Thai Plastic Bags Indus. Co., Ltd. v. United States , 853 F. Supp. 2d 1267 ( 2012 )


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  •                           Slip Op. 12-86
    UNITED STATES COURT OF INTERNATIONAL TRADE
    THAI PLASTIC BAGS INDUSTRIES CO.,
    LTD., POLYETHYLENE RETAIL CARRIER
    BAG COMMITTEE, HILEX POLY CO.,
    LLC, and SUPERBAG CORPORATION,           Before: Donald C. Pogue,
    Chief Judge
    Plaintiffs,
    Consol.1 Court No. 11-00086
    v.
    UNITED STATES,                                 Public Version
    Defendant.
    OPINION
    [Plaintiffs’ motion for judgment on the agency record GRANTED in
    part and DENIED in part].
    Dated: June 18, 2012
    Irene H. Chen, Cen Law Group LLC, of Rockville, MD, and
    Mark B. Lehnardt, Lehnardt & Lehnardt LLC, of Liberty, MO, for
    Plaintiff.
    Joseph W. Dorn, Stephen A. Jones, and Daniel L.
    Schneiderman, King & Spalding, of Washington, DC, for
    Consolidated Plaintiffs.
    Vincent D. Phillips, Trial Attorney, Commercial
    Litigation Branch, Civil Division, U.S. Department of Justice, of
    1
    This action is consolidated with Court Nos. 11-00086 and
    11-00090.
    Consol. Court No. 11-00086                                  Page 2
    Washington, DC, for Defendant. With him on brief were Stuart F.
    Delery, Acting Assistant Attorney General, Jeanne E. Davidson,
    Director, and Patricia M. McCarthy, Assistant Director. Of
    counsel on the brief was Scott D. McBride, Senior Attorney,
    Office of the Chief Counsel for Import Administration, U.S.
    Department of Commerce, of Washington, DC.
    Pogue, Chief Judge: In this action, Plaintiff Thai
    Plastic Bags Industries Co., Ltd. (“TPBI”), a producer of
    polyethylene retail carrier bags (“PRCBs”) from Thailand, the
    subject merchandise, and Plaintiffs Polyethylene Retail Carrier
    Bag Committee, Hilex Poly Co., LLC, and Superbag Corporation
    (collectively “PRCBC”), producers of a domestic like product,
    each challenge determinations made by the United States
    Department of Commerce (“Commerce” or “the Department”) in the
    fifth administrative review of the antidumping (“AD”) order on
    PRCBs.2
    Specifically, Plaintiffs challenge: 1) Commerce’s
    adjustments to TPBI’s reported cost allocation methodology; 2)
    Commerce’s use of zeroing; 3) Commerce’s cost adjustment, under
    the transactions disregarded rule, for linear low density resin
    (“LLD”) obtained by TPBI; and 4) Commerce’s determination that
    2
    See Polyethylene Retail Carrier Bags From Thailand, 
    76 Fed. Reg. 12,700
     (Dep't Commerce Mar. 8, 2011) (final results of
    antidumping duty administrative review) ("Final Results"), and
    accompanying Issues & Decision Memorandum, A-549-821, ARP 08-09
    (Mar. 1, 2011) Admin. R. Pub. Doc. 136, available at
    http://ia.ita.doc.gov/frn/summary/THAILAND/2011-5267-1.pdf (last
    visited June 15, 2012) (“I & D Mem.”) (adopted in Final Results,
    76 Fed. Reg. at 12,701). The period of review (“POR”) was August
    1, 2008 through July 31, 2009.
    Consol. Court No. 11-00086                                      Page 3
    TPBI’s 2009 inventory valuation losses were attributable to
    finished goods inventory and were therefore excluded from the
    calculation of TPBI’s general and administrative expenses for
    producing its goods.
    The court has jurisdiction pursuant to 
    28 U.S.C. § 1581
    (c).
    For the reasons discussed below, issues two and three
    are remanded to Commerce for reconsideration and further
    explanation; Commerce’s determinations on issues one and four are
    affirmed.
    STANDARD OF REVIEW
    Under its familiar standard of review, the court will
    sustain Commerce’s determinations if they are “supported by
    substantial evidence on the record,” and “otherwise . . . in
    accordance with law.” See Section 516A(b)(1)(B)(I) of the Tariff
    Act of 1930, 19 U.S.C. § 1516a(b)(1)(B)(I) (2006).3    Substantial
    evidence is “such relevant evidence as a reasonable mind might
    accept as adequate to support a conclusion,” Consol. Edison Co.
    of N.Y. v. NLRB, 
    305 U.S. 197
    , 229 (1938), “taking into account
    the entire record, including whatever fairly detracts from the
    substantiality of the evidence.” Atl. Sugar, Ltd. v. United
    3
    Further citations to the Tariff Act of 1930 are to Title
    19 of the United States Code, 2006.
