Guangxi Jisheng Foods, Inc. v. United States

2013 CIT 112
United States Court of International Trade·Decided August 23, 2013·No. 11-00378·Published

Opinion

Slip Op. 13-112

UNITED STATES COURT OF INTERNATIONAL TRADE

GUANGXI JISHENG FOODS, INC.,

Plaintiff,

Before: Richard W. Goldberg, Senior Judge v. Court No. 11-00378

UNITED STATES, PUBLIC VERSION Defendant.

OPINION AND ORDER

[Plaintiff’s motion for judgment on the agency record is denied.]

Dated: August 23, 2013

Yingchao Xiao, Lee & Xiao, of San Marino, California, for plaintiff Guangxi Jisheng Foods, Inc.

Richard P. Schroeder, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for defendant. With him on the brief were Stuart F. Delery, Acting Assistant Attorney General, Jeanne E. Davidson, Director, and Patricia M. McCarthy, Assistant Director. Of counsel on the brief was Devin S. Sikes, Attorney, Office of the Chief Counsel for Import Administration, U.S. Department of Commerce, of Washington, DC.

Goldberg, Senior Judge: Plaintiff Guangxi Jisheng Foods, Inc. (“Jisheng”) challenges the U.S. Department of Commerce’s (“Commerce” or the “Department”) decision to employ partial adverse facts available (“AFA”) to complete some of Jisheng’s factors of production (“FOP”) data during the 2009–2010 administrative review of the antidumping duty order on Certain Preserved Mushrooms from the People’s Republic of China. See Certain Preserved Mushrooms from the People’s Republic of China, 76 Fed. Reg. 56,732 (Dep’t Commerce Sept. 14, 2011) (final results of antidumping duty administrative review) (“Final Results”). For the reasons explained below, the court denies Jisheng’s Motion for Judgment on the Agency Record and sustains the Final Results as they pertain to Jisheng.

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SUBJECT MATTER JURISDICTION AND STANDARD OF REVIEW Jisheng commenced this action under 19 U.S.C. §§ 1516a(a)(2)(A)(i) and 1516a(a)(2)(B)(iii) (2006). This Court has jurisdiction pursuant to 28 U.S.C. § 1581(c) and must uphold Commerce’s determination unless it is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(B)(i).

Substantial evidence requires “‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion,’ taking into account the entire record, including whatever fairly detracts from the substantiality of the evidence.” Atl. Sugar, Ltd. v. United States, 744 F.2d 1556, 1562 (Fed. Cir. 1984) (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229 (1938)). Therefore, the Court asks whether Commerce adequately supported its conclusion, and not whether it would have reached the same conclusion upon independently reweighing the evidence. See Clearon Corp. v. United States, Court No. 08-00364, 2011 WL 5909576, at *7 (CIT Nov. 18, 2011). In assessing the reasonableness of Commerce’s conclusion, this Court affords broad deference to Commerce’s expert findings. F.lli De Cecco Di Filippo Fara S. Martino S.p.A. v. United States, 216 F.3d 1027, 1032 (Fed. Cir. 2000) (“[F]actual determinations supporting anti-dumping margins are best left to the agency’s expertise.”).

The Court employs a two-part analysis to determine whether Commerce’s statutory construction is otherwise “in accordance with law.” See Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842–43 (1984); Wheatland Tube Co. v. United States, 495 F.3d 1355, 1359 (Fed. Cir. 2007). The Court first asks whether Congress has directly spoken to the question at issue in the case. Chevron, 467 U.S. at 842–43. If it has, the Court gives effect to that unambiguously expressed intent. Id. If Congress has not, then the Court examines whether Commerce’s interpretation “is based on a permissible construction of the statute.” Id. at 843. To

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satisfy that standard, Commerce need not provide “the only reasonable interpretation or even the most reasonable interpretation” of a statutory provision. Koyo Seiko Co. v. United States, 36 F.3d 1565, 1570 (Fed. Cir. 1994).

DISCUSSION

In the underlying administrative review, Commerce applied partial AFA to complete Jisheng’s FOP data for eight control numbers (“CONNUMs”) and packing usage factors for one CONNUM. See Issues & Decision Memorandum, A-570-851 (Sept. 6, 2011) at 16–25 (“I&D Mem.”). Jisheng argues that the use of AFA with respect to all nine CONNUMs was unsupported by substantial evidence and otherwise not in accordance with law.

I. Background A. Proceedings before Commerce Commerce compares normal value to an export price or constructed export price to determine a respondent’s dumping margin. See 19 U.S.C. § 1675. In non-market economy (“NME”) proceedings, Commerce constructs normal value “on the basis of the value of the factors of production utilized in producing the merchandise” plus “an amount for general expenses and profit plus the cost of containers, coverings, and other expenses.” 19 U.S.C. § 1677b(c)(1)(B). Commerce solicits FOP information in Section D of the questionnaires that it sends to respondents.1 Section C of Commerce’s questionnaire, by contrast, “is designed to assist Commerce in determining the U.S. price against which normal value is compared.” Sidenor Indus. SL v. United States, 33 CIT __, __, 664 F. Supp. 2d 1349, 1352 n.1 (2009).

1 The information a respondent submits pertains to the “quantity of inputs actually used to produce the subject merchandise in the NME.” See Dep’t of Commerce, Antidumping Manual (Oct. 13, 2009), ch. 10 at 15. The Department then values the factors of production “based on the best available information regarding the values of such factors in a market economy country.” 19 U.S.C. § 1677b(c)(1). The goal is to construct a hypothetical market value for a product. See Nation Ford Chem. Co. v. United States, 166 F.3d 1373, 1375 (Fed. Cir. 1999).

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In NME cases, responding to Sections C and D of Commerce’s questionnaire results in two databases—the U.S. sales database and the FOP database, respectively. Entries in those databases are identified by CONNUM, and each CONNUM represents a unique product as defined by a series of characteristics that Commerce selects at the beginning of the proceeding. See Union Steel v. United States, 36 CIT __, __, 823 F. Supp. 2d 1346, 1349 (2012). For purposes of its margin calculations, Commerce requires that each CONNUM reported in the U.S. sales database have a corresponding match in the FOP database. See, e.g., Dep’t Commerce Standard NME Questionnaire at D-1.

In this case, Commerce’s initial questionnaire directed Jisheng to report “factors information for all models or product types in the U.S. market sales listing submitted by you (or the exporter) in response to Section C of the questionnaire.” Admin. R. Pub. Doc. (“P.R.”) 36 at D-1. Jisheng responded by providing incomplete information for only a small portion of the CONNUMs in the U.S. sales database and no information whatsoever for the eight contested CONNUMs. Admin. R. Conf. Doc. (“C.R.”) 12 at Ex. D-1 at 1, col. 1.

Commerce’s first supplemental questionnaire again solicited the information, directing Jisheng to “[s]ubmit a separate record for each of the . . . control numbers (connums) you reported on your U.S. sales database” and to make certain amendments to the FOP data it already submitted. C.R. 19 at 6. Jisheng’s response to that questionnaire contained FOP data for some, but not all, of the eight CONNUMs at issue. C.R. 24 at Ex. SD-1, col. 1 (containing data for [[ ]], [[ ]], [[ ]], [[ ]], and [[ ]]). Nonetheless, Commerce still perceived several flaws in Jisheng’s September 2010 FOP data. See C.R. 32. Specifically, Commerce noted in its second supplemental questionnaire that the September 2010 database “contained numerous errors with respect to formatting and reporting methodology.” Id. at 4.

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