Shandong Huanri (Group) General Co. v. United States

493 F. Supp. 2d 1353, 31 Ct. Int'l Trade 1029, 31 C.I.T. 1029, 29 I.T.R.D. (BNA) 2104, 2007 Ct. Intl. Trade LEXIS 104
CourtUnited States Court of International Trade
DecidedJuly 5, 2007
DocketSlip Op. 07-105; Court 05-00648
StatusPublished
Cited by3 cases

This text of 493 F. Supp. 2d 1353 (Shandong Huanri (Group) General 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
Shandong Huanri (Group) General Co. v. United States, 493 F. Supp. 2d 1353, 31 Ct. Int'l Trade 1029, 31 C.I.T. 1029, 29 I.T.R.D. (BNA) 2104, 2007 Ct. Intl. Trade LEXIS 104 (cit 2007).

Opinion

TSOUCALAS, Senior Judge.

Before the Court is Plaintiffs’ Shandong Huanri (Group) General Co., Shandong Huanri Group Co., Ltd. and Laizhou Hu-anri Automobile Parts Co., Ltd. (collectively “Plaintiffs” or “Huanri”) motion for judgment upon the agency record brought pursuant to USCIT Rule 56.2. Plaintiffs challenge aspects of the United States Department of Commerce’s (“Commerce”) determination Brake Rotors From the People’s Republic of China: Final Results and Partial Rescission of the Seventh Administrative Review; Final Results of the Eleventh New Shipper Review, 70 Fed. Reg. 69,937 (Nov. 18, 2005) (“Final Results”). Plaintiffs contend, inter alia, that Commerce changed its separate rates methodology, and did so without notice and comment. See Pl.’s R. 56.2 Mot. J. Upon Agency Rec. (“Pl.’s Br.”) at 10 (“Commerce abused its discretion when it changed its separate rates practice]]]”). For the following reasons, the Court finds Plaintiffs’ contentions to be without merit, and denies their motion. 1

*1356 JURISDICTION & STANDARD OF REVIEW

The Court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2000) and 19 U.S.C. § 1516a(b)(1)(B)(i) (2000). When reviewing the final results in antidumping administrative reviews “[t]he court shall hold unlawful any determination, finding, or conclusion ... found ... to be unsupported by substantial evidence on the record, or otherwise not in accordance with law ....” 19 U.S.C. § 1516a(b)(1)(B)(i). “Substantial evidence is more than a mere scintilla.” Consol. Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938). “Substantial evidence is ‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.’ ” Huaiyin Foreign Trade Corp. (30) v. United States, 322 F.3d 1369, 1374 (Fed.Cir.2003) (quoting Consol. Edison Co., 305 U.S. at 229, 59 S.Ct. 206). In determining the existence of substantial evidence, a reviewing Court must consider “the record as a whole, including evidence that supports as well as evidence that ‘fairly detracts from the substantiality of the evidence.’ ” Huaiyin, 322 F.3d at 1374 (quoting Atl. Sugar, Ltd. v. United States, 744 F.2d 1556, 1562 (Fed.Cir.1984)).

BACKGROUND

The facts of this case have been fully set forth in the prior decisions of this Court. The facts relevant to the instant inquiry are as follows. Plaintiff Shandong Huanri (Group) General Company (“Huanri”) 2 was an exporter of brake rotors (“subject merchandise”) subject to the antidumping (“AD”) duty order on Brake Rotors From the People’s Republic of China during the seventh administrative review. 3 See Brake Rotors from the People’s Republic of China, 69 Fed.Reg. 30,282 (Dep’t Commerce May 27, 2004) (initiation). Defendant-In-tervenor, The Coalition for the Preservation of the American Brake Drum and Rotor Aftermarket Manufacturers (“Coalition”), was a domestic petitioner in the original antidumping investigation that resulted in the AD order, and an interested party in all reviews of the order. See Brake Rotors From the People’s Republic of China, 62 Fed.Reg. 18,740 (Dep’t Commerce Apr. 17, 1997) (antidumping order). In both the preliminary and final results of the seventh administrative review of the AD order, Commerce denied Huanri General a separate rate. See Brake Rotors From the People’s Republic of China: Preliminary Results and Partial Recision of the Seventh Administrative Review and Preliminary Results of the Eleventh New Shipper Review, 70 Fed.Reg. 24,382, 24,-387 (May 9, 2005) (“Preliminary Results”); Final Results, 70 Fed.Reg. at 69,939.

Commerce denied Huanri a separate rate, primarily, on the basis that Huanri was controlled by the Panjacun Village Committee. As there was record evidence indicating that the Village Committee operated under the leadership of the Chinese Communist Party, Commerce found that Village Committee was a form of Chinese *1357 government. Indeed, in its final results, Commerce explained that Huanri was “controlled by the Panjacun Village Committee, and ... determined that this entity was subject to central government control.” As it did in its preliminary results, Commerce continued “to find that Huanri is not entitled to a separate rate in these final results. Because [Commerce] has determined that Huanri does not qualify for a separate raté, [Commerce] determined] that Huanri is part of the PRC-wide entity and will be subject to the PRC-wide rate.” Final Results, 70 Fed.Reg. at 69,939 (internal citation omitted).

Such a finding was necessary because of the People’s Republic of China’s (“PRC”) status as a nonmarket economy (“NME”) country. As will be discussed infra, in a NME country, a presumption of government control for exporters automatically attaches. See Coal. for the Preservation of Am. Brake Drum & Rotor Aftermarket Mfrs. v. United States, 23 CIT 88, 100, 44 F.Supp.2d 229, 242 (1999) (“Coalition /”) (finding that pursuant to “the broad authority delegated to it from Congress, Commerce has employed -a presumption of state control for exporters in a nonmarket economy.”). Unless this presumption is rebutted, Commerce assigns the exporter the country-wide antidumping duty rate. Transcom Inc. v. United States, 182 F.3d 876, 882 (Fed.Cir.1999). In order to rebut this presumption and qualify for a separate, company-specific rate, 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, with respect to exports'.” Sigma Corp. v. United States, 117 F.3d 1401, 1405 (Fed.Cir.1997). In the instant matter, Commerce determined that Huanri failed to rebut this presumption with respect to de facto government control.

Commerce took the following steps in determining whether Huanri was free from de facto government control.

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493 F. Supp. 2d 1353, 31 Ct. Int'l Trade 1029, 31 C.I.T. 1029, 29 I.T.R.D. (BNA) 2104, 2007 Ct. Intl. Trade LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shandong-huanri-group-general-co-v-united-states-cit-2007.