THUAN AN PRODUCTION TRADING AND SERVICE CO., LTD. and GOLDEN QUALITY SEAFOOD CORPORATION, Plaintiff and Consolidated Plaintiff, v. UNITED STATES, Defendant. and CATFISH FARMERS OF AMERICA ET AL., Defendant-Intervenors and Consolidated Defendant Intervenors.
Consol. Court No. 17-00056
UNITED STATES COURT OF INTERNATIONAL TRADE
July 8, 2019
Slip Op. 19-83
Claire R. Kelly, Judge
OPINION
[Sustaining the U.S. Department of Commerce’s redetermination.]
Dated: July 8, 2019
Matthew Jon McConkey, Mayer Brown LLP, of Washington, DC, for plaintiff Thuan An Production Trading and Service Co., Ltd.
Andrew Brehm Schroth, Grunfeld Desiderio Lebowitz Silverman & Klestadt, LLP, of Hong Kong, S.A.R., and Jordan Charles Kahn, Grunfeld Desiderio Lebowitz Silverman & Klestadt, LLP, of Washington, DC, for consolidated plaintiff Golden Quality Seafood Corporation.
Kara Marie Westercamp, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for defendant. With her on the brief were Joseph H. Hunt, Assistant Attorney General, Jeanne E. Davidson, Director, and Patricia M. McCarthy, Assistant Director. Of Counsel was Kristen McCannon, Attorney, Office of the Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, DC.
Jonathan M. Zielinski and James R. Cannon, Jr. of Cassidy Levy Kent (USA) LLP, of Washington, DC, for defendant-intervenors and consolidated defendant-intervenors Catfish Farmers of America; America’s Catch; Alabama Catfish Inc.; Consolidated Catfish Companies LLC; Delta Pride Catfish, Inc.; Guidry’s Catfish, Inc.; Heartland Catfish Company; Magnolia Processing, Inc.; Simmons Farm Raised Catfish, Inc.
Apr. 20, 2018, ECF No. 55), a rate that is not an individual rate or an all-others rate. Id., 42 CIT at __, 348 F. Supp. 3d at 1347 (citing Def.‘s Supplemental Br. Resp. Ct.’s July 25, 2018 Order at 1, Aug. 30, 2018, ECF No. 67 (“Def.’s Supplemental Br.”)). The court therefore found Commerce’s asserted legal authority for the Vietnam-wide rate contrary to law. On remand, Commerce reconsidered its authority to impose an NME-entity rate and “acknowledges that the NME-entity rate in the underlying investigation was an individually investigated rate.” Remand Results at 5. Because Commerce complied with the court’s order in Thuan An and its determination is in accordance with law, the court sustains Commerce’s Remand Results.
BACKGROUND
The court assumes familiarity with the facts of this case as set out in the previous opinion ordering remand to Commerce and now recounts the facts relevant to the court’s review of the Remand Results. See Thuan An, 42 CIT at __, 348 F. Supp. 3d at 1343–45. On March 27, 2017, Commerce published the final results of the twelfth administrative review of the ADD order covering certain frozen fish fillets from Vietnam. See Final Results, 82 Fed. Reg. 15,181. Commerce determined, inter alia, that mandatory respondents Tafishco and Golden Quality Seafood Corporation (“Golden Quality”) failed to demonstrate eligibility for a separate rate,1 and Commerce assigned both respondents
the Vietnam-wide rate of $2.39 per kg.2 Final
Tafishco and Golden Quality commenced separate actions pursuant to section 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended,
Court No. 17-00056, Court No. 17-00087, and Court No. 17-00088 under Court No. 17-00056).4 Tafishco argued, inter alia, that Commerce lacked statutory authority to issue the Vietnam-wide NME rate in the twelfth administrative review. See Mem. Law Supp. Pl.[’]s Rule 56.2 Mot. J. Agency R. at 3–7, Nov. 16, 2017, ECF No. 42 (“Tafishco’s Br.”). Tafishco contended that
The court remanded the matter, holding that on the legal grounds proffered by the Department, Commerce’s assignment of the Vietnam-wide rate to Tafishco was contrary to law. Thuan An, 42 CIT at __, 348 F. Supp. 3d at 1347–51, 1354–55. The court explained that because Commerce asserted that the Vietnam-wide rate applied was something other than one of the two statutorily authorized rates, Commerce’s determination could not stand. Id. at 1347. The court specifically noted that its holding had no effect on Commerce’s ability to assign a single dumping margin to all entities in
an NME country, so long as the rate assigned is one authorized by statute. Id. at 1347–48.
