Zhejiang Native Produce & Animal By-Products Import & Export Corp. v. United States

34 Ct. Int'l Trade 283, 2010 CIT 30
CourtUnited States Court of International Trade
DecidedMarch 24, 2010
DocketCourt 02-00057
StatusPublished

This text of 34 Ct. Int'l Trade 283 (Zhejiang Native Produce & Animal By-Products Import & Export Corp. 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
Zhejiang Native Produce & Animal By-Products Import & Export Corp. v. United States, 34 Ct. Int'l Trade 283, 2010 CIT 30 (cit 2010).

Opinion

*284 OPINION AND ORDER

EATON, Judge:

This action is before the court following remand for resolution of plaintiffs’ USCIT Rule 56.2 motion for judgment upon the agency record. 1 Defendant-intervenors, the American Honey Producers Association and the Sioux Honey Association (together, “defendant-intervenors”), challenge the finding of no critical circumstances in the United States Department of Commerce’s (“Commerce” or “the Department”) Results of Redetermination Pursuant to Remand (Dep’t of Commerce Sept. 5, 2006), Zhejiang Native Produce & Animal By-Products Import & Export Corp., et al. v. United States, Court No. 02-00057) (“Remand Redetermination”). The Remand Re-determination resulted from the court’s remand order in Zhejiang Native Produce & Animal By-Products Import & Export Corp. v. United States, 30 CIT 725, Slip Op. 06-85 (June 6,2006) (not reported in the Federal Supplement) (the “Remand Order”). Plaintiffs, and defendant the United States on behalf of Commerce, support the redetermination results, and ask the court to affirm the Remand Redetermination. Pls.’ Comments Regarding Remand Redetermination (“Pls.’ Comm.”) 2; Response of the United States to the Comments of Pis. and Def.-Ints. upon the Dep’t of Commerce’s Final Results of Redetermination Pursuant to Court Order (“Def.’s Resp.”) 1.

The court’s Remand Order was made following the opinion of the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”) in Zhejiang Native Produce & Animal By-Products Import & Export Corp. v. United States, 432 F.3d 1363 (Fed. Cir. 2005) (“Zhejiang II"). 2 See Remand Order, 30 CIT 725, Slip Op. 06-85. In *285 Zhejiang II, the Federal Circuit held that Commerce could not use its standard 25 percent method 3 to impute knowledge of below fair market sales to plaintiffs during a period that a suspension agreement was in place. Thus, the Federal Circuit held that Commerce’s critical circumstances determination was not supported by substantial evidence. The Federal Circuit then remanded the matter to this Court where it was further remanded to Commerce. Zhejiang II, 432 F.3d at 1368; Remand Order, 30 CIT at 725, Slip Op. 06-85 at 2. On remand, Commerce reversed its previous determination and found that critical circumstances were not present during the period of investigation.

Defendant-intervenors argue that the court should once again remand the case to Commerce with instructions for it to determine whether critical circumstances were present by: (1) using a methodology other than the 25 percent method; and/or (2) using a Court No. 02-00057 Page 5 period different from the period of investigation for making its determination. Defendant-intervenors’ Remand Comments (“Def.-Ints.’ Comm.”) 3.

Jurisdiction is had pursuant to 28 U.S.C. § 1581© (2006) and 19 U.S.C. §§ 1516a(a)(2)(A)(i)(II) and (B)(i) (2006). For the reasons set forth below, the Remand Redetermination is remanded.

Background

The facts of this case are fully set forth in the court’s prior decision in Zhejiang Native Produce & Animal By-Products Import & Export Corp. v. United States, 27 CIT 1827, Slip Op. 03-151 (Nov. 21, 2003) (not reported in the Federal Supplement) (“Zhejiang I"), Zhejiang II, and the court’s Order of September 26, 2007 denying plaintiffs’ rule 60(b) motion for relief from judgment. A brief restatement of the case follows in order to place this opinion in context.

In 1994, Commerce conducted an unfair trade investigation of honey from the People’s Republic of China (“PRC”). Commerce subsequently halted this investigation and entered into a suspension agreement with the PRC. See Honey From the PRC, 60 Fed. Reg. 42,521 (Dep’t of Commerce Aug. 16, 1995) (suspension of investigation) (the “Suspension Agreement”). The Suspension Agreement was in effect from August 16,1995, through August 16, 2000. Honey From the PRC, 65 Fed. Reg. 46,426 (Dep’t of Commerce July 28, 2000) *286 (termination of suspended antidumping duty investigation). In 2000, following the Suspension Agreement’s termination, and at the urging of the domestic industry, Commerce commenced a second investigation. Honey from Argentina and the PRC, 65 Fed. Reg. 65,831 (Dep’t of Commerce Nov. 2, 2000) (initiation of antidumping duty investigations) (the “Second Investigation”). During the course of the Second Investigation, the petitioners alleged the existence of critical circumstances. See 19 U.S.C. § 1673b(e)(1). Commerce identified the period of investigation (“POI”) as January 1, 2000, through June 30, 2000, a period during which the Suspension Agreement was in effect. During the course of its proceedings the Department used the POI to determine both if respondents were dumping their merchandise and for purposes of determining if critical circumstances were present. See Honey From the PRC, 66 Fed. Reg. 24,101, 24,106 (Dep’t of Commerce May 11, 2001) (notice of preliminary determination of sales at less than fair value) (“Preliminary Results”).

Following the investigation, Commerce’s final determination contained an affirmative dumping finding. Honey From the PRC, 66 Fed. Reg. 50,608, 50,610 (Dep’t of Commerce Oct. 4, 2001) (notice of final determination of sales at less than fair value), as amended by Honey from the PRC, 66 Fed. Reg. 63,670 (Dep’t of Commerce Dec. 10, 2001) (notice of amended final determination of sales at less than fair value and antidumping duty order). The final determination also contained an affirmative finding of critical circumstances based on the 25 percent method’s imputation of knowledge of dumping. 66 Fed. Reg. at 50,6010. This imputation of knowledge of dumping was predicated on the Department’s practice of considering

margins of 25 percent or more for [export price] sales sufficient to impute knowledge of dumping .... In other words, in cases where, as here, export price is calculated by reference to sales made to unaffiliated purchasers in the United States, and Commerce determines that the antidumping duty margin with respect to those sales is 25% or more, Commerce “imputes” knowledge of dumping to the importer [during the period leading up to the investigation].

Zhejiang I, 27 CIT at 1842-43, Slip Op. 03-151 at 26. (footnote omitted; first alteration in original). Commerce found that, based on the 25 percent method, “there is evidence of the knowledge of dumping . . . [that was] demonstrated by the fact that Zhejiang, Kunshan, High Hope, and the PRC-wide entity all have dumping margins of over 25 percent.”

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