Slip Op. 25-
UNITED STATES COURT OF INTERNATIONAL TRADE
LUMIMOVE, INC., D/B/A WPC TECHNOLOGIES,
Plaintiff,
v. Before: Joseph A. Laroski, Jr., Judge UNITED STATES, Court No. 24-00105 Defendant,
HABICH GMBH,
Defendant-Intervenor.
OPINION
[Sustaining in full the final results of the U.S. Department of Commerce concerning its administrative review of the antidumping duty order on strontium chromate from Austria and denying plaintiff’s motion for judgment on the agency record.]
Dated: October 29, 2025
Joseph S. Diedrich, Husch Blackwell LLP, of Washington, D.C., argued for plaintiff Lumimove, Inc., d/b/a WPC Technologies. With him on the briefs was Nithya Nagarajan.
Collin T. Mathias, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C., argued for defendant United States. On the brief were Brittney M. Welch, Trial Attorney, Brett A. Shumate, Acting Assistant Attorney General, Patricia M. McCarthy, Director, and Tara K. Hogan, Assistant Director. Of counsel, arguing for defendant, was Jack Dunkelman, Office of the Chief Counsel for Trade Enforcement & Compliance, U.S. Department of Commerce, of Washington, D.C.
Frederike S. Görgens, Greenberg Traurig, LLP, of Washington, D.C., argued for defendant-intervenor Habich GmbH. With her on the brief was Matthew L. Kanna. Court No. 24-00105 Page 2
Laroski, Judge: This action is a challenge to the final results issued by the U.S.
Department of Commerce (“Commerce”) in its administrative review of the
antidumping duty (“AD”) order on strontium chromate imported from Austria
(“Austrian SC”) for the period of review spanning 2021 to 2022. Strontium
Chromate from Austria: Final Results of Antidumping Duty Administrative Review;
2021ï2022, 89 Fed. Reg. 44,631 (Commerce May 21, 2024), P.R. 95; accompanying
Issues and Decision Memorandum (Commerce May 14, 2024), P.R. 94 (collectively,
“Final Results” or “IDM”). The Final Results addressed, inter alia, whether Habich
GmbH (“Habich”), a manufacturer of Austrian SC, is affiliated with its North
American sales agent (“Company X”), and whether Habich’s normal value may be
calculated based on its sales to Mexico. As to affiliation, Commerce concluded that
Habich is not affiliated with Company X. As to normal value, Commerce concluded
that Habich’s sales to Mexico provided an appropriate basis for calculating normal
value due to the lack of a viable home market or permissible alternative third-
country markets. Plaintiff Lumimove, Inc., d/b/a WPC Technologies (“WPC”)
challenges both conclusions, arguing that during the administrative review process
Commerce overlooked and failed to further investigate allegations and information
that supported a finding of affiliation and undermined the suitability of Mexico as
an appropriate basis for normal value. These investigative failures, according to
WPC, resulted in an analysis by Commerce that is arbitrary and capricious and
unsupported by the record. Defendant United States (the “Government”) and Court No. 24-00105 Page 3
Defendant-Intervenor Habich respond by arguing that both conclusions find ample
factual and legal support while underscoring Commerce’s extensive investigation
into Habich’s business and WPC’s concerns. As detailed below, the court agrees
with the Government and therefore denies WPC’s motion for judgment on the
agency record in full and enters judgment sustaining Commerce’s findings.
BACKGROUND
I. Commerce Investigation, Habich Questionnaires, and WPC Comments
In November 2019, Commerce published the relevant antidumping duty
order, which concerns Austrian SC (the “Order”). Austrian SC from Austria and
France: Antidumping Duty Orders, 84 Fed. Reg. 65,349 (Dep’t of Commerce Nov.
27, 2019). In January 2023, Commerce initiated its third administrative review of
the Order, which covered the period of November 1, 2021, to October 31, 2022.
Initiation of Antidumping and Countervailing Duty Administrative Reviews, 88
Fed. Reg. 50 (Dep’t of Commerce Jan. 3, 2023).
In the months that followed, Commerce issued an initial questionnaire to
Habich, Habich responded, and WPC commented on deficiencies in Habich’s
responses. Notably, among its initial responses, Habich indicated that it did not
sell any in-scope products within its home market, Austria, and proposed Vietnam
and Mexico as relevant third-country sales. Habich Initial Questionnaire Response,
P.R. 13ï14 (Feb. 8, 2023). In subsequent questionnaire responses, Habich also
documented its dealings with Company X, a distributor of Habich’s in-scope Court No. 24-00105 Page 4
products to customers in the United States that also receives commissions for
facilitating Habich’s direct sales to certain U.S. customers. Habich Section C
Questionnaire Response, P.R. 24ï26 (Mar. 17, 2023).
