Mukand, Ltd. v. United States
767 F.3d 1300
Fed. Cir.2014Background
- Mukand appeals a Court of International Trade decision affirming Commerce's application of adverse facts available (AFA) in an antidumping duty calculation on stainless steel bar from India.
- Commerce applied AFA after Mukand failed to provide production cost data broken down by size despite five questionnaires during a February 1, 2009–January 31, 2010 administrative review.
- Product size is a significant product characteristic for dumping-margin calculations; Commerce sought size-specific cost data to differentiate products and compute accurate constructed values.
- Mukand initially reported identical costs across sizes and repeatedly asserted size-based costs were not reasonably available without detailed substantiation; Commerce warned that failure to supply could lead to AFA.
- Mukand did not contact Commerce for clarification and only provided size-specific data after preliminary results were issued, prompting Commerce to sustain AFA and set a 21.02% rate; the Trade Court and this court affirmed.
- The court reviews for substantial evidence and de novo, upholding Commerce’s use of total AFA due to Mukand's incomplete, non-cooperative responses across multiple questionnaires.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was AFA justified for Mukand's conduct? | Mukand argues it cooperated to the best of its ability. | Commerce properly resorted to AFA due to repeated noncooperation and incomplete data. | Yes; substantial evidence supports AFA due to repeated failure to provide size-specific costs. |
| Should partial AFA have been used instead of total AFA? | Mukand contends only a portion of data was deficient. | Deficiencies were core to the analysis and not limited to discrete data; total AFA appropriate. | No; total AFA supported by substantial evidence because size-specific costs were essential to all calculations. |
| Did Mukand’s late production of size-specific data after preliminary results affect the outcome? | Mukand argues data produced late should have mitigated the deficiency. | Late data does not remedy earlier failures and cannot cure overall record deficiencies. | No; late data did not negate the substantial cooperation shortfall or the need for AFA. |
| Is the standard of review properly applied to Commerce’s use of AFA? | Review should defer more to Mukand's explanations and interpretations. | Administrative record supports AFA; substantial evidence standard applied correctly. | Yes; the court affirms under de novo review with respect to legal standard and substantial-evidence support. |
Key Cases Cited
- Nippon Steel Corp. v. United States, 337 F.3d 1373 (Fed. Cir. 2003) (best-of-its-ability standard for cooperation in antidumping)
- Sango Int’l L.P. v. United States, 567 F.3d 1356 (Fed. Cir. 2009) (substantial-evidence review in antidumping cases)
- Mittal Steel Point Lisas Ltd. v. United States, 548 F.3d 1375 (Fed. Cir. 2008) (guidance on substantial evidence review)
- Consolo v. Fed. Mar. Comm’n, 383 U.S. 607 (Supreme Court 1966) (scope of judicial review in administrative actions)
- H.R. Rep. No. 103-316, 1994 (1994) (URAA administrative-action guidance on adverse-inference purposes)
