Qingdao Ge Rui Da Rubber Co. v. United States

664 F. Supp. 3d 1369, 2023 CIT 153
CourtUnited States Court of International Trade
DecidedOctober 20, 2023
Docket22-00229
StatusPublished

This text of 664 F. Supp. 3d 1369 (Qingdao Ge Rui Da Rubber 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
Qingdao Ge Rui Da Rubber Co. v. United States, 664 F. Supp. 3d 1369, 2023 CIT 153 (cit 2023).

Opinion

Slip Op. -

UNITED STATES COURT OF INTERNATIONAL TRADE

QINGDAO GE RUI DA RUBBER CO., LTD.,

Plaintiff,

v.

UNITED STATES,

Defendant, Before: Mark A. Barnett, Chief Judge Court No. 22-00229 and

UNITED STEEL, PAPER AND FORESTRY, RUBBER MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION, AFL-CIO, CLC,

Defendant-Intervenor.

OPINION

[Sustaining the U.S. Department of Commerce’s final results in the 2020 administrative review of the countervailing duty investigation of truck and bus tires from the People’s Republic of China]

Dated: October 20, 2023

Weronika Bukowski, Crowell & Moring, LLP, of Washington, DC, argued for Plaintiff. With her on the brief were Daniel Cannistra and Kelsey Clinton.

Sosun Bae, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, argued for Defendant. With her on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. McCarthy, Director, and L. Misha Preheim, Assistant Director. Of counsel on the brief was Ashlande Gelin, Attorney, Office of the Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, DC. Court No. 22-00229 Page 2

Christopher Cloutier, Schagrin Associates, of Washington, DC, argued for Defendant- Intervenor. With him on the brief were Roger B. Schagrin and Nicholas J. Birch.

Barnett, Chief Judge: This matter is before the court following the U.S.

Department of Commerce’s (“Commerce” or “the agency”) final results in the second

administrative review of the countervailing duty (“CVD”) order on truck and bus tires

from the People’s Republic of China (“China”) for the period of review (“POR”) from

January 1, 2020, through December 31, 2020. See Truck and Bus Tires From the

People’s Republic of China, 87 Fed. Reg. 39,063 (Dep’t Commerce June 30, 2022)

(final results of [CVD] admin. review; 2020) (“Final Results”), 1 ECF No. 19-5, and

accompanying Issues and Decision Mem., C-570-041 (“I&D Mem.”) (June 24, 2022),

ECF No. 19-4. 2

Plaintiff Qingdao Ge Rui Da Rubber Co., Ltd. (“Plaintiff” or “GRT”) challenges

Commerce’s determination to use facts available with an adverse inference (“AFA”) in

assigning Plaintiff a 1.78 percent CVD rate under the Export Buyer’s Credit Program

(“EBCP”). See Mem. in Supp. of Pl.’s Rule 56.2 Mot. for J. on the Agency R. (“Pl.’s

Mem.”), ECF No. 28; Pl.’s Reply Br. in Supp. of Rule 56.2 Mot. for J. on the Agency R.

(“Pl.’s Reply”), ECF No. 38.

1 The Final Results were amended to correct a ministerial error that does not affect the

court’s review of this matter. See Truck and Bus Tires From the People’s Republic of China, 87 Fed. Reg. 52,364 (Dep’t Commerce Aug. 25, 2022) (am. final results of [CVD] admin. review; 2020), ECF No. 19-6. 2 The administrative record filed in connection with the Final Results is divided into a

Public Administrative Record (“PR”), ECF No. 19-2, and a Confidential Administrative Record (“CR”), ECF No. 19-3. Parties filed joint appendices containing record documents cited in their briefs. Public J.A., ECF No. 42; Conf. J.A. (“CJA”), ECF No. 41. Citations are to the CJA unless stated otherwise. Court No. 22-00229 Page 3

Defendant United States (“Defendant”) filed a response in support of

Commerce’s use of AFA with respect to the EBCP. Def.’s Resp. to Pl.’s Mot. for J. on

the Agency R. (“Def.’s Resp.”), ECF No. 32. Defendant primarily contends that GRT did

not exhaust its arguments at the administrative level, as it was required to do. Id. at 13–

15. Defendant-Intervenor United Steel, Paper and Forestry, Rubber, Manufacturing,

Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC

concurred with and adopted by reference Defendant’s arguments. Resp. Br. of Def.-Int.

in Opp’n to Pl.’s Mot. for J. on the Agency R., ECF No. 33.