    Consol. Court No. 11-00086                                    Page 4
    States, 
    744 F.2d 1556
    , 1562 (Fed. Cir. 1984); see also Universal
    Camera Corp. v. NLRB, 
    340 U.S. 474
    , 488 (1951).   Thus, the
    substantial evidence standard of review “can be translated
    roughly to mean ‘is [the determination] unreasonable?’” Nippon
    Steel Corp. v. United States, 
    458 F.3d 1345
    , 1351 (Fed. Cir.
    2006) (quoting SSIH Equip. SA v. U.S. ITC, 
    718 F.2d 365
    , 381
    (Fed. Cir. 1983)).
    DISCUSSION
    I.        TPBI Issue 1: Reallocation of TPBI’s Reported Costs
    Commerce, during an administrative review, determines
    whether subject merchandise has been sold at less than fair
    value, or “dumped,” in the United States.   To do so, the
    Department endeavors to make a fair comparison between the export
    price or constructed export price of a foreign producer’s sales
    and its “normal” or home market sale value. See 19 U.S.C.
    § 1677b(a); 
    19 U.S.C. § 1677
    (35)(A).4   This determination
    requires that Commerce compare products sold in the United States
    to matching “like” products sold in the home market. See 19
    U.S.C. § 1677b(a)(1)(B). See also 
    19 U.S.C. § 1677
    (16); Uruguay
    Round Agreements Act, Statement of Administrative Action, H.R.
    Doc. No. 103-316, vol. 1, at 820 (1994) (“SAA”), reprinted in
    4
    “Normal value” is “the price at which the foreign like
    product is first sold . . . for consumption in the exporting
    country . . . .” 19 U.S.C. § 1677b(a)(1)(B)(I).
    Consol. Court No. 11-00086                                    Page 5
    1994 U.S.C.C.A.N. 4040, 4161 (“[T]he preferred method for
    identifying and measuring dumping is to compare home market sales
    of the foreign like product to export sales to the United
    States.”)    In its comparison, Commerce may, under certain
    conditions, disregard sales below the producer’s cost of
    production (“COP”).5 19 U.S.C. § 1677b(b).
    To the extent that not all products have an identical
    match, Commerce, in accordance with the statute, may calculate a
    constructed value (“CV”) of the merchandise.    Commerce uses the
    same method to calculate “costs” for both COP and CV. Compare 19
    U.S.C. § 1677b(b)(3), with 19 U.S.C. § 1677b(e). See also 19
    5
    3) Calculation of cost of production
    For purposes of this part, the cost of production shall
    be an amount equal to the sum of—
    (A) the cost of materials and of fabrication or
    other processing of any kind employed in producing
    the foreign like product, during a period which
    would ordinarily permit the production of that
    foreign like product in the ordinary course of
    business;
    (B) an amount for selling, general, and
    administrative [“SG&A”] expenses based on actual
    data pertaining to production and sales of the
    foreign like product by the exporter in question;
    and
    (C) the cost of all containers and coverings of
    whatever nature, and all other expenses incidental
    to placing the foreign like product in condition
    packed ready for shipment.
    19 U.S.C. § 1677b(b)(3).
    Consol. Court No. 11-00086                                    Page 6
    U.S.C. § 1677b(f).   To make its CV and COP determinations,
    Commerce must consider all available evidence regarding proper
    cost allocation, 19 U.S.C. § 1677b(f)(1)(A), including costs as
    reported by the foreign producer.   Such costs will, normally, be
    calculated based on the producer’s records, if the records are
    kept in accordance with the generally accepted accounting
    principles (“GAAP”) of the exporting country and if such records
    reasonably reflect the costs associated with the production and
    sale of the merchandise. 19 U.S.C. § 1677b(f)(1)(A); I & D Mem.
    Cmt. 1 at 9.
    In addition, in calculating the normal value, Commerce
    may make reasonable allowances for differences in physical
    characteristics of the merchandise (its “DIFMER” adjustment).6
    As Commerce must calculate the COP and CV with as much
    accuracy as possible, if the company’s reported cost allocation
    methodology shifts costs away from the subject merchandise or the
    foreign like product, Commerce has the authority to adjust costs
    to ensure that they are not artificially reduced. Thai Plastic
    6
    Reasonable allowance. In deciding what is a
    reasonable allowance for differences in physical
    characteristics, the Secretary will consider only
    differences in variable costs associated with the
    physical differences. Where appropriate, the Secretary
    may also consider differences in the market value. The
    Secretary will not consider differences in cost of
    production when compared merchandise has identical
    physical characteristics.