Notably, Habich also characterized its relationship with Company X as
unaffiliated under section 771(33)(G) of the Tariff Act of 1930 and related
regulatory provisions. Id.; see 19 U.S.C. § 1677(33)(G); 19 C.F.R. § 351.102(b)(3). In
further comments, WPC alleged that Habich and Company X were in fact affiliated
under applicable law due to a close supplier relationship and requested additional
investigation on this point. WPC Rebuttal Comments, P.R. 34 (Apr. 13, 2023). In
contending that “there is clearly a close supplier relationship . . . such that Habich
has the ability to exercise significant control over the pattern and pricing of sales by
and through [Company X],” and further stating that the relationship “does not
make sense on its face,” WPC did not proffer or otherwise identify evidence
supporting its claims. Id. at 7ï10. Rather, WPC focused its discussion of the record
evidence on the share of U.S. sales Company X handled for Habich, the proportion
of sales transactions for which Habich paid Company X a commission, and the
nature of the two companies’ commission relationship. Id. at 2ï4. Although
convinced of the affiliation between Habich and Company X, WPC asked Commerce
to investigate further. In response, Habich called WPC’s comments a “collection of
unsupported allegations and factual inaccuracies,” but did not address affiliation.
Habich Response to WPC Rebuttal Comments, P.R. 39, at 2ï3 (Apr. 27, 2023). Court No. 24-00105 Page 5
In June 2023, Commerce issued its first supplemental questionnaire, posing
additional questions about Habich’s relationship with Company X and its Mexico
sales, to which Habich responded. See First Supplemental Questionnaire to
Habich, P.R. 42, at 4ï5 (June 29, 2023); Habich First Supplemental Questionnaire
Response, P.R. 49, at 1ï8 (Aug. 4, 2023) (“Habich SQR1”). In additional comments,
WPC contended that Commerce’s supplemental questions and Habich’s
supplemental answers were inadequate, alleged that Habich’s reported sales to
Mexico had not occurred in the ordinary course of trade, and asked Commerce to
seek additional information. WPC Second Deficiency Comments, P.R. 54, at 2, 4, 10
(Sept. 1, 2023) (WPC DC2). WPC highlighted Habich’s price negotiations with
downstream customers as relevant to its affiliation claims. Id. at 5ï6. Finally,
unsatisfied by Habich’s statement that it did not have an exclusive legal
arrangement with Company X, WPC asserted that Commerce should investigate
the “business and economic reality” of the relationship, rather than just legal
formalities. Id. at 4. In response, Habich maintained that WPC’s allegations were
unfounded. Habich Second Rebuttal Comments, P.R. 55, at 2, 4 (Sept. 7, 2023).
II. Commerce’s Preliminary Results and Close Supplier Memorandum
In December 2023, Commerce published the preliminary results of the
administrative review. See Austrian SC from Austria: Preliminary Results of
Antidumping Duty Administrative Review; 2021-2022, 88 Fed. Reg. 84,777 (Dep’t of
Commerce Dec. 6, 2023), accompanying Preliminary Decision Memorandum (Nov. Court No. 24-00105 Page 6
29, 2023) (“Preliminary Results” or “PDM”). Commerce also issued a memorandum
dedicated to WPC’s allegations that Habich and Company X were affiliated by
virtue of a close supplier relationship and that using Mexico as a comparison
market was improper. See Close Supplier Relationship and Comparison Market
Sales Analysis, P.R. 69 (Nov. 30, 2023) (“CSM”). Commerce agreed with WPC that
Austria did not represent a viable comparison market and, despite WPC’s concerns,
instead selected Habich’s sales to Mexico as the basis for its normal value
calculations. PDM at 8ï9. Commerce also concluded that Habich’s relationship
with Company X did not satisfy the control or reliance threshold required for a
finding of affiliation. CSM at 8. In so concluding, Commerce emphasized the lack of
an exclusive relationship and discussed the applicable statutory and regulatory law.
Id. at 5 (citing TIJID v. United States, 366 F. Supp. 2d 1286, 1295ï1300 (CIT 2005)
and Hontex Enters. v. United States, 342 F. Supp. 2d 1225, 1243 (CIT 2004)).
III. Commerce’s Verification and Final Results
In January 2024, Commerce conducted verification of Habich’s questionnaire
responses in Austria. Verification of Habich Responses, P.R. 84 (Dep’t of Commerce
Feb. 27, 2024) (“Verification”). Summarizing this process, Commerce stated:
The verifiers directly asked company officials the specific questions raised by the petitioner with respect to why Habich uses a sales agent in the United States, the role it plays in Habich’s sales of [Austrian SC] in the United States, as well as the past history and future plans of the relationship. Court No. 24-00105 Page 7
IDM at 4. Commerce concluded: “We found no evidence at verification that
contradicted the information on which we made our preliminary finding that no
close supplier relationship exists between Habich and its customer.” Id.
Commerce grounded its analysis in the context of WPC’s core assertion that
for Commerce to properly address the affiliation issue, it needed to obtain “accurate
and complete information from Habich on the full extent of its relationship” with
Company X and “revise and redo its close supplier analysis accordingly.” Id. at 3.
In addition to highlighting the verification process, Commerce began its response to
this call to action by noting how, in the PDM and CSM, it had “explained in detail
the robust record evidence on which [it] based our determination that no affiliation
exists” between Habich and Company X. Id. It also observed that through the
supplemental questionnaires directed to Habich, Commerce had posed numerous
questions based on those suggested by WPC. Id. at 4ï5 (discussing WPC DC2).
