OPINION
POGUE, Chief Judge:
In this action, Plaintiff Trust Chem Co., Ltd. (“Trust Chem” or “Plaintiff’) seeks review of the final results of the U.S. Department of Commerce’s (“Commerce” or “the Department”) fourth administrative review of the antidumping order covering Carbazole Violet Pigment 23 (“CVP-23”) from the People’s Republic of China.
Specifically, Plaintiff claims that Commerce’s choice of data to value the nitric
acid used to produce the Plaintiffs merchandise is less specific than data Plaintiff submitted, and that Commerce’s chosen data is aberrational or unrepresentative of the nitric acid used in producing Plaintiffs goods.
The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2006).
As explained below, the court concludes that Commerce’s determination that its data is not aberrational requires reconsideration.
BACKGROUND
This case arises out of Commerce’s 2004 antidumping order on CVP-23
from China.
Carbazole Violet Pigment 23 from the People’s Republic of China,
69 Fed.Reg. 77,987 (Dep’t of Commerce Dec. 29, 2004) (antidumping duty order). Commerce considers China to be a nonmarket economy (“NME”).
In administrative proceedings involving goods from an NME, Commerce may approximate the normal value of the goods based on a “surrogate” for the value of their “factors of production” (“FOP”). 19 U.S.C. § 1677b(c);
see
also
19 C.F.R. § 351.408. The statute provides, however, “that surrogate data used to calculate the value of factors of production ... must, to the extent possible, come from market economy countries with ‘a level of economic development comparable to that of the non-market economy country.[’]”
Dorbest Ltd. v. United States,
604 F.3d 1363, 1371 (Fed.Cir.2010) (quoting 19 U.S.C. § 1677b(c)(4)(A)).
Within these statutory limitations, Commerce selects a specific surrogate value in each individual administrative proceeding, by choosing the “best available information,” 19 U.S.C. § 1677b(c),
which is se
lected using criteria established by regulation and practice, generally referred to as “Commerce’s methodology.” Such surrogate values are at issue here.
Specifically, during the fourth administrative review of Commerce’s antidumping order on CVP-23 from China, Trust Chem suggested that Commerce use a surrogate value for nitric acid, as published in the Indian periodical
Chemical Weekly,
of 9.00 Rupees per kilogram (“INR/Kg.”), or $215.31 per metric ton (“USD/MT”).
Pl. ’s Prelim. Surrogate Value Sub for Prelim. Determination
4 & Attach. 2, at 22-25 (Sept. 8, 2009) Admin. R. Pub. Doc. 22.
Defendant-Intervenors Nation Ford Chemical Company and Sun Chemical Corporation (collectively “Petitioners”) proposed a surrogate value based on nitric acid data from the Indian Department of Commerce’s Export Import Data Bank of 35.08 INR/Kg., or $839.44 USD/MT.
Pet’rs’ Surrogate Value Data
Ex. 21 (Sept. 8, 2009) (PR 21).
In the preliminary results, Commerce rejected these surrogate values. Instead, it utilized data from the Indian Department of Commerce’s Export Import Data Bank, compiled in the World Trade Atlas (“WTA data”),
for HTSUS 2808.00.10, with a POR value of $10,474.46 USD/MT.
Prelim. Surrogate Value Mem.
5-6 (Dec. 22, 2009) (PR 34)
(“Prelim. Surrogate Val-
Tie Mem.”);
Prelim. Results,
74 Fed.Reg. at 68,783;
see also Prelim. Results
at 68,-782 (“In accordance with [19 U.S.C. § 1677b(a)(1)(C) ] we calculated [normal value (“NV”) ] based on [FOPs] reported by Trust Chem for the POR. To calculate NV, we multiplied the reported per-unit factor consumption rates by publicly-available Indian surrogate values.”). On the basis of that data, Commerce preliminarily assigned a dumping margin
of 29.57 percent to Trust Chem.
Prelim. Results
74 Fed.Reg. at 68,785.
In the
Final Results,
again relying on WTA data, Commerce assigned Trust Chem a margin of 30.72 percent.
Final Results,
75 Fed.Reg. at 36,632.
Trust Chem now challenges this decision, arguing that: (A) the data it proposed is more specific
to, and hence more representative of, the nitric acid used in producing the subject CVP-23, and (B) the WTA data is aberrational or unrepresentative.
