Nan Ya Plastics Corp. v. United States

6 F. Supp. 3d 1362, 2014 CIT 94, 2014 WL 3953803, 36 I.T.R.D. (BNA) 816, 2014 Ct. Intl. Trade LEXIS 94
CourtUnited States Court of International Trade
DecidedAugust 14, 2014
DocketSlip Op. 14-94; Court 11-00535
StatusPublished
Cited by1 cases

This text of 6 F. Supp. 3d 1362 (Nan Ya Plastics Corp. 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.

Bluebook
Nan Ya Plastics Corp. v. United States, 6 F. Supp. 3d 1362, 2014 CIT 94, 2014 WL 3953803, 36 I.T.R.D. (BNA) 816, 2014 Ct. Intl. Trade LEXIS 94 (cit 2014).

Opinion

OPINION

GORDON, Judge:

This action involves an administrative review conducted by the U.S. Department of Commerce (“Commerce”) of the anti-dumping duty order covering polyethylene terephthalate film, sheet, and strip from Taiwan. See Polyethylene Terephthalate Film, Sheet, and Strip from Taiwan, 76 Fed.Reg. 76,941 (Dep’t of Commerce Dec. 9, 2011) (final results admin, review) (“Final Results ”); see also Issues and Decision Memorandum, A-583-837 (Dep’t of Commerce Dec. 5, 2011), available at http://enforcement.trade.gov/frn/summary/ taiwan/2011-31695-l.pdf (last visited this date) (“Decision Memorandum ”). Before the court are the Final Results of Redeter-mination, ECF No. 66 (“Remand Results ”), filed by Commerce pursuant to Nan Ya Plastics Corp. v. United States, 37 CIT -, 906 F.Supp.2d 1348 (2013) (“Nan Ya I ”). The court has jurisdiction pursuant to Section 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2012), 1 and 28 U.S.C. § 1581(c) (2012).

Plaintiff Nan Ya Plastics Corporation, Ltd. (“Nan Ya”) challenges Commerce’s continued assignment of a total adverse facts available (“AFA”) rate of 74.34%. See Nan Ya Comments on Remand Results 1, ECF No. 84 (“PL’s Br.”). For the reasons set forth below, the court sustains the Remand Results.

I. Standard of Review

For administrative reviews of an-tidumping duty orders, the court sustains Commerce’s “determinations, findings, or conclusions” 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). More specifically, when reviewing agency determinations, findings, or conclusions for substantial evidence, the court assesses whether the agency action is reasonable given the record as a whole. Nippon Steel Corp. v. United States, 458 F.3d 1345, 1350-51 (Fed.Cir.2006). Substantial evidence has been described as “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Dupont Teijin Films USA v. United States, 407 F.3d 1211, 1215 (Fed.Cir.2005) (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). Substantial evidence has also been described as “something less than the weight of the evidence, and the possibility of drawing two inconsistent conclusions from the evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Consolo v. Fed. Mar. Comm’n, 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966). Fundamentally, though, “substantial evidence” is best understood as a word formula connoting reasonableness review. 3 Charles H. Koch, Jr., Administrative Law and Practice § 9.24[1] (3d ed. 2014). Therefore, when addressing a substantial evidence issue raised by a party, the court analyzes whether the challenged agency action “was reasonable given the circumstances presented by the whole record.” Edward D. Re, Bernard J. Babb, and Su *1365 san M. Koplin, 8 West’s Fed. Forms, National Courts § 13342 (2d ed. 2014).

Separately, the two-step framework provided in Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 842-45, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), governs judicial review of Commerce’s interpretation of the antidumping statute. See United States v. Eurodif S.A., 555 U.S. 305, 316, 129 S.Ct. 878, 172 L.Ed.2d 679 (2009) (Commerce’s “interpretation governs in the absence of unambiguous statutory language to the contrary or unreasonable resolution of language that is ambiguous.”).

II. Background

As a consequence of Nan Ya’s failure to cooperate during the administrative review, Commerce preliminarily assigned Nan Ya a total AFA rate of 99.31%, which it derived from two of Nan Ya’s transaction-specific margins from the prior administrative review. See Polyethylene Terephthalate Film, Sheet, and Strip from Taiwan, 76 Fed.Reg. 47,540, 47,545 (Dep’t of Commerce Aug. 5, 2011) (preliminary results); Decision Memorandum at 5. Nan Ya argued in its administrative case brief that Commerce should have instead used information obtained during the current administrative review, specifically, the transaction-specific data of cooperating mandatory respondent Shinkong Materials Technology Co., Ltd. (“Shinkong”). Case Br. of Nan Ya Plastics Corporation, Ltd., 7 (Dep’t of Commerce Oct. 4, 2011), PD 23. 2 Commerce agreed and in the Final Results selected Shinkong’s highest transaction-specific margin, 74.34%, as Nan Ya’s total AFA rate. Commerce reasoned “this rate is representative of Nan Ya’s current business practice” because “the data from the most recent review in which Nan Ya participated show ... numerous [transaction-specific] margins for Nan Ya far above 74.34 percent.” Assignment of the Adverse Facts Available Rate for Nan Ya Plastics Corporation, Ltd. (Nan Ya), 3 (Dep’t of Commerce Dec. 5, 2011), CD 27 (“AFA Assignment Memorandum”).

Nan Ya then commenced this action challenging the 74.34% total AFA rate as “an unlawful aberrant outlier” that did not reflect its “commercial reality albeit with some built in increase to induce compliance.” Nan Ya I, 37 CIT at -, 906 F.Supp.2d at 1351; see Nan Ya Plastics Corporation Rule 56.2 Mot. for J. on the Agency R. 3, ECF No. 3 (“Pl.’s 56.2 Br.”). Among its contentions Nan Ya proffered what appeared to be several compelling statistical arguments in support of its position. See Nan Ya I, 37 CIT at -, 906 F.Supp.2d at 1353-55. However, because Commerce changed Nan Ya’s AFA rate between the preliminary and final results, Nan Ya’s first opportunity to present these arguments was in its opening brief before the court. The court therefore remanded the action for Commerce to address Nan Ya’s arguments in the first instance. Id. at -, 906 F.Supp.2d at 1354-55.

The court also remanded to Commerce for further explanation the issue of the applicability of corroboration. Id. Although Commerce appeared, consistent with its practice, to corroborate the selected rate with Nan Ya’s own transaction-specific data from a prior review,

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6 F. Supp. 3d 1362, 2014 CIT 94, 2014 WL 3953803, 36 I.T.R.D. (BNA) 816, 2014 Ct. Intl. Trade LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nan-ya-plastics-corp-v-united-states-cit-2014.