1ȱReferencesȱtoȱpublicȱdocumentsȱinȱtheȱJointȱAppendixȱ(Mar.ȱ11,ȱ2022),ȱECFȱNos.ȱ

266ȱ(Public),ȱ267ȱ(Conf.)ȱareȱcitedȱasȱ“P.R.ȱ__.”ȱ

ȱ

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

China Manufacturers Alliance, LLC v. United States, 2023 CIT 75 (cit 2023).

2023 CIT 75 (China Manufacturers Alliance, LLC v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.