After summarizing the applicable standard of review, the court will address each of Trust Chem’s arguments in turn.
STANDARD OF REVIEW
When reviewing the final results of an antidumping proceeding, the court assesses whether Commerce’s decision is
supported by substantial evidence on the record and in accordance with law. 19 U.S.C. § 1516a(b)(1)(B)(i). “‘Substantial evidence’ is more than a mere scintilla .... [and is] such relevant evidence as a reasonable mind might accept as adequate to support a conclusionf,]”
Consol. Edison Co. v. NLRB,
305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938),
“taking into account the entire record, including whatever fairly detracts from the substantiality of the evidence.”
Atlantic Sugar, Ltd. v. United States,
744 F.2d 1556, 1562 (Fed. Cir.1984);
see also Universal Camera,
340 U.S. at 487, 71 S.Ct. 456. Thus, when reviewing agency determinations, findings or conclusions for substantial evidence, the court assesses whether the agency’s action is reasonable.
Nippon Steel Corp. v. United States,
458 F.3d 1345, 1350-51 (Fed.Cir. 2006).
“Normally, an agency rule would be arbitrary and capricious [and therefore unreasonable] if the agency has relied on factors which Congress has not intended it to consider ... [or] entirely failed to consider an important aspect of the problem.”
Motor Vehicle Mfrs. Ass’n. of U.S. v. State Farm Mut. Ins. Co.,
463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983);
SKF USA Inc. v. United States,
630 F.3d 1365, 1374 (Fed.Cir.2011) (Commerce “has an ‘obligation’ to address important factors raised by comments from petitioners and respondents.”).
DISCUSSION
A. Specificity of the Surrogate Value
First, Plaintiff claims that Commerce’s price determination is not supported by substantial evidence in the record because Commerce chose the “less specific” WTA data, which has “undetermined purity[.]” Pl.’s Br. 13.
Plaintiff argues that the
Chemical Weekly
data is more specific to its nitric acid, because the
Chemical Weekly
data is for nitric acid with a purity level of 60 percent, a level that is known and thus more product-specific than the unknown purity level of the WTA data.
Id.
at 9-10. Plaintiff adds that this value could have been “adjusted upward to at least partially account for the full costs of the higher purity level processing^]”
Id.
at 28.
Commerce noted, however, that although the purity or concentration of the nitric acid included in the WTA data was unknown, the
Chemical Weekly
prices were for 60 percent or “weak” strength nitric acid, as opposed to the “high” strength 98 percent nitric acid used in the production of Trust Chem’s merchandise. Because a simple conversion based on concentrations would not provide an accurate value, Commerce found that the
Chemical Weekly
prices were not the best available information, but rather the WTA data was the best option.
I & D Mem.
Cmt. 4 at 16.
Thus, Commerce argues that the
WTA data is the appropriate choice, as it is “more specific” than the
Chemical Weekly
data. Def.’s Br. 5, 8-10.
Commerce suggests that Plaintiff bases its specificity argument on “speculation.”
To the court, neither party can establish the precise relationship of its data to the 98 percent nitric acid used in the production of Plaintiffs merchandise. In fact, neither value is more “specific” than the other.
Nevertheless, as long as Commerce reasonably explains its choice between two appropriate but imperfect alternatives, the court will not reject the agency’s determination, even if the court would have made a different one.
Dorbest Ltd. v. United States,
30 CIT 1671, 1676, 462 F.Supp.2d 1262, 1269 (2006);
Goldlink Indus. v. United States,
30 CIT 616, 619, 431 F.Supp.2d 1323, 1327 (2006) (The court evaluates “whether a reasonable mind could conclude that Commerce chose the best available information.”).
B. Aberrational Price
Plaintiff also argues that Commerce’s surrogate value choice, based on WTA data, was “aberrational and distortive.” Pl.’s Br. 11. As it did before the agency, Trust Chem asserts four considerations in support of this claim: (1) the extreme numerical differences between the WTA and Chemical Weekly data; (2) the low volume of nitric acid included in the WTA data; (3) the relationship between U.S. import data and the Chemical Weekly data; and (4) Commerce’s decision in the original investigation and first administrative review of this order that other WTA data was aberrational. The court will consider each of these in turn.
1. Numerical Differences: First, Trust Chem avers that the fact that one surrogate value was “50 times greater” than the other should have signaled that the values needed . more “careful scrutiny[.]”
