Shandong Huarong General Group Corp. v. United States

28 Ct. Int'l Trade 1624, 2004 CIT 117
CourtUnited States Court of International Trade
DecidedSeptember 13, 2004
DocketCourt 01-00858
StatusPublished

This text of 28 Ct. Int'l Trade 1624 (Shandong Huarong General Group Corp. 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 Huarong General Group Corp. v. United States, 28 Ct. Int'l Trade 1624, 2004 CIT 117 (cit 2004).

Opinion

OPINION AND ORDER

Eaton, Judge:

This matter is before the court following remand to the United States Department of Commerce (“Commerce”). In Shandong Huarong General Group Corp. v. United States, 27 CIT _, slip op. 03-135 (Oct. 22, 2003) (“Huarong F), this court remanded Commerce’s determination in the ninth administrative review of heavy forged hand tools from the People’s Republic of China (“P.R.C.”), covering the period of review February 1, 1999, through January 31, 2000. See Heavy Forged Hand Tools From the P.R.C., 66 Fed. Reg. 48,026 (ITA Sept. 17, 2001) (final det.) (“Final Results”). Plaintiffs Shandong Huarong General Group Corporation (“Huarong”) and Liaoning Machinery Import and Export Corporation (“LMC”) (collectively the “Companies”) had challenged that determination with respect to Commerce’s decision to apply the P.R.C.wide antidumping duty margin to their subject merchandise. The court has jurisdiction over this matter pursuant to 28 U.S.C. § 1581(c) (2000) and 19 U.S.C. § 1516a(a)(2)(B)(iii) (2000). For the reasons set forth below, this matter is affirmed in part, and remanded in part to Commerce with instructions to conduct further proceedings in conformity with this opinion.

Background

The relevant facts and procedural history in this case are set forth in Huarong I. A brief summary of these is included here. On February 14, 2000, Commerce published a notice of opportunity to request administrative reviews of the antidumping duty order covering heavy forged hand tools from the P.R.C. See Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation, 65 Fed. Reg. 7348, 7349 (ITA Feb. 14, 2000) (opportunity request *1625 admin, rev.). In response, several P.R.C. entities — including the Companies — requested administrative reviews. See Heavy Forged Hand Tools, Finished or Unfinished, With or Without Handles, From the P.R.C., 65 Fed. Reg. 66,691, 66,692 (ITANov. 7, 2000) (prelim, results and prelim, partial rescission of antidumping duty admin, revs.) (“Preliminary Results”). Commerce then commenced its investigation and distributed standard nonmarket economy (“NME”) country 1 antidumping questionnaires.

Based on information provided by the Companies in their original and supplemental questionnaire responses, Commerce determined that they were each preliminarily entitled to company-specific anti-dumping duty margins separate from the P.R.C.-wide antidumping duty margin. See Prelim. Results, 65 Fed. Reg. at 66,693. Commerce calculated Huarong’s preliminary company-specific antidumping duty rate for bars/wedges to be 0.44%, and calculated LMC’s preliminary company-specific antidumping duty rate for bars/wedges to be 0.01%. See id. at 66,696. The P.R.C.-wide antidumping duty rate for bars/wedges was preliminarily calculated to be 139.31%. Id.

Commerce then notified the Companies that it would conduct verification of their submitted sales and factors of production information. Commerce conducted verification of LMC’s questionnaire responses from April 23 through April 26, 2001. See Verification in Dalian, Liaoning, the P.R.C, of the Questionnaire Resps. of LMC in the Antidumping Duty Admin. Rev. of Heavy Forged Hand Tools from the P.R.C., Conf. R. Doc. 73 (“LMC Verification Report”). In its verification report, Commerce noted that Company A 2 , not Company B, 3 was actually the seller of an “overwhelming majority” of the bars and wedges, and that Company B’s role was largely limited to processing shipping documents and payment receipts. See LMC Verification Report at 5. In other words, it was only at verification, and not before, that Commerce learned the actual nature of these transactions.

Commerce then conducted verification of Huarong’s questionnaire responses from May 2 through May 9, 2001. See Verification in Dongping Town, Shandong Province, the P.R.C., of the Questionnaire Resps. of Shandong Huarong Gen. Group Corp. in the Antidumping Admin. Rev. of Heavy Forged Hand Tools from the P.R.C., Conf. R. *1626 Doc. 74 (“Huarong Verification Report”). Again, as with LMC, Commerce made certain “significant findings,” including that “[t]he overwhelming majority of sales activities for subject merchandise sales reported by [Company B] were actually performed by [Company A].” Id. at 1. Indeed, Commerce determined that the sales claimed by Company B were actually Company A’s. See Application of Adverse Facts Available to Shandong Huarong General Group Corp., Conf. R. Doc. 84 at 3.

After review and analysis of the questionnaire responses and the information gathered at verification, Commerce determined that the use of facts available and adverse facts available was warranted as the Companies did not cooperate by acting to the best of their ability to comply with Commerce’s requests for information. See Final Results, 66 Fed. Reg. at 48,028. As a result of these findings, the Companies’ subject merchandise was assigned the final RR.C.-wide anti-dumping duty rate of 47.88%. See id. at 48,030 n.l (“Based on the results of this review the following companies are no longer eligible for separate rates . . . Huarong, and LMC.”). The Companies then commenced an action for judgment upon the agency record pursuant to USCIT R. 56.2, arguing that Commerce’s decision to apply the P.R.C.-wide antidumping duty margin to their subject merchandise was not supported by substantial evidence or otherwise in accordance with law. The court remanded, instructing Commerce to reevaluate the evidence submitted by the Companies with respect to their entitlement to separate rates, and “revisit... its determination that the Companies were to receive the PRC-wide antidumping duty margin.” Huarong I, slip op. 03-135 at 45.

Standard of Review

The 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)(l)(B)(i); Huaiyin Foreign Trade Corp. (30) v. United States, 322 F.3d 1369, 1374 (Fed. Cir. 2003) (quoting 19 U.S.C. § 1516a(b)(l)(B)(i) (2000)). “Substantial evidence is ‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.’ ” Huaiyin, 322 F.3d at 1374 (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229 (1938)).

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