Pro-Team Coil Nail Enterprise Inc. v. United States

Court of Appeals for the Federal Circuit·Decided August 15, 2024·No. 22-2241·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

PRO-TEAM COIL NAIL ENTERPRISE INC., PT ENTERPRISE INC., PRIMESOURCE BUILDING PRODUCTS, INC., S.T.O. INDUSTRIES, INC., Plaintiffs

UNICATCH INDUSTRIAL CO., LTD., TC INTERNATIONAL, INC., HOR LIANG INDUSTRIAL CORPORATION, ROMP COIL NAILS INDUSTRIES INC.,

Plaintiffs-Appellants

v.

UNITED STATES, MID CONTINENT STEEL & WIRE, INC.,

Defendants-Appellees

2022-2241

Appeal from the United States Court of International Trade in Nos. 1:18-cv-00027-MAB, 1:18-cv-00028-MAB, 1:18-cv-00029-MAB, 1:18-cv-00030-MAB, Chief Judge Mark A. Barnett.

Decided: August 15, 2024

2 PRO-TEAM COIL NAIL ENTERPRISE INC. v. US

NED H. MARSHAK, Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, New York, NY, argued for plaintiffs -appellants. Also represented by MAX F. SCHUTZMAN; DHARMENDRA NARAIN CHOUDHARY, KAVITA MOHAN, ANDREW THOMAS SCHUTZ, EVE Q. WANG, Washington, DC.

SOSUN BAE, Commercial Litigation Branch, Civil Division , United States Department of Justice, Washington, DC, argued for defendant-appellee United States. Also represented by BRIAN M. BOYNTON, PATRICIA M. MCCARTHY; VANIA WANG, Office of the Chief Counsel for Trade Enforcement and Compliance, United States Department of Commerce, Washington, DC.

ADAM H. GORDON, The Bristol Group PLLC, Washington , DC, argued for defendant-appellee Mid Continent Steel & Wire, Inc. Also represented by BENJAMIN JACOB BAY, JENNIFER MICHELE SMITH-VELUZ.

Before LOURIE, DYK, and STOLL, Circuit Judges.

STOLL, Circuit Judge.

Unicatch Industrial Co., Ltd., TC International Inc., Hor Liang Industrial Corp., and Romp Coil Nails Industries Inc. (collectively, “Appellants”) appeal the decision of the United States Court of International Trade affirming the United States Department of Commerce’s final determination in the first administrative review of its antidumping order on certain steel nails from Taiwan.

Unicatch Industrial Co., Ltd. is a Taiwanese producer of subject merchandise and TC International, Inc. is its affiliated U.S. reseller. These two entities (collectively, “Unicatch ”) challenge: (1) Commerce’s use of total facts otherwise available (FA) with an adverse inference (i.e., total adverse facts available or total AFA) to determine

PRO-TEAM COIL NAIL ENTERPRISE INC. v. US 3

Unicatch’s dumping margin after concluding that Unicatch failed to provide a complete cost reconciliation; and (2) Commerce’s selection of the investigation petition rate, 78.17%, as the AFA rate for Unicatch. Hor Liang Industrial Corp. and Romp Coil Nails Industries Inc. (collectively , “HL/Romp”) are Taiwanese producers and exporters of subject merchandise that were not selected for individual examination; they received the “all-others” rate of 35.30%, calculated via the expected method. HL/Romp challenge that rate. For the following reasons, we affirm.

BACKGROUND

When merchandise is sold in the United States at less than fair value, Commerce has authority to impose antidumping duties. Albemarle Corp. v. United States, 821 F.3d 1345, 1347 (Fed. Cir. 2016) (citing 19 U.S.C. § 1673). Commerce determines “the estimated weighted average dumping margin for each exporter and producer individually investigated” and “the estimated all-others rate for all exporters and producers not individually investigated .” Changzhou Trina Solar Energy Co. v. United States, 975 F.3d 1318, 1322 (Fed. Cir. 2020) (quoting 19 U.S.C. § 1673d(c)(1)(B)(i)). “A dumping margin reflects the amount by which the ‘normal value’ (the price a producer charges in its home market) exceeds the ‘export price’ (the price of the product in the United States).” Id. (quoting U.S. Steel Corp. v. United States, 621 F.3d 1351, 1353 (Fed. Cir. 2010)).

