Evolutions Flooring, Inc. v. United States

776 F. Supp. 3d 1271, 2025 CIT 33
CourtUnited States Court of International Trade
DecidedMarch 27, 2025
DocketConsol. 21-00591
StatusPublished

This text of 776 F. Supp. 3d 1271 (Evolutions Flooring, Inc. 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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Evolutions Flooring, Inc. v. United States, 776 F. Supp. 3d 1271, 2025 CIT 33 (cit 2025).

Opinion

Slip Op. 25-33

UNITED STATES COURT OF INTERNATIONAL TRADE

EVOLUTIONS FLOORING, INC. AND STRUXTUR, INC.,

Plaintiffs,

and

DUNHUA CITY JISEN WOOD INDUSTRY CO., LTD. ET AL.,

Consolidated-Plaintiffs, Before: Timothy M. Reif, Judge

v. Consol. Court No. 21-00591

UNITED STATES,

Defendant,

AMERICAN MANUFACTURERS OF MULTILAYERED WOOD FLOORING,

Defendant-Intervenor.

OPINION AND ORDER

[Sustaining in part and remanding in part Commerce’s final results in the eighth administrative review of the countervailing duty order covering multilayered wood flooring from the People’s Republic of China.]

Dated: March 27, 2025

Thomas J. Trendl, Steptoe & Johnson LLP, of Washington, D.C., argued for plaintiffs Evolutions Flooring, Inc. and Struxtur, Inc. With him on the briefs was Gregory S. McCue. Consol. Court No. 21-00591 Page 2

Sarah M. Wyss, Mowry & Grimson, PLLC, of Washington D.C., argued for consolidated plaintiffs Fine Furniture (Shanghai) Ltd. and Double F Limited. With her on the briefs was Kristin H. Mowry.

Stephen W. Brophy and Jeffrey S. Neeley, Husch Blackwell LLP, of Washington D.C., argued for consolidated plaintiffs Jiangsu Senmao Bamboo Wood Industry Co., Ltd.

Adams C. Lee, Harris Bricken McVay Sliwoski LLP, of Seattle, WA, argued for consolidated plaintiff Zhejiang Dadongwu GreenHome Wood Co., Ltd.

Kelsey Christensen, Clark Hill PLC, of Washington, D.C., argued for consolidated plaintiffs Yihua Lifestyle Technology Co., Ltd.; Lumber Liquidators Services, LLC; Jiangsu Guyu International Trading Co., Ltd.; Kingman Floors Co., Ltd.; Huzhou Sunergy World Trade Co., Ltd.; Dalian Shengyu Science and Technology Development Co., Ltd.; Jiangsu Simba Flooring Co., Ltd.; Dongtai Fuan Universal Dynamics, LLC; Zhejiang Fuerjia Wooden Co., Ltd.; and Kemian Wood Industry (Kunshan) Co., Ltd. With her on the briefs were Mark Ludwikowski and William Sjoberg.

Andrew T. Schutz, Grunfeld Desiderio Lebowitz Silverman & Klestadt LLP, of Washington D.C., argued for consolidated plaintiffs Baroque Timber Industries (Zhongshan) Co., Ltd. and Riverside Plywood Corporation. With him on the briefs were Francis J. Sailer and Michael S. Holton.

Kelly M. Geddes, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C., and JonZachary Forbes, Of Counsel, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C., argued for defendant United States. With them on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. McCarthy, Director, and Tara K. Hogan, Assistant Director.

Theodore P. Brackemyre and Timothy C. Brightbill, Wiley Rein LLP, of Washington D.C., argued for defendant-intervenor American Manufacturers of Multilayered Wood Flooring. With them on the brief were Stephanie M. Bell and Paul A. Devamithran.

***

Reif, Judge: Before the court are the motions for judgment on the agency record

by plaintiffs Evolutions Flooring, Inc. and Struxtur, Inc. (collectively, “Evolutions” or

“plaintiff”) and numerous other consolidated plaintiffs. Consol. Court No. 21-00591 Page 3

Plaintiffs invoke this Court’s subject matter jurisdiction under 28 U.S.C. § 1581(c)

and seek review of the final results of the eighth administrative review by the U.S.

