Huaiyang Hongda Dehydrated Vegetable Co. v. United Stateser

28 Ct. Int'l Trade 1944, 2004 CIT 148
CourtUnited States Court of International Trade
DecidedNovember 22, 2004
DocketCourt 03-00636
StatusPublished

This text of 28 Ct. Int'l Trade 1944 (Huaiyang Hongda Dehydrated Vegetable Co. v. United Stateser) 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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Huaiyang Hongda Dehydrated Vegetable Co. v. United Stateser, 28 Ct. Int'l Trade 1944, 2004 CIT 148 (cit 2004).

Opinion

OPINION

MUSGRAVE, Senior Judge:

In this action, Huaiyang Hongda Dehydrated Vegetable Company (“Hongda”), a producer or exporter of fresh garlic from the People’s Republic of China (PRC), contends the International Trade Administration of the U.S. Department of Commerce (“Commerce”) improperly rescinded the annual administrative review of the antidumping order on importations of garlic from the PRC that was initiated prior to completion of Hongda’s new shipper review. See Fresh Garlic From the People’s Republic of China: Partial Rescission of Antidumping Duty Administrative Review, 68 Fed. Reg. 46580 (Aug. 6, 2003). See also Antidumping Duty Order: Fresh Garlic From the People’s Republic of China, 59 Fed. Reg. 59209 (Nov. 16, 1994). Alternatively, Hongda complains that the 376.67% country-wide dumping margin from the 1994 investigation has been discredited and therefore its continued application to Hongda is arbitrary, capricious and otherwise not in accordance with law. However, the Court sustains the rescission of the administrative review and concludes that it lacks jurisdiction to hear argument on the continued viability of the 1994 country-wide margin.

Background

During the anniversary month of publication of an antidumping duty order, a domestic interested party with respect to named ex *1945 porters and producers covered by the order, and an exporter, producer or importer with respect to subject merchandise entered during the relevant period of review, may request Commerce to conduct an administrative review. See 19 U.S.C. § 1675(a)(1); 19 C.F.R. § 351.213(b). See also 19 U.S.C. § 1677(9) (“interested party” defined). In addition to assessment on entries during the period of review, administrative review establishes a new cash deposit rate on future entries of subject merchandise. See 19 U.S.C. § 1675(a)(2)(C).

The administrative record reveals that Commerce published a notice of opportunity to request an annual administrative review of the antidumping order in the Federal Register on November 1, 2002, before the preliminary results of Hongda’s new shipper review had been completed. 1 The domestic industry petitioners then requested review of several respondents including Hongda, and the administrative review was initiated on December 26, 2002. See R 3; R 5. 2 Hongda did not at the time submit a similar request.

After initiation of the review, the domestic industry petitioners submitted a memorandum to Commerce alleging that they had uncovered “massive” under-reporting of U.S. sales by Hongda and two other respondents. See R 49 (Apr. 1, 2003); Confidential Administrative Record Document 6 (Apr. 1, 2003). The petitioners compared import statistics with information 3 on the three respondents including Hongda which accounted for “virtually” all of the imports of garlic from the PRC during the relevant period and alleged that two and a half times the amount of garlic from the PRC had entered the U.S. during the time as compared with what had been reported. Id. at 2. They therefore requested that Commerce, in consultation with the (former) U.S. Customs Service, 4 investigate further and apply adverse inferences if indeed these respondents had under-reported. See id. at 11. It appears that the petitioners, still desiring investigation, *1946 re-alleged under-reported sales and transhipment soon thereafter. Cf. R 55 (Apr. 18, 2003) (Commerce memo to file).

At the time, Commerce had not received Hbngda’s response to the antidumping questionnaire. On the other hand, Commerce had sent the questionnaire addressed to Hongda via its counsel for the new shipper review. See R 7 (Dec. 30, 2002). In early April, Commerce learned that such counsel had not been retained to represent Hongda at the administrative review. See R 56 (Apr. 22, 2003) (Commerce memo to file). It therefore sent the questionnaire directly to Hongda in the PRC. R 57 (Apr. 23, 2003). Four days later, the domestic industry petitioners requested rescission of the administrative review of Hongda. R 61 (Apr. 28, 2003). The petitioners did not properly serve Hongda with a copy of this withdrawal. See Pl.’s Br., App. 7 at 2. Cf. R 61 at 5.

Commerce did not immediately act on the domestic industry’s request. It did, however, immediately publish the preliminary new shipper review results for Hongda the following day. Fresh Garlic from the People’s Republic of China: Preliminary Results of Antidumping Duty New Shipper Review, 68 Fed. Reg. 22676 (Apr. 29, 2003). The results relied upon adverse facts available to impose against Hongda the PRC-wide rate of 376.67 percent, a rate in effect since 1994 that was based upon information contained in the petition “corroborated for the preliminary results of the first administrative review” as well as 1‘corroborated in subsequent reviews to the extent that the Department noted the history of corroboration[.]” Id. at 22679-80. The final new shipper review results followed nearly two months later and reiterated the viability of the 1994 country-wide rate for Hongda. Fresh Garlic From the People’s Republic of China: Final Results of Antidumping Duty New Shipper Review, 68 Fed. Reg. 36767 (June 19, 2003) (“New Shipper Results”).

A month afterwards, Hongda asserted an interest in proceeding with the instant administrative review, which by this time was approximately eight months after initiation. On July 24, 2003, about a week after filing its notice of appearance, Hongda’s counsel met with Commerce officials and purportedly urged continuation of the administrative review due to information that had come to Hongda’s attention and that of certain U.S. sureties acting on behalf of certain U.S. importers. See R 112 (July 25, 2003) (Commerce memo to file); R 107 (July 18, 2003) (notice of appearance). Specifically, in written comments submitted on July 29, 2003, Hongda explained that it opposed rescission of the administrative review on the ground that two fraudulent schemes designed to evade antidumping duties on imports of Chinese agricultural products had been uncovered and that these particularly implicated Hongda’s customs and potential anti-dumping duty liabilities. R 113 (July 29, 2003). Allegedly, certain producers or exporters had been making entries of garlic using Hongda’s name and its import bond which had been posted as secu *1947

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