Bridgestone Americas, Inc. v. United States ( 2010 )


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  •                                        Slip Op. 10-55
    UNITED STATES COURT OF INTERNATIONAL TRADE
    __________________________________________
    :
    BRIDGESTONE AMERICAS, INC.,               :
    BRIDGESTONE AMERICAS TIRE                 :
    OPERATIONS, LLC, and TITAN TIRE           :
    CORPORATION,                              :
    :
    Plaintiffs,             :
    :
    v.                            :              Before: Jane A. Restani, Chief Judge
    :
    UNITED STATES,                            :              Consol. Court No. 08-00256
    :
    Defendant,              :
    :
    and                           :
    :
    XUZHOU XUGONG TYRES CO., LTD.             :
    :
    Defendant-Intervenor.   :
    __________________________________________:
    OPINION
    [Commerce’s remand determination sustained.]
    Dated: May 14, 2009
    King & Spalding, LLP (Joseph W. Dorn, Daniel L. Schneiderman, and J. Michael
    Taylor) for plaintiffs Bridgestone Americas, Inc. and Bridgestone Americas Tire Operations,
    LLC.
    Stewart and Stewart (Wesley K. Caine and Terence P. Stewart) and King &
    Spalding, LLP (Daniel L. Schneiderman) for plaintiff Titan Tire Corporation.
    Tony West, Assistant Attorney General; Jeanne E. Davidson, Director, Franklin
    E. White, Jr., Assistant Director, Commercial Litigation Branch, Civil Division, U.S.
    Department of Justice (Michael David Panzera, John J. Todor and Loren Misha Preheim); Daniel
    J. Calhoun, Irene H. Chen and David Richardson, Office of the Chief Counsel for Import
    Administration, U.S. Department of Commerce, of counsel, for the defendant.
    Consol. Court No. 08-00256                                                                    Page 2
    White & Case, LLP (Adams C. Lee and Frank H. Morgan) for the defendant-
    intervenor.
    Restani, Chief Judge: This matter is before the court for decision following
    objections by Defendant-Intervenor Xuzhou Xugong Tyres Co., Ltd. (“Xugong”) to the Final
    Redetermination issued by the International Trade Administration, United States Department of
    Commerce (“Commerce” or the “Department”). In 2008, Plaintiffs Bridgestone Americas, Inc.,
    Bridgestone Americas Tire Operations, LLC, and Titan Tire Corporation (collectively,
    “Bridgestone”), domestic producers of certain off-the-road (“OTR”) tires, contested Commerce’s
    exclusion of Xugong, a Chinese producer of OTR tires, from the scope of a final antidumping
    (“AD”) determination. See Certain New Pneumatic Off-The-Road-Tires from the People’s
    Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Partial
    Affirmative Determination of Critical Circumstances, 
    73 Fed. Reg. 40,485
    , 40,488 89 (Dep’t
    Commerce July 15, 2008) (“Final Determination”). Specifically, Plaintiffs contested
    Commerce’s determination that fifteen of the raw material inputs Xugong used in producing the
    tires were indirect materials.
    In August 2009, the court remanded the Final Determination to Commerce to
    “reconsider whether each of the fifteen inputs was a direct or indirect material, to reopen the
    record as appropriate, and to recalculate the dumping margin accordingly.” Bridgestone
    Americas, Inc. v. United States, 
    636 F. Supp. 2d 1347
    , 1357 (CIT 2009) (“Bridgestone I”). On
    remand, Commerce adjusted the antidumping duty rate upward from 0.00 percent to 10.01
    percent. Final Redetermination Pursuant to Court Remand (Dep’t Commerce Jan. 8, 2010)
    Consol. Court No. 08-00256                                                                 Page 3
    (Docket No. 88) (“Final Redetermination”).1 Following remand, Xugong asserts that
    Commerce’s redetermination with respect to one of fifteen manufacturing inputs, “HO Oil,”
    cannot be sustained. (Defendant-Intervenor Xuzhou Xugong Tyres Co., LTD.’s Objections to
    the Department of Commerce’s January 8 Remand Determination, at 5, 13 (Docket No. 94)
    (“Xugong Objection”).) The court will enter judgment affirming Commerce’s redetermination.
