SOLARWORLD AMERICAS, INC., Plaintiff-Appellant GOAL ZERO, LLC, Plaintiff v. UNITED STATES, YINGLI GREEN ENERGY HOLDING COMPANY LIMITED, YINGLI GREEN ENERGY AMERICAS, INC., YINGLI ENERGY (CHINA) CO., LTD., BAODING TIANWEI YINGLI NEW ENERGY RESOURCES CO., LTD., TIANJIN YINGLI NEW ENERGY RESOURCES CO., LTD., HENGSHUI YINGLI NEW ENERGY RESOURCES CO., LTD., LIXIAN YINGLI NEW ENERGY RESOURCES CO., LTD., BAODING JIASHENG PHOTOVOLTAIC TECHNOLOGY CO., LTD., BEIJING TIANNENG YINGLI NEW ENERGY RESOURCES CO., LTD., HAINAN YINGLI NEW ENERGY RESOURCES CO., LTD., Defendants-Appellees JINKO SOLAR IMPORT & EXPORT CO., LTD., JINKOSOLAR INTERNATIONAL LIMITED, JINKO SOLAR CO., LTD., CHANGZHOU TRINA SOLAR ENERGY CO., LTD., TRINA SOLAR (CHANGZHOU) SCIENCE & TECHNOLOGY CO., LTD., Defendants
2018-1373
United States Court of Appeals for the Federal Circuit
December 12, 2018
Decided: December 12, 2018
TIMOTHY C. BRIGHTBILL, Wiley Rein, LLP, Washington, DC, argued for plaintiff-appellant. Also represented by STEPHANIE MANAKER BELL, TESSA V. CAPELOTO, LAURA EL-SABAAWI, CYNTHIA CRISTINA GALVEZ, USHA NEELAKANTAN, ADAM MILAN TESLIK, MAUREEN E. THORSON.
TARA K. HOGAN, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, DC, argued for defendant-appellee United States. Also represented by REGINALD THOMAS BLADES, JR., JEANNE DAVIDSON, JOSEPH H. HUNT; MERCEDES MORNO, United States Department of Commerce, Washington, DC.
SHAWN MICHAEL HIGGINS, Sidley Austin LLP, Washington, DC, argued for defendants-appellees Yingli Green Energy Holding Company Limited, Yingli Green Energy Americas, Inc., Yingli Energy (China) Co., Ltd., Baoding Tianwei Yingli New Energy Resources Co., Ltd., Tianjin Yingli New Energy Resources Co., Ltd., Hengshui Yingli New Energy Resources Co., Ltd., Lixian Yingli New Energy Resources Co., Ltd., Baoding Jiasheng Photovoltaic Technology Co., Ltd., Beijing Tianneng Yingli New Energy Resources Co., Ltd., Hainan Yingli New Energy Resources Co., Ltd. Also represented by NEIL R. ELLIS.
WALLACH, Circuit Judge.
Appellant SolarWorld Americas, Inc. (“SolarWorld“) sued Appellee United States (“the Government“) in the U.S. Court of International Trade (“CIT“), challenging the U.S. Department of Commerce‘s (“Commerce“) final results of an administrative review of the antidumping duty order covering crystalline silicon photovoltaic cells, whether or not assembled into modules (“subject merchandise“) from the People‘s Republic of China (“China“). See Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from the People‘s Republic of China, 80 Fed. Reg. 40,998, 40,998 (July 14, 2015) (final admin. review) (”Final Results“). After largely sustaining the Final Results but remanding for Commerce to reconsider an issue not implicated in this appeal, see SolarWorld Ams., Inc. v. United States (SolarWorld I), 234 F. Supp. 3d 1286, 1292 (Ct. Int‘l Trade 2017), the CIT ultimately sustained Commerce‘s final results of remand redetermination, see SolarWorld Ams., Inc. v. United States (SolarWorld II), 273 F. Supp. 3d 1314, 1315 (Ct. Int‘l Trade 2017); see also Final Results of Remand Redetermination, SolarWorld Ams., Inc. v. United States, No. 1:15-cv-00231-CRK (Ct. Int‘l Trade Sept. 11, 2017), ECF No. 144-1; J.A. 56-57 (Judgment).
SolarWorld, a domestic producer of subject merchandise, appeals and argues Commerce erred in its calculation of antidumping duty margins. We have jurisdiction pursuant to
BACKGROUND
I. Legal Framework
By statute, antidumping duties may be imposed on foreign merchandise sold, or likely to be sold, “in the
For every administrative review, Commerce typically must “determine the individual weighted average dumping margin for each known exporter and producer of the subject merchandise.”
The statute explains how “normal value shall be determined” “[i]n order to achieve a fair comparison with the export price or constructed export price.”