In short, in the Final Results, Commerce stood by its Preliminary Results.
Commerce again explained that this court has “held that even if a supplier sells 100
percent of its exports to a single distributor, that fact alone does not support a
finding of a close supplier relationship,” id. at 5 (citing TIJID, 366 F. Supp. at
1295ï1300), and noted that this court has “ruled that even exclusive sales
contracts . . . are insufficient on their own for a finding of affiliation.” Id. (citing
Hontex, 342 F. Supp. 2d at 1243). Responding to WPC’s insistence on continued
investigation into Company X, Commerce described its efforts to that point: Court No. 24-00105 Page 8
Informed by [WPC’s] express concerns throughout this proceeding, we developed a record that contains more than sufficient information to analyze the relationship between Habich and [Company X]. We then performed an analysis of the facts of record at the Preliminary Results and subsequently verified those facts, finding no discrepancies.
Id. at 6 (cleaned up). Thus, believing it gathered and reviewed the necessary
information on affiliation and rooted its analysis in both fact and law, Commerce
left undisturbed its initial finding that Habich was not affiliated with Company X.
Concerning the appropriate basis for calculating normal value, Commerce
maintained a consistent position from the Preliminary Results to the Final Results,
agreeing with WPC that Austria was not a viable comparison market because
Habich had no home-country sales during the period of review. Compare PDM at
ï with IDM at ï. Commerce disagreed with WPC on Mexico’s viability as a
comparison market and rejected WPC’s arguments that record evidence
undermined the premise that Habich’s sales to Mexico were fairly understood as a
standalone market. IDM at 7ï8. Thus, Commerce viewed Mexico as an appropriate
comparison market and rejected WPC’s constructed value request. Id. at 8.
JURISDICTION AND STANDARD OF REVIEW
The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2020) and 19
U.S.C. § 1516a(a)(2) (2020). Section 1581(c) provides for exclusive jurisdiction over
any civil action commenced under section 1516a. 28 U.S.C. § 1581(c). A challenge
to the final results of an administrative review conducted by Commerce is a
reviewable determination under section 1516a(a)(2). 19 U.S.C. § 1516a(a)(2); see, Court No. 24-00105 Page 9
e.g., Changzhou Trina Solar Energy Co. Ltd. v. United States, 352 F. Supp. 3d 1316,
1323 (CIT 2018). In reviewing such a challenge, the court sustains Commerce’s
analysis and findings unless they are “unsupported by substantial evidence on the
record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(B)(i).
Whether a determination by Commerce is supported by substantial evidence and
otherwise in accordance with law typically turns on whether its analysis and
findings are reasonable based on its consideration of the administrative record.
See, e.g., Worldwide Door Components, Inc. v. United States, 119 F.4th 959, 968
(Fed. Cir. 2024) (“Substantial evidence is such relevant evidence as a reasonable
mind might accept as adequate to support a conclusion.”) (quotation omitted).
The phrase “otherwise in accordance with law” also calls for evaluation of
whether Commerce acted consistent with applicable statutory and regulatory law,
as well as with the principles of arbitrary-and-capricious review under section
706(2)(A) of the Administrative Procedure Act (“APA Section 706”). 5 U.S.C.
§ 706(2)(A). Because the Final Results qualify as agency action under APA section
706, this court necessarily considers, alongside its substantial evidence analysis,
whether Commerce reasonably considered the “relevant data” and provided a
“satisfactory explanation for its action including a rational connection between the
facts found and the choice made.” Motor Vehicle Manuf. Ass’n of U.S., Inc. v. State
Farm Mutual Auto. Ins. Co., 463 U.S. 29, 43 (1983). Arbitrary-and-capricious
review therefore requires this court to consider whether Commerce provided an Court No. 24-00105 Page 10
unlawful or unreasonable basis for its action or otherwise ignored an “important
aspect of the problem.” E.g., SFK USA Inc. v. United States, 630 F.3d 1365, 1374
(Fed. Cir. 2011) (quoting State Farm, 463 U.S. at 43). Like this court’s substantial
evidence analysis, arbitrary-and-capricious review demands scrutiny of whether
Commerce’s approach to a given issue was reasonable.
DISCUSSION
In challenging the Final Results, WPC contends Commerce made two
unreasonable determinations that require remand. According to WPC, Commerce
erred, first, in finding that Habich and Company X are not affiliated, and second, in
finding that normal value should be calculated based on Habich’s third-country
sales to Mexico. WPC challenges not only the substantive reasonableness of these
conclusions based on the record before Commerce, but also the procedural
lawfulness of Commerce’s investigation into affiliation and normal value.
