Shenzhen Xinboda Industrial Co., Ltd. v. United States

357 F. Supp. 3d 1295
CourtUnited States Court of International Trade
DecidedDecember 26, 2018
DocketSlip Op. 18-179; Consol. Court No. 16-00116
StatusPublished
Cited by3 cases

This text of 357 F. Supp. 3d 1295 (Shenzhen Xinboda Industrial 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
Shenzhen Xinboda Industrial Co., Ltd. v. United States, 357 F. Supp. 3d 1295 (cit 2018).

Opinion

Barnett, Judge:

*1297This matter is before the court following the U.S. Department of Commerce's ("Commerce" or the "agency") redetermination upon remand in this case. See Final Results of Redetermination Pursuant to Court Remand ("Remand Results"), ECF No. 69-1.

Plaintiff Shenzhen Xinboda Industrial Co., Ltd. ("Plaintiff" or "Xinboda") initiated this action1 challenging Commerce's final results in the 20th administrative review ("AR 20") of the antidumping duty order on fresh garlic from the People's Republic of China ("PRC" or "China").2 See Summons, ECF No. 1; Fresh Garlic From the People's Republic of China , 81 Fed. Reg. 39,897 (Dep't Commerce June 20, 2016) (final results and final rescission of the 20th antidumping duty admin. review; 2013-2014) (" Final Results "), ECF No. 30-4, and accompanying Issues and Decision Mem., A-570-831 (June 10, 2016) ("I & D Mem."), ECF No. 30-5.3 Specifically, Xinboda, a mandatory respondent in this review, challenged Commerce's (1) rejection of surrogate country information demonstrating Mexico's economic comparability to China; (2) selection of Romania as the primary surrogate country; and (3) calculation of movement expenses. See Pl. Shenzhen Xinboda Industrial Co., Ltd.'s Mot. for J. on the Agency R., ECF No. 39, and Pl. Shenzhen Xinboda Industrial Co., Ltd. Mem. in Supp. of Mot. for J. on the Agency R. ("Xinboda's 56.2 Br."), ECF No. 39-2; I & D Mem. at 1. On December 18, 2017, the court remanded Commerce's rejection of surrogate country information and deferred consideration of Plaintiff's additional challenges pending the results of Commerce's remand redetermination. See *1298Shenzhen Xinboda Indus. Co. Ltd. v. United States , Slip Op. 17-160, 2017 WL 6502727 (CIT Dec. 5, 2017).4

On March 9, 2018, Commerce filed its Remand Results.5 On remand, Commerce, under protest,6 permitted Xinboda to submit factual information regarding Mexico's economic comparability to China. Remand Results at 1. Upon consideration of this information and Mexican surrogate value data, Commerce affirmed its selection of Romania as the primary surrogate country. Id. at 1, 31.

Xinboda filed comments opposing the Remand Results. See Pl. Shenzhen Xinboda Industrial Co., Ltd. Comments in Opp'n to U.S. Dep't of Commerce's Remand Redetermination ("Xinboda's Remand Opp'n"), ECF No. 84.7 Defendant United States ("Defendant" or the "Government") and Defendant-Intervenors8 filed comments in support of the Remand Results. See Def.'s Resp. to Comments on Remand Results ("Def.'s Remand Reply"), ECF No. 78; Def.-Ints.' Comments in Supp. of the U.S. Dep't of Commerce's Redetermination Pursuant to Remand ("Def.-Ints.' Remand Reply"), ECF No. 77.

For the reasons discussed herein, Commerce's selection of Romania as the primary surrogate country and selection of Romanian pricing data as the surrogate value for raw garlic are sustained. However, the court remands for further consideration Commerce's addition of transportation costs to the surrogate value for raw garlic and calculation of Xinboda's brokerage and handling and inland freight expenses.

JURISDICTION AND STANDARD OF REVIEW

The court has jurisdiction pursuant to § 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2012),9 and 28 U.S.C. § 1581(c). The court will uphold an agency determination that is supported by substantial evidence and otherwise in accordance *1299with law. 19 U.S.C. § 1516a(b)(1)(B)(i). "The results of a redetermination pursuant to court remand are also reviewed for compliance with the court's remand order." SolarWorld Ams., Inc. v. United States , 41 CIT ----, ----, 273 F.Supp.3d 1314, 1317 (2017) (quoting Xinjiamei Furniture (Zhangzhou) Co. v. United States , 38 CIT ----, ----, 968 F.Supp.2d 1255, 1259 (2014) (internal quotation marks omitted).

DISCUSSION

I. Surrogate Country Selection

An antidumping duty is "the amount by which the normal value exceeds the export price (or the constructed export price) for the merchandise." 19 U.S.C. § 1673. When an antidumping duty proceeding involves a nonmarket economy country, Commerce determines normal value by valuing the factors of production10 in a surrogate country, see id. § 1677b(c)(1), and those values are referred to as "surrogate values." Commerce may also rely on surrogate values, when appropriate, to adjust the export price or constructed export price to account for costs incurred in "bringing the subject merchandise from the original place of shipment in the exporting country to the place of delivery in the United States." Id. § 1677a(c)(2)(A); see also Fine Furniture (Shanghai) Ltd. v. United States , 40 CIT ----, ----, 182 F.Supp.3d 1350, 1368 (2016) (noting Commerce's use of a surrogate value to calculate international movement expenses). In selecting surrogate values, Commerce must use "the best available information" that is, "to the extent possible," from a market economy country or countries that are economically comparable to the nonmarket economy country and "significant producers of comparable merchandise." 19 U.S.C. § 1677b(c)(1), (4).

Commerce generally values all factors of production in a single surrogate country.11 Commerce has adopted a four-step approach to selecting a primary surrogate country. See Import Admin., U.S. Dep't of Commerce, Non-Market Economy Surrogate Country Selection Process

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Cite This Page — Counsel Stack

Bluebook (online)
357 F. Supp. 3d 1295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shenzhen-xinboda-industrial-co-ltd-v-united-states-cit-2018.