OPINION
Plaintiff Mittal Steel Galati S.A. challenges two decisions of the U.S. Department of Commerce (“Commerce”) during the 2003-2004 administrative review of the antidumping duty order covering certain cut-to-length carbon steel plate from Romania. See Certain Cut-to-Length Carbon Steel Plate from Romania, 71 Fed. Reg. 7,008 (Dep’t of Commerce Feb. 10, 2006) (final results and partial rescission) (“Final Results ”). First, Plaintiff contends that Commerce erred in assigning Plaintiff a total adverse facts available rate of 75.04 percent ad valorem. Second, Plaintiff contends that Commerce’s policy of issuing liquidation instructions within 15 days of the publication of the final results of an administrative review is per se unlawful.
The court has jurisdiction to review Plaintiffs first issue pursuant to Section 516a(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2000) 1 and 28 U.S.C. § 1581(c) (2000). The court has jurisdiction to review Plaintiffs second issue under the same jurisdictional provision, or alternatively, under 28 U.S.C. § 1581© (2000).
As discussed further below, Plaintiffs total adverse facts available rate of 75.04 percent is supported by substantial evidence and is in accordance with law. Also, Commerce’s 15-day liquidation instruction policy is in accordance with law. The court therefore sustains Commerce’s Final Results and denies Plaintiffs motion for judgment on the agency record.
II. Standard of Review
When reviewing Commerce’s administrative review final results under 28 U.S.C. § 1581(c) (2000), the Court of International Trade sustains Commerce’s determinations, findings, or conclusions unless they are “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(l)(B)(i). More specifically, when reviewing whether Commerce’s actions are unsupported by substantial evidence, the Court assesses whether the agency action is “unreasonable” given the record as a whole.
Nippon Steel Corp. v. United States,
III. Discussion
A. Adverse Facts Available Rate
In the preliminary results of the administrative review, Commerce calculated an antidumping duty rate of 48.90 percent
ad valorem
for Plaintiff.
Certain CuC-to-Length Carbon Steel Plate from Romania,
70 Fed.Reg. 53,333, 53,338 (Dep’t of Commerce Sept. 8, 2005) (preliminary results)
(“Preliminary Results
”). After the
Preliminary Results,
Plaintiff informed Commerce that it discovered a significant quan
In the Final Results Commerce found that Plaintiff had both withheld information and significantly impeded the administrative review, requiring Commerce to use facts otherwise available to complete the review. Id. Commerce also found that Plaintiff had failed to cooperate by not acting to the best of its ability to comply with a request for information, justifying application of adverse facts available. Id. at 7,011. Plaintiff does not challenge these findings. See Pl.’s Mot. J. Agency R. at 10. Plaintiff instead challenges the 75.04 percent rate that Commerce selected and assigned as total adverse facts available. Id. at 11.
In a total adverse facts available scenario, Commerce may not be able to calculate an antidumping rate for the uncooperative respondent because the information required for such a calculation (the respondent’s sales and cost information for the subject merchandise during the period of review) typically is not available or has not been provided. As a substitute, Commerce relies on the petition, the final determination from the investigation, prior administrative reviews, or other information placed on the record, 19 U.S.C. § 1677e(b), to select a proxy that should be a “reasonably accurate estimate of the respondent’s actual rate, albeit with some built-in increase intended as a deterrent to noncompliance.”
F.LLI De Ceceo Di Filippo Fara S. Martino S.p.A. v. United States,
Among the rates available to Commerce in the administrative proceeding were the 48.90 percent rate calculated for Plaintiff in the
Preliminary Results
and the 75.04 percent all others rate that was derived from the petition when Romania was a non-market economy.
2
In the
Final Results
Commerce reasoned that any adverse facts available rate for Plaintiff needed to be higher than 48.90 percent.
Issues and Decision Memorandum for Administrative Review of Certain Cut-to-Length Carbon Steel Plate from Romania,
at 15-16, A-485-803, ADR: 08/01/2003-07/31/2004 (Feb. 6, 2006),
available at
http://ia.ita.doc. gov/frn/summary/romania/E6-1880-l.pdf,
(“Decision Memorandum”).
That rate was a cooperative rate — Plaintiffs noncompliance occurred after it was calculated, and Commerce inferred that Plaintiffs actual rate was therefore higher than 48.90 percent.
