OPINION
In this action, plaintiff Peer Bearing Company — Changshan (“CPZ”), a Chinese producer of tapered roller bearings, challenges the decision of the International Trade Administration of the United States Department of Commerce (“Commerce”) in Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, from the People’s Republic of China: Final Results of 2005-2006 Administrative Review and Partial Rescission of Review, 72 Fed.Reg. 56,724 (Deр’t Commerce Oct. 4, 2007) (“Final Results”). In its Final Results, Commerce found that because CPZ did not respond to its questionnaire, CPZ merited an antidumping rate pursuant to adverse inferences available under section 776 of the Tariff Act of 1930; 19 U.S.C. § 1677e(b) (2000). Accordingly, Commerce assigned CPZ the PRCwide entity rate of 60.959&. 1 CPZ does not contest the adverse facts available (“AFA”) finding, but it argues that this finding should not automatically merit a presumption of state contrоl and the application of the PRC-wide entity rate. CPZ maintains that because it had previously qualified for a separate rate, that separate rate should continue to apply. In the alternative, CPZ disputes the rate chosen as the PRC-wide entity rate. For the reasons that follow, the Court affirms Commerce’s findings.
I. JURISDICTION AND STANDARD OF REVIEW
The Court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2000).
A court shall hold unlawful Commerce’s final determination in an anti-dumрing administrative review if it is “unsupported by substantial evidence on the record, or otherwise not in accordance with the law.” Tariff Act of 1930, § 516a, 19 U.S.C. § 1516a(b)(l)(B)(i) (2000). Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.”
Nippon Steel Corp. v. United States,
In determining the lawfulness of an agency’s statutory construction, the Court examines “whether Congress’s purpose and intent on the question at issue is judicially ascertainable.”
Timex V.I., Inc. v. United States,
II. DISCUSSION
A. Commerce Properly Assigned CPZ the PRC-Wide Entity Rate
Regarding the assignment of the PRC-wide entity rate, CPZ raises three arguments. First, it disputes the application of the PRC-wide entity rate аnd claims that a separate rate should apply because CPZ received a separate rate in prior reviews. Second, it argues that the calculation of the PRC-wide entity rate is in conflict with the statutory requirement of determining dumping margins by calculating the normal value and U.S. price of each entry. Third, CPZ argues that Commerce’s presumption of state control in non-market economy countries is not entitled to Chevron deference because it is not based on a formal statute or regulation. The Court addresses each argument in turn.
i. CPZ Did Not Rebut the Presumption of State Control
A company operating in an NME such as China is presumed to be under government control.
Shandong Huanri (Group) Gen. Co. v. United States,
31 CIT —, —,
Here, CPZ maintains that it merits a separate rate, not because it rebutted the presumption of state control for this review period, but because it had been previously assigned a separate rate in its New Shipper Reviеw and in the 2001-2002 administrative review.
2
CPZ does not dis
Because CPZ did not respond to the questionnaire and failed to provide any other information relating to this review period, there is no alternative but to apply the presumption of state control to CPZ and, in turn, assign the PRC-wide entity rate to the company. Without any information to refute the presumption, CPZ does not merit a separate rate.
ii. A Presumption of State Control is Not in Conflict with the Statute
Secondly, CPZ argues that Commerce’s calculation of the PRC-wide entity rate is not in accordance with law because the presumption of state control for NMEs conflicts with the Tariff Act of 1930, § 751(a)(2), 19 U.S.C. § 1675(a)(2)(A). This section of the Act requires Commerce to establish margins by determining the normal value and U.S. price of each entry. 3 In its argument, CPZ does not explain how normal value could be calculated under 19 U.S.C. § 1675(a)(2)(A) if no information has been provided as tо individual entries. Because neither CPZ, nor any other PRC-wide entity company, responded to any part of the questionnaire or provide any other documentation, there is no available information on the record for review. It is thus not possible for Commerce to calculate a dumping margin specific to any of the entries during the period of review. There is also no information with which a separаte rate could conceivably be calculated. Accordingly, there is no merit to this argument.
iii. Chevron Deference is Applicable to the Presumption of State Control
CPZ claims that
Chevron
deference is not applicable to Commerce’s presumption of state control for NMEs. It argues that there never was a formal declaration of this policy, and informal means of establishing such procedures do nоt warrant
Chevron
deference. However,
Chevron
deference has previously applied to methodologies developed by Commerce in antidumping duty contexts where no formal regulation was in place.
