Tai-Ao Aluminium (Taishan) Co.v. United States

2019 CIT 164

• Court: United States Court of International Trade
• Decided: December 18, 2019
• Docket: Consol. 17-00216
• Status: Published

Opinion

6OLS2S

81,7('67$7(6&28572),17(51$7,21$/75$'(

7$,$2$/80,1,80 7$,6+$1 &2 /7'$1'7$$/$0(5,&$/7'

3ODLQWLIIV

DQG

5(*$/,'($6,1&

&RQVROLGDWHG3ODLQWLII %HIRUH*DU\6.DW]PDQQ-XGJH Y &RQVRO&RXUW1R 81,7('67$7(6

'HIHQGDQW

7+($/80,180(;7586,216)$,5 75$'(&200,77((

'HIHQGDQW,QWHUYHQRU

23,1,21

>7KHFRXUWVXVWDLQV&RPPHUFH¶V)LQDO5HVXOWVRI5HGHWHUPLQDWLRQ@

 'DWHG'HFHPEHU

1HG+0DUVKDN3HWHU:.OHVWDGWDQG-RUGDQ&.DKQ*UXQIHOG'HVLGHULR/HERZLW]6LOYHUPDQ .OHVWDGW//3RI1HZ

.ULVWHQ6PLWKDQG6DUDK(

$PLH /HH 6HQLRU 7ULDO &RXQVHO &RPPHUFLDO /LWLJDWLRQ %UDQFK &LYLO 'LYLVLRQ 86 'HSDUWPHQWRI-XVWLFHRI1HZ

2IFRXQVHOZDV-HVVLFD0/LQN$VVLVWDQW&KLHI&RXQVHO2IILFHRIWKH&KLHI&RXQVHOIRU7UDGH (QIRUFHPHQW &RPSOLDQFH86'HSDUWPHQWRI&RPPHUFHRI:DVKLQJWRQ'&

$ODQ+3ULFHDQG5REHUW('H)UDQFHVFR,,,:LOH\5HLQ//3RI:DVKLQJWRQ'&IRUGHIHQGDQW LQWHUYHQRU

.DW]PDQQ -XGJH  7KH FRXUW UHWXUQV WR D FDVH DULVLQJ IURP DQ DQWLFLUFXPYHQWLRQ

LQYHVWLJDWLRQFHQWHULQJRQH[WUXVLRQVPDGHIURPDOXPLQXPDOOR\V7DL$R$OXPLQXP 7DLVKDQ 

&R/WGY8QLWHG6WDWHV&,7BBBB)6XSSG   ³7DL$R´ 7KHFRXUWQRZ

DGGUHVVHV ZKHWKHU WKH 8QLWHG 6WDWHV 'HSDUWPHQW RI &RPPHUFH¶V ³&RPPHUFH´  UHIRUPXODWHG

OLTXLGDWLRQLQVWUXFWLRQVWR&XVWRPVDQG%RUGHU3URWHFWLRQ ³&%3´ SXUVXDQWWRLWVUHPDQGRUGHULQ

7DL$RVKRXOGEHVXVWDLQHG7KHFRXUWVXVWDLQV&RPPHUFH¶V)LQDO5HVXOWVRI5HGHWHUPLQDWLRQ

3XUVXDQWWR&RXUW5HPDQG 'HS¶W&RPPHUFH-XQH -XO\(&)1R ³5HPDQG

5HVXOWV´ 

%$&.*5281'