    BACKGROUND
    In July 2007, Commerce initiated an antidumping (“AD”) investigation to
    determine whether imports of certain pneumatic OTR tires from the People’s Republic of China
    for the period of 1 October 2006 through 31 March 2007, were being sold in the United States at
    less than fair value. See Initiation of Antidumping Duty Investigation: Certain New Pneumatic
    Off-the-Road Tires From the People’s Republic of China, 
    72 Fed. Reg. 43,591
    , 43,592 (Dep’t
    Commerce Aug. 6, 2007). Commerce selected Xugong as a mandatory respondent. Certain
    New Pneumatic Off-The-Road Tires From the People’s Republic of China; Preliminary
    Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 
    73 Fed. Reg. 9278
    , 9282 83 (Dep’t Commerce Feb. 20, 2008) (“Preliminary Determination”).2 In
    1
    For a complete discussion of background information, the reader is referred to this
    Court’s August 2009 opinion ordering remand. Bridgestone I, 
    636 F. Supp. 2d at 1347
    .
    2
    The other mandatory respondents were Guizhou Tyre Co., Ltd., Hebei Starbright Co.,
    Ltd., and Tianjin United Tire & Rubber International Co., Ltd. 
    Id.
     at 9278 n.3, 9283. Those
    respondents were also mandatory respondents in an accompanying countervailing duty (“CVD”)
    investigation. See Certain New Pneumatic Off-the-Road Tires From the People’s Republic of
    China: Final Affirmative Countervailing Duty Determination and Final Negative Determination
    of Critical Circumstances, 
    73 Fed. Reg. 40,480
    , 40,483 (Dep’t Commerce July 15, 2008).
    Currently pending before the court is Commerce’s AD and CVD remand determinations as they
    relate to those separate respondents. See GPX Int’l Tire Corp. v. United States, 645 F. Supp. 2d
    (continued...)
    Consol. Court No. 08-00256                                                                   Page 4
    the Preliminary Determination, Commerce calculated a dumping margin of 51.81% for Xugong.
    
    Id. at 9291
    .
    After the Preliminary Determination, Commerce issued Xugong a supplemental
    questionnaire requesting clarifying information and an updated factors of production database
    for the purpose of calculating normal value to compare with the United States price. (See
    Xugong’s Fifth Supplemental Questionnaire Response (“Fifth Supplemental Questionnaire”),
    Exs. Accompanying the Pl.’s. Br. of Bridgestone, Tab 3 (Docket No. 107) (“Pl.’s App.”).) In
    addition to providing the requested information, Xugong informed Commerce that fifteen of the
    raw material inputs it previously reported as direct materials were in fact indirect materials and
    included the corrections in the updated database. (Id.) Although Commerce treated the fifteen
    inputs as direct materials in calculating the preliminary dumping margin, Commerce treated
    them as indirect materials in its Final Determination and calculated a zero dumping margin for
    Xugong. Final Determination, 73 Fed. Reg. at 40,488 89.
    Bridgestone challenged Commerce’s zero dumping margin and the court
    remanded this matter to the Department to “reconsider whether each of the fifteen inputs was
    direct or indirect material.” Bridgestone I, 
    636 F. Supp. 2d at 1357
    . In response, Commerce
    reopened the administrative record and issued a Supplemental Questionnaire. (See Pl.’s App.
    Tab 7.) Xugong asserts that in the course of preparing the response it determined that the raw
    material it “referred to as HO Oil was, in fact, aromatic oil.” (Xugong Objection 5.) Xugong
    submitted the alleged translation error correction in its Supplemental Questionnaire Response
    2
    (...continued)
    1231 (CIT 2009).