I. Affiliation
A. Party Arguments
Regarding affiliation, WPC highlights “three independent and clear sources
of law” that it posits require Commerce to improve upon the investigation and
analysis memorialized by the Final Results. First, WPC notes what it describes as
Commerce’s duty of “diligent inquiry,” or cases in which this court has stated that
Commerce must “investigate allegations presented by interested parties that raise a
doubt about a material issue,” Coal. Am. Flange Producers v. United States, 448 F. Court No. 24-00105 Page 11
Supp. 3d 1340, 1357 (CIT 2020), and “make questionnaire questions affected by
affiliation issues clear,” Ta Chen Stainless Steel Pipe Co. v. United States, 31 CIT
794, 823 n. 20 (2007) (cleaned up). See Pl. WPC Brief in Supp. Mot. for J. on Agency
R., ECF No. 26 (Dec. 5, 2024) at 16 (“WPC Br.”). Although acknowledging that
interested parties “bear the burden of developing an adequate record” and
Commerce has “no independent duty to make a diligent inquiry into any and all
information highlighted by interested parties,” Flange Producers, 448 F. 3d at 1357,
WPC insists that Commerce failed to diligently investigate Habich. WPC Br. at 16.
WPC further argues that Commerce neglected a distinct “administrative law
duty” to respond to comments in which WPC had raised “areas of additional
investigation.” Id. (citing Invenergy Renew. v. United States, 552 F. Supp. 3d 1382,
1399 (CIT 2021)). Armed with parenthetical citations to D.C. Circuit case law, WPC
emphasizes that this duty “logically includes asking questions of Habich in a
questionnaire when WPC provides a reasonable basis to do so.” Id. at 16.
Finally, WPC stresses that while it lacks “any power whatsoever to gather
information from others, including Habich and [Company X],” Commerce may use
questionnaires to gain additional information from the two companies. Id. at 17
(citing 19 U.S.C. § 1677m(d) and 19 C.F.R. § 351.301(c)(1)). WPC notes that while
Commerce lacks subpoena power, see Haixing Jingmei Chem. Prod. Sales Co. v.
United States, 277 F. Supp. 3d 1375, 1383 (CIT 2017), it may still “use facts Court No. 24-00105 Page 12
available to fill any gaps in the record,” id., and should have here. WPC Br. at 17;
see also 19 U.S.C. § 1677e (discussing Commerce’s investigative approach).
Taking these legal contentions together, WPC alleges Commerce’s core
failure stemmed from its refusal to engage sufficiently with comments in which
WPC characterized the sales and distribution relationship between Habich and
Company X, including their commission arrangement, as nonsensical. WPC Br. at
18. WPC refers to its repeated insistence during the investigation that Habich had
no need for an American sales agent due to its own global commercial relationships,
as well as what WPC views as insufficient or unpersuasive documentation of the
sales relationship. Id. at 18ï19. The crux of WPC’s argument on affiliation is that
to the extent Commerce did inquire into the areas requested by WPC, it did so
through “watered-down” and “broad-based” questions, “eliciting merely conclusory,
self-serving answers” from Habich. Id. at 21 (citing P.R. 42, C.R. 81 at 4 and IDM
at 5). Before concluding its discussion of this point, WPC returns to Flange
Producers: “The diligent inquiry obligation does not constitute a requirement that
Commerce seek out additional information where an interested party has not made
a showing that additional information is required.” Id. at 21 n.1 (quoting 448 F.
Supp. 3d at 1357). Here, WPC contends that Commerce “brushed aside” comments
suggesting the “suspicious” nature of the commission relationship between Habich
and Company X, thereby failing to inquire diligently. Id. at 22. Court No. 24-00105 Page 13
The Government and Habich reject WPC’s view of Commerce’s investigation
into the affiliation issue. The Government responds to WPC’s complaints,
primarily, by recounting the extent and nature of Commerce’s administrative
review process. The Government underscores how Commerce issued three
questionnaires, comprising more than seventy questions, and conducted onsite
verification in Austria. Def. United States Brief in Opp. Pl. Mot. for J. on Agency
R., ECF No. 31 (Feb. 14, 2025) at 11 (“Gov. Br.”). Importantly, as the Government
notes, “Commerce found no evidence at verification that contradicted information
reported by Habich on which Commerce based its preliminary determination that
there was no close supplier relationship between Habich and [Company X].” Id.; see
IDM at 4. The Government further highlights how Commerce grounded its
investigation, and ultimate analysis, in the statutory and regulatory parameters
governing affiliated transactions. Gov. Br. at 12; see also 19 U.S.C. § 1677(33)(G).
In sum, the Government contends Commerce reasonably relied on the record
evidence that showed no exclusivity arrangement between Habich and Company X
and documented their business decisions. Gov. Br. at 12 (citing Habich SQR1).
In addition to reciting Commerce’s investigation and the record evidence on
which it relied, the Government emphasizes Commerce’s discussion of TIJID and
Hontex, decisions in which this court noted that the sheer volume or percentage of
sales between two parties, absent evidence showing exclusivity or control, is not
sufficient to establish affiliation. Gov. Br. at 12ï13; (citing 366 F. Supp. 2d at 1299 Court No. 24-00105 Page 14
and 342 F. Supp. 2d 1241ï43). In the Government’s view, Commerce both
consulted applicable law in structuring its investigation into affiliation and
reasonably construed the relevant record evidence. Id. The Government further
highlights Commerce’s discussion of its own past practice, in which it has reasoned:
A party might have an exclusive relationship with a supplier, customer, or reseller, but still be perfectly capable of acting independently if the exclusive relationship is no longer in its interests. What matters is whether the first party ultimately has other options and thus is not by necessity in the exclusive relationship with the second party.