See Decision Memorandum
at 10-11 (“an adverse inference is warranted”). Commerce also believed that a rate higher than 48.90 percent would serve as a deterrent to Plaintiffs future non-compliance.
See Final Results,
71 Fed.Reg. at 7011. These conclusions are both reasonable and consistent with the adverse facts available provision of the antidumping statute and the Federal Circuit’s guidance in
De Ceceo.
The only rate higher than 48.90 percent was the all-others rate of 75.04 percent, which Commerce first cor
Plaintiff first contends that the statutory provisions governing non-market economy calculations prohibit the assignment of a non-market economy rate within a subsequent market economy proceeding.
See
Pl.’s Mot. J. Agency R. at 11-16; Pl.’s Reply Br. at 3-4 (citing 19 U.S.C. § 1677b(c)(l)). The court reviews disputed interpretations of the antidumping statute under the framework provided in
Chevron, U.S.A., Inc. v. Natural Res. Def. Council, Inc.,
Here, Congressional intent is clear. The express language of the adverse facts available provision authorizes Commerce to rely on information from the petition irrespective of whether that information is from a market or non-market economy proceeding. See 19 U.S.C. § 1677e(b). When operating in an adverse facts available situation, Commerce needs access to additional sources of information to complete the administrative review. Plaintiffs proposed interpretation would limit the available pool of information on which Commerce may rely, contrary to the purpose of the adverse facts available provision. Therefore, Commerce may, in a market economy proceeding, assign to a respondent a total adverse facts available rate derived from a prior, non-market economy proceeding. Whether Commerce should commingle a non-market economy rate with a market economy proceeding does not go to the question of whether Commerce acted in accordance with law, but to whether that action is reasonable given the facts and circumstances presented by the administrative record—that is— whether it is supported by substantial evidence.
Plaintiff next argues that Commerce, in practice, eschews adverse facts available rates derived solely from the petition in favor of rates that have been calculated with respondent information, and that Commerce’s administrative precedents preclude it as a matter of law from relying solely on petition information for an adverse facts available rate. Pl.’s Reply Br. at 7-8; Pl.’s Mot. J. Agency R. at 16-17.
3
This is an odd assertion because the statute explicitly authorizes Commerce to rely on petition information in adverse facts available situations.
See
19 U.S.C. § 1677e(b);
De Cecco,
Standing alone, a 12-year old petition rate from a non-market economy proceeding may not seem to be an appropriate proxy for a market economy dumping margin. In the context of the
Final Results,
however, the assigned rate is a reasonable, if not correct, choice. As already noted, Plaintiff received a cooperative 48.90 percent rate in the
Preliminary Results.
Af-terwards, Plaintiff disclosed that it failed to report subject merchandise, declined to participate in a scheduled cost verification, and removed all of its proprietary information from the administrative record. Plaintiffs conduct led Commerce to infer that Plaintiffs actual dumping rate was higher than .48.90 percent. Exactly how much higher is not ascertainable because Plaintiff removed its sales and cost data from the record. Ideally, the proxy rate selected for Plaintiff should be a “reasonably accurate estimate of the respondent’s actual rate,” (something higher than 48.90 percent), “with some built-in increase intended as a deterrent to non-compliance.”
De Cecco,
The only remaining consideration is the reasonableness of Commerce’s corroboration of the rate pursuant to 19 U.S.C. § 1677e(c). The statute’s corroboration requirement provides that if Commerce relies upon secondary information, Commerce “shall, to the extent practicable, corroborate that information from independent sources that are reasonably at [its] disposal.” 19 U.S.C. § 1677e(c). The statute does not prescribe any methodology for corroborating secondary information, but the Statement of Administrative Action explains that “corroborate” means that Commerce should satisfy itself that any secondary information used has “probative value.” See Uruguay Round Agreements Act Statement of Administrative Action, H.R. REP. NO. 103-316, vol. 1 at 870 (1994), reprinted in 1994 U.S.C.C.A.N. 3773, 4199. Commerce assesses the probative value of secondary information by examining the reliability and relevance of the information to be used. See Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, Singapore, and the United Kingdom, 70 Fed.Reg. 54,711, 54,712-13 (Sept. 16, 2005) (final results).