    Consol. Court No. 08-00256                                                                  Page 5
    and postulates that aromatic oil should be valued under HTS Heading 2707.50 as opposed to its
    suggested HTS Heading 2902.90.90 for HO Oil. (See Xugong Objection 13; Def.’s Resp. to
    Def.-Intervenor’s Objections to the Dep’t of Commerce’s Remand Redetermination, 11 (Docket
    No. 99) (“Def.’s Resp.”).) Throughout its objection Xugong focuses on the input labeled HO
    Oil, and considers the other fourteen inputs “irrelevant,” because if Commerce treats HO Oil as
    an indirect material or values it under the now-claimed HTS Heading 2707.50, Xugong’s
    dumping margin would be de minimis. (Id.) Accordingly, Xugong objects to Commerce’s Final
    Redetermination.
    JURISDICTION AND STANDARD OF REVIEW
    The court has jurisdiction pursuant to 
    28 U.S.C. § 1581
    (c). The court will uphold
    Commerce’s final results of redetermination pursuant to the court’s remand unless it is
    “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19
    U.S.C. § 1516a(b)(1)(B)(i).
    DISCUSSION
    I.     Commerce Applied An Appropriate Standard to Determine Whether An Input Was
    A Direct Or Indirect Material
    As a preliminary matter, Xugong submits that Commerce acted unlawfully when
    it relied on a “new and previously unarticulated standard in the remand determination for
    defining direct and indirect materials.” (Xugong Objection 13.) Xugong relies on Commerce’s
    articulation of a standard it its Issues and Decision Memorandum for the Antidumping
    Investigation of Certain New Pneumatic Off-the-Road Tires from the People’s Republic of
    China, A-570-912, POR: 10/1/2006 3/31/2007, at 88 90 (July 7, 2008) (“I&D Memo”), Admin.
    Consol. Court No. 08-00256                                                                      Page 6
    R. Pub. Doc. 648, available at http://ia.ita.doc.gov/frn/summary/PRC/E8-16156-1.pdf (last
    visited May 14, 2010). In the I&D Memo, Commerce stated that
    [i]n determining whether a given material should be treated as a part of factory
    overhead versus a direct material for purposes of calculating [normal value], the
    Department takes into consideration: 1) whether the material is physically
    incorporated into the final product; 2) the material’s contribution to the
    production process and finished product; 3) the relative cost of the input; and 4)
    the way the cost of the input is typically treated in the industry.
    I&D Memo at 88 89. Xugong argues that Commerce improperly focused on only the first two
    of the four criteria   the physical incorporation of the input and its significance to the production
    process. See Final Redetermination at 3 5. Xugong further argues that if Commerce is going to
    rely solely on the first two criteria, the input is direct only if the “subject merchandise could not
    be produced without using [the input].” (Xugong Objection 14 15.)
    Although Xugong is correct that the Department’s language in its I&D Memo
    appears to refer to a hard-and-fast four-prong standard, it appears that such a characterization is
    not appropriate. This “standard” is merely a survey of various criteria taken into consideration
    in different past determinations to distinguish direct materials. See I&D Memo at 89. Indeed,
    Commerce acknowledged that in prior proceedings, for this and other antidumping cases, the
    Department evaluated other criteria. Final Redetermination at 4. Commerce explained its
    decision, however, to focus on the first two criteria. (Id. at 5.) Specifically, the criterion of “the
    way the cost of the input is typically treated in the industry,” I&D Memo at 89, was not assessed
    by Commerce because there was insufficient evidence to discern Indian surrogate producers’
    Consol. Court No. 08-00256                                                                  Page 7
    treatment of the inputs.3 Final Redetermination at 4 5. Thus, the criterion did not provide a
    useful manner to determine whether the input was direct and therefore, Commerce did not rely
    upon it. Accordingly, the court finds that in focusing on the first two criteria, Commerce did not
    abuse its discretion to rely on various criteria to value factors of production. See Nation Ford
    Chem. Co. v. United States, 
    166 F.3d 1373
    , 1377 (Fed. Cir. 1999).