On remand, Commerce maintains that it has statutory authority pursuant to
JURISDICTION AND STANDARD OF REVIEW
The court exercises jurisdiction pursuant to
DISCUSSION
On remand, Commerce maintains that it has statutory authority to apply the Vietnam-wide rate to Tafishco. Remand Results at 1–2. Golden Quality argues that Commerce’s remand redetermination does not comply with the court’s instruction in Thuan An and should thus be remanded because Commerce acknowledges that the Vietnam-wide rate assigned in the twelfth administrative review “was neither an individual rate nor an all others rate,” but rather “a rate calculated for the Vietnam-wide entity years ago in the tenth administrative review and carried forward” to the twelfth review. Consol. Pl.’s Comments on Commerce’s Remand Redetermination at 1–2, May 1, 2019, ECF No. 77 (“Golden Quality’s Comments”). For the reasons that follow, Commerce’s Remand Results comply with the court’s order in Thuan An, are in accordance with law, and are thus sustained.
When Commerce makes a final determination that subject merchandise is being, or is likely to be, sold in the United States at less than its fair value, and the International Trade Commission finds that the domestic industry is being injured or threatened with injury as a result of the dumping, Commerce imposes an ADD. See
investigated, and the all-others rate for producers and exporters not individually investigated.
Previously, Commerce had not “stated expressly under what provision . . . the NME entity-wide rate was authorized.” Remand Results at 5; see also Final Decision Memo. Commerce’s regulations provide that in ADD proceedings involving an NME country, “‘rates’ may consist of a single dumping margin applicable to all exporters and producers.”
In this case, when asked specifically by the court whether the rate was either an individually investigated rate or an all-others rate, Defendant answered that Commerce “does not treat the Vietnam-wide rate as an individual rate or as an ‘all-others’ rate.” Def.’s Supplemental Br. at 1. The court explained in Thuan An that although Commerce “has broad authority to interpret the antidumping statute and devise procedures to carry out the statutory mandate,” it must reasonably ground its actions in statutory authority. Thuan An, 42 CIT at __, 348 F. Supp. at 1351 (quoting Sigma Corp., 117 F.3d at 1405).
On remand, Commerce “acknowledges that the NME-entity rate in the underlying investigation was an individually investigated rate.” Remand Results at 5. Commerce’s explanation complies with the court’s order in Thuan An. Characterizing the Vietnam-wide rate as an individually investigated rate reasonably grounds Commerce’s
determination in statutory authority. See
Golden Quality argues that Commerce’s explanation does not comply with the court’s remand instruction in Thuan An because the Vietnam-wide rate was neither an individual rate nor an all-others rate in this review, but instead was calculated for the Vietnam entity in a prior review and “carried forward.” Golden Quality’s Comments at 1–
2.8 First, Golden Quality misconstrues the court’s holding in Thuan An.
Second, to the extent Golden Quality argues that Commerce lacks statutory authority to apply an NME-entity rate in an administrative review where the rate was investigated in a prior review or in the original investigation, that argument misses the mark.9 Golden Quality points to no statute or regulation requiring Commerce to
investigate the NME entity in each administrative review, and Commerce “has broad authority to interpret the antidumping statute and devise procedures to carry out the statutory mandate.”10 Sigma Corp., 117 F.3d at 1405. Indeed, as Commerce explains, its current practice is to review the NME entity only when it receives a request to do so, or when it chooses to self-initiate such a review. Remand Results at 3 n.10 (citing Antidumping Proceedings:
effect. Because Tafishco failed to demonstrate its independence from the government, Commerce lawfully applied the Vietnam-wide rate to Tafishco.11
Finally, Tafishco argues that Commerce’s assignment of a $2.39 per kg rate to Tafishco is unsupported by substantial evidence because Commerce was obligated to “corroborate the Vietnam-wide rate according to ‘its reliability and relevance to the countrywide entity as a whole.’”12 Tafishco’s Br. at 7 (quoting Peer Bearing Co. v. United States, 32 CIT 1307, 1313, 587 F. Supp. 2d 1319, 1327 (2008)); see also
applied to Tafishco in the eighth administrative review based on data reported by a respondent, and subsequently applied this rate to the Vietnam entity by application of facts available with an adverse inference in the tenth administrative review. See Certain Frozen Fish Fillets from [Vietnam], 79 Fed. Reg. 40,059 (Dep’t Commerce July 11, 2014) (preliminary results of the [ADD] administrative review; 2012–2013) and accompanying Certain Frozen Fish Fillets from [Vietnam]: Decision Mem. for the Prelim. Results of the 2012–2013 [ADD] Administrative Review at 8–12, A-552-801, (July 2, 2014), available at https://enforcement.trade.gov/frn/summary/vietnam/2014-16311-1.pdf (last visited July 2, 2019) (unchanged in final determination). Commerce thus applied the rate in a separate segment of these proceedings and was therefore under no obligation to corroborate.
CONCLUSION
For the reasons discussed, Commerce’s Remand Results comply with the court’s order in Thuan An, 42 CIT at __, 348 F. Supp. 3d at 1354–55, and are in accordance with law. Therefore, Commerce’s Remand Results are sustained, and judgment will enter accordingly.
/s/ Claire R. Kelly
Claire R. Kelly, Judge
Dated: July 8, 2019
New York, New York