Id. at 13 (quoting Chlorinated Isocyanurates from the People’s Republic of China:
Final Results of Antidumping Duty Administrative Review; 2017-2018, 85 Fed. Reg.
10,411 (Feb. 24, 2020), accompanying IDM at Comment 1 (“Chlorinated Isos from
China”). Thus, as a process matter, the Government argues that Commerce
understood its legal obligations with respect to affiliation, conducted its inquiry
with the relevant legal principles in mind, and approached its analysis consistent
with both this court’s past decisions and Commerce’s past practice. Id. at 13ï18.
As to the substance, the Government emphasizes that because Commerce neither
found that an exclusive relationship existed between Habich and Company X, nor
that Company X was unable to contract with other suppliers like WPC, the record
evidence falls short of demonstrating affiliation. Id.
Habich echoes the Government’s position on affiliation and adds context.
Most notably, Habich stresses the extensiveness of Commerce’s onsite verification,
the depth of its consideration of the operational relationship between Habich and Court No. 24-00105 Page 15
Company X (not merely the legal formalities), and the record evidence that shows
no exclusive arrangement between the two companies. Def.-Int. Habich Brief in
Opp. Pl. Mot. for J. on Agency R., ECF No. 34 (Mar. 7, 2025) at 9ï10 (“Habich Br.”).
According to Habich, WPC’s allegations regarding the precise share of sales each
company represents in relation to one another are not supported with citations to,
or otherwise supported by, the record evidence. Id. at 10 (citing CSM at 5 and
Verification at 6). Habich further emphasizes that much of the information that
WPC argues Commerce must revisit, such as the price negotiations between Habich
and Company X and the nature of Company X’s distinct roles as distributor and
sales agent, are already amply documented by record evidence. Id. at 10ï11 (citing
CSM at 4 and Verification at 4). Thus, to complement the Government’s arguments
regarding the sufficiency of Commerce’s analysis of the record, Habich seeks to
expose the flawed alternative analytical approach proposed by WPC.
B. Applicable Law
Under the Tariff Act of 1930, as amended (the “Act”), Commerce may
disregard below-cost sales in calculating the normal value of imported merchandise.
See 19 U.S.C. § 1677b. For purposes of calculating the cost of production,
Commerce should disregard an “affiliated” party transaction where the amount
reflected in the transaction “does not fairly reflect the amount usually reflected in
the sales of merchandise under consideration in the home market.” 19 U.S.C.
§ 1677b(f)(2). Typically, whether parties are affiliated, and their transactions Court No. 24-00105 Page 16
excludable under this rule, turns on if sales were “arms-length.” NSK Ltd. v.
United States, 245 F. Supp. 2d 1335, 1341 (CIT 2003) (citing section 1677b(f)(2)).
The Act dictates that, where one party to a sale controls the other, the parties
shall be considered affiliated. 19 U.S.C. § 1677(33)(G). The Act further clarifies
that a party “controls” another if it is “legally or operationally in a position to
exercise restraint or direction” over the other party. Id. Building on these
guideposts, Commerce’s regulations direct Commerce to consider the following
factors in examining control: “Corporate or family groupings; franchise or joint
venture agreements; debt financing; and close supplier relationships.” 19 C.F.R.
§ 351.102(b)(3). Under this framework, a close supplier relationship is one in which
one party is “reliant” upon the other. See Statement of Administrative Action for
the Uruguay Rounds Agreements Act, H.R. No. 103-316, (1994), as reprinted in
1994 U.S.C.C.A.N. 4040, 4174-75 (“SAA”). Evidence of control or reliance may be
sufficient to find affiliation if the relationship “has the potential to impact decisions
concerning the product, pricing, or cost” of the merchandise. 19 C.F.R.
§ 351.102(b)(3). Commerce also considers the “temporal” aspect of the relationship;
“normally, temporary circumstances will not suffice as evidence of control.” Id.
C. Analysis
Framed primarily as a dispute over the extensiveness or completeness of
Commerce’s investigation, WPC’s arguments related to affiliation do not raise a
cognizable basis for remand. Although stated as based on three distinct lines of Court No. 24-00105 Page 17
argument, WPC’s argument boils down to: Commerce should have asked Habich
different questions. WPC frames its argument in terms of a duty of diligent inquiry
rooted in this court’s past decisions, a distinct duty to consider aspects of the
problem raised by WPC during the review process, and a practical constraint that
Commerce is the only actor during an administrative review that can directly pose
questions to a respondent like Habich. Yet even taking these legal contentions as
given, WPC’s assertions fail to materially undermine Commerce’s investigation.
First, insofar as there is a duty of diligent inquiry that stands apart from this
court’s substantial evidence and arbitrariness frameworks, WPC fails to persuade
the court that any such duty has been violated or unfulfilled. Whether framed as
diligence or reasonableness, Commerce’s investigative work here passes muster.