Plaintiff alleges in its opening brief that Commerce’s corroboration efforts were not reasonable because the 75.04 percent rate was calculated in 1992 using a non-market economy methodology, and is therefore outdated, unreliable, aberrational, and irrelevant. See Pl.’s Mot. J. Agency R. at 17-28. These arguments are unpersuasive, though, because Plaintiff fails to acknowledge the cooperative 49.80 percent margin that Plaintiff received in the Preliminary Results. See Id. Indeed, it is not until its reply brief that Plaintiff begins to address the meaning and import of this central fact from the administrative record. See Pl.’s Reply Br. at 5-6, 7, 14.
Contrary to Plaintiffs claims, Commerce’s corroboration of the 75.04 percent rate was reasonable. Commerce transferred documentation from the record in the 2002-2003 administrative review which contained both market economy and non-market economy data specific to Plaintiff.
See Total Adverse Facts Available and
Relying on
Shandong Huarong General Group Corp. v. United States,
29 CIT-,
To the extent the corroboration provision is designed to provide respondents with an incentive to cooperate while avoiding the imposition of punitive, aberrational, or uncorroborated margins,
see De Cecco,
B. Liquidation Instruction Policy
Plaintiff also presents a facial challenge to Commerce’s policy of issuing liquidation instructions to United States Customs and Border Protection (“Customs”) within 15 days of publication of the final results of an administrative review in the Federal Register. See http://ia.ita.doc.gov/ download/liquidation-announcementhtml (Aug. 9, 2002).
The Court of International Trade’s recent decision in
SKF USA Inc. v. United States,
31 CIT -,
However vexing this jurisdictional question may be, it is largely academic in this case because the Court of International Trade ultimately has jurisdiction to hear the claim, whether under section 1581(c) or 1581(i). And although these jurisdictional provisions have different standards of review,
6
Plaintiffs claim is reviewed identically under each; it involves a question of law requiring statutory interpretation and the possible application of
Chevron,
Defendant argues somewhat halfheartedly that the matter is non-justicia-ble, making general assertions that Plaintiff has “not been injured and no remedy is available,” and that Plaintiffs claims are merely “speculative.” Def.’s Resp. Mot. J. Agency R. at 21-22. The court disagrees. Plaintiffs facial challenge to the lawfulness of the liquidation instruction policy is appropriate for judicial review.
See SKF,
On the merits, Plaintiff contends that Commerce may not issue liquidation instructions within the combined 60-day period established by section 1516a(a)(2)(A) for commencing an action in the Court of International Trade (30 days to file a summons, and 30 days thereafter to file a complaint).
See
Pl.’s Mot. J. Agency R. at 33-35. Plaintiff argues that if Commerce does, then entries subject to the administrative review could be liquidated before an interested party perfected its cause of action and obtained an injunction against liquidation.
Id.
This would moot one’s claim challenging assessed duties for subject entries.
See Mukand Int’l Ltd. v. United States,
30 CIT -, -,
To support its claim, Plaintiff cites
Tianjin Mach. Imp. & Exp. Corp. v. United States,
28 CIT-,
On its face, then, § 1516a(2)(A) allows a plaintiff to wait thirty days before filing its summons, and to wait an additional thirty days before filing its complaint. The fact that a party could file both its summons and complaint within fifteen days is immaterial. Because Commerce’s fifteen-day liquidation policy directly contravenes the time frame established by § 1516a(2)(A) for filing a summons and a complaint, the Courtfinds that Commerce’s new policy is not in accordance with law.
Tianjin,
28 CIT at-,
Tianjin,
in effect, reads an implied stay of liquidation into section 1516a. In Mu-kand this judge read the applicable statutes differently and concluded that the statutory framework “does not administratively suspend or automatically stay liquidation following the final results of an administrative review while an interested party decides whether or not to commence an action or move for an injunction.”
Mukand,
30 CIT at-,
[The statute] provides that the Court of International Trade “may enjoin the liquidation of some or all entries ... covered by a determination of [Commerce] ..., upon a request by an interested party for such relief and a proper showing that the requested relief should be granted under the circumstances.” 19 U.S.C. § 1516a(c)(2) (emphasis added). The statute further provides that “[u]nless such liquidation is enjoined by the court,” entries “shall be liquidated in accordance with the determination of [Commerce] ...” 19 U.S.C. § 1516a(c)(l) (emphasis added), which Customs carries out “promptly and, to the greatest extent practicable, within 90 days” after Commerce issues instructions. 19 U.S.C. § 1675(a)(3)(B). Congress therefore placed the responsibility on interested parties to act affirmatively and request an injunction.