Id.
at 8. Thus, Plaintiff argues that Commerce should have used Plaintiffs preferred surrogate value calculation, the
Chemical Weekly
data of $215.31, instead of the aberrational WTA data.
Id.
at 13. Plaintiff also contends that it was “absurd” to give nitric acid, “a basic industrial chemical ... a surrogate value that is higher than such rare and expensive material inputs of carbazole violet pigment 23
such as chloranil, nekal and benzene sulfonyl chloride.”
Id.
at 18.
Commerce notes that, under its current methodology, “higher prices alone [do] not necessarily indicate that the price data are distorted or misrepresentative, and thus [are] not sufficient to exclude a particular surrogate value.”
I & D Mem.
Cmt. 4 at 14;
see also Tapered Roller Bearings from the People’s Republic of China,
Issues & Decision Memorandum, A-570-601, ARP 07-08 (Dec. 28, 2009) [ (adopted in 75 Fed. Reg. 844) (Dep’t Commerce Jan. 6, 2010) (final results of the 2007-2008 administrative review of the antidumping duty order) ] 18
(“TRBs from the PRC
”).
Commerce contends that under its practice, Trust Chem needed to provide “specific evidence” to show that the surrogate value was aberrational, but it failed to do so.
I & D Mem.
Cmt. 4 at 14. According to Commerce, a difference between WTA data and
Chemical Weekly
prices is insufficient proof that the WTA data is aberrational. Def.’s Br. 16;
I & D Mem.
Cmt. 4 at 14-16. Moreover, Commerce asserts that because Trust Chem did not provide data regarding the average unit values (“AUVs”) for nitric acid for the other potential surrogate countries, Commerce did not have data to compare with the Indian WTA AUVs to determine if they were aberrational.
I & D Mem.
Cmt. 4 at 14-15.
The court will not disturb this aspect of Commerce’s determination. While Plaintiff correctly notes the large discrepancy in price, the court agrees with Commerce that Plaintiff did not place sufficient comparative data on the record, such as data from other identified potential surrogate countries, to support its challenge based on numerical differences alone. Thus Commerce’s decision not to place weight on the numerical differences between the WTA data and the
Chemical Weekly
data was not unreasonable.
2. Import Volume: Second, Plaintiff argues that the WTA import volume, upon which the average unit value was based — only 26.2 metric tons of nitric acid during the POR — was “infinitesimally small,” rendering the data aberrational. Pl.’s Br. 8-9.
Plaintiff argues that the POR import volume of 26.2 metric tons cannot be considered representative “[o]n its face[.]”
Id.
at 24.
Commerce counters that “small quantities of imports ... are not inherently” distortive.
I & D Mem.
Cmt. 4 at 15;
see also Less-Than-Fair Value Investigation
of Certain Lined Paper Products from the People’s Republic of China,
Issues & Decision Memorandum, A-570-901, ARP 6-05 (Aug. 30, 2006) [ (adopted in 71 Fed.Reg. 57,079)] (Dep’t Commerce Sept. 8, 2006) (notice of final determination)
(“Lined Paper Products from the PRC
”). In addition, Commerce argues that Trust Chem did not place any information on the record to show that “the WTA data [was] not representative of commercial activity.”
I & D Mem.
Cmt. 4 at 15; Def.’s Br. 17.
See e.g., Sichuan Changhong Electric Co. v. United States,
30 CIT 1481, 1501, 460 F.Supp.2d 1338, 1356 (2006) (“Commerce [does] not ha[ve] a longstanding practice of omitting import values merely because they were the product of a small quantity of imported goods.”);
Shakeproof Assembly Components Div. of Illinois Tool Works, Inc. v. United States,
— CIT -, 59 F.Supp.2d 1354, 1360 (1999) (citations omitted)(Commerce’s “administrative practice with respect to aberrational data is ‘to disregard small-quantity import data when the per-unit value is substantially different from the per-unit values of the larger quantity imports of that product from other countries.’ ”).
In addressing Trust Chem’s argument, Commerce states that the Indian import data the Petitioners put on the record showed that the POR import quantity (2008) was larger than the quantities for the years 2004-2007. Therefore, Commerce was not persuaded by Trust Chem’s allegation regarding small import quantities.
I & D Mem.
Cmt. 4 at 16.
