Tianjin Wanhua Co. v. United States

182 F. Supp. 3d 1301, 2016 CIT 79, 38 I.T.R.D. (BNA) 1597, 2016 Ct. Intl. Trade LEXIS 79, 2016 WL 4275362
United States Court of International Trade·Decided August 15, 2016·No. Slip Op. 16-79; Court 15-00190·Published·Cited by 1 cases

Opinion

MEMORANDUM and ORDER

Gordon, Judge:

This action involves the fifth administrative review conducted by the U.S. Department of Commerce (“Commerce”) of the antidumping duty order Covering polyethylene terephthalate film, sheet, and strip from the People’s Republic, of China. See Polyethylene Terephthalate Film, Sheet, and Strip from the People’s Republic of China, 80 Fed. Reg. 33,241 (Dep’t Commerce June 11, 2015) (final results admin. review) (“Final Results”) and accompanying Issues and Decision Mem. for Polyethylene Terephthalate Film, Sheet, and Strip from the People’s Republic of China, A-570-924 (June 3, 2015), ECF No. 33-3 (“Decision Mem.”).

*1303 Before the court is the USCIT Rule 56.2 motion for judgment on the agency record of Plaintiff Tianjin Wanhua Co., Ltd. (“Plaintiff’ or “Wanhua”), See Pl.’s Mem. Supp. Mot. J. Agency R., ECF No. 41 (“Wanhua Br.”); see also Def.’s Mem. Opp’n Pl.’s R. 56.2 Mot. J. Agency R. and Mot. Partial Voluntary Remand, ECF No. 51 (“Def.’s Resp.”); PL’s Reply to Def.’s Resp., ECF No. 59 (‘Wanhua Reply”). In lieu of briefing, Defendant-Intervenor Ter-phane, Inc., and Defendant-Intervenors Mitsubishi Polyester Film, Inc. and SKC, Inc. (“collectively “Mitsubishi”) submitted letters in support of the response brief of Defendant. See Terphane’s Letter in Lieu of Resp. Br., ECF No. 53; Mitsubishi’s Letter in Lieu of Resp. Br., ECF No. 54. The court has jurisdiction pursuant to Section 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2012), 1 and 28 U;S.C. § 1581(c) (2012). The court sustains Commerce’s “determinations, findings, or conclusions” unless they are “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i).

Plaintiff challenges (1) Commerce’s rejection, as untimely, of certain surrogate value information, see Wanhua Rejected Surrogate Value Information, PDs 157-159 at bar codes 3214057-01 to -03 (July 7, 2014), ECF No. 43 (“July 7th Submission”) 2 ; (2) Commerce’s treatment of Wan-hua’s request for clarification of the reasons for Commerce’s rejection of Wanhua’s administrative case brief and the redaction instructions for that brief, see Request for Clarification of Rejection, PD 224 at bar code 3265244-01 (Mar. 19, 2015), ECF No. 61 (“Clarification Letter”); and (3) Commerce’s selection of Indonesia as the primary surrogate country. 3 See Wanhua Br. 2,19,22.

In response, Defendant requests that the court sustain Commerce’s rejection of the information in Wanhua’s July 7th Submission and moves for a partial voluntary remand to address (1) Commerce’s treatment of Wanhua’s Clarification Letter and (2) Commerce’s primary surrogate country selection. See Def.’s Resp. 4, 22. Plaintiff agrees that remand is appropriate, but argues for a remand of the entire matter. See Wanhua Reply 5.

I. Legal Framework

In an antidumping duty administrative review, Commerce determines whether subject merchandise is being, or is likely to be, sold at less than fair value in the United’ States by comparing the export price and the normal value of the merchandise. 19 U.S.C. §§ 1675(a)(2)(A), 1677b(a). In the non-market economy (“NME”) context, Commerce calculates normal value using data from surrogate countries to value the factors of production (“FOPs”). 19 U.S.C. § 1677b(c)(l)(B). Commerce must use the “best available information” in selecting surrogate data from “one or more” surrogate market economy countries. 19 U.S.C. § 1677b(c)(l)(B), (4). Commerce has a stated regulatory preference to “normally ... value all factors in a single surrogate country.” 19 C.F.R. § 351.408(c)(2) (2014).

The antidumping statute requires that surrogate data must be “to the extent possible” from a market economy country *1304 or countries that are (1) “at a level of economic development comparable to that of the [NME] country” and (2) “significant producers of comparable merchandise.” 19 U.S.C. § 1677b(c)(4). The statute does not define the phrase “level of economic development comparable to that of the [NME] country,” nor does it require Commerce to use any particular methodology in determining whether that criterion is satisfied. To partially fill the statutory gap, Commerce promulgated 19 C.F.R. § '351.408(b), which emphasizes per capita Gross Domestic Product (“GDP”) as a measure of economic comparability:

In determining whether a country is at a level of economic development comparable to the non-market economy under [19 U.S.C. § 1677b(c)(l)(B)] or [19 U.S.C. § 1677b(c)(4)(A)] of the Act, the Secretary will place primary emphasis on per capita GDP as the measure of economic comparability.

19 C.F.R. § 351.408(b). Commerce has since explained that it “now uses per cap-ita [Gross National Income, or “GNI”], rather than per capita GDP, because while the two measures are very similar, per capita GNI is reported across almost all countries by an authoritative source (the World Bank), ánd because [Commerce] believes that the per capita GNI represents the single best measure of a country’s level of total income and thus level of economic development.” Antidumping Methodologies in Proceedings Involving Non-Market Economy Countries: Surrogate Country Selection and Separate Rates, 72 Fed. Reg. 13,246, 13,246 n.2 (Dep’t Commerce Mar. 21, 2007) (req. for comments).

Commerce uses GNI data “as reported in the most current annual issue of the World Development Report (World Bank)” to identify potential surrogate countries that arei economically comparable to the NME country. Import Admin., U.S. Dep’t of Commerce, Non-Market Economy Surrogate Country Selection Process, Policy Bulletin 04.1 at 2 (2004), http:// enforcement.trade.gov/policy/bull04-l.html (last visited this date) (“Policy Bulletin”). The identification of potential surrogate countries occurs early in a dumping proceeding, id., and is the first step in Commerce’s four-step process to select a surrogate country:

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Tianjin Wanhua Co. v. United States, 182 F. Supp. 3d 1301, 2016 CIT 79, 38 I.T.R.D. (BNA) 1597, 2016 Ct. Intl. Trade LEXIS 79, 2016 WL 4275362 (cit 2016).

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