Id. (emphasis in original).
Moreover, the antidumping statute expressly authorizes Commerce to issue liquidation instructions following an administrative review, but does not prescribe a schedule or methodology for doing so.
See
19 U.S.C. § 1675(a)(3)(B). There is therefore a gap in the statute that Congress left for Commerce to fill.
See, e.g., Viraj Group v. United States,
Commerce has a number of factors to consider when issuing liquidation instructions. Instructions need to be transmitted to Customs in a timely manner because entries remaining unliquidated on the six-month anniversary of the Federal Register publication date are deemed liquidated at the rate asserted at the time of entry.
See Int’l Trading Co. v. United States,
For now, the court cannot say that Commerce’s gap-filling is unreasonable, and accordingly, Plaintiffs facial challenge to the 15-day liquidation instruction policy must fail. That said, the policy is not without its flaws. As Commerce and Customs continue to improve the efficiency and automation of the liquidation process, there exists the possibility Commerce and Customs may “act so quickly,”
Int’l Trading,
Admittedly, the policy and its potential threat of rapid liquidation leaves interested parties contemplating suit in the Court of International Trade in a difficult situation. The lack of certainty of when liquidation will occur, 7 coupled with the rule that liquidation moots a challenge to the assessed rates of the subject entries, 8 practically, if not necessarily, requires interested parties to file a protective summons, complaint, and motion for a preliminary injunction against liquidation almost immediately after publication of the final results in the Federal Register, and also obtain a temporary restraining order (“TRO”) against liquidation pending the Court of International Trade’s issuance of a preliminary injunction.
Aware of this predicament, the court in Mukand proposed a minor augmentation to Commerce’s liquidation policy that might prevent judicial review of antidump-ing administrative reviews from devolving unnecessarily into a TRO-based practice:
Commerce can issue instructions that direct Customs to liquidate no earlier than (1) the date that is 90 days after the Federal Register publication date, and no later than (2) the six-month anniversary of that publication date unless liquidation is enjoined pursuant to court order.
Mukand,
IV. Conclusion
The court denies Plaintiffs motion for judgment on the agency record and will enter judgment in favor of Defendant sustaining Commerce’s Final Results.
JUDGMENT
This case having been submitted for decision, and the court, after due deliberation, having rendered an opinion; now in conformity with this opinion, it is hereby
ORDERED that Plaintiffs motion for judgment on the agency record is denied; and it is further
ORDERED that judgment is entered for Defendant.
Notes
. Further citations to the Tariff Act of 1930 are to the relevant provision in Title 19 of the U.S.Code, 2000 edition.
. See Certain Cut-to-Length Carbon Steel Plate from Romania, 58 Fed.Reg. 37,209 (Dep’t of Commerce Jul. 9, 1993) (final determination). Commerce reclassified Romania as a market economy for antidumping and countervailing duty proceedings effective January 1, 2003. Certain Small Diameter Carbon and Alloy Seamless Standard, Line, and Pressure Pipe from Romania, 68 Fed.Reg. 12,672, 12,673 (Dep’t of Commerce Mar. 17, 2003) (final results).
. Plaintiff cites
NSK Ltd. v. United States,
. The public version of the administrative record is cited as "Pub. R.”
. Commerce went further and provided a detailed analysis of its corroboration of the secondary information concerning export price and normal value. See Corroboration Memo at 7-8.
. For actions governed by section 1581(c) and 19 U.S.C. § 1516a(a)(2)(B)(iii), the court reviews Commerce's determinations under the "substantial evidence" and "in accordance with law” standard. 19 U.S.C. § 1516a(b)(l)(B)(i). For actions governed by section 1581(i), the court reviews Commerce's actions under the “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law" standard. 5 U.S.C. § 706(2)(A) (2000); 28 U.S.C. § 2640(e) (2000).
. Commerce does not notify interested parties when liquidation instructions are actually issued. They can be issued as soon as the Federal Register notice is published or as late as 15 days thereafter, or sometime beyond the 15-day period if Commerce ignores its policy,
see, e.g., Mukand,
30 CIT at -,
.
See Zenith Radio Corp.,