    Further, although Commerce has found, as Xugong contends, a material to be
    direct if the subject merchandise could not be produced without using the input, see e.g., Issues
    and Decision Memorandum for the Less-Than-Fair-Value Investigation of Wooden Bedroom
    Furniture from the People’s Republic of China, A-570-890, at 118 19 (Nov. 8, 2004), available
    at http://ia.ita.doc.gov/frn/summary/prc/04-25507-1.pdf (last visited May 13, 2010), Commerce
    has also found a material to be direct when “the chemicals are physically incorporated into, and
    become part of, the finished product,” Notice of Final Determination of Sales at Less Than Fair
    Value: Certain Paper Clips from the People’s Republic of China, 
    59 Fed. Reg. 51,168
    , 51,174
    (Dep’t Commerce Oct. 7, 1994). Xugong’s Supplemental Questionnaire describes HO Oil as an
    input that is “added in [the] milling process, for the purposes of softening rubber and improving
    its processing technical function.” (Pl.’s App. Tab 7.) In ordinary parlance this description
    characterizes an input that is physically incorporated into the finished product. Accordingly,
    Commerce’s determination that HO Oil is a direct input is supported by substantial evidence and
    3
    The Department has noted previously that under Indian accounting practices, factory
    overhead materials assist the manufacturing process, but do not enter physically into the
    composition of the finished product. I&D Memo at 90. In this case, the Indian surrogate
    financial statements did not provide enough detail to determine whether the inputs were treated
    as overhead materials. Final Redetermination at 4.
    Consol. Court No. 08-00256                                                                    Page 8
    in accordance with law.
    II.     Xugong Did Not Exhaust Its Administrative Remedies As To Valuation Of The Key
    Input
    The exhaustion doctrine provides that “no one is entitled to judicial relief for a
    supposed or threatened injury until the prescribed administrative remedy has been exhausted.”
    McKart v. United States, 
    395 U.S. 185
    , 193 (1969) (internal quotation marks and citation
    omitted). “In the Court of International Trade, a [party] must . . . show that it exhausted its
    administrative remedies, or that it qualifies for an exception to the exhaustion doctrine.” Consol.
    Bearings Co. v. United States, 
    348 F.3d 997
    , 1003 (Fed. Cir. 2003) (citing 
    28 U.S.C. § 2637
    (d)).4
    This doctrine reflects a respect for judicial economy and the agency’s administrative autonomy.
    See McKart, 
    395 U.S. at
    194 95 (“other justifications for requiring exhaustion . . . [include]
    very practical notions of judicial efficiency . . . .”); Unemployment Comp. Comm’n of Ala. v.
    Aragon, 
    329 U.S. 143
    , 155 (1946) (“A reviewing court usurps the agency’s function when it . . .
    deprives the [agency] of an opportunity to consider the matter, make its ruling, and state the
    reasons for its action.”).
    Xugong was selected as a mandatory respondent and officially notified of that
    fact in February 2008. Preliminary Determination, 73 Fed. Reg. at 9282 83. In its Preliminary
    Determination, the Department valued HO Oil as a direct input using Xugong’s suggested HTS
    4
    Exceptions to the exhaustion doctrine may include: (1) raising a pure question of law
    that neither creates undue delay nor causes expenditure of scarce party time and resources, Thai
    I-Mei Frozen Foods Co. v. United States, 477 F. Supp. 2d. 1332, 1354 55 (CIT 2007); (2)
    “judicial interpretations of existing law after decision below and pending appeal interpretations
    which if applied might have materially altered the result,” Hormel v. Helvering, 
    312 U.S. 552
    ,
    558 59 (1941); and (3) raising the issue before the agency would have been futile, Gerber Food
    (Yunnan) Co. v. United States, 601 F. Supp. 2d. 1370, 1380 81 (CIT 2009).
