416 F.Supp.3d 1395 (CIT. 2019), 18-00004, Zhejiang Zhaofeng Mechanical and Electronic Co., Ltd. v. United States

Docket Nº:No. 18-00004, Slip Op No. 19-167
Citation:416 F.Supp.3d 1395
Opinion Judge:Choe-Groves, Judge:
Party Name:ZHEJIANG ZHAOFENG MECHANICAL AND ELECTRONIC CO., LTD., Plaintiff, v. UNITED STATES, Defendant, and The Timken Company, Defendant-Intervenor.
Attorney:Adams C. Lee, Harris Bricken McVay Sliwoski, LLP, of Seattle, WA, for Plaintiff Zhejiang Zhaofeng Mechanical and Electronic Co., Ltd. Kelly A. Krystyniak, Trial Counsel, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C., for Defendant United States. Wit...
Case Date:December 18, 2019
Court:United States District Court, Federal Circuit

Page 1395

416 F.Supp.3d 1395 (CIT. 2019)

ZHEJIANG ZHAOFENG MECHANICAL AND ELECTRONIC CO., LTD., Plaintiff,

v.

UNITED STATES, Defendant,

and

The Timken Company, Defendant-Intervenor.

No. 18-00004

Slip Op No. 19-167

United States Court of International Trade

December 18, 2019

Page 1396

Adams C. Lee, Harris Bricken McVay Sliwoski, LLP, of Seattle, WA, for Plaintiff Zhejiang Zhaofeng Mechanical and Electronic Co., Ltd.

Kelly A. Krystyniak, Trial Counsel, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, D.C., for Defendant United States. With her on the brief were Joseph H. Hunt, Assistant Attorney General, Jeanne E. Davidson, Director, and L. Misha Preheim, Assistant Director. Of counsel was James H. Ahrens, II, Attorney, Office of the Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C.

Geert M. De Prest, Schagrin Associates, of Washington, D.C., and William A. Fennell, Stewart and Stewart, of Washington, D.C., for Defendant-Intervenor The Timken Company. With them on the briefs were Terence P. Stewart, Patrick J. McDonough, Lane S. Hurewitz, and Shahrzad Noorbaloochi. Nicholas J. Birch also appeared.

OPINION

Choe-Groves, Judge:

Page 1397

This action arises from the U.S. Department of Commerce’s ("Commerce") administrative review of the antidumping order on tapered roller bearings from the People’s Republic of China. Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, from the People’s Republic of China, 83 Fed.Reg. 1,238 (Dep’t Commerce Jan. 10, 2018) (final results of antidumping duty administrative review and rescission of new shipper review; 2015-2016) ("Final Results "). Before the court are the Final Results of Redetermination Pursuant to Court Remand, April 25, 2019, ECF No. 58 ("Remand Results "). For the following reasons, the court sustains the Remand Results .

ISSUES PRESENTED

The court reviews the following issues: 1. Whether Commerce’s determination to grant Zhaofeng a separate rate is supported by substantial evidence; and

2. Whether Commerce’s decision to use an inference adverse to the interests of Zhaofeng in selecting from facts otherwise available is supported by substantial evidence and is in accordance with the law.

BACKGROUND

The court presumes familiarity with the facts and procedural history and discusses only those facts relevant to the review of the Remand Results . Zhejiang Zhaofeng Mech. and Elec. Co., Ltd. v. United States, 42 C.I.T. __, 355 F.Supp.3d 1329 (2018) ("Zhaofeng I ").

In the underlying administrative proceeding, Commerce became aware of irregularities in Zhaofeng’s submissions when The Timken Company ("Timken" or "Defendant-Intervenor") submitted comments identifying discrepancies in a verification exhibit. Pet’r’s Pre-Preliminary Cmts. 1-3, PD 181, bar code 3576832-01 (May 31, 2019). Zhaofeng acknowledged the discrepancies, but averred that they were the result of clerical errors and that a review of Zhaofeng’s U.S. sales invoice would resolve the discrepancies. Remand Results at 3 & nn.6-7 (citing Zhaofeng’s Case Br. 3-4, PD 184, bar code 3604752-01 (Aug. 17, 2017)); see also Zhaofeng Cmts. at 4. Commerce obtained the corresponding entry documentation from U.S. Customs and Border Protection ("CBP") and set a schedule for submitting rebuttal factual information. Remand Results at 3; see also Entry Documents Placed on the Record, Opportunity to Submit Rebuttal Factual Information and Final Date for Rebuttal Br., bar code 3617066-01 (Sept. 7, 2017). When Commerce compared the entry documents to Zhaofeng’s verification

Page 1398

exhibit, Commerce identified several differences, including that "the number of line items, all product codes, and most individual quantities did not match," although "the invoice number, customer name, and total sales value were the same for each set of records." Remand Results at 3-4 & n.8; see also Final Analysis Mem., bar code 3659982-01 (Jan. 2, 2018) ("Final Analysis Mem.") (comparing Zhaofeng’s verification exhibit with the invoice filed by the importer).

In Zhaofeng I, the court concluded that Commerce could not disregard a respondents separate rate information as "tainted" just because there were deficiencies in the respondents sales or factors of production data. 42 C.I.T. at __, 355 F.Supp.3d at 1333-34. The court remanded to Commerce for reconsideration of Zhaofengs...

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1 practice notes
  • Godaco Seafood Joint Stock Co. v. United States, 010621 USCIT, 18-00063
    • United States
    • Federal Cases Court of International Trade
    • 6 de Janeiro de 2021
    ...the antidumping order. 19 U.S.C. § 1677e(d); Zhejiang Zhaofeng Mech. & Elec. Co. v. United States, 43 CIT ___, ___, 416 F.Supp.3d 1395, 1401 (2019). Under 19 U.S.C. § 1677e(c)(2), Commerce is not required to corroborate rates applied in a previous segment of the......
1 cases
  • Godaco Seafood Joint Stock Co. v. United States, 010621 USCIT, 18-00063
    • United States
    • Federal Cases Court of International Trade
    • 6 de Janeiro de 2021
    ...the antidumping order. 19 U.S.C. § 1677e(d); Zhejiang Zhaofeng Mech. & Elec. Co. v. United States, 43 CIT ___, ___, 416 F.Supp.3d 1395, 1401 (2019). Under 19 U.S.C. § 1677e(c)(2), Commerce is not required to corroborate rates applied in a previous segment of the......