Navneet Education Ltd. v. United States

2023 CIT 191
United States Court of International Trade·Decided December 29, 2023·No. 22-00132·Published

Opinion

Slip. Op. No. 23-191

UNITED STATES COURT OF INTERNATIONAL TRADE

NAVNEET EDUCATION LTD.

Plaintiff,

v.

UNITED STATES, Before: Stephen Alexander Vaden, Judge

Defendant,

Court No. 1:22-cv-00132

and

ASSOCIATION OF AMERICAN SCHOOL PAPER SUPPLIERS,

Defendant-Intervenor.

OPINION

[Denying Plaintiff’s Motion for Judgment on the Agency Record.]

Dated: December 29, 2023

Irene Huei-min Chen, Chen Law Group LLC, of Rockville, MD, for Plaintiff Navneet Education Ltd. With her on the brief was Mark Burton Lehnardt, Law Offices of David L. Simon, PLLC, of Washington, DC.

Antonia Ramos Soares, U.S. Department of Justice, Commercial Litigation Branch, Civil Division, of Washington, DC, for Defendant United States. With her on the brief were Brishailah Brown and Ian Andrew McInerney, of Counsel, U.S. Department of Commerce, Office of Chief Counsel for Trade Enforcement & Compliance.

Timothy C. Brightbill, Wiley Rein, LLP, of Washington, DC, for Defendant- Intervenor Association of American School Paper Suppliers. With him on the brief was Maureen Elizabeth Thorson.

Vaden, Judge: Navneet Education Ltd. (Navneet or Plaintiff) filed this Motion for Judgment on the Agency Record challenging the Department of Commerce’s (Commerce) Final Results of the 2019-2020 Administrative Review of the antidumping duty order on lined paper products from India, i.e., notebook paper. See Final Results, 87 Fed. Reg. 17,989 (Dep’t of Com. Mar. 29, 2022) (Final Results). In its Complaint, Navneet argues that Commerce (1) unlawfully deviated from its established practice in calculating the company’s antidumping margin by manipulating its computer software to allow for the incorporation of non-essential, third-country data; (2) failed to notify Navneet of its intention to deviate from its established practice, making its actions arbitrary and an abuse of discretion; and (3) distorted the final calculation of Navneet’s dumping margin. See Pl.’s Compl. ¶¶ 22- 24, ECF No. 6. For the reasons set forth below, the Court DENIES Plaintiff’s Motion.

BACKGROUND

On September 28, 2006, Commerce published antidumping and countervailing duty orders on certain lined paper products from India (Orders). Certain Lined Paper Products from India, 71 Fed. Reg. 56,949 (Dep’t of Com. Sept. 28, 2006). Commerce published notice of the initiation of an administrative review of those Orders for the period of September 2019 through August 2020 on October 20, 2020. Initiation of Antidumping and Countervailing Duty Administrative Reviews, 85 Fed. Reg. 68,840 (Dep’t of Com. Oct. 20, 2020). The agency selected Navneet as a mandatory respondent for the administrative review on January 13, 2021. Certain Lined Paper Products from India: Preliminary Results of Antidumping Duty Administrative

Review, 86 Fed. Reg. 54,426 (Dep’t of Com. Oct. 1, 2021). As part of its investigation, Commerce sent Navneet a questionnaire comprised of sections A through D. Navneet submitted timely responses to each section, attaching the requested supporting documentation. Navneet Initial Questionnaire Section A Response, J.A. at 80,186– 80,689, ECF No. 43; Navneet Initial Questionnaire Sections B-D Response, J.A. at 80,690–81,346, ECF No. 43.

Each section of the questionnaire focused on a different aspect of Navneet’s business: Section A focused on Navneet’s overall structure and accounting practices; Section B requested information about the company’s home market sales; Section C echoed the questions asked in the prior section but focused on the company’s sales in the United States; and Section D inquired about Navneet’s costs of production. Navneet Initial Questionnaire Section A, B, C, D Responses, J.A. at 80,186, 80,695, 80,756, 80,816, ECF No. 43. As part of Section D, Commerce requested Navneet “provide one computer data file reporting the costs incurred for the merchandise under consideration. The file should contain per-unit cost information for the products sold in the U.S. market and the comparison market.” Sec. D Resp. at D-38, J.A. at 80,853, ECF No. 43. Navneet complied, attaching a cost database listing all of the products it sold during the period of review, each identified by their unique control number or “CONNUM.” 1 Sec. D. Resp. at Ex. D-25, J.A. at 81,317–320, ECF

1 “CONNUM” is an acronym for “control number” and denotes a unique product based on

relevant physical characteristics. To ensure that Commerce is comparing like products in the home and U.S. markets, it asks respondents to sort merchandise according to key differentiating categories with each number in the product’s CONNUM corresponding to physical characteristic groupings particular to the merchandise under review. Xi’An Metals & Minerals Imp. & Exp. Co. v. United States, 520 F. Supp. 3d 1314, 1321 n.4 (CIT 2021).

No. 43. Although Commerce requested physical characteristic information for each product that appeared in the cost database, the attachment submitted by Navneet did not include that information. Id. Of the 174 products listed in the cost database, 88 were sold in either the United States or home market and 86 were sold only in third-country markets, i.e., not the United States or Navneet’s home country of India. The database also included nine products that were sold, but not produced, during the period of review — three of which were also products sold only in third-country markets. Id. Although the questionnaire did not request any information about products sold only in third countries, Navneet later explained that it included the data as “part of [Navneet’s] process to do a cost reconciliation[.]” Oral Arg. Tr. at 7:24–25, ECF No. 48. In the column of the database dedicated to the cost of production, Navneet entered surrogate costs — cost of production data for similar products that were produced during the period of review — for those nine items that had been sold but not produced during the period of review. Sec. D. Resp. at Ex. D- 25, J.A. at 81,317–20, ECF No. 43.

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