Shanghai Taoen Intern. Trading Co., Ltd. v. United States

360 F. Supp. 2d 1339, 29 Ct. Int'l Trade 189, 29 C.I.T. 189, 27 I.T.R.D. (BNA) 1399, 2005 Ct. Intl. Trade LEXIS 23
CourtUnited States Court of International Trade
DecidedFebruary 17, 2005
DocketSlip Op. 05-22; Court 04-00125
StatusPublished
Cited by39 cases

This text of 360 F. Supp. 2d 1339 (Shanghai Taoen Intern. Trading Co., Ltd. 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
Shanghai Taoen Intern. Trading Co., Ltd. v. United States, 360 F. Supp. 2d 1339, 29 Ct. Int'l Trade 189, 29 C.I.T. 189, 27 I.T.R.D. (BNA) 1399, 2005 Ct. Intl. Trade LEXIS 23 (cit 2005).

Opinion

OPINION

RESTANI, Chief Judge.

Plaintiff Shanghai Taoen International Trading Co. (“Taoen”) appears before the court on a motion for judgment upon the agency record pursuant to USCIT Rule 56.2, challenging the determination issued by the United States Department of Commerce (“Commerce”) in the antidumping duty administrative review of freshwater crawfish tail meat (“crawfish tail meat”) from the People’s Republic of China (“PRC”) for the period of review September 1, 2001 through August 31, 2002 (the “POR”).

JURISDICTION AND STANDARD OF REVIEW

The court has jurisdiction pursuant to 28 U.S.C. § 1581(e) (2000). In accordance with 19 U.S.C. § 1516a(b)(l)(B) (2000), the court shall hold unlawful any determination “unsupported by substantial evidence *1341 on the record, or otherwise not in accordance with law.”

FACTUAL AND PROCEDURAL BACKGROUND

On August 1, 1997, Commerce published in the Federal Register the final determination of its sales-at-less-than-fair-value (“LTFV”) investigation of crawfish tail meat from the PRC, covering the period March 1, 1996 through August 31, 1996. Freshwater Crawfish Tail Meat From the People’s Republic of China, 62 Fed.Reg. 41,347 (Dep’t Commerce August 1, 1997) (amended by Freshivater Crawfish Tail Meat from the People’s Republic of China, 62 Fed.Reg. 48,218 (Dep’t Commerce Sept. 15, 1997)). Based on timely requests from interested parties pursuant to 19 CFR 351.213(b) (2002), Commerce initiated an administrative review of the antidumping duty order on crawfish tail meat from the PRC for the POR, including the initiation of a review of Taoen’s exports of crawfish tail meat. Initiation of Antidumping and Countervailing Duty Administrative Reviews, 67 Fed.Reg. 65,336 (Dep’t Commerce Oct. 24, 2002).

In its initial questionnaire response, Taoen stated that it did not produce any of the crawfish tail meat that it exported during the POR. Questionnaire Response (Dec. 10, 2002), at 3, PL’s App., Tab A. Instead, Taoen indicated that all of the crawfish tail meat was produced by Lian-yungang Yuzhu Aquatic Products Processing Co. (‘Yuzhu”). Id. at 5, Pl.’s App., Tab A. On January 23, 2003, Commerce requested more information about Taoen’s producers, to which Taoen affirmed that Yuzhu was the only company that supplied Taoen with crawfish tail meat. Questionnaire Response (March 7, 2003), at 22, PL’s App., Tab C. Subsequently, Commerce issued a supplemental questionnaire on May 2, 2003, in which it requested that Taoen provide all. information as to “Shanghai Taoen’s and Yuzhu’s relationship(s) with any entities or individuals in any way involved in the production, processing, exportation, shipment, importation, distribution, or sale of crawfish tail meat.” Questionnaire Response (May 15, 2003), at 45, PL’s App., Tab E. Taoen replied that “Shanghai Taoen and Yuzhu have no relationship with any entities or individuals in any way involved in the production, processing, exportation, shipment, importation, distribution, or sale of craw-fish tail meat.” Id. at 45, PL’s App., Tab E.

For the purpose of its preliminary results, Commerce relied on these responses, and calculated a preliminary margin of 57.73%, based on factors of production for Taoen’s one reported producer, Yuzhu. Freshwater Crawfish Tail Meat from the People’s Republic of China, 68 Fed.Reg. 58,064 (Dep’t Commerce October 8, 2003) (preliminary results). During Commerce’s verification research, the U.S. Customs and Border Protection (“Customs”) provided Commerce with copies of all entry documents related to Taoen’s sales of crawfish tail meat during the POR. Commerce determined that Taoen’s questionnaire responses were inconsistent with Customs’ entry documents. 1 Supplemental Request for Information (Dec. 5, 2003), at 109, PL’s App., Tab J. On December 5, 2003, Commerce alerted Taoen to these inconsistencies and asked it to explain and provide documentation demonstrating that Yuzhu was the only producer of'Taoen’s crawfish *1342 tail meat. Id. at 110, Pl.’s App., Tab J. In its December 15, 2003 response, Taoen reiterated that Yuzhu was the only producer of the crawfish tail meat and explained that the inconsistency was caused by a backlog for receiving inspection results in Lianyungang. 2 Response to the Department’s Dec.. 5, 2003 Letter (Dec. 15, 2003), at 113, Pl.’s App., Tab K.

On February 13, 2004, Commerce released its administrative determination and accompanying issues and decisions memorandum, in which it determined that Taoen’s explanation for the inconsistencies between its questionnaire responses and Customs’ entry documents was not credible, 3 and even if it was, Taoen withheld information from Commerce throughout the administrative review. Id. at 162, Pi’s App., Tab M. To determine the appropriate margin, Commerce applied total facts available pursuant to 19 U.S.C. § 1677e(a), and concluded that an adverse inference was warranted pursuant to 19 U.S.C. § 1677e(b). Id. at 162, 164, Pl.’s App., Tab M. As the total adverse facts available rate, Commerce assigned the highest margin from any segment of the proceeding. Id. at 164' — 65, Pl.’s App., Tab M. This resulted in Taoen being assigned a rate of 223.01% — a rate calculated in the 1999— 2000 administrative review of the anti-dumping duty order on crawfish tail meat from the PRC, for the exporter Huaiyin 30. Id. at 164 — 65, Pl.’s App., Tab M.

On appeal to this court, Taoen challenges Commerce’s (1) decision to apply total adverse facts available to determine its antidumping duty margin, and (2) assignment of the highest margin from any segment of the proceeding as the total adverse facts available rate.

DISCUSSION

I. Commerce’s Application of Total Adverse Facts Available is Supported by Substantial Evidence and is Otherwise in Accordance with the Law.

Taoen contests the application of total adverse facts available to determine its dumping margin, arguing that (1) Taoen did not withhold information, (2) even if information was initially withheld, it was supplied within the relevant deadlines, and (3) any information not submitted was neither significant nor fundamental to Commerce’s calculation of an accurate dumping margin. Taoen contends that it initially misunderstood Commerce’s questions about its business relationships, and that it accurately answered Commerce’s questions about its producer relationships at every stage of Commerce’s review.

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360 F. Supp. 2d 1339, 29 Ct. Int'l Trade 189, 29 C.I.T. 189, 27 I.T.R.D. (BNA) 1399, 2005 Ct. Intl. Trade LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shanghai-taoen-intern-trading-co-ltd-v-united-states-cit-2005.