2014 WL 904526
Ct. Intl. Trade2014Background
- Vietnam is treated as a nonmarket economy for antidumping purposes, requiring surrogate data from market-economy countries to value production costs and labor.
- Commerce previously used Bangladesh as the primary surrogate for all FOPs under the New Labor Rate Policy, yielding a surrogate wage rate of $0.21 for Vietnam’s shrimping labor.
- The court remanded Camau Final Results (and Camau I/II) to address concerns that Bangladesh data likely understate Vietnam’s fair market labor rate due to a GNI disparity.
- The court held that Commerce must provide a reasoned explanation weighing conflicting record evidence and explaining why Bangladesh data remains best or why other data should be considered.
- In the 2d Remand Results, Commerce asserted a compulsion from the court to average data across countries, which the court rejected as a misreading of Camau I/II and the governing law.
- The matter is remanded again for Commerce to reevaluate the labor FOP data consistent with Camau I, Camau II, and this opinion, with a briefing schedule.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bangladesh data can serve as best surrogate for labor FOPs | Bangladesh understates Vietnam’s wage due to GNI disparity. | New Labor Rate Policy justifies using Bangladesh data for all FOPs. | Remand required; need explicit weighing of evidence. |
| Whether the 2d Remand Results provide a proper reasoned explanation tied to the record | Commerce failed to justify reliance on Bangladesh and to address conflicting findings. | 2d Remand Results reflect agency judgment within remand scope. | Remand required for fuller, explicit explanation. |
| Whether the court compelled multi-country averaging for labor data | Court decisions require weighing evidence, not forcing averaging across countries. | Court decisions themselves justify new policy or data averaging. | Not compelled; agency must weigh evidence and explain choices. |
| Whether Commerce must explicitly weigh Bangladeshi data against other evidence and state value choices | Need explicit, reasoned analysis of how conflicting evidence is weighed. | Agency can weigh evidence but may not be required to disclose every preference. | Remand requires explicit, rational weighing and disclosure of value choices. |
Key Cases Cited
- Dorbest Ltd. v. United States, 604 F.3d 1363 (Fed. Cir. 2010) (statutory data-from-economically comparable requirement invalidates mixed-data approach)
- Shandong Rongxin Import & Exp. Co. v. United States, 774 F. Supp. 2d 1307 (CIT 2011) (limits on data sets for surrogate values in NME cases)
- Universal Camera Corp. v. NLRB, 340 U.S. 474 (1951) (substantial evidence requires reasoned explanation of evidence weighing)
- State Farm Mut. Auto. Ins. Co. v. United States, 463 U.S. 29 (1983) (agency must provide a rational connection between facts found and decision)
- Changzhou Wujin Fine Chem. Factory Co. v. United States, 701 F.3d 1367 (Fed. Cir. 2012) (requires rational explanation and reviewable grounds for agency action)
- Camau Frozen Seafood Processing Imp. Exp. Corp. v. United States (Camau I), 880 F. Supp. 2d 1348 (S.D.N.Y. 2012) (remanded Final Results; addressed surrogate data issues for Vietnam)
- Camau Frozen Seafood Processing Imp. Exp. Corp. v. United States (Camau II), 929 F. Supp. 2d 1352 (S.D.N.Y. 2013) (remanded 1st Remand Results; further evaluation of surrogate data)
- Legacy Classic Furniture, Inc. v. United States, 867 F. Supp. 2d 1321 (CIT 2012) (requires reasoned analysis weighing conflicting evidence)
- GPX Int'l Tire Corp. v. United States, 942 F. Supp. 2d 1343 (CIT 2013) (discusses proper grounds for remand and agency reasoning)