II. Procedural History
The present dispute stems from an antidumping duty order that Commerce issued after an investigation and that covers subject merchandise from China. Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules, from the People‘s Republic of China, 77 Fed. Reg. 73,018, 73,018 (Dec. 7, 2012) (antidumping duty order). In February 2014, following a timely request, Commerce initiated the administrative review at issue, covering a period of review of May 25, 2012, to November 30, 2013. Initiation of Antidumping and Countervailing Duty Administrative Reviews and Request for Revocation in Part, 79 Fed. Reg. 6147, 6147, 6150 (Feb. 3, 2014). Commerce limited its review to the two largest Chinese exporters of the subject merchandise by volume, Wuxi Suntech Power Co., Ltd. and Yingli Energy (China) Co., Ltd. (“Yingli“). J.A. 103; see
In July 2015, Commerce issued the Final Results. 80 Fed. Reg. at 40,998; see J.A. 4462-545 (providing excerpts from Commerce‘s decision memorandum accompanying the Final Results). Commerce calculated, inter alia, a weighted-average dumping margin for Yingli of 0.79%. Final Results, 80 Fed. Reg. at 41,001. Commerce‘s calculated margin is based in part on its selection of surrogate values for each of Yingli‘s factors of production, including aluminum frames, J.A. 4537-45, and semi-finished polysilicon ingots and blocks,
SolarWorld sued the Government, arguing, inter alia, that Commerce should have calculated a higher antidumping duty margin for Yingli because Commerce erred by undervaluing the surrogate values for each of Yingli‘s inputs. SolarWorld I, 234 F. Supp. 3d at 1292. The CIT rejected each of SolarWorld‘s challenges. Id. at 1303-07. Although SolarWorld argued Commerce should have selected an aluminum frames surrogate value derived from import data for Thai HTS Heading 7616, specifically under Subheading 7616.99, which covers, inter alia, “articles of aluminum [not elsewhere specified or included],” rather than Thai HTS Heading 7604, which covers “[a]luminum bars, rods[,] and profiles,” the CIT stated “Commerce reasonably determined that import data
DISCUSSION
I. Standard of Review and Legal Standard
We apply the same standard of review as the CIT, see Downhole Pipe, 776 F.3d at 1373, upholding Commerce determinations that are supported “by substantial evidence on the record” and otherwise “in accordance with law,”
When valuing factors of production in the nonmarket economy context, the statute directs that Commerce‘s decision “shall be based on the best available information regarding the values of such factors in a market economy country or countries.”
II. Commerce‘s Selection of Surrogate Values for Both Aluminum Frames and Semi-Finished Polysilicon Ingots and Blocks Is Supported by Substantial Evidence and Otherwise in Accordance with Law
A. Aluminum Frames
Commerce determined import data derived from Thai HTS Heading 7604 “constitute[s] the best available information to value Yingli‘s aluminum frames.” J.A. 4542. Commerce found that heading “pertain[s] to non-hollow aluminum profiles such as those consumed by Yingli in this review,” J.A. 4543, and explained that the other data on the record for Thai HTS Heading 7616 “includes products dissimilar to aluminum frames,” J.A. 4542. SolarWorld argues Yingli‘s aluminum frames are not described by Thai HTS Heading 7604‘s definition of aluminum profiles because they “are not uniform along their entire length.” Appellant‘s Br. 16 (emphasis omitted). According to SolarWorld, “[b]ecause [Yingli‘s] aluminum frames have been further processed significantly beyond a mere extrusion, they have lost their character as an aluminum extrusion and have instead taken the form of a fabricated aluminum good,” such that they “no longer fit within the definition of a ‘profile.‘” Id. at 20 (citation omitted). We disagree with SolarWorld.