“At the request of interested parties, Commerce reviews and reassesses its antidumping duty orders annually after the initial investigation.” Xi’an Metals & Mins. Imp. & Exp. Co. v. United States, 50 F.4th 98, 102 (Fed. Cir. 2022) (citing 19 U.S.C. § 1675(a)).

I

In September 2016, Commerce initiated the first administrative review of its July 2015 order imposing 4 PRO-TEAM COIL NAIL ENTERPRISE INC. v. US

antidumping duties on certain steel nails from Taiwan. The period of review was May 20, 2015, through June 30, 2016. During an administrative review, the “burden of creating an adequate record lies with interested parties and not with Commerce.” BMW of N. Am. LLC v. United States, 926 F.3d 1291, 1295 (Fed. Cir. 2019) (quoting Nan Ya Plastics Corp. v. United States, 810 F.3d 1333, 1337 (Fed. Cir. 2016)). If a respondent fails to provide requested information by the deadline, “Commerce shall fill in the gaps with ‘facts otherwise available.’” Id. (quoting Nippon Steel Corp. v. United States, 337 F.3d 1373, 1381 (Fed. Cir. 2003)). If Commerce “determines that an interested party has ‘failed to cooperate by not acting to the best of its ability to comply’ with a request for information, it may use an adverse inference in selecting a rate from these facts,” i.e., the “AFA” rate. Id. (quoting Nippon Steel, 337 F.3d at 1381).

“Commerce is generally charged with determining individual dumping margins for each known exporter.” Albemarle , 821 F.3d at 1348 (citing 19 U.S.C. § 1677f– 1(c)(1)). But when it is “not practicable” to determine individual margins for each exporter, Commerce may limit its examination to a “reasonable number of exporters” that either constitute a statistically representative sample of all known exporters or account for the largest volume of the subject merchandise from the exporting country. Id. (citing 19 U.S.C. § 1677f–1(c)(2)). Commerce’s calculation of the “all-others rate” for those not individually investigated is governed by statute:

(A) General rule . . . [T]he estimated all-others rate shall be an amount equal to the weighted average of the estimated weighted average dumping margins established for exporters and producers individually investigated, excluding any zero and de minimis

PRO-TEAM COIL NAIL ENTERPRISE INC. v. US 5

margins, and any margins determined entirely [on the basis of facts available]. (B) Exception If the estimated weighted average dumping margins established for all exporters and producers individually investigated are zero or de minimis margins, or are determined entirely [on the basis of facts available], the administering authority may use any reasonable method to establish the estimated all-others rate for exporters and producers not individually investigated, including averaging the estimated weighted average dumping margins determined for the exporters and producers individually investigated.

19 U.S.C. § 1673d(c)(5). Under the exception above, [t]he expected method in such cases will be to weight average the zero and de minimis margins and margins determined pursuant to the facts available, provided that volume data is available. However, if this method is not feasible, or if it results in an average that would not be reasonably reflective of potential dumping margins for non-investigated exporter or producers, Commerce may use other reasonable methods. Yangzhou Bestpak Gifts & Crafts Co. v. United States, 716 F.3d 1370, 1373 (Fed. Cir. 2013) (citation omitted) (emphasis added).

Here, Commerce initially selected PT Enterprise Inc.

(“PT”)—the affiliated exporter of Pro-Team Coil Nail Enterprise , Inc. (“Pro-Team”), another Taiwanese producer of subject merchandise—and Bonuts Hardware Logistics Co., LLC (“Bonuts”) as mandatory respondents. Unicatch asked to be treated as a voluntary respondent and responded to the questionnaire issued to the mandatory respondents . In February 2017, Commerce selected 6 PRO-TEAM COIL NAIL ENTERPRISE INC. v. US

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