The questionnaire and verification phases of Commerce’s review were extensive,
iterative, and responsive to WPC’s comments. On its face, and as explicated
through the PDM, CSM, Verification, and IDM, the record in this case is reasonably
robust and reliable. But more importantly, the diligence principle invoked by WPC
serves as little more than dicta, with WPC offering no clear citations to caselaw or
administrative determinations by Commerce that should drive this court’s
reasoning as to the level of diligence required here. Instead, WPC demands more
diligence without showing what additional diligence is necessary.
Next, WPC refers to an administrative law duty that appears to echo the
familiar principles of arbitrariness review that calls on Commerce to consider all Court No. 24-00105 Page 18
important aspects of a problem under investigation. See SFK USA, 630 F.3d at
1374 (Fed. Cir. 2011) (quoting State Farm, 463 U.S. at 43). Yet this contention, too,
strains credulity. As an initial matter, WPC does not meaningfully explain how the
specific items Commerce did not further explore qualify as legally important such
that further consideration was necessary. In addition, WPC glosses over the
voluminous questionnaires Commerce directed at Habich and the extent to which
they echoed the questions proposed in WPC’s comments. Most significantly, WPC
fails to engage with how Commerce grounded its investigation and its analysis in
applicable legal principles and considered carefully statutory language, regulatory
language, this court’s decisions in TIJID and Hontex, and past practice. See PDM;
CSM; IDM. Given how Commerce engaged WPC’s concerns and applicable law, the
court is not persuaded that an administrative law duty was derogated.
Finally, WPC’s argument related to Commerce’s unique position as the
investigator in administrative reviews is similarly abstract and unpersuasive. To
properly characterize the law, WPC acknowledges that it is not entitled to any
special control over the conduct of Commerce’s investigations. To be sure, that
Commerce need not pose every question requested by a petitioner undermines
WPC’s argument here. But even on its own terms, WPC’s position here is
inconsistent. WPC asserts that it “has no ability to conduct discovery, subpoena
documents or witnesses, or otherwise gather information from Habich or [Company
X].” WPC Br. at 2. Yet WPC also recognizes Commerce “has no independent duty Court No. 24-00105 Page 19
to make a diligent inquiry into any and all information highlighted by interested
parties,” and that “interested parties bear the burden of developing an adequate
record on contested issues.” Id. at 16 (citing Flange Producers, 448 F. Supp. 3d at
1357). Nor does WPC appear to dispute that Commerce, too, lacks traditional
discovery and subpoena powers in antidumping investigations. See id.; see also 19
U.S.C. § 1677e (discussing how Commerce should approach the adequacy of its
administrative records and the process by which it finds adverse inferences when
parties do not cooperate with requests for information). This context undermines
WPC’s complaints about Commerce’s purported investigative failures. WPC cannot
claim Commerce posed materially too few questions or ignored materially too many
topics raised by WPC because Commerce directly explored the issues raised by WPC
and contemplated by relevant law. See generally PDM; CSM. Further, Commerce
did so by grounding its inquiry in regulatory requirements, issuing multiple
supplemental questionnaires, and performing onsite verification in Austria. See
generally Verification; IDM; see also generally PDM; CSM.
WPC’s argument here obscures the fact that it operates as one member of a
trio of global strontium chromate producers (i.e., one of only two competitors to
Habich), suggesting that it is unusually well positioned to bear its burden of
persuading Commerce of the need for further inquiry on the contested issues. It is
WPC’s prerogative to populate the administrative record primarily through
proposed questions, but in doing so WPC must also respect the reasonableness Court No. 24-00105 Page 20
standard by which this court reviews Commerce’s investigations for arbitrariness
and substantial evidence. WPC stumbles both in establishing that Commerce is
required to do more than it did here and in self-identifying as helpless in the face of
questionnaire responses from Habich that describe an industry and market with
which WPC is directly familiar. Commerce posed an extensive list of questions to
Habich, Habich answered those questions, and Commerce visited Habich in-person
to verify those answers – each step indicating a diligent inquiry and a reasonable
process. To demand more, on this record, is to mischaracterize the law. Whether
viewed in the context of arbitrariness or substantial evidence, Commerce acted
reasonably by consulting the relevant legal framework in structuring its inquiry
into affiliation, adapting its questions to the concerns raised by WPC, performing a
robust verification, and distilling the law and facts that informed its conclusion.
WPC offers no persuasive legal authority or record evidence to the contrary.
II. Normal Value
Regarding Commerce’s selection of Mexico as the comparison market for the
calculation of normal value, WPC argues the appropriate course of action was to use
constructed value, rather than third-country sales. WPC makes three distinct
points: (1) Commerce ignored record evidence suggesting that Habich’s sales to
Mexico were not made in the ordinary course of trade; (2) Commerce unduly relied
upon the fact that WPC had raised similar arguments in past administrative Court No. 24-00105 Page 21
reviews of the Order; and (3) Commerce misinterpreted its regulations by referring
to the “examples” listed in section 351.102(b)(35) as “criteria,” thereby affording an
illustrative list undue weight in its analysis. WPC Br. at 31ï34.