Substantial evidence supports Commerce‘s finding that import data under Thai HTS Heading 7604 constitutes the best available information from which to value
The plain text of Thai HTS Heading 7604 does not specify whether its reach is limited to unprocessed goods. See J.A. 2910. Heading 7604‘s explanatory notes, however, state that the heading specifically includes aluminum profiles that are “worked after production.” J.A. 1384; see J.A. 1384 (explaining that Heading 7604 “covers cast or sintered products... which have been subsequently worked after production... provided that they have not thereby assumed the character of articles or products of other headings” (emphasis added)). As a result, that Yingli‘s frames undergo some processing, such as corner cutting and cleaning, does not automatically remove them
SolarWorld‘s counterarguments are unavailing. Specifically, SolarWorld asserts Commerce erred by not following Customs’ classification rulings that (1) classified similar aluminum frames under HTSUS Heading 7616 and another HTSUS heading, not at issue here, see Appellant‘s Br. 21; and (2) classified certain ”unfinished aluminum articles under HTS[US H]eading 7604,” id. at 23. According to SolarWorld, these Customs rulings are “uniquely instructive.” Reply Br. 10. To the extent SolarWorld argues as a legal matter that Customs’ rulings must be afforded more weight than other evidence on the record, we disagree. Whereas Customs is tasked with
Keeping in mind these differing statutory purposes that dictate Customs’ and Commerce‘s respective roles, we are informed by Judge Pogue‘s conclusion in Jiangsu Jiasheng Photovoltaic Technology Co. v. United States, 28 F. Supp. 3d 1317, 1336 (Ct. Int‘l Trade 2014). There, the CIT held that “[t]he fact that Commerce has at times found support for its surrogate value choices in Customs classification rulings does not lead to the conclusion that Commerce must follow such rulings in every case [when valuing factors of production].” Id. Although “[t]he substantiality of evidence must take into account whatever in the record fairly detracts from its weight, including contradictory evidence or evidence from which conflicting inferences could be drawn,” Huvis Corp. v. United States, 570 F.3d 1347, 1351 (Fed. Cir. 2009) (internal quotation marks and citation omitted); see
Besides its claim of legal error, SolarWorld also invites us to reweigh the evidence already considered by Commerce. For example, SolarWorld avers Commerce “failed to give appropriate weight to,” Appellant‘s Br. 21 (emphasis added), and “failed to appropriately consider” the aforementioned Customs rulings, id. at 23 (emphasis added). However, we may not reweigh the evidence in this case. See Downhole Pipe, 776 F.3d at 1377 (“While Appellants invite this court to reweigh this evidence, this court may not do so.“). Accordingly, Commerce properly considered the record evidence to select a surrogate value for Yingli‘s aluminum frames.
B. Semi-Finished Polysilicon Ingots and Blocks
Commerce determined the world market price for polysilicon is the best available information to value Yingli‘s semi-finished polysilicon ingots and blocks, as they “are comprised primarily of polysilicon.” J.A. 4537. “[B]ecause Yingli self-produces most of its ingots and blocks, [Commerce]... accounted for the cost of the additional processing required to manufacture most of the ingots and blocks used in production.” J.A. 4537. Commerce also noted that “no party submitted a [surrogate value] for ingots and blocks which were purchased.” J.A. 4537. SolarWorld contends that Commerce “substantially undervalue[d]” this surrogate value by “valuing Yingli‘s ingot and block purchases using a value for virgin polysilicon.” Appellant‘s Br. 28. According to SolarWorld, “Yingli‘s purchased semi-finished ingots and blocks are manufactured from virgin polysilicon that undergoes significant processing,” such that Yingli paid a premium
Substantial evidence supports Commerce‘s selection of a surrogate value for semi-finished polysilicon ingots and blocks as the best available information on the record. Commerce relied on the world market price for polysilicon, derived from two data sources, to value Yingli‘s input. See J.A. 4537; see also J.A. 4359 (laying out Commerce‘s calculation for this surrogate value in a factor of production valuation memorandum), 4375 (including the $18.19 per kilogram surrogate value in a spreadsheet for Yingli). After conducting a verification of Yingli‘s sales and factors of production, Commerce reported that Yingli‘s ingots and blocks are manufactured primarily from polysilicon, albeit polysilicon that is then further processed. See J.A. 4321. As the CIT observed, Commerce accounted for “processing costs... for most merchandise” because Yingli‘s “total purchases of ingots and blocks relative to the volume of ingots and blocks consumed during the period of review... was not significant.” SolarWorld I, 234 F. Supp. 3d at 1306 (footnote omitted); see id. (citing, inter alia, J.A. 1619-25). In addition, SolarWorld admits that, during the administrative proceedings, “it was unable to locate a surrogate value for polysilicon block and ingots,” meaning the world market price was the only surrogate value information on the record. Appellant‘s Br. 29 n.4. “[T]he burden of creating an adequate record lies with interested parties and not with Commerce,” but SolarWorld failed to meet that burden because it did not provide Commerce alternative surrogate value data. QVD Food, 658 F.3d at 1324 (internal quotation marks, brackets, and citation omitted). We conclude that substantial evidence supports Commerce‘s finding that the world market price was the best available information on the record.
SolarWorld‘s primary counterargument is that the record contained sufficient information from which Com-
Simply because an agency may deviate from its practice by “explain[ing] the reason for its departure,” Allegheny Ludlum Corp. v. United States, 346 F.3d 1368, 1373 (Fed. Cir. 2003); see Appellant‘s Br. 30 (recognizing this principle), we see no reason why Commerce must deviate from its practice where substantial evidence supports its selected surrogate value. SolarWorld does not argue that Commerce‘s stated practice is contrary to any statute or regulation. See generally Appellant‘s Br. Under such circumstances, “[t]he decision to select a particular methodology rests solely within Commerce‘s sound discretion.” Micron Tech., Inc. v. United States, 117 F.3d 1386, 1396 (Fed. Cir. 1997) (internal quotation marks and citation omitted). Here, as discussed above, Commerce properly
CONCLUSION
We have considered SolarWorld‘s remaining arguments and find them unpersuasive. Accordingly, the Judgment of the U.S. Court of International Trade is
AFFIRMED