Notably, as Commerce points out, the question is whether the
relative
quantity of imports is distortive. Here, Plaintiff did not introduce evidence, for example, that the WTA volume was only a small fraction of India’s domestic consumption. Def.’s Br. 18.
Therefore, on this record, Plaintiffs argument that the cumulative total for imports from 2004-2008 is too small must fail.
3. U.S. Import Statistics: Third, Plaintiff refers to its submission of additional U.S. import surrogate value information, containing an AUV of $349.95 USD/MT. Plaintiff argues that this sum corroborates the
Chemical Weekly
price previously reported and is further proof that the WTA data is aberrational. Pl.’s Br. 4; Pl.’s Reply 2;
see also Pl.’s Surrogate Value Sub. for the Final Results
Attach. 1 (Jan. 19, 2010) (PR 38)
(“Pl.’s Surrogate Value Sub. for Final Results ”).
Commerce’s current methodology, however, “no longer relies upon U.S. prices as an appropriate benchmark to determine whether surrogate values are aberrational.”
I & D Mem.
Cmt. 4 at 15.
Plaintiff responds, citing the plain language of 19 U.S.C. § 1677b(c)(2).
Plain
tiff suggests that the statute “expressly contemplates the use of sale prices in the United States as a potential source for surrogate values” if available information is inadequate. Pl.’s Br. 21.
Commerce disagrees, arguing that the statute “explicitly allows Commerce to use United States pricing data
only
when that data pertains to imports from countries of ‘comparable’ economic development to China,” as is delineated in § 1677b(c)(2)(B). Def.’s Br. 15. Commerce states that Trust Chem’s claim that this import data was the only available data, and hence is the “best” information, is without merit because the statute provides that § 1677b(c)(2) is an exception to the best available information standard stated in § 1677b(c)(1). Commerce adds further that the statute does not require Commerce to use benchmarks, and thus Commerce was not obligated to use U.S. import data as a benchmark.
Commerce contends that its decision not to use the U.S. import data was consistent with both the plain language of the statute as well- as the agency’s established practice of rejecting U.S. import benchmark prices when the relevant imports do not originate from the designated surrogate countries [that are economically comparable to the NME at issue].
Id.
at 13. Commerce contends that Trust Chem bore the burden of proving that the WTA surrogate value was aberrational by presenting data for the potential surrogate countries, and it failed to do so.
Id.
at 13;
see also I & D Mem.
Cmt. 4 at 14-15.
The court agrees with Commerce that section 1677b(c)(2) provides an exception for NME cases, applicable where there is available but inadequate information on the record.
Ningbo Dafa Chemical Fiber Co. v. United States,
580 F.3d 1247, 1254 (Fed.Cir.2009). The exception allows Commerce to use pricing data pertaining to countries of comparable economic development to the country at issue.
Zhengzhou Harmoni Spice Co. v. United States,
— CIT-, 617 F.Supp.2d 1281, 1290 (2009);
Kerr-McGee Chemical Corp. v. United States,
185 F.3d 884, 1999 WL 89033, at *1 (Fed.Cir.1999). At the same time, there is no statutory prohibition on using U.S. or other market economy data to corroborate record evidence.
Peer Bearing Co. Changshan,
752 F.Supp.2d at 1372.
Nonetheless, Commerce adequately explained that “while in the past the Department has used U.S. prices to benchmark surrogate values, the Department’s current practice has been to benchmark surrogate values against imports from the list of potential surrogate countries for a given case.”
Lined Paper Products from the PRC
Cmt. 5 at 30.
Although there is no prohibition on using U.S. import data, Commerce’s preference for data from potential surrogate countries was not unreasonable.
4. Commerce’s Prior Determinations: Fourth, Plaintiff states that in Commerce’s original investigation, and in the first administrative review of the anti-dumping order in this matter, Commerce used
Chemical Weekly
data as the best surrogate value for nitric acid. Pl.’s Br. 9;
see also Pl.’s Surrogate Value Sub. for Final Results
at Attach. 2-3, (citing
Final Determination of Carbazole Violet Pig
ment 23 from the People’s Republic of China,
Issues & Decision Memorandum, A-570-892, ARP 03-04 (Nov. 8, 2004) [ (adopted in 69 Fed.Reg. 67,304) (Dep’t Commerce Nov. 17, 2004) (notice of final determination of sales at less than fair value) ]
(“Carbazole Violet Pigment 23 from the PRC”)).