Pesquera Mares Australes Ltda. v. United States,
Accordingly, the Court finds that there is substantial evidence tо support an assignment of the PRC-wide entity rate to CPZ and it is in accordance with the law. Thus, CPZ’s argument for a separate rate is without merit.
B. Commerce Sufficiently Corroborated the Rate Selected as the PRC-Wide Entity Rate
CPZ also disputes the rate chosen as the PRC-wide entity rate. Specifically, CPZ argues that the 60.95% PRC-wide entity rate was not properly corroborated by Commerce and bears no relationshiр to CPZ’s actual dumping margin. CPZ also states that this rate is impermissibly punitive. According to CPZ, the applicable rate should be 33.18%, which represents the PRC-wide entity rate in several prior, but not all, administrative reviews. 4
i. It is Not Necessary to Corroborate the PRC-Wide Entity Rate with Respect to CPZ
CPZ claims that Commerce did not corroborate the PRC-wide entity rate as required under the Tariff Act of 1930 § 776, 19 U.S.C. § 1677e(c). Pursuant to this section, when applying a rate based on facts available, Commerce must corroborate the facts applied with “information from independent sources that are reason
In the context of an NME, Commerce typically assigns a countrywide rate when a company fails to respond and thus fails to establish its eligibility for a separate rate.
Tapered Roller Bearings and Parts Thereof, Finished or Unfinished, from thе People’s Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Notice of Intent to Rescind in Part,
70 Fed.Reg. 39,-744, 39,751 (Dep’t Commerce July 11, 2005);
see, e.g., Final Determination of Sales at Less Than Fair Value: Certain Frozen and Canned Warmwater Shrimp from the Socialist Republic of Vietnam,
69 Fed.Reg. 71,005, 71,008 (Dep’t Commerce Dec. 8, 2004), and accompanying Issues and Decision Memorandum at Comment 10;
Notice of Final Antidumping Duty Determination of Sales at Less Than Fair Value and Affirmative Critical Circumstances: Certain Frozen Fish Fillets from the Socialist Republic of Vietnam,
68 Fed. Reg. 37,116, 37,119 (Dep’t Commerce June 23, 2003). In calculating the PRC-wide entity rate, it has been Commerce’s “longstanding practice of assigning to respondents who fail to cooperate with Commerce’s investigation the highest margin calculated for any party in the less-than-fair-value investigation or in any administrative review.”
Sigma Corp.,
Here, Commerce assigned 60.95% as the PRC-wide entity rate based on total AFA, which was the highest calculated rate from any prior review period. CPZ is correct that a rate based on AFA must have a rational relationship to thе specific company to which it is applied.
See Reiner Brack GmbH & Co.KG v. United States,
ii. The PRC-Wide Entity Rate Was Sufficiently Corroborated
Because AFA were used in calculating the PRC-wide entity rate, Commerce must “to the extent practicable, corroborate [the] information [used as facts available] from independent sources that are reasonably at their disposal.” Tariff Act of 1930 § 776, 19 U.S.C. § 1677e(c). This includes “information derived from the petition that gave rise to the investigation or review, the final determination concerning the subject merchandise, or any previous review under [19 U.S.C. § 1675] concerning the subject merchandise.”
Statement of Administrative Action accompanying the Uruguay Round Agreements Act,
H.R. Rep. 103-316 at 870 (1994),
as reprinted in
1994 U.S.C.C.A.N. 4040, 4199;
see also
19 C.F.R. § 351.308(c) (2005). Commerce must “satisfy themselves that the secondary information to be used has probative value.”
Statement of Administrative Action Accompanying the Uruguay Round Agreements Act,
H.R.Rep. No. 103-316, at 870 (1994),
as reprinted in
1994 U.S.C.C.A.N. 4040, 4199. To show the rate chosen has probаtive value, Commerce must assure itself of both the rate’s (1) current reliability; and (2) the relevancy of the data used as its basis.