    Consol. Court No. 08-00256                                                                         Page 9
    Heading 2902.90.90 and calculated a dumping margin of 51.81% for Xugong. Id. at 9291; Final
    Redetermination at 20. Between February 2008 and the Final Determination issued in July 2008,
    Xugong responded to Commerce’s Fifth Supplemental Questionnaire and submitted its case
    brief. (See Pl.’s App. Tab 3 4.) In its response to the Fifth Supplemental Questionnaire Xugong
    stated that “we hereby claim [the fifteen inputs] as indirect raw materials . . . .” (Pl.’s App. Tab
    3.) Normally, indirect materials are part of overhead and thus would not be valued as a separate
    item. Shortly after submitting the Fifth Supplemental Questionnaire, Xugong submitted a
    similar classification correction to the one at issue here, of the material “pine oil,” which it
    claimed was originally improperly translated as “wood tar.” (Xugong Objection 7.) In its May
    2008 case brief, Xugong did not mention its new characterization of the fifteen inputs as indirect
    materials, but it did submit the classification correction for “pine oil.” (Pl.’s App. Tab 4.)
    Commerce accepted the correction as timely and revised the HTS classification and
    corresponding surrogate value of “pine oil” in its Final Determination. See I&D Memo at
    130 31.
    Xugong, in its case brief, also did not challenge Commerce’s use of HTS Heading
    2902.90.90 for HO Oil (then a direct material) in the Preliminary Determination and instead,
    made its new claim here for the first time after the Final Redetermination. Under the
    Department’s regulations, Xugong had an obligation to make any argument that might be
    relevant. See 
    19 C.F.R. § 351.309
    (c)(2) (requiring briefs to “present all arguments that continue
    in the submitter’s view to be relevant to the Secretary’s final determination or final results”); see
    also Dorbest Ltd. v. United States, Appeal No. 2009-1257, -1266 (Fed. Cir. May 14, 2010); GPX
    Intern. Tire Corp., 645 F. Supp. 2d at 1250; Gerber Food, 601 F. Supp. 2d at 1379. Xugong’s
    Consol. Court No. 08-00256                                                                         Page 10
    response to the Fifth Supplemental Questionnaire demonstrates its awareness that the direct
    versus indirect status of the fifteen inputs was at issue in the investigation. There does not seem
    to be any adequate reason for Xugong to rely on an expectation that Commerce would simply
    accept its characterization that HO Oil was an indirect material and reverse its Preliminary
    Determination decision. Xugong is correct that parties need not always raise issues before the
    administrative agency that become important because of later developments, such as reversal as
    to the prevailing party, see e.g., Qingdao Taifa Group Co. v. United States, 
    637 F. Supp. 2d 1231
    , 1236 37 (CIT 2009); however, the facts here do not lead to this exception.                   The
    appropriate time for Xugong to have asserted the classification correction for HO Oil was in its
    case brief before the Final Determination       as required by the Commerce’s regulations and as
    Xugong did for “pine oil.” See China First Pencil Co. v. United States, 
    427 F. Supp. 2d 1236
    ,
    1243 (CIT 2006) (finding a failure to exhaust administrative remedies when the plaintiff did not
    “challenge Commerce’s decision . . . during the administrative comment period following
    publication of the Preliminary Results and instead chose to challenge the issue on appeal”);
    IPSCO, Inc. v. United States, 
    749 F. Supp. 1147
    , 1150 (CIT 1990), aff’d in relevant part, 
    965 F.2d 1056
    , 1061 62 (Fed. Cir. 1992) (“Judicial economy, fairness to the parties and the need to
    fulfill Congress’s intent . . . requires that errors . . . be raised from the outset . . . . Unless a
    thorough examination of the record is made prior to briefing, the court and the parties risk
    becoming involved in unnecessary litigation of unimportant issues.”). Commerce might have
    chosen to evaluate the classification correction for HO Oil upon remand, but it was under no
    regulatory obligation to do so. See Nokornthai Strip Mill Public Co. v. United States, 
    587 F. Supp. 2d 1303
    , 1312 (CIT 2008) (“Commerce acted within its discretion, and in compliance with
    Consol. Court No. 08-00256                                                                    Page 11
    the agency’s own regulations, to limit its remand consideration to the timely-submitted
    arguments and evidence.”).5 Commerce complied with the law by giving Xugong every
    opportunity to present its argument at the appropriate administrative level. Xugong does not
    argue that the circumstances warrant applying an exception to the exhaustion doctrine, nor are
    any appropriate.