On the first point, WPC’s view is that Commerce overlooked record evidence
suggesting that Mexico is “not a separate and viable comparison market.” Id. at 32.
On the second point, WPC criticizes Commerce’s statement in the IDM that WPC
had “repeat[ed] its previous allegations and arguments” from prior administrative
reviews. Id. at 33. This, according to WPC, suggests that Commerce’s analysis
leaned improperly on its familiarity with the substance of WPC’s comments, rather
than engaging with its “obligation to consider those comments afresh each time.”
Id. Finally, on the third point, WPC suggests Commerce’s legal analysis was
improper based on its use of the word “criteria” in its analysis. Id. at 33ï34.
The Government and Habich reject WPC’s characterizations of the record, its
criticisms of Commerce’s choice of Mexico as the basis for its normal value analysis,
and the premise that a constructed value approach is necessary here. The
Government emphasizes that record evidence supported Commerce’s view that
Habich’s sales to Mexico were legitimate and otherwise within the ordinary course
of trade. Gov. Br. at 19–21 (citing IDM at 6–8). According to the Government,
WPC’s arguments fail to undermine record evidence that showed routine market-
based sales by Habich in Mexico, including sales made through a different Court No. 24-00105 Page 22
distributor than Company X, a factual picture that left Commerce with the
reasonable choice of Mexico as comparison market. Id.
The Government also responds to WPC’s contentions regarding whether
Commerce adequately addressed their concerns and gave undue weight to WPC’s
participation in prior determinations concerning Austrian SC. Id. The Government
contends that WPC’s invocation of the Federal Circuit’s decision in Al Ghurair Iron
& Steel LLC v. United States is misplaced. Id. (citing 65 F.4th 1351 (Fed. Cir.
2023)). Seeking to distinguish Al Ghurair, the Government explains that whereas
the Federal Circuit had been “unable to conclude that Commerce even considered”
the relevant comments, in part because its discussion had been “limited to a single
paragraph that [was] vague and conclusory,” Commerce’s work here was extensive,
responsive, and grounded in law. Id. at 19ï20; see 65 F.4th at 1363.
The Government also directly addresses WPC’s assertion that Commerce
misapplied 19 C.F.R. § 351.102(b)(35). The regulation indeed provides an
illustrative list of examples, as WPC contends, but Commerce’s consideration of
whether the record evidence mirrored those examples neither proves nor disproves
WPC’s point. What matters, the Government argues, is what the examples are
intended to illustrate – namely, whether the relevant sales “have characteristics
that are ‘extraordinary for the market in question.’” Gov. Br. at 20ï21 (quoting 19
C.F.R. § 351.102(b)(35)). Thus, because WPC fails to demonstrate that Habich’s
sales to Mexico were in any sense “extraordinary,” this argument is unavailing. Id. Court No. 24-00105 Page 23
Habich, for its part, cautions that the ordinary course analysis is a question
of fact, see, e.g., Murata Mfg. Co., Ltd. v. United States, 820 F. Supp. 603, 607 (CIT
1993), and that Commerce’s approach to this issue was correspondingly a factual
inquiry. Habich Br. at 15. Habich next compares the record evidence that
Commerce considered against what Commerce described as the “criteria” of
extraordinary sales under the regulation. Id. at 16ï17. Far from matching the
examples set forth in section 351.102(b)(35), Habich contends, the relevant “sales in
Mexico also meet any objective standard as being made within the ‘ordinary course
of trade.’” Id. at 17. Further, Habich emphasizes that WPC’s argument concerning
whether Mexico may fairly be characterized as its own market for purposes of this
investigation lacks record support and ignores record evidence showing that
Habich’s sales to Mexico occurred in a “competitive market.” Id. at 18.
Commerce generally determines the normal value based on the price at
which the merchandise is first sold “for consumption . . . in the usual commercial
quantities and in the ordinary course of trade,” which often reflects a price from the
exporting country. § 1677b(a)(1)(B)(i). However, if Commerce finds that the
quantity of sales in the exporting country is “insufficient to permit a proper
comparison,” such as when the respondent does not sell its merchandise in its home
country, Commerce looks to sales from a third country. § 1677b(a)(1)(C)(ii); see also
19 C.F.R. § 351.404(f). Commerce also retains the ability to construct normal value Court No. 24-00105 Page 24
using a combination of sources where sales in the exporting country and elsewhere
prove insufficient on their own. § 1677b(a)(4). In practice, and consistent with
statutory and regulatory guidance, Commerce finds home-country sales insufficient
for purposes of calculating normal value where the quantity of such sales represents
less than five percent of the aggregate quantity of sales of the subject merchandise
in the United States. See 19 U.S.C. § 1677b(a)(1)(C)(iii); 19 C.F.R. § 351.404(b)(2).
Under the Act, once Commerce’s analysis shifts to identifying a viable
comparison market through third-country sales, the analysis typically turns on
whether the sales were made “in the ordinary course of trade.” Vicentin S.A.I.C. v.
United States, 503 F. Supp. 3d 1255, 1262 (CIT 2021), aff’d 42 F.4th 1372 (Fed. Cir.