7KHFRXUWSUHVXPHVIDPLOLDULW\ZLWKLWVSUHYLRXVGHFLVLRQLQWKLVFDVH7DL$R)6XSS

G,QIRUPDWLRQSHUWLQHQWWRWKHLQVWDQWFDVHLVVHWIRUWKEHORZ

2Q-XO\&RPPHUFHSXEOLVKHG$OXPLQXP([WUXVLRQVIURPWKH3HRSOH¶V5HSXEOLF

RI &KLQD $IILUPDWLYH )LQDO 'HWHUPLQDWLRQ RI &LUFXPYHQWLRQ RI WKH $QWLGXPSLQJ DQG

&RXQWHUYDLOLQJ'XW\2UGHUVDQG5HVFLVVLRQRI0LQRU$OWHUDWLRQV$QWL&LUFXPYHQWLRQ,QTXLU\

)HG5HJ -XO\  ³)LQDO'HWHUPLQDWLRQ´ DQGDFFRPSDQ\LQJ,VVXHVDQG'HFLVLRQ

0HPRUDQGXP ³,'0´ 3ODLQWLIIV7DL$R$OXPLQXP 7DLVKDQ &R/WGDQG7$$/$PHULFD/WG

FROOHFWLYHO\³7DL$R´ DQG5HJDO,GHDV,QF ³5HJDO´ FKDOOHQJHGWKH)LQDO'HWHUPLQDWLRQEHIRUH

WKHFRXUW,Q7DL$RWKHFRXUWDIILUPHG&RPPHUFH¶VLQLWLDODQWLFLUFXPYHQWLRQLQYHVWLJDWLRQDQG

VFRSHLQWHUSUHWDWLRQ)6XSSGDW±+RZHYHUWKHFRXUWUHPDQGHG&RPPHUFH¶V &RQVRO&RXUW1R 3DJH

OLTXLGDWLRQLQVWUXFWLRQVWR&%3IRUUHIRUPXODWLRQEHFDXVHRILQDGHTXDWHQRWLFHWR7DL$RDQG5HJDO

WKDWWKHLUSURGXFWVZHUHLQLWLDOO\VXEMHFWWRDQDQWLFLUFXPYHQWLRQLQTXLU\,GDW±

2Q -XO\   &RPPHUFH LVVXHG D 'UDIW 5HPDQG 5HGHWHUPLQDWLRQ LQ ZKLFK XQGHU

UHVSHFWIXO SURWHVW LW SURSRVHG UHIRUPXODWHG OLTXLGDWLRQ LQVWUXFWLRQV  'UDIW 5HVXOWV RI

5HGHWHUPLQDWLRQ 3XUVXDQW WR &RXUW 5HPDQG DW ± -XO\   35   3ODLQWLIIV DQG

'HIHQGDQW,QWHUYHQRU$OXPLQXP([WUXVLRQV)DLU7UDGH&RPPLWWHH ³$()7&´ VXEPLWWHGWLPHO\

FRPPHQWVLQUHVSRQVH7DL$R¶V'UDIW5HPDQG&RPPHQWV-XO\355HJDO¶V'UDIW

5HPDQG&RPPHQWV-XO\35$()7&¶V'UDIW5HPDQG&RPPHQWV-XO\

35&RPPHUFHLVVXHGLWV5HPDQG5HVXOWVRQ-XO\VWDWLQJWKDW&RPPHUFH³LQWHQG>V@

WRLVVXHDSSURSULDWHLQVWUXFWLRQVWR>&%3@UHJDUGLQJHQWULHVIRU7DL$RIRUWKHSHULRG0DUFK

WKURXJK1RYHPEHU´5HPDQG5HVXOWVDW7DL$R5HJDODQG$()7&VXEPLWWHG

WKHLUFRPPHQWVRQWKH5HPDQG5HVXOWVRQ6HSWHPEHUDQG$XJXVWUHVSHFWLYHO\

7DL$R¶V&RPPHQWVLQ6XSSRUWRI&RPPHUFH¶V5HPDQG6HSW(&)1R ³7DL$R¶V