    Although the court has discretion to remand an issue to the agency despite non-
    exhaustion of remedies, see 
    28 U.S.C. § 2637
    (d) (court shall require exhaustion “where
    appropriate”), the “Supreme Court has cautioned that a remand requires a showing that the
    failure to raise an issue was not the result of a lack of due diligence on the part of the claimant,”
    Bethlehem Steel Corp. v. United States, 
    27 F. Supp. 2d 201
    , 206 (CIT 1998) (citations omitted);
    see also Peer Bearing Co. v. United States, 
    57 F. Supp. 2d 1200
    , 1205 (CIT 1999) (finding that a
    failure to carefully review preliminary results “is no excuse for [a party’s] failure to discover and
    raise the possibility of error as early in the administrative process as possible and thereby to
    exhaust its administrative remedies, as required under 
    28 U.S.C. § 2637
    (d)”). As indicated,
    Xugong knew that the valuation of HO Oil was important after Commerce issued the
    Preliminary Determination because the input was declared a direct material. Further, if, as
    Xugong submits, the classification of HO Oil means the difference between a dumping margin of
    10.01% or a de minimis dumping margin, it seems reasonable to expect that Xugong would have
    5
    The court does not opine on whether consideration of this issue was within the scope of
    the court’s remand order. Certainly, if Xugong had raised the classification issue the first time
    this matter was before the court, the court would have addressed this matter before it was
    remanded. Other classification issues were within the scope of remand. See Bridgestone I, 
    636 F. Supp. 2d at 1357
    . Xugong’s untimely actions needlessly complicate the proceedings.
    Consol. Court No. 08-00256                                                                Page 12
    reviewed its submission and detected the alleged translation error before the Final
    Determination. Accommodating Xugong’s delay now would prolong this matter and require an
    additional remand, which the court declines to order.6
    III.   Commerce Did Not Exhibit Bias In Favor of the Domestic Industry
    Xugong claims that Commerce exhibited bias in favor of the domestic industry’s
    position regarding the valuation of HO Oil during the remand proceeding because the
    Department: (1) held an ex parte meeting with petitioners; (2) provided insufficient time for
    Xugong to respond to the supplemental questionnaire; and (3) failed to conduct verification.
    (Xugong Objection 2 5.) Such favoritism, Xugong contends, is contrary to the general principle
    that Commerce must conduct investigations in an impartial manner. (Id.) “The right to an
    impartial decision maker is unquestionably an aspect of procedural due process.” NEC Corp. v.
    United States, 
    151 F.3d 1361
    , 1371 (Fed. Cir. 1998); see FAG Italia S.p.A. v. United States, 
    110 F. Supp. 2d 1055
    , 1061 (CIT 2000). Allegations of favoritism, however, that are merely
    speculative or unsubstantiated are insufficient. Spezzaferro v. Fed. Aviation Admin., 
    807 F.2d 169
    , 173 (Fed. Cir. 1986).
    First, Commerce is permitted to conduct ex parte meetings pursuant to 19 U.S.C.
    § 1677f(a)(3), provided that a record of them is maintained and made available. 19 U.S.C.
    6
    Because Xugong did not properly exhaust its administrative and judicial remedies we
    will not reach the merits of Xugong’s claim that Commerce erred when it concluded that Xugong
    failed to provide sufficient support for Commerce to conclude that the HTS Heading 2902.90.90
    was an inappropriate source for valuing HO Oil. Commerce maintains that Xugong did not
    provide specific descriptive information from which the Department could conclude that HTS
    Heading 2707.50 was more appropriate. In all likelihood, further fact-gathering would be
    necessary to resolve this. This factor further supports denial of consideration of this issue.