Ferro Union, Inc. v. United States,
Unlike other sources of information, there are no independently verifiable sources for calculated dumping margins, other than previous administrative determinations. Hence, the reliability of the calculation stems from its basis in pri- or verified information in previous administrative reviews. If Commerce chooses a calculated dumping margin from a prior segment of the proceeding, it is not necessary to question the reliability of the margin if it was calculated from verified sales and cost data.
Shandong Huarong Gen. Group Corp. v. United States,
Slip Op. 07-04, 31 CIT —,
Regarding the relevance of the chosen PRC-wide entity rate, CPZ argues that because the 60.95% rate was first calculated in the 1993-1994 administrative review period, the data is now outdated and cannot be considered relevant to the current review. However, there was no information presented, by CPZ or any other named respondent, for the 2005-2006 administrative review period. Accordingly, even though the original calculation is based on data provided for the 1993-1994 review, there is no current information that would indicate that it is not presently relevant.
In addition, the age of the information alone does not call into question the relevance of the chosen rate. This situation differs from
American Silicon Technologies v. United States,
The PRC-wide entity rate is an appropriate estimate of what the actual dumping margin would be for an unverifiable Chinese exporter of tapered roller bearings. Because the 60.95% rate is both reliable and relevant, the rate has been properly corroborated for the 2005-2006 administrative rеview period. Accordingly, the Court finds that the PRC-wide entity rate chosen by Commerce is supported by substantial evidence and is in accordance with the law.
in. The PRC-Wide Entity Rate is Not Punitive
In determining a rate based on AFA, Commerce must “appropriately ba-lanc[e] th[e] goal of accuracy against the risk of creating a punitive margin.”
Timken Co. v. United States,
III. CONCLUSION
CPZ is not entitled to a separate rate because it failed to provide information rebutting the presumption of state control. Commerce properly determined that the PRC-wide entity rate applies. The rate selected by Commerce as the PRC-wide entity rate was sufficiently corroborated and was not punitive. For the foregoing
Notes
. The PRC-wide entity, including CPZ among other companies, either failed to respond to Commerce’s questionnaires, withheld or failed to provide information in a timely manner or in the form requеsted by Commerce, or otherwise impeded the proceeding. The PRC-wide entity rate was thus calculated using total adverse facts available pursuant to section 776 of the Tariff Act of 1930; 19 U.S.C. § 1677e(b) (2000).
. CPZ qualified for a separate rate of 12.25% for the period of June 1, 2000 through Janu
. 19 U.S.C. § 1675(a)(2)(A) states: "In general, for the purpose of [determining the amount of any antidumping duty], the administering authority shall determine (i) the normal value and export price (or constructed export price) of each entry of the subject merchandise, and (ii) the dumping margin for each such entry.”
. Commerce assigned 33.18% as the PRC-wide entity rate in the 1999-2000, 2000-2001, 2001-2002 periods of review, but 60.95% was assigned as the PRC-wide entity rate in the 2002-2003, 2003-2004, 2004-2005 periods of review. Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 66 Fed.Reg. 57,-420, 57,422 (Dep’t Commerce Nov. 15, 2001) (final results of 1999-2000 administrativе review); Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 67 Fed.Reg. 68,-990, 68,992 (Dep't Commerce Nov. 14, 2002) (final results of 2000-2001 administrative review); Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 68 Fed.Reg. 70,-488, 70,489 (Dep’t Commerce Dec. 18, 2003) (final results of 2001-2002 administrative review); Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the Peoрle’s Republic of China, 69 Fed.Reg. 42,-041, 42,042 (Dep’t Commerce July 13, 2004) (final results of 2002-2003 administrative review); Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 71 Fed.Reg. 2517, 2523 (Dep’t Commerce Jan. 17, 2006) (final results of 2003-2004 administrative review); Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 71 Fed.Reg. 75,936, 75,937 (Dep't Commerce Dec. 19, 2006) (final results of 2004-2005 administrative review).
. CPZ’s arguments based
on Ferro Union, Inc. v. United States,