%U´ 5HJDO¶V&RPPHQWVRQ&RPPHUFH¶V5HPDQG'HWHUPLQDWLRQ$XJ(&)1R

³5HJDO¶V%U´ $()7&¶V&RPPHQWVRQ)LQDO5HVXOWVRI5HGHWHUPLQDWLRQ3XUVXDQWWR5HPDQG

$XJ(&)1R ³'HI,QW¶V%U´ 7KH8QLWHG6WDWHV ³*RYHUQPHQW´ DQG$()7&

VXEPLWWHGWKHLUUHSOLHVWR7DL$R¶VDQG5HJDO¶VFRPPHQWVRQ6HSWHPEHU'HIHQGDQW¶V

5HVSRQVHWR3ODLQWLII¶VDQG'HIHQGDQW,QWHUYHQRU¶V&RPPHQWVRQWKH5HPDQG5HGHWHUPLQDWLRQ

6HSW   (&) 1R  ³'HI¶V %U´  $()7&¶V 5HSO\ WR &RPPHQWV RQ )LQDO 5HVXOWV RI

5HGHWHUPLQDWLRQ3XUVXDQWWR5HPDQG6HSW(&)1R ³'HI,QW¶V5HSO\´ 

7DL$RUHTXHVWVWKDWWKHFRXUWVXVWDLQWKH5HPDQG5HVXOWV7DL$R¶V%UDW5HJDOLQVWHDG

DVNVWKHFRXUWWRUHPDQGWKHFDVHDJDLQWR&RPPHUFHRUGHULQJ&RPPHUFHWRDGGUHVV5HJDO¶VGDWH

RIOLDELOLW\5HJDO¶V%UDW5HJDODUJXHVWKDW&RPPHUFH¶VUHIXVDOWRLVVXHLQVWUXFWLRQVWR&%3 &RQVRO&RXUW1R  3DJH

UHJDUGLQJWKHGDWHRIFRPPHQFHPHQWRIGXW\OLDELOLW\IRU5HJDOZDVLQFRQVLVWHQWZLWKWKHFRXUW¶V

GHFLVLRQLQ7DL$R,G$()7&UHTXHVWVWKDWWKHFRXUWVXVWDLQWKH5HPDQG5HVXOWVRQO\LQUHJDUG

WR5HJDODQGRWKHUZLVHVXVWDLQ&RPPHUFH¶V)LQDO'HWHUPLQDWLRQEHFDXVHFRQWUDU\WRWKHFRXUW¶V

KROGLQJLQ7DL$R7DL$RDQG5HJDOKDGVXIILFLHQWQRWLFH'HI,QW¶V%UDW'HI,QW¶V5HSO\

DW$()7&WKXVFRQWHQGVWKDW&RPPHUFH¶VGHFLVLRQWRUHIRUPXODWHLWVOLTXLGDWLRQLQVWUXFWLRQV

³ZDVLQHUURUDQGLVQRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFHRURWKHUZLVHLQDFFRUGDQFHZLWKODZ´

'HI,QW¶V%UDW7KH*RYHUQPHQWUHTXHVWVWKDWWKHFRXUWVXVWDLQ&RPPHUFH¶V5HPDQG5HVXOWV

'HI¶V %U DW   7KH FRXUW VXVWDLQV &RPPHUFH¶V DQWLGXPSLQJ GHWHUPLQDWLRQV ILQGLQJV DQG

FRQFOXVLRQVXQOHVVWKH\DUH³XQVXSSRUWHGE\VXEVWDQWLDOHYLGHQFHRQWKHUHFRUGRURWKHUZLVHQRW

LQDFFRUGDQFHZLWKODZ´86&†D E  % L 

',6&866,21  I. Commerce’s Failure to Instruct CBP on Regal’s Nonexistent Entries is Consistent with the Court’s Remand Order.   &RPPHUFH¶V5HPDQG5HVXOWVDUHFRQVLVWHQWZLWKWKHFRXUW¶VUHPDQGRUGHUDQGSUHYLRXV