For the reasons herein, the court sustains the Final Results.

BACKGROUND

On April 1, 2021, Commerce initiated the second administrative review of the

CVD order on truck and bus tires from China. Initiation of Antidumping and [CVD]

Admin. Reviews, 86 Fed. Reg. 17,124 (Dep’t Commerce Apr. 1, 2021). Commerce

selected Plaintiff as a mandatory respondent. See Truck and Bus Tires from the

People’s Republic of China: Resp’t Selection in [CVD] Admin. Review for 2020 (May 10,

2021) at 1, PR 39, CR 9, CJA Tab 1. Plaintiff is a producer and exporter of subject

merchandise and is majority-owned by Cooper Tire & Rubber Company (“CTRC”), a

U.S. importer. See Trucks and Tires From The People’s Republic Of China/GRT Resp.

To Initial Questionnaire (July 14, 2021) (“GRT IQR”) at III-6–III-7, PR 73-74, CR 38-47,

CJA Tab 5. As part of its review, Commerce issued questionnaires to Plaintiff and the

Government of China (“the GOC”) requesting, among other things, information related

to the EBCP, a state-subsidized loan program administered by the state-owned Export- Court No. 22-00229 Page 4

Import Bank of China (“Ex-Im Bank”). See Second Admin. Review of Truck and Bus

Tires from the People’s Republic of China: [CVD] Questionnaire (May 24, 2021) (“Initial

Questionnaire”), PR 41, CJA Tab 2.

GRT’s initial questionnaire response addressed the EBCP. GRT provided a

customer list showing a single U.S. customer, CTRC. See GRT IQR at III-26, Ex. 16.

GRT asserted “that none of its customers applied for, used, or benefited from the

alleged program during the POR.” Id. at III-27. GRT further stated that it was “never

contacted by any of its customers to provide any of the information that is required to

obtain an export buyer’s credit” and it was thus “impossible that any . . . customers

could have possibly received export buyer’s credit” under the EBCP process. Id. Jack

Jay McCracken, Vice President, Assistant General Counsel & Assistant Secretary for

CTRC and GRT, certified, as required by Commerce regulation, that the responses

were “accurate and complete” and “subject to verification.” Id. at Company Certification.

Meanwhile, Commerce requested that the GOC provide: (1) a copy of the

September 6, 2016 GOC 7th Supplemental Response to the CVD Investigation of

Certain Amorphous Silica Fabric from China (“EBCP Supplemental Questionnaire

Response”), (2) original and translated copies of any law, regulations, or other

governing documents cited in the EBCP Supplemental Questionnaire Response, and

(3) a list of all partner banks involved in the disbursement of funds under the EBCP.

Initial Questionnaire at II-23. The GOC declined to provide any of these documents,

stating that the EBCP Supplemental Questionnaire Response was not relevant and that

Commerce’s request for partner banks was broad and not necessary. See GOC Initial Court No. 22-00229 Page 5

Questionnaire Resp. in the 2020 Admin. Review of the [CVD] Order on Truck and Bus

Tires [ ] from the People’s Republic of China (C-570-041) (July 14, 2021) (“GOC IQR”)

at 107–09, PR 65-72, CR 29-37, CJA Tab 4.

Commerce also requested that the GOC provide a list of each respondent’s

customers that had outstanding EBCP loans and, if no customers used the EBCP, a

detailed explanation of the steps the GOC took to determine such non-use. See Initial

Questionnaire at II-23. The GOC responded that it obtained a list of customers from the

respondents, it provided those customer lists to the Ex-Im Bank, and the Ex-Im Bank

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