    
    19 C.F.R. § 351.411
    (b).
    Consol. Court No. 11-00086                                   Page 7
    Bags Indus. Co. v. United States, 34 CIT __, 
    752 F. Supp. 2d 1316
    , 1324 (2010)(“Thai Plastic Bags I”); See SAA at 834-35, 1994
    U.S.C.C.A.N. at 4171-72; 19 C.F.R. 351.407(c).7
    Specifically, in the fifth administrative review of this
    order, just as in the fourth administrative review, Commerce
    concluded that TPBI’s reported cost allocation “resulted in
    product-specific cost differences which were unrelated to
    differences in physical characteristics.” Thai Plastic Bags I, 34
    CIT __, 
    752 F. Supp. 2d at 1329
    ; Resp. Br. of PRCBC in Opp’n to
    TPBI’s Mot. for J. on Agency R. at 7, ECF No. 74 (“PRCBC’s Resp.
    Br.”).   These differences were the result of TPBI’s adjustment of
    its reported “conversion costs.”   TPBI alleges that these
    adjustments were to reflect the additional time needed to process
    different products. Pl.’s Rule 56.2 Mem. of Law in Supp. Of Mot.
    for J. on Agency R., ECF No. 50-1, at 15 (“TPBI’s Br.).   But
    Commerce determined that TPBI’s submitted evidence showed that
    TPBI’s reported cost allocation methodology did not reasonably
    reflect the actual costs for producing the merchandise, Def.’s
    Resp. in Opp. to Pls.’ Rule 56.2 Mot. for J. upon the Agency R.,
    7
    Allocation of costs. In determining the appropriate
    method for allocating costs among products, the
    Secretary may take into account production quantities,
    relative sales values, and other quantitative and
    qualitative factors associated with the manufacture and
    sale of the subject merchandise and the foreign like
    product.
    
    19 C.F.R. § 351.407
    (c).
    Consol. Court No. 11-00086                                   Page 8
    ECF No. 67, at 14 (“Def.’s Br.”), and that TPBI’s reporting
    methodology unreasonably distorted the cost of manufacture
    (“COM”).8 Polyethylene Retail Carrier Bags From Thailand, 
    75 Fed. Reg. 53,953
    , 53,955 (Dep't Commerce Sept. 2, 2010) (preliminary
    results of antidumping duty administrative review) (“Prelim.
    Results”).
    In particular, Commerce found that TPBI’s reporting
    methodology was inconsistent with its normal cost-accounting
    practice and the reported cost differences were unrelated to
    physical differences. 
    Id.
         Commerce found that TPBI did not
    actually use its reported cost allocation methodologies in its
    normal books and records, but rather created a methodology
    outside of its normal business practices to report labor and
    overhead costs to Commerce. Def.’s Br. at 14-15; I & D Mem.
    Cmt. 1 at 10.    Accordingly, Commerce reallocated TPBI’s reported
    conversion costs.9
    TPBI argued that its cost allocation method reflected
    cost differences attributable to physical characteristics; but
    8
    Cost of Manufacturing (“COM”) includes the direct
    materials, direct labor, variable manufacturing overhead, and
    fixed manufacturing overhead costs incurred in the production of
    the merchandise. See Antidumping Manual, Chapter 9 at 5 (“AD
    Manual”), available at http://ia.ita.doc.gov/admanual/index.html
    (last visited June 15, 2012).
    9
    In doing so, Commerce calculated the sum of direct labor,
    variable overhead, and fixed overhead, and applied a weighted
    average of these amounts. See Final Results, 76 Fed. Reg. at
    12,701; I & D Mem. Cmt. 1 at 12.
    Consol. Court No. 11-00086                                     Page 9
    Commerce found that TPBI’s method resulted in “great variability”
    in costs for similar items having nothing to do with physical
    characteristics. Def.’s Br. at 15; Prelim. Results 75 Fed. Reg.
    at 53,955.    Specifically, Commerce looked at nine pairs of
    CONNUMs10 that were very similar physically and found that under
    TPBI’s allocations, these items had very different costs. I & D
    Mem. Cmt. 1 at 8.
    Even though TPBI explained that many variables other
    than physical characteristics affected costs, Commerce found that
    most of the CONNUM pairs were produced in the same facility and
    had very slight physical differences, yet there were extreme
    differences in production times reported. I & D Mem. Cmt. 1 at 8;
    Def.’s Br. at 16.    Commerce then determined that the record
    showed that TPBI’s cost allocation methods did not reasonably
    reflect actual costs because such cost disparities were not
    explained by physical differences in the specific products.
    Def.’s Br. at 16.    Commerce thus relied on actual data reported
    by TPBI and weight-averaged the costs across all production
    lines. Def.’s Br. at 17; I & D Mem. Cmt. 1 at 12.
