Trust Chem Co. Ltd. v. United States
2012 Ct. Intl. Trade LEXIS 26
Ct. Intl. Trade2012Background
- Trust Chem challenged the Department of Commerce's Remand Results in valuing nitric acid for Trust Chem's products.
- Trust Chem I required Commerce to reconsider its nitric acid valuation using best available data, not aberrational data, and to compare with other record data.
- On remand, Commerce reopened the record; Trust Chem did not submit data linking price to nitric acid concentration.
- Commerce placed historical WTA data (Dec 2003–Nov 2008) and considered surrogate countries, concluding India-derived data best matched higher concentration nitric acid costs.
- The court reviews Commerce's remand determinations under substantial evidence and law, affording deference if adequately reasoned.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Compliance with remand order | Remand lacks usable surrogate data specific to Trust Chem's nitric acid. | Once remanded and record reopened, Commerce needed to pick the best available information, not more data. | Affirmed remand results; Commerce complied and chose best available data. |
| Substantial evidence | Record inconsistently supports Commerce's choice and data. | Commerce provided rational explanations tying costs and concentration to price; evidence supports choice. | Remand results supported by substantial evidence. |
| Use of U.S. nitric acid prices | Commerce improperly used U.S. price quotes as benchmarks. | Data used to illustrate concentration-price relationship, not as a direct benchmark. | Permissible; data used as proxy for concentration effects, not as a strict benchmark. |
| Exhaustion of administrative remedies | Plaintiff raised new argument about supplier's dilution to 38% concentration after remand. | New argument was not presented to Commerce previously; court should require exhaustion. | Denied; argument not exhausted; cannot be heard. |
Key Cases Cited
- SKF USA, Inc. v. United States, 630 F.3d 1365 (Fed. Cir. 2011) (remand explanatory requirements and best-available-data standard)
- Lifestyle Enterprise, Inc. v. United States, 768 F.Supp.2d 1286 (CIT 2011) (need for reasonable inferences from record; not mere speculation)
- Daewoo Electronics Co. v. International Union, 6 F.3d 1511 (Fed. Cir. 1993) (substantial evidence standard and deference to agency findings)
- Matsushita Electric Industrial Co. v. United States, 750 F.2d 927 (Fed. Cir. 1984) (evidence-based standard for agency determinations)
- Nippon Steel Corp. v. United States, 458 F.3d 1345 (Fed. Cir. 2006) (substantial evidence review and agency explanation requirements)
