Pakfood Public Co. v. United States

190 F. Supp. 3d 1156, 2016 CIT 90, 38 I.T.R.D. (BNA) 1778, 2016 Ct. Intl. Trade LEXIS 91
CourtUnited States Court of International Trade
DecidedOctober 4, 2016
DocketSlip Op. 16-90 Court 14-00230
StatusPublished

This text of 190 F. Supp. 3d 1156 (Pakfood Public Co. 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
Pakfood Public Co. v. United States, 190 F. Supp. 3d 1156, 2016 CIT 90, 38 I.T.R.D. (BNA) 1778, 2016 Ct. Intl. Trade LEXIS 91 (cit 2016).

Opinion

OPINION and ORDER

Gordon, Judge:

This action involves the final results of an administrative review conducted by the U.S. Department of Commerce (“Commerce”) for the antidumping duty order covering Certain Frozen Warmwater Shrimp from Thailand, 79 Fed. Reg. 51,306 (Dep’t Commerce Aug. 28, 2014) (“Final Results”); see also Issués and Decision Mem, for Certain Frozen Warmwater Shrimp from Thailand, A-549-822 (Aug. 21, 2014, ECF No. 22 (“Decision Mem”). 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). Plaintiffs Pakfood Public Co. Ltd, and Okeanos Food Company Limited (collectively, “Pakfood”) and Thai Union Frozen Products Public Co,, Ltd. and Thai Union Seafood Co., Ltd. (collectively, “Thai Union”) challenge Commerce’s deviation from its standard 90/60-day window sales comparison periods provided in 19 C.F.R. § 351.414(f) (2013). For the reasons that follow, the court remands this matter to Commerce for further consideration.

I. Background

During the administrative review Commerce selected Pakfood and Thai Union for individual review. Commerce collapsed them into a single entity (“Collapsed Entity”) two and a half months into the review period, effective April 23, 2012 (“Collapsing Date”). Commerce calculated separate dumping margins for Pakfood and Thai Union before (and excluding) the Collapsing Date, as well as a separate margin for the Collapsed Entity-after (and including) the Collapsing Date. In those calculations Commerce truncated — on the Collapsing Date — its normal 90/60-day sales comparison window under 19 C.F.R. § -351.414(f) in which it tries to match contemporaneous sales. Commerce compared Pakfood’s U.S. sales to its home market sales made before the Collapsing Date. Commerce also compared Thai Union’s U.S. sales to its home market sales made before the Collapsing Date. Lastly, Commerce compared the Collapsed Entity’s (Pakfo.od and Thai Union’s) U.S. sales to home market sales made on or after the Collapsing Date.

II. Standard of Review

For administrative reviews of antidump-ing 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)(l)(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 *1158 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. 2016). 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.”' 8A West’s Fed. Forms, National Courts § 3.6 (5th ed. 2016).

III. Discussion

When Commerce calculates a respondent’s dumping margin, Commerce compares “the export price or constructed export price and normal value.” 19 U.S.C. § 1677b(a). The respondent’s “normal value” is generally based on home market sales, made in the ordinary course of trade “at a time reasonably corresponding to the time of the sale used to determine the export price or constructed export price.” 19 U.S.C. § 1677b(a)(l)(A). Commerce normally determines the contemporaneous month for price-to-price comparisons using the 90/60-day window method set forth in 19 C.F.R. § 351.414(f):

Normally, the Secretary will select as the contemporaneous month the first of the following months which applies:
(1) The month during which the particular U.S. sales under consideration ‘ were made;
(2) If there are no sales of the foreign like product during this month, the most recent of the three months prior to the month of the U.S. -sales in which there was a sale of the foreign like product.
(3)If there are no sales of the foreign - like product during any of these months, the earlier of the two months following the month of the U.S. sales in which there was a sale of the foreign like product.

19 C.F.R. § 351.414(f).

All parties take this regulation at face value and do not discuss its genesis or purpose. The parties do, however, discuss the purpose of the collapsing regulation, with all agreeing that Commerce collapses entities to counteract or inhibit a potential for sales and production manipulation among the collapsed entities. In the proceeding below Plaintiffs challenged Commerce’s decision to use the Collapsing Date as a demarcation line across which no sales comparisons would be made. Plaintiffs argued that pre-collapsed sales (of Pakfood and, separately, Thai Union) should be compared with post-collapsed sales (of Pakfood and Thai Union, collectively) so that a pre-collapsed Pakfood sale might match with a post-collapsed Thai Union sale, or a pre-collapsed Thai Union sale might potentially match with a post-collapsed Pakfood sale. Commerce responded to Plaintiffs’ challenge by explaining that failing to treat the pre- and post-collapsed entities separately for sales comparison purposes would “undermine the rationale behind the collapsing regulation at 19 C.F.R. 351

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190 F. Supp. 3d 1156, 2016 CIT 90, 38 I.T.R.D. (BNA) 1778, 2016 Ct. Intl. Trade LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pakfood-public-co-v-united-states-cit-2016.