Prime Time Commerce, LLC v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedJune 28, 2022
Docket21-1783
StatusUnpublished

This text of Prime Time Commerce, LLC v. United States (Prime Time Commerce, LLC v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prime Time Commerce, LLC v. United States, (Fed. Cir. 2022).

Opinion

Case: 21-1783 Document: 57 Page: 1 Filed: 06/28/2022

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

PRIME TIME COMMERCE, LLC, Plaintiff-Appellant

v.

UNITED STATES, Defendant-Appellee ______________________

2021-1783 ______________________

Appeal from the United States Court of International Trade in No. 1:18-cv-00024-CRK, Judge Claire R. Kelly. ______________________

Decided: June 28, 2022 ______________________

MARK B. LEHNARDT, Law Offices of David L. Simon, Washington, DC, argued for plaintiff-appellant.

ASHLEY AKERS, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washing- ton, DC, argued for defendant-appellee. Also represented by BRIAN M. BOYNTON, JEANNE DAVIDSON, PATRICIA M. MCCARTHY; BRENDAN SASLOW, Office of the Chief Counsel for Trade Enforcement & Compliance, United States De- partment of Commerce, Washington, DC. ______________________ Case: 21-1783 Document: 57 Page: 2 Filed: 06/28/2022

Before LOURIE, MAYER, and CUNNINGHAM, Circuit Judges. CUNNINGHAM, Circuit Judge. Prime Time Commerce, LLC (“Prime Time”), a U.S. im- porter of cased pencils, appeals from the final judgment of the U.S. Court of International Trade (“Trade Court”) sus- taining the United States Department of Commerce’s (“Commerce”) application of the China-wide antidumping duty rate to Prime Time, rather than calculating an im- porter-specific rate. Prime Time Com. LLC v. United States, 495 F. Supp. 3d 1308, 1317–18 (Ct. Int’l Trade 2021) (“Prime Time II”). The Trade Court also held that Prime Time was barred from making arguments for which it failed to exhaust its administrative remedies by not com- menting on Commerce’s remand redetermination. Id. at 1316. For the reasons below, we affirm. I. BACKGROUND A. The Administrative Review On December 28, 1994, Commerce issued an antidump- ing duty order on certain cased pencils from China. Anti- dumping Duty Order: Certain Cased Pencils from the People’s Republic of China, 59 Fed. Reg. 66,909 (Dep’t of Commerce Dec. 28, 1994) (“Cased Pencils Order”). Com- merce notified interested parties of the opportunity to re- quest an administrative review of the order on December 1, 2016. Antidumping or Countervailing Duty Order, Find- ing, or Suspended Investigation; Opportunity to Request Administrative Review, 81 Fed. Reg. 86,694 (Dep’t of Com- merce Dec. 1, 2016). Prime Time filed a timely request for administrative review of the order. J.A. 47–82 (Prime Time Commerce, LLC’s Request for Administrative Review (Jan. 3, 2017)). On February 13, 2017, Commerce initiated an administrative review covering the period from Decem- ber 1, 2015, through November 30, 2016. Initiation of An- tidumping and Countervailing Duty Administrative Case: 21-1783 Document: 57 Page: 3 Filed: 06/28/2022