Department of Commerce (“Commerce”) of the countervailing duty (“CVD”) order on

multilayered wood flooring (“MLWF” or “subject merchandise”) from the People’s

Republic of China (“China”), published as Multilayered Wood Flooring from the People’s

Republic of China: Final Results and Partial Recission of Countervailing Duty

Administrative Review; 2018, 86 Fed. Reg. 59,362 (Dep’t of Commerce Oct. 27, 2021)

(“Final Results”), PR 402.

Plaintiffs maintain that Commerce’s Final Results were not supported by

substantial evidence on the record and were otherwise not in accordance with law with

respect to Commerce’s: (1) calculation of the benchmark price for plywood; (2) inclusion

of respondent’s backboard purchases in the veneers for less than adequate

remuneration (“LTAR”) program; (3) VAT rate calculation; (4) finding based on adverse

facts available (“AFA”) of use of the Export Buyers Credit Program (“EBCP”); and (5)

benefit calculation under the backboard veneers LTAR program.

For the reasons discussed below, the court sustains in part and remands in part

Commerce’s Final Results.

BACKGROUND

On December 8, 2011, Commerce issued a CVD order on MLWF from China,

Multilayered Wood Flooring from the People’s Republic of China: Countervailing Duty

Order, 76 Fed. Reg. 76,693 (Dep’t of Commerce Dec. 8, 2011), amended by

Multilayered Wood Flooring from the People’s Republic of China: Amended Consol. Court No. 21-00591 Page 4

Antidumping and Countervailing Duty Orders, 77 Fed. Reg. 5,484 (Dep’t of Commerce

Feb. 3, 2012) (“CVD Order” or “Order”).1

On December 6, 2019, Commerce issued a notice that interested parties could

request an administrative review of the Order. Department of Commerce Preliminary

Decision Memorandum (Apr. 23, 2021) (“PDM”) at 1, PR 340. On February 6, 2020,

Commerce published a notice initiating the review. PDM at 2. The period of review

extended from January 1, 2018, to December 31, 2018. PDM at 4.

Commerce selected Jiangsu Senmao Bamboo and Wood Industry Co., Ltd.

(“Senmao”) and Riverside Plywood Corp. (“Riverside”) as mandatory respondents

(“Mandatory Respondents”) because the two companies accounted for the largest

volume of subject merchandise exports during the period of review based on an

analysis of Customs and Border Protection data. Department of Commerce

Memorandum regarding Respondent Selection (Apr. 22, 2020) at 1, 5, CR 8, PR 74.

On April 23, 2021, Commerce published its preliminary results in which it

assigned countervailable subsidy rates of 9.36 percent for Riverside and its cross-

owned affiliates, 5.19 percent for Senmao and 8.12 percent to the non-selected

companies under review. Multilayered Wood Flooring from the People’s Republic of

China: Preliminary Results of Countervailing Duty Administrative Review, and Intent to

Rescind Review, in Part; 2018, 86 Fed. Reg. 21,693 (Dep’t of Commerce Apr. 23,

2021), PR 351.

1 The amendment consisted of “remov[ing] an incorrect Harmonized Tariff Schedule of the United States [“HTS"] number from the scope of the orders.” Multilayered Wood Flooring from the People’s Republic of China: Amended Antidumping and Countervailing Duty Orders, 77 Fed. Reg. 5,484 (Dep’t of Commerce Feb. 3, 2012). Consol. Court No. 21-00591 Page 5

On October 27, 2021, Commerce published its Final Results in which it

calculated a final subsidy rate of 9.18 percent for Riverside and its cross-owned

affiliates, 5.81 percent for Senmao and 8.17 percent for the non-selected companies.

Final Results at 59,363. The Issues and Decision Memorandum for the Final Results of

the 2018 Countervailing Duty Administrative Review of Multilayered Wood Flooring from

the People’s Republic of China was dated concurrently with and adopted by the same

notice. Id. at 59,362 n.2; see Department of Commerce Issues and Decisions

Memorandum (Oct. 27, 2021) (“IDM”), PR 393.

On December 1, 2021, Commerce published its amended Final Results in which

it corrected certain ministerial errors. Multilayered Wood Flooring from the People’s

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