Home Meridian International, Inc. v. United States
2012 Ct. Intl. Trade LEXIS 122
| Ct. Intl. Trade | 2012Background
- This challenge concerns Commerce's fifth AD duty review of wooden bedroom furniture from PRC, culminating in Final Results 76 Fed. Reg. 49,729 (Aug. 11, 2011).
- Plaintiffs (HMI and consolidated plaintiffs) sought judgment on the agency record; Huafeng and Nanhai Baiyi also challenged aspects; AFMC intervened and joined the challenges.
- Commerce assigned Huafeng a separate rate of 41.75% and the PRC-wide rate was 216.01%; review covered data for January 1, 2009 to December 31, 2009.
- Key issues include valuation of inputs (lumber and poly foam), labor surrogacy data, surrogate financial ratios, potential circumvention through combination rates, and zeroing.
- Court remands several issues for Commerce to reconsider or provide explanations consistent with statutory/regulatory framework; final results sustained in part.
- Administrative exhaustion issues were addressed for zeroing, with a remand to justify divergent zeroing practices in reviews versus investigations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lumber valuation: contemporaneity vs non-contemporaneous market data | Huafeng/HMI: use POR-contiguous data; non-POR purchases should be best available information. | Commerce favored contemporaneous data; use of pre-POR market economy purchases justified where POR data lacking. | Remanded to determine wood input value under proper framework. |
| Poly foam surrogate value and HTS classification | Huafeng’s poly foam should be classed under a cellular plastic HTS (e.g., 3921) based on evidence. | Commerce correctly valued under HTS 3920; classification supported by Huafeng's statements. | Remanded to apply correct HTS subheading and derive the appropriate value. |
| Labor surrogate data: bookend data contemporaneity and method | Use POR data; contemporaneous data preferable; challenge to 2008–GNI-based selection. | Use established surrogate framework; bookends linked to 2008 data; non-contemporaneous acceptable if justified. | Remanded to reconsider/bookend selection or provide persuasive explanation. |
| Financial statements for surrogate ratios: Kirsten, Cancio, Insular Rattan reliability | Revenue/retail representations and tax data affect ratios; Insular Rattan may be unreliable due to subsidies; Cancio and Kirsten disputed. | Commerce reasonably rejected some statements; Insular Rattan questioned but not conclusively unreliable; others acceptable. | Remanded to reconsider use or provide justification for reliability. |
| Circumvention and combination rates; zeroing | Commerce failed to investigate circumvention and apply combination rates; zeroing requires review per Dongbu/JTEKT. | Commerce explained limitations; data insufficient to justify combination rates; zeroing not adequately addressed. | Remanded to investigate combination rates and to provide justification for zeroing practices. |
Key Cases Cited
- Lasko Metal Products, Inc. v. United States, 43 F.3d 1442 (Fed. Cir. 1994) (using market-based input where available supports accuracy and fairness)
- Shakeproof Assembly Components Div. of Ill. Tool Works, Inc. v. United States, 268 F.3d 1376 (Fed. Cir. 2001) (actual price paid is best information when available)
- Dongbu Steel Co. v. United States, 635 F.3d 1363 (Fed. Cir. 2011) (requires explanation for zeroing inconsistencies across proceedings)
- JTEKT Corp. v. United States, 642 F.3d 1378 (Fed. Cir. 2011) (explains need for reasoned justification of differing zeroing practices)