PRIME TIME COMMERCE, LLC v. US 3

Reviews, 82 Fed. Reg. 10,457, 10,459 (Dep’t of Commerce Feb. 13, 2017) (“Initiation Notice”). In antidumping investigations of countries with non- market economies (“NMEs”), such as China, Commerce ap- plies a rebuttable presumption that all exporters are sub- ject to government control. China Mfrs. Alliance, LLC v. United States, 1 F.4th 1028, 1030–31, 1039 (Fed. Cir. 2021). Commerce uses a single antidumping rate for all companies that fail to demonstrate independence from gov- ernment control. Id. at 1030–31. Here, Commerce preliminarily assigned a 114.90% an- tidumping duty rate—the highest rate available—to all China-wide entities. Certain Cased Pencils from the Peo- ple’s Republic of China, 82 Fed. Reg. 43,329, 43,331 (Dep’t of Commerce Sept. 15, 2017); see also Prime Time II, 495 F. Supp. 3d at 1312. One of these entities was Ningbo Homey Union Co., Ltd. (“Ningbo Homey”), Prime Time’s supplier and exporter. Id. at 1311–12. Commerce had calculated the 114.90% rate from facts available with an adverse in- ference (“adverse facts available” or “AFA”). Certain Cased Pencils from the People’s Republic of China; Final Results and Partial Rescission of Antidumping Duty Administra- tive Review, 67 Fed. Reg. 48,612, 48,613 (Dep’t of Com- merce July 25, 2002), Dec. Mem. at cmt. 9 (citing 67 Fed. Reg. 2402, 2406–07 (Dep’t of Commerce Jan. 17, 2002)) (“[W]e are relying on adverse facts available to determine the margins for the PRC-wide entity.”). Commerce invited companies seeking a separate rate to submit a separate rate application (“SRA”) demonstrat- ing their independence from the Chinese government. In- itiation Notice, at 10,458. B. Ningbo Homey’s Separate Rate Application and Prime Time’s Submission Ningbo Homey timely filed an SRA. J.A. 90–203 (Sep- arate Rate Application of Ningbo Homey Union Co., Ltd., Case: 21-1783 Document: 57 Page: 4 Filed: 06/28/2022

PR21/CR7-9 (Mar. 15, 2017)). Commerce selected Ningbo Homey as the sole mandatory respondent. 1 J.A. 207–09 (Department of Commerce’s Respondent Selection Memo (March 30, 2017)). Commerce then sent Ningbo Homey an antidumping questionnaire instructing it to “wholly and fully participate” in the administrative review, J.A. 216, “not selectively choose which requests to respond to,” id., and respond to questions on its separate rate status. J.A. 210–307 (Department of Commerce’s Questionnaire to Ningbo Homey Union Co., Ltd. (Apr. 3, 2017)). Ningbo Homey declined to participate further in the review, how- ever, due to its low export volume and value along with the expense and time commitment of participation. Appel- lant’s Br. 6. Believing Ningbo Homey’s rate to be significantly lower than the 114.90% China-wide rate, Prime Time sought to obtain an individual rate by providing additional infor- mation to Commerce. Id. Prime Time submitted infor- mation relevant to section C (U.S. sales) and section D (factors of production) of the questionnaire sent to Ningbo Homey. J.A. 313, 334 (Prime Time Commerce, LLC’s Sec- tion C&D Questionnaire Response (Rejection Notice) (May 10, 2017)). Commerce rejected Prime Time’s submission. J.A. 334–36 (Department of Commerce’s Rejection Letter to Prime Time Commerce, LLC (June 9, 2017)). Commerce reasoned that Prime Time’s submissions contained unsolic- ited new information because Commerce’s questionnaire

1 Generally, Commerce must determine an individ- ual dumping margin for each exporter. 19 U.S.C. § 1677f– 1(c)(1). But, where that is “not practicable,” Commerce may limit its examination to a “reasonable number of ex- porters.” § 1677f–1(c)(2). Commerce refers to those se- lected for individual investigation as “mandatory respondents.” Yangzhou Bestpak Gifts & Crafts Co. v. United States, 716 F.3d 1370, 1372 (Fed. Cir. 2013). Case: 21-1783 Document: 57 Page: 5 Filed: 06/28/2022

PRIME TIME COMMERCE, LLC v. US 5

was directed at Ningbo Homey, not Prime Time, and failed to “include a detailed narrative explaining why it should be considered.” Id. at 334–35. Prime Time requested recon- sideration, but Commerce did not change its decision. J.A. 351–56 (Prime Time Commerce, LLC’s Request for Recon- sideration (Aug. 3, 2017)). C. Commerce’s Decision In its Preliminary Results, Commerce determined that Ningbo Homey failed to respond to all parts of the ques- tionnaire, denied the separate rate, and assigned Ningbo Homey the China-wide rate of 114.90%. Certain Cased Pencils from People’s Republic of China: Preliminary Re- sults of Antidumping Duty Administrative Review, Prelim- inary Determination of No Shipments, and Rescission of Review, in Part; 2015-2016, 82 Fed. Reg. 43,329, 43,330–31 (Dep’t of Commerce Sept.

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