    TPBI now challenges Commerce’s decision to replace
    TPBI’s reported costs with Commerce’s average cost calculation.
    TPBI’s Br. at 13.    TPBI states that Commerce should have accepted
    10
    A CONNUM is a control number variable Commerce uses in
    matching transactions. I & D Mem. at 2.
    Consol. Court No. 11-00086                                    Page 10
    TPBI’s reported costs as in accordance with GAAP principles, that
    Commerce incorrectly relied on the DIFMER standard in
    reallocating TPBI’s costs and that Commerce should have used
    TPBI’s cost information in its calculations. See id. at 14.
    However, as explained below, Commerce reasonably decided A) not
    to use TPBI’s cost methodology; B) to utilize the DIFMER
    standard; and C) to reject TPBI’s alternate cost methodologies.
    A.   Costs
    TPBI first argues that Commerce’s decision to replace
    TPBI’s reported costs with averaged costs is not supported by
    substantial evidence. TPBI’s Br. at 13.   But in its normal
    accounting system, TPBI calculates a single monthly per-kilogram
    average conversion cost for all products based on the costs and
    quantities from the previous three months. See TPBI’s Section D
    Resp., A-549-821, ARP 08-09 (Dec. 16, 2009), Admin. R. Con. Doc.
    7 [Pub. Doc. 40] at D-14.    Contrary to this normal practice, in
    reporting its costs for this administrative review, TPBI used a
    different reporting methodology. See id. at D-15.    TPBI allocated
    conversion costs to individual models based on production hours.
    Id. at D-26 to D-28.   Commerce rejected TPBI’s allocation as
    distortive because it shifted costs away from the subject
    merchandise. Def.’s Br. at 16. See I & D. Mem. Cmt. 1 at 9.
    Disputing Commerce’s conclusion, TPBI maintains that
    its cost allocation is a reasonable reflection of production and
    Consol. Court No. 11-00086                                   Page 11
    sale costs of the subject merchandise. TPBI’s Br. at 15.   TPBI
    claims that although its costs were based on actual costs, that
    other variables besides physical characteristics affected the
    costs. Def.’s Br. Ex. G at S5D-20 to S5D-22; Def.’s Br. at 15;
    TPBI’s Br. at 7; TPBI Case Br., A-549-821, ARP 08-09 (Dec. 10,
    2010), Admin. R. Con. Doc. 42 [Pub. Doc. 128] at 13.   TPBI states
    that Commerce should have reviewed those cost driving factors
    (such as material inputs, order sizes, complexity of bags)
    instead of relying on a sampling of nine CONNUM pairs to conclude
    that there are factors other than physical characteristics that
    drove cost differences. See TPBI’s Br. at 18.
    But it was not unreasonable for Commerce to conclude
    that TPBI’s methodology produces “great variability” in the costs
    of similar items having nothing to do with the physical aspects
    of the specific product. Def.’s Br. at 15; Prelim. Results, 75
    Fed. Reg. at 53,955.   Specifically, in considering the nine pairs
    of CONNUMs that were very similar physically, Commerce found that
    under TPBI’s reported cost allocations these items had very
    different costs. I & D Mem. Cmt. 1 at 8; Def.’s Br. at 15.
    Commerce correctly notes that most of the CONNUM pairs
    were made at the same facility and that the evidence illustrated
    that slight physical differences could not account for actual
    cost differences because the disparities could not be explained
    by these physical differences in the products. Def.’s Br. at 16;
    Consol. Court No. 11-00086                                  Page 12
    I & D Mem. Cmt. 1 at 8.   Moreover, TPBI was unable to provide
    Commerce with its actual labor and overhead costs because its
    financial accounting system does not maintain such costs at a
    CONNUM specific level. Def.’s Br. at 5, 14.
    As TPBI’s reporting methodology deviated from its
    normal accounting practice, Commerce adjusted the reported costs
    to ensure that they were not artificially reduced and distortive
    of true costs. I & D Mem. Cmt. 1 at 9;Def.’s Br. at 16. See also
    SAA at 835; Thai Pineapple Pub. Co. v. United States,   
    187 F.3d 1362
    , 1366 (Fed. Cir. 1999);   Hynix Semiconductor, Inc. v. United
    States, 
    424 F.3d 1363
    , 1369 (Fed. Cir. 2005) (quoting Am. Silicon
    Techs. v. United States, 
    261 F.3d 1371
    , 1377 (Fed. Cir. 2001)).
    Plaintiff’s reported per-unit costs shifted costs away from the
    subject merchandise, and thus Commerce reasonably recalculated
    Plaintiff’s costs by averaging them in order to prevent large
    discrepancies