Prime Time Commerce, LLC v. United States

Court of Appeals for the Federal Circuit·Decided June 28, 2022·No. 21-1783·Unpublished

Opinion

NOTE: This disposition is nonprecedential.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, Washington , 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 Department of Commerce, Washington, DC.

2 PRIME TIME COMMERCE, LLC v. US

Before LOURIE, MAYER, and CUNNINGHAM, Circuit Judges.

CUNNINGHAM, Circuit Judge.

Prime Time Commerce, LLC (“Prime Time”), a U.S. importer of cased pencils, appeals from the final judgment of the U.S. Court of International Trade (“Trade Court”) sustaining the United States Department of Commerce’s (“Commerce”) application of the China-wide antidumping duty rate to Prime Time, rather than calculating an importer -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 commenting 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 antidumping duty order on certain cased pencils from China. Antidumping 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”). Commerce notified interested parties of the opportunity to request an administrative review of the order on December 1, 2016. Antidumping or Countervailing Duty Order, Finding , or Suspended Investigation; Opportunity to Request Administrative Review, 81 Fed. Reg. 86,694 (Dep’t of Commerce 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 December 1, 2015, through November 30, 2016. Initiation of Antidumping and Countervailing Duty Administrative

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 applies a rebuttable presumption that all exporters are subject 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 government control. Id. at 1030–31.

Here, Commerce preliminarily assigned a 114.90% antidumping duty rate—the highest rate available—to all China-wide entities. Certain Cased Pencils from the People ’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 inference (“adverse facts available” or “AFA”). Certain Cased Pencils from the People’s Republic of China; Final Results and Partial Rescission of Antidumping Duty Administrative Review, 67 Fed. Reg. 48,612, 48,613 (Dep’t of Commerce 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”) demonstrating their independence from the Chinese government. Initiation 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 (Separate Rate Application of Ningbo Homey Union Co., Ltd., 4 PRIME TIME COMMERCE, LLC v. US

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, however , due to its low export volume and value along with the expense and time commitment of participation. Appellant ’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 information to Commerce. Id. Prime Time submitted information 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 Section 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 unsolicited new information because Commerce’s questionnaire

1 Generally, Commerce must determine an individual 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 exporters .” § 1677f–1(c)(2). Commerce refers to those selected for individual investigation as “mandatory respondents.” Yangzhou Bestpak Gifts & Crafts Co. v. United States, 716 F.3d 1370, 1372 (Fed. Cir. 2013).

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 reconsideration , but Commerce did not change its decision. J.A. 351–56 (Prime Time Commerce, LLC’s Request for Reconsideration (Aug. 3, 2017)).

C. Commerce’s Decision

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