2022). Here, “ordinary course of trade” refers to conditions, practices, or
circumstances, reasonably close in time to exportation, that are “normal” in the
context of the merchandise and trade in question. See 19 U.S.C. § 1677(15).
Conversely, Commerce considers sales outside the ordinary course of trade where,
based on the circumstances, the sales “have characteristics that are extraordinary
for the market in question.” 19 C.F.R. § 351.102(35). To aid in Commerce’s
analysis, the regulations provide an illustrative list of examples that Commerce
“might consider as being outside the ordinary course of trade,” including sales
dealing with off-quality merchandise, unusual product specifications, unusual
prices, profits, or terms of sale, or an otherwise affiliated transaction. Id. Court No. 24-00105 Page 25
WPC’s assertions concerning Commerce’s normal value analysis are similarly
without merit. As discussed, WPC advances three points on this issue: first,
Commerce ignored evidence suggesting Mexico was not reasonably viewed as an
independent market, rendering Habich’s sales in the country illegitimate for
purposes of calculating normal value; second, Commerce placed undue emphasis on
WPC’s prior efforts to litigate similar arguments in earlier administrative reviews,
suggesting that Commerce’s analysis is unreasonably biased; and third, Commerce
materially misread its own regulations in referring to “examples” in section
351.102(b)(35) as “criteria,” implying that such examples carried dispositive weight.
Taken individually and collectively, these arguments are unpersuasive. On
the first point, WPC fails to root its argument regarding the market realities of
Mexico in relevant citations to record evidence, this court’s decisions, or past
practice by Commerce. Instead, WPC fixates on the global nature of Habich’s
business and the fact that the Mexican market for Austrian SC is closely related to
the U.S. market. But this ignores that Commerce grounded its normal value
investigation and analysis in record evidence and relevant legal principles.
Commerce correctly rooted its investigation in whether Habich’s Mexican sales
occurred within the ordinary course of trade, a question which it answered in the
affirmative based on record evidence that included verified questionnaire responses
and sales documentation. WPC fails to undermine this evidence. Court No. 24-00105 Page 26
On the second point, WPC selects a single line from the IDM to suggest that
Commerce’s investigation and analysis were biased and, consequently, incomplete.
WPC’s reading of the relevant portion of the IDM – in which, among other things,
Commerce noted that WPC had “repeat[ed] its previous allegations and arguments”
from prior segments of the proceeding – is neither the only interpretation of
Commerce’s discussion nor the most sensible one. Although WPC suggests this
discussion as evidence of Commerce’s bias against WPC’s critiques and reliant upon
conclusions from prior administrative reviews, this contention is unreasonable.
Contrary to WPC’s view, the Final Results simply convey that WPC’s arguments
related to normal value were familiar to Commerce and yet still failed to overcome
the record evidence. To read the IDM as suggesting otherwise is to depart from the
fact and the law. The court is not persuaded by this strained interpretation.
On the third point, WPC’s position is equally unavailing. As an initial
matter, WPC’s argument suggests that the word Commerce used to describe the
illustrative list in section 351.102(b)(35), “criteria,” is materially different from the
word contained in the regulation itself, “example.” WPC appears to conclude that
such a distinction exists and matters without offering support. That alone
undermines its position. Even cursory consideration of these two words and their
definitions suggests they are neither mutually exclusive nor sufficiently different to
render Commerce’s legal analysis flawed. For example, Webster’s Thesaurus
characterizes “criterion” as “something set up an example against which others of Court No. 24-00105 Page 27
the same type are compared,” including “example” among its primary synonyms.
CRITERION, MERRIAM-WEBSTER THESAURUS (Sept. 29, 2025), https://www.merriam-
webster.com/thesaurus/criterion. WPC cites no dictionary definitions or legal
principles to the contrary. More fundamentally, WPC offers no substantive critique
of how Commerce analyzed the illustrative list, whether dubbed criteria or
examples, nor disputes Commerce’s regulatory duty to consider those examples and
afford them some weight. In short, WPC’s “criteria” contention is a conclusion in
search of an argument – and fails accordingly.
Like its affiliation arguments, WPC’s normal value complaints fall short of
materially undermining Commerce’s investigation and analysis. What limited
record evidence WPC presents as supporting its assertions on this issue fails to
complicate the otherwise significant factual and legal support Commerce leveraged
in support of its review here. More importantly, WPC’s interpretation of the record
is strained and significantly understates the amount of consideration Commerce
gave this issue and the concerns expressed by WPC. Simply put, WPC demands an
investigative approach from Commerce that is unpersuasive on its own terms and
unsupported by applicable law. As with affiliation, Commerce grounded its work on
normal value in the relevant legal principles, responded appropriately to WPC’s
concerns, and provided ample evidentiary support and adequate reasoning. Court No. 24-00105 Page 28
CONCLUSION
For the foregoing reasons, the court holds that Commerce investigated and
analyzed the issues disputed by WPC reasonably and in accordance with law. Thus,
the court sustains the determination in full. Judgment will enter accordingly.
/s/ Joseph A. Laroski, Jr. Joseph A. Laroski, Jr., Judge
Dated: October 29, 2025 New York, New York