Peer Bearing Co. Changshan v. United States

587 F. Supp. 2d 1319, 32 Ct. Int'l Trade 1307, 32 C.I.T. 1307, 30 I.T.R.D. (BNA) 2430, 2008 Ct. Intl. Trade LEXIS 127
CourtUnited States Court of International Trade
DecidedDecember 8, 2008
DocketSlip Op. 08-134; Court 07-00373
StatusPublished
Cited by19 cases

This text of 587 F. Supp. 2d 1319 (Peer Bearing Co. Changshan 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
Peer Bearing Co. Changshan v. United States, 587 F. Supp. 2d 1319, 32 Ct. Int'l Trade 1307, 32 C.I.T. 1307, 30 I.T.R.D. (BNA) 2430, 2008 Ct. Intl. Trade LEXIS 127 (cit 2008).

Opinion

OPINION

GOLDBERG, Senior Judge.

In this action, plaintiff Peer Bearing Company — Changshan (“CPZ”), a Chinese producer of tapered roller bearings, challenges the decision of the International Trade Administration of the United States Department of Commerce (“Commerce”) in Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, from the People’s Republic of China: Final Results of 2005-2006 Administrative Review and Partial Rescission of Review, 72 Fed.Reg. 56,724 (Dep’t Commerce Oct. 4, 2007) (“Final Results”). In its Final Results, Commerce found that because CPZ did not respond to its questionnaire, CPZ merited an antidumping rate pursuant to adverse inferences available under section 776 of the Tariff Act of 1930; 19 U.S.C. § 1677e(b) (2000). Accordingly, Commerce assigned CPZ the PRCwide entity rate of 60.959&. 1 CPZ does not contest the adverse facts available (“AFA”) finding, but it argues that this finding should not automatically merit a presumption of state control and the application of the PRC-wide entity rate. CPZ maintains that because it had previously qualified for a separate rate, that separate rate should continue to apply. In the alternative, CPZ disputes the rate chosen as the PRC-wide entity rate. For the reasons that follow, the Court affirms Commerce’s findings.

I. JURISDICTION AND STANDARD OF REVIEW

The Court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2000).

A court shall hold unlawful Commerce’s final determination in an anti-dumping administrative review if it is “unsupported by substantial evidence on the record, or otherwise not in accordance with the law.” Tariff Act of 1930, § 516a, 19 U.S.C. § 1516a(b)(l)(B)(i) (2000). Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Nippon Steel Corp. v. United States, 337 F.3d 1373, 1379 (Fed.Cir.2003) (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)). “[T]he 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) (citing NLRB v. Nevada Consol. Copper Corp., 316 U.S. 105, 106, 62 S.Ct. 960, 86 L.Ed. 1305 (1942)). The Court need only find evidence “which could reasonably lead” to the conclusion drawn by Commerce, thus making it a “rational decision.” Matsushita Elec. Indus. Co. v. United States, 750 F.2d 927, 933 (Fed.Cir.1984).

In determining the lawfulness of an agency’s statutory construction, the Court examines “whether Congress’s purpose and intent on the question at issue is judicially ascertainable.” Timex V.I., Inc. v. United States, 157 F.3d 879, 881 (Fed.Cir.1998) (construing Chevron, U.S.A., Inc. v. Nat. Resources Def. Council, Inc., 467 U.S. 837, 843 n. 9, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984)). If Congress’s intent *1324 is unclear, the Court must defer to the agency’s construction if it is reasonable. Chevron, 467 U.S. at 843-44, 104 S.Ct. 2778. Commerce’s determination may be deemed unlawful “where Commerce has failed to carry out its duties properly, relied on inadequate facts or reasoning, or failed to provide an adequate basis for its conclusions.” Rhone-Poulenc, Inc. v. United States, 20 CIT 573, 575, 927 F.Supp. 451, 454 (1996).

II. DISCUSSION

A. Commerce Properly Assigned CPZ the PRC-Wide Entity Rate

Regarding the assignment of the PRC-wide entity rate, CPZ raises three arguments. First, it disputes the application of the PRC-wide entity rate and claims that a separate rate should apply because CPZ received a separate rate in prior reviews. Second, it argues that the calculation of the PRC-wide entity rate is in conflict with the statutory requirement of determining dumping margins by calculating the normal value and U.S. price of each entry. Third, CPZ argues that Commerce’s presumption of state control in non-market economy countries is not entitled to Chevron deference because it is not based on a formal statute or regulation. The Court addresses each argument in turn.

i. CPZ Did Not Rebut the Presumption of State Control

A company operating in an NME such as China is presumed to be under government control. Shandong Huanri (Group) Gen. Co. v. United States, 31 CIT —, —, 493 F.Supp.2d 1353, 1357 (2007). Under this presumption, it is Commerce’s policy to assign NME exporters of the same merchandise the countrywide antidumping duty rate. Transcom, Inc. v. United States, 294 F.3d 1371, 1373 (Fed.Cir.2002); Shandong Huanri, 31 CIT at —, 493 F.Supp.2d at 1357; Manganese Metal from the People’s Republic of China, 63 Fed.Reg. 12,440, 12,441 (Dep’t Commerce Mar. 13, 1998) (final determination). However, if a company establishes its independence from the government, it will be assigned a separate rate calculated through the same process utilized in market economies. Transcom, 294 F.3d at 1373. To rebut the presumption of government control, an exporter must “ ‘affirmatively demonstrate’ its entitlement to a separate, company-specific margin by showing ‘an absence of central government control, both in law and in fact [de jure and de facto ], with respect to exports.’ ” Sigma Corp. v. United States, 117 F.3d 1401, 1405 (Fed.Cir.1997) (quoting Tianjin Mach. Import & Export Corp. v. United States, 16 CIT 931, 935, 806 F.Supp. 1008, 1013-14 (1992)); see also Final Determination of Sales at Less Than Fair Value: Sparklers from the People’s Republic of China, 56 Fed.Reg. 20,588, 20,589 (Dep’t Commerce May 6, 1991). “Absence of de jure

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587 F. Supp. 2d 1319, 32 Ct. Int'l Trade 1307, 32 C.I.T. 1307, 30 I.T.R.D. (BNA) 2430, 2008 Ct. Intl. Trade LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peer-bearing-co-changshan-v-united-states-cit-2008.