Coalition for the Preservation of American Brake Drum & Rotor Aftermarket Manufacturers v. United States

318 F. Supp. 2d 1305, 28 Ct. Int'l Trade 447, 28 C.I.T. 447, 26 I.T.R.D. (BNA) 1473, 2004 Ct. Intl. Trade LEXIS 28
United States Court of International Trade·Decided April 1, 2004·No. SLIP OP. 04-31; Court 01-00825·Published·Cited by 5 cases

Opinion

Opinion & Order

AQUILINO, Judge.

This case is cause to consider, yet again, the People’s Republic of China (“PRC”), which the International Trade Administration, U.S. Department of Commerce (“ITA”) continues to deem a “nonmarket economy country” within the meaning of the Omnibus Trade and Competitiveness Act of 1988, Pub. L. No. 100-418, § 1316(b), 102 Stat. 1107, 1187, 19 U.S.C. § 1677(18). 1 The matter arises out of the ITA’s Notice of Final Determinations of Sales at Less Than Fair Value: Brake Drums and Brake.Rotors From the People’s Republic of China, 62 Fed.Reg. 9,160 (Feb. 28, 1997), in particular, the agency’s subsequent determination reported sub nom. Brake Rotors From the People’s Republic of China: Final Results and Partial Rescission of Fifth New Shipper Review, 66 Fed.Reg. 44,331 (Aug. 23, 2001).

As these citations indicate, motor-vehicle brake parts cast in China have been found to have been dumped in the U.S. aftermarket encompassing automobiles, all-terrain and recreational vehicles, trucks, and vans weighing less than a ton and a half. The underlying determinations set China-wide rates of 86.02 percent for the brake drums and 43.32 percent for the brake rotors. See 62 Fed.Reg. at 9,174. Only the rotor rate, however, has remained of moment, since the International Trade Commission thereafter determined that the U.S. industry was not being materially injured or threatened with material injury by reason of the brake-drum imports. See Certain Brake Drums and Rotors From China, 62 Fed.Reg. 18,650 (April 16, 1997), ajfd sub nom. Coalition for the Preservation of American Brake Drum & Rotor Aftermarket Mfrs. v. United States, 22 CIT 520, 15 F.Supp.2d 918 (1998). And that countrywide rotor rate has led to applications by Chinese exporters for individuated rates in lieu thereof.

I

Such an application underlies this case. It was made pursuant to 19 U.S.C. § 1675(a)(2)(B) and 19 C.F.R. §§ 351.214, 351.221 (2000) by Shandong Laizhou Hu-anri Group General Co. (“Huanri General”) as an alleged “new shipper” of subject merchandise produced by Laizhou Huanri Automobile Parts Co., Ltd. (“HAP”). The application represented HAP to be a “limited liability enterprise” 2 and Huanri General as a “collectively owned enterprise” 3 *1307 duly registered in China. The application certified that the export activities of both enterprises “are not controlled by the central government.” 4 Nonetheless, in its notice of review, the ITA pointed out that

the Department’s practice in cases involving non-market economies [is] to require that a company seeking to establish eligibility for an antidumping duty rate separate from the country-wide rate provide de jure and de facto evidence of an absence of government control over the company’s export activities. Accordingly, we will issue a questionnaire to ... Huanri.... If the response ... provides sufficient indication that it is not subject to either de jure or de facto government control with respect to its exports of brake rotors, each review will proceed. If, on the other hand, a respondent does not demonstrate its eligibility for a separate rate, then it will be deemed to be affiliated with other companies that exported during the POI, and the review of that respondent will be rescinded.

Brake Rotors From the People’s Republic of China: Initiation of New Shipper Anti-dumping Duty Reviews, 65 Fed.Reg. 70,-694, 70,695 (Nov. 27, 2000). In response to the ITA’s questionnaire, Huanri General stated that it “has no relationship with any level of the PRC government”; 5 that it established HAP, which also “has no relationship with any level of the PRC government”; 6 and that it is “not owned or controlled by a provincial or local government ... [and] has never been owned or controlled by any level of the PRC government”. 7

The agency record at bar refers to a village of Panjacun, town of Tushan, city of Laizhou, all within Shandong province, which lies to the south and east of Beijing. A visit there by ITA staff led to the “significant” finding that

Huanri General is owned and controlled by the Panjacun village committee which has a relationship with the Tushan town government.... Accordingly, the Department must consider whether the company sufficiently demonstrated its entitlement to a separate rate.

Plaintiffs Appendix, Pub.Doc. 52, p. 3. The staff verification report indicates that the residents of Panjacun select 41 village representatives who, in turn, elect five of their number to comprise the village’s “committee”. See id. at 7. That committee set up Huanri General with the approval of the Laizhou Industrial and Commercial Administration Bureau for the purpose of selling brake rotors and other parts and also set up other companies, including HAP. The committee appointed the directors of those firms and named its chairman as the chairman of Huanri General. See id. at 7-8.

The petitioner, above-encaptioned, Coalition reacted to this report, in part, as follows:

... [T]he fact that Huanri General is owned and controlled by a Village Committee means that it is owned or controlled by a governmental entity. Moreover, information about the village system in China[ ] demonstrates that the responsibilities of the Village Committee go beyond what was disclosed by Huanri General. It is commonly known by researchers and scholars that villages in China are the lowest official level in China’s government and their leaders *1308 and committees are assisted and controlled by the government. See A Tale of 2 Village[]s: China’s ■ ‘Democracy’ Shows Different Faces, International Herald Tribune, (August 28, 2000)....

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Coalition for the Preservation of American Brake Drum & Rotor Aftermarket Manufacturers v. United States, 318 F. Supp. 2d 1305, 28 Ct. Int'l Trade 447, 28 C.I.T. 447, 26 I.T.R.D. (BNA) 1473, 2004 Ct. Intl. Trade LEXIS 28 (cit 2004).

318 F. Supp. 2d 1305 (Coalition for the Preservation of American Brake Drum & Rotor Aftermarket Manufacturers v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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