    Consol. Court No. 08-00256                                                                  Page 13
    § 1677f(a)(3). Xugong does not allege any procedural irregularities with respect to Commerce’s
    obligations under § 1677f(a)(3) and admits that it was informed of the meeting after it took
    place. (Xugong Objection 3.) Xugong does not dispute Defendant’s assertion that it was
    afforded the same opportunity and declined to meet with Commerce during the remand
    proceeding. (Def.’s Resp. 18.) Even if Commerce’s meeting with Bridgestone were a
    procedural irregularity, Xugong must demonstrate material prejudice. See Gilmore Steel Corp.
    v. United States, 
    585 F. Supp. 670
    , 679 (CIT 1984). Xugong has neither alleged nor
    demonstrated prejudice. Accordingly, Xugong’s ex parte argument is unavailing.
    Second, Xugong argues that Commerce failed to act impartially because it
    delayed in issuing the Supplemental Questionnaire and provided insufficient time for Xugong to
    respond. (Xugong Objection 3 4.) Xugong was initially given eleven days (eight business days)
    to respond; however, Xugong was granted an extension and ultimately allowed 26 days (20
    business days) to respond. (Id.) This is roughly equivalent to, if not greater than, the amount of
    time Commerce took to issue the questionnaire. (Id.) Xugong does not identify how it was
    prejudiced by the perceived delay in Commerce’s notification that it was reopening the record
    and issuing a supplemental questionnaire. See Boynton v. United States, 
    536 F. Supp. 2d 1344
    ,
    1346 (CIT 2008) (finding no merit in the due process claim, in part, because Plaintiff did not
    demonstrate prejudice). Further, the fact that Xugong’s extension was granted vitiates any
    potential prejudice Xugong may have suffered had it been required to abide by the initial
    deadline. Accordingly, Xugong’s claim that Commerce’s timing of the remand is evidence of
    bias is similarly unavailing.
    Lastly, Xugong contends that Commerce’s cancellation of verification on the
    Consol. Court No. 08-00256                                                                 Page 14
    same day that Xugong submitted its Supplemental Questionnaire Response further demonstrates
    favoritism toward the domestic industry’s position. (Xugong Objection 4 5.) It is well
    established, however, that agencies enjoy broad discretion in allocating their investigative
    resources. Torrington Co. v. United States, 
    68 F.3d 1347
    , 1351 (Fed. Cir. 1995); see Carpenter
    Tech. Corp. v. United States, 
    662 F. Supp. 2d 1337
    , 1346 (CIT 2009) (“[T]he Department[] [has]
    discretion to decide whether and how to verify the information submitted during an antidumping
    proceeding.”). Here, Commerce determined that it had all the information it needed via the
    submissions of the party. (Def.’s Resp. 20.) The spot check of verification would not change
    that. Thus, Commerce’s invocation of its discretion not to conduct a verification does not
    demonstrate bias.
    In sum, Xugong’s allegations of favoritism are unavailing. Commerce is
    permitted to conduct ex parte meetings, allocate time reasonably in response to remand
    instructions, and decline to conduct verifications. Accordingly, its choice to do all three does not
    amount to a lack of impartiality in violation of procedural due process.
    CONCLUSION
    The results of the remand determination are sustained in their entirety.
    /s/ Jane A. Restani
    Jane A. Restani
    Chief Judge
    Dated: This 14th day of May, 2010.
    New York, New York.
    ERRATA
    Please make the following three changes to Bridgestone Americas, Inc. v. United States, Consol.
    Court No. 08-00256, Slip Op. 10-55:
    (1) Page 1, date: strike the following
    •      Dated: May 14, 2009
    and replace with
    •      Dated: May 14, 2010
    (2) Page 1, counsel list: strike the following from Titan Tire Corporation’s counsel list
    •      “and King & Spalding, LLP (Daniel L. Schneiderman)”
    (3) Page 10, formatting: on the eighth line start new paragraph with
    •      “The appropriate time for Xugong to have asserted the classification correction . . .”
    May 17, 2010