Shantou Red Garden Foodstuff Co., Ltd. v. United States
2012 Ct. Intl. Trade LEXIS 7
Ct. Intl. Trade2012Background
- This ITC action challenges Commerce's Final Determination and Amended Final Determination in the PRC shrimp antidumping investigation for the POI April 1, 2003–Sept. 30, 2003.
- Red Garden, as a non-producing exporter, had its FOP data from suppliers weight-averaged; Meizhou’s Section D data were missing, leading Commerce to apply an adverse inference (PRC-wide rate) for Meizhou’s sales.
- Commerce supplemented questionnaires and Red Garden's responses, but the court found Commerce misread the information requests and the basis for the adverse inference was unsupported by the record.
- Commerce chose a surrogate value for fresh shrimp (Nekkanti data) that included processed shrimp, which the court found invalid as best information; remand required to recalculate the shrimp surrogate.
- Commerce used surrogate labor data under pre-Dorbest practice; the court ordered remand to determine a labor rate that complies with the Dorbest framework.
- There were Teeny issues about Mingfeng’s production totals and a growth-stage multiplier for Longfeng; the court ordered remand to correct these data and related calculations.
- The court ultimately granted relief on some challenges and denied relief on others, remanding for re-determination of several key aspects.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Adverse inference for Meizhou FOP data | Red Garden argued Commerce lacked proper notice and failed to prove non-cooperation. | Commerce asserted Red Garden failed to obtain verifiable Meizhou FOP data. | Remand required; adverse inference not justified with proper record support. |
| Surrogate value for fresh shrimp | Nekkanti data incorrectly included processed shrimp; data not specific to raw head-on shell-on shrimp. | Nekkanti data were best available information. | Remand to recalculate shrimp surrogate value using correct data. |
| Surrogate labor rate methodology | Dorbest requires lawful method; data should reflect appropriate developments. | Existing method should remain intact pending remand. | Remand to determine a Dorbest-compliant surrogate labor rate. |
| Mingfeng production quantity data | Correct Mingfeng total production in the margin calculation; the record shows verifiable totals. | Facts otherwise available used due to submission deadlines. | Remand to use correct Mingfeng production quantity in margin calculation. |
| Longfeng growth stage multiplier | Growth-stage multiplier data were erroneous and should be corrected. | Remand to consider and address corrected data. | Remand to reconsider the growth-stage multiplier. |
Key Cases Cited
- Nippon Steel Corp. v. United States, 337 F.3d 1373 (Fed. Cir. 2003) (limits agency latitude in applying information requests and cooperation standards)
- Dorbest Ltd. v. United States, 604 F.3d 1363 (Fed. Cir. 2010) (validates remand procedures under Dorbest framework for surrogate values and data selection)
- Shakeproof Assembly Components v. United States, 268 F.3d 1376 (Fed. Cir. 2001) (purpose of antidumping margins as accurately as possible; reviewing for substantial evidence)
- Allied Pacific Food (Dalian) Co. v. United States, 435 F. Supp. 2d 1295 (Ct. Int'l Trade 2006) (critical critique of Nekkanti data and surrogate value selection ( Allied Pacific ))
- Allied Pacific Food (Dalian) Co. v. United States, 587 F. Supp. 2d 1330 (Ct. Int'l Trade 2008) (remand and data-evaluation discussions in Allied Pacific II)