Ta Chen Stainless Steel Pipe, Inc. v. United States

24 Ct. Int'l Trade 841, 2000 CIT 107
United States Court of International Trade·Decided August 25, 2000·No. Court 97-08-01344·Published

Opinion

Opinion

Restani, Judge:

On October 28, 1999, the court remanded the final results of the Department of Commerce, International Trade Administration (“Commerce” or “the Department”) in Certain Welded Stainless Steel Pipe from Taiwan, 62 Fed. Reg. 37,543 (Dep’t Commerce 1997) (final results of admin, rev.) [hereinafter “Final Results”]. See Ta Chen Stainless Steel Pipe, Ltd. v. United States, No. 97-08-01344, 1999 WL 1001194 (Ct. Int’l Trade Oct. 28,1999). Familiarity with the court’s earlier opinion is presumed.

Commerce issued its remand determination on February 25, 2000. See Final Results of Redetermination Pursuant to Court Remand: Ta Chen Stainless Steel Pipe, Ltd. v. United States, Court No. 97-08-01344 [hereinafter “Remand Results” or “RR”]. Ta Chen contests the Department’s application of adverse facts available and selection of the adverse margin in the Remand Results. 1

STANDARD OF REVIEW

In reviewing final determinations in antidumping duty investigations, the court shall hold unlawful any agency determination found unsupported by substantial evidence on the record, or otherwise not in accordance with law. 19 U.S.C. § 1516a(b)(l)(B)(i) (1994).

Background

A. Ta Chen’s Affiliation with Sun Stainless, Inc.

In the Final Results, Commerce found that Ta Chen was affiliated with one of its U.S. distributors, Sun Stainless, Inc. (“Sun”), by virtue of Ta Chen’s control over Sun, pursuant to 19 U.S.C. § 1677(33)(G) (1994). Final Results, 62 Fed. Reg. at 37,549-50. Because of Ta Chen’s affiliation with this U.S. distributor, Commerce determined that Ta Chen had constructed export price (“CEP”) sales during the period of review *842 (“POR”). Because Ta Chen had not provided data on Sun’s U.S. sales, the record did not contain the information necessary to calculate CEE Commerce determined that Ta Chen failed to comply to the best of its ability in providing Sun’s U.S. sales information. Id. at 37,552-53. Therefore, Commerce applied partial adverse facts available for Sun’s U.S. sales. Id.

The court held that Commerce’s determination that Ta Chen controlled Sun was supported by substantial evidence. Ta Chen, 1999 WL 1001194 at *11. The court found, however, that Commerce had failed to provide Ta Chen with sufficient notice of its determination that Ta Chen controlled Sun, and that the Department had never specifically requested the information on Sun’s U.S. sales. Id. at *12. Therefore, the court held that Commerce had failed to comply with its statutory obligation under 19 U.S.C. § 1677m(d) (1994) by failing to provide the respondent with notice of a deficient submission before applying facts available. Id. The court remanded the Final Results for Commerce to request Sun’s U.S. sales information from Ta Chen. Id. at *14.

On November 9, 1999, Commerce issued a supplemental questionnaire to Ta Chen requesting information on Sun’s U.S. sales in order to calculate CEE RR at 2. Ta Chen contacted Picol Enterprises, Inc. (“Pi-col”) for this information. Letters (Nov. 30, 1999), at 5, PR. Doc. 1216, Def.’s Remand App., Tab 4, at 5. Sun’s owner, Frank McLane, had sold Sun to Picol International and Masaru Kimura in July 1995. Ta Chen’s Response to Petitioner’s Comments (Dec. 20, 1996), at 12-14 & Ex. 3, C.R. Doc. 14, PL’s Prop. App. to 56.2 motion, Tab B, at 12-14 & Ex. 3. In response to its inquiry, Ta Chen received a letter dated November 25, 1999, from Picol Sun’s counsel stating that it would not cooperate with the Department’s inquiry because the company had closed on September 30, 1996. Letters, at 6, Def.’s Remand App., Tab 4, at 6. Picol Sun’s counsel stated that it no longer maintained any business operations in the United States and that it would be burdensome for Picol Sun to respond to the request. Id. Picol Sun’s counsel did state that he would ask his client to reconsider. Id. On November 30, 1999, Ta Chen requested an extension of time in which to provide the Sun information, which the Department granted. RR at 2. On December 7,1999, Ta Chen requested another extension, but the next day it forwarded the Department a letter from Picol Sun’s counsel stating that it would not respond to the Department’s questionnaire for the reasons stated in the November 25, 1999 letter. Letters (Dec. 8, 1999), at 2, PR. Doc. 1218, Def.’s Remand App., Tab 7, at 2. Without the information on Sun’s U.S. sales, Commerce did not have the information needed to calculate CEE

Commerce concluded that because Ta Chen had withheld or failed to provide the information requested, it would apply facts otherwise available pursuant to 19 U.S.C. § 1677e(a) (1994). RR at 3. Commerce further concluded that Ta Chen had failed to comply to the best its ability in providing the information, and that an adverse inference pursuant to 19 U.S.C. § 1677e(b) was warranted for the Sun sales. Id. at 3-4. In calcu *843 lating a partial adverse facts available margin, Commerce “assigned the highest calculated margin calculated for these final remand results to be applied to Ta Chen’s sales to Sun.” Id. at 5-6. The sale with the highest dumping margin was 30.95 percent, which Commerce used to recalculate the margin of 2.60 percent for Ta Chen’s sales during the POR. Id. at 14-15. Ta Chen challenges the remand determination, contesting the application of adverse facts available and the selection of the margin.

B. Alleged Commissions to Anderson

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