RSLQLRQ6HH7DL$R)6XSSGDW±1RQHWKHOHVV5HJDOFRQWHQGVWKDW&RPPHUFH¶V

IDLOXUHWRSUHSDUHGUDIWLQVWUXFWLRQVWR&%3UHJDUGLQJ5HJDOZDVFRXQWHUWR7DL$R5HJDO¶V%UDW

ZKLFKKHOGWKDWWKHUHZDVLQVXIILFLHQWQRWLFHWR7DL$RDQG5HJDOWKDWWKH\ZHUHVXEMHFWWRDQ

DQWLFLUFXPYHQWLRQLQTXLU\EHWZHHQWKHGDWHRIWKHLQLWLDWLRQRIWKHDQWLFLUFXPYHQWLRQLQTXLU\DQG

WKHGDWHRI&RPPHUFH¶VSXEOLFDWLRQRILWVSUHOLPLQDU\GHWHUPLQDWLRQLQWKDWLQTXLU\ ³3UH1RWLFH

3HULRG´  7DL$R  ) 6XSS G DW   )XUWKHU 5HJDO DUJXHV WKDW &RPPHUFH¶V IDLOXUH WR

DGGUHVV5HJDO¶VOLDELOLW\LQLWVSURSRVHGLQVWUXFWLRQVZLOOKDYHQHJDWLYHOHJDOUDPLILFDWLRQVRQWZR

RQJRLQJ DQG UHODWHG FDVHV UHJDUGLQJ WKH VFRSH RI &RPPHUFH¶V RUGHUV UHJDUGLQJ DOXPLQXP

H[WUXVLRQV5HJDO¶V%UDW± FLWLQJWR5HJDO,GHDV,QFY8QLWHG6WDWHV&RXUW1RV

DQG &,7  VWD\HGSHQGLQJGLVSRVLWLRQRIWKLVFDVH  &RQVRO&RXUW1R 3DJH

7KHFRXUWFRQFOXGHVWKDW&RPPHUFHFRPSOLHGZLWKWKHFRXUW¶VRUGHUWR³UHIRUPXODWHLWV

OLTXLGDWLRQLQVWUXFWLRQV´6HH7DL$R)6XSSGDW$V5HJDOLWVHOIFRQFHGHVLWGLG

QRWKDYHDQ\HQWULHVGXULQJWKH3UH1RWLFH3HULRG5HJDO¶V%UDW'HI¶V%UDW±)RUWKDW

UHDVRQ&RPPHUFHGLGQRWQHHGWRUHIRUPXODWHLWVLQVWUXFWLRQVWR&%3WRLQFOXGHQRQH[LVWHQW5HJDO

HQWULHV$VWKH*RYHUQPHQWQRWHVSULRURSLQLRQVRIWKLVFRXUWDQGWKH)HGHUDO&LUFXLWGLFWDWHWKDW

ZKHQ WKHUH LV QR LPSDFW RQ WKH OLTXLGDWLRQ RI HQWULHV FKDOOHQJHV WR &RPPHUFH¶V OLTXLGDWLRQ

LQVWUXFWLRQVWR&%3DUHUHQGHUHGPRRW6HH'HI¶V%UDW FLWLQJ3HUIHFWXV$OXPLQXP,QFY

8QLWHG6WDWHV)6XSSG  +HDUWODQG%\3URG,QFY8QLWHG6WDWHV

)G )HG&LU 6HHDOVR'HI,QW¶V5HSO\DW ³,IWKHUHDUHQRXQOLTXLGDWHG

HQWULHV5HJDOKDVQRVWDQGLQJLQWKLV&RXUWWRSUHVVWKLVDUJXPHQW´ 

)XUWKHUPRUH&RPPHUFH¶VIDLOXUHWRLQVWUXFW&%3RQ5HJDO¶VHQWULHVGXULQJWKH3UH1RWLFH

3HULRGGRHVQRWQHJDWHWKHFRXUW¶VKROGLQJWKDW³&RPPHUFH¶VGHFLVLRQWRVXVSHQGOLTXLGDWLRQZLWK

UHVSHFWWR3ODLQWLIIVIURPWKHGDWHRIWKH,QLWLDWLRQ1RWLFHZDVLPSHUPLVVLEOHEHFDXVH3ODLQWLIIVGLG

QRW UHFHLYH DGHTXDWH QRWLFH DW WKDW WLPH´ DQG WKDW 5HJDO VKRXOG QRW KDYH EHHQ VXEMHFWHG WR

VXVSHQVLRQ RI OLTXLGDWLRQ RI HQWULHV GXULQJ WKH 3UH1RWLFH 3HULRG  7DL$R  ) 6XSS G DW

±7KHUHIRUHWKHUHLVQRSODXVLEOHQHJDWLYHOHJDOLPSDFWRQ5HJDO¶VWZRSHQGLQJVFRSH

FDVHV  %HFDXVH WKH FRXUW LQ 7DL$R VWDWHGWKDW&RPPHUFHPD\QRW DVVHVVUHWURDFWLYH GXWLHV WR

5HJDODQG5HJDOKDGQRHQWULHVGXULQJWKDWSHULRG&RPPHUFH¶VUHPDQGLQVWUXFWLRQVDUHFRQVLVWHQW

ZLWKWKHFRXUW¶VUHPDQGRUGHU

II. Commerce’s Liquidation Instructions to CBP Regarding Tai-Ao are Consistent with the Court’s Remand Order.

)LQDOO\$()7&FRQWLQXHVWRGLVDJUHHZLWKWKHFRXUW¶VGHFLVLRQLQ7DL$R$()7&WKXV

DUJXHVWKDW&RPPHUFH¶VGHFLVLRQWRUHIRUPXODWHLWVOLTXLGDWLRQLQVWUXFWLRQVXQGHUSURWHVW³ZDVLQ

HUURUDQGLVQRWVXSSRUWHGE\VXEVWDQWLDOHYLGHQFHRURWKHUZLVHLQDFFRUGDQFHZLWKODZ´'HI,QW¶V &RQVRO&RXUW1R 3DJH

%UDW7KH*RYHUQPHQWUHVSRQGVWKDW³&RPPHUFH¶VULJKWWRILOHDUHPDQGXQGHUSURWHVWLVZHOO

VHWWOHG´'HI¶V%UDW FLWLQJ0HULGLDQ3URGV//&Y8QLWHG6WDWHV)G±

)HG&LU  FLWLQJ9LUDM*US/WGY8QLWHG6WDWHV)G )HG&LU 

7KHFRXUWDJUHHVDQGKROGVWKDWWKH5HPDQG5HVXOWVDUHFRQVLVWHQWZLWKWKHUHPDQGRUGHU7KH

)HGHUDO &LUFXLW KDV XSKHOG WKDW &RPPHUFH PD\ ILOH UHPDQG UHVXOWV XQGHU SURWHVW ZKLOH VWLOO

SUHVHUYLQJLWVULJKWWRDSSHDO9LUDM*US)GDW7KXVZKHUHDVKHUH&RPPHUFHILOHG

UHIRUPXODWHGOLTXLGDWLRQLQVWUXFWLRQVXQGHUSURWHVWWKDWGHWHUPLQDWLRQLVVXSSRUWHGE\VXEVWDQWLDO

HYLGHQFHDQGLQDFFRUGDQFHZLWKWKHODZ

&21&/86,21

&RPPHUFH¶V5HPDQG5HVXOWVDUHVXVWDLQHG

6225'(5('

V*DU\6.DW]PDQQ *DU\6.DW]PDQQ-XGJH

'DWHG'HFHPEHU 1HZ