Specifically, in the investigation, Commerce agreed with Respondents that the Indian import statistics were aberrational, finding WTA data of $4,384.22
USD/MT to be aberrational, when compared to a WTA U.S. benchmark import value of $170 USD/MT and a WTA European Union value of $114.43 USD/ MT.
See Pl’s Surrogate Value Sub. for Final Results
Attach. 2 at 21. Therefore, Commerce used the
Chemical Weekly
value of $122.93 USD/MT for nitric acid.
However, during this fourth administrative review, Commerce found the $10,474 USD/MT data, a number significantly higher than the calculation discarded in the earlier determination, to be the best available information for calculating normal value. Pl.’s Br. 15;
see also Pi’s Surrogate Value Sub. for Final Results
Attach. 2, 20-21. To explain this deviation from its previous determination, Commerce argues that its “prior determination used a now-abandoned methodology that could not have been employed in this review.” Def.’s Br. 15. Commerce claims that this new method is better aligned with the statute, and that altering its methodology is within Commerce’s discretion.
Id.
16.
Accordingly, relying on its “strong preference for comparing statistics from the same source[,]”
I & D Mem.
Cmt. 4 at 15;
see also Lined Paper Products from the PRC
at 30, Commerce asserts that it could not determine that its chosen value (based on WTA data) in the current review was aberrational because the sources of comparison
(Chemical Weekly)
for the values were not the same.
I & D Mem.
Cmt. 4 at 15.
Commerce’s premise, however — that the sources are not the same — is a description, not an explanation. Moreover, in a previous determination that Commerce cited to in the
I & D Mem.,
Commerce stated that, “[w]hile [it] agree[s] ... that it is preferable to benchmark selected surrogate values against AUVs derived from the same data source, for benchmarking purposes, where [Commerce] had insufficient data from one source, [it] also compared the AUVs derived from COMTRADE, CAP-MAS, and the WTA data to each other. CAPMAS trade data are specific to Egypt, therefore, [Commerce] had to benchmark these against data from COMTRADE and
WTA.”
Hot-Rolled Carbon Steel from Romania
Cmt.
2
at 19-20.
In addition, Plaintiff points out that Commerce’s chosen surrogate value is “12 times higher than the inflated surrogate value [of $839.44 USD/MT] originally requested by the Petitionerfs] [Nation Ford Chemical and Sun Chemical].” Pl.’s Br. 18.
This important fact does not appear in Commerce’s extensive analysis. Rather, Commerce is silent, even though the Petitioners’ submission of what it must regard as a representative value of the nitric acid at issue is necessarily an important aspect of the issue presented where Commerce itself has in the past declined to rely on the higher WTA data. Moreover, where Petitioners’ able counsel presented as representative a value that is less than eight percent of the WTA value, it is hard to see how a reasonable mind could infer that the WTA value is not aberrational.
Consequently, the court cannot affirm Commerce’s conclusion. Certainly, Commerce’s new practice of comparing prices between countries of similar economic development is reasonable and is therefore entitled to deference. And, certainly a determination in one investigation is not binding in the subsequent reviews, as each determination is
sui generis,
consisting of a unique set of variables and relative factors,
U.S. Steel Corp. v. United States,
— CIT-, 637 F.Supp.2d 1199, 1218 (2009);
see also Nucor Corp. v. United States,
414 F.3d 1331, 1340 (Fed.Cir. 2005).
Nonetheless, Commerce’s job is to compare the data on the record and provide an explanation that considers the important aspects of the problem presented.
SKF USA, Inc. v. United States,
630 F.3d 1365, 1373-74 (Fed.Cir.2011) (stating that Commerce failed to comply with its
State Farm
obligation to provide an adequate explanation when its explanation failed to consider an important aspect of the problem). It has not done so here.
CONCLUSION
For all of the foregoing reasons, Plaintiffs Motion for Judgment on the Agency-Record is granted in part. This matter is remanded for reconsideration and further explanation in accordance with this opinion.
Commerce shall have until October 3, 2011 to complete and file its remand redetermination. Plaintiffs shall have until November 2, 2011 to file comments. Defendant and DefendanNIntervenors shall have until November 17, 2011 to file any reply.
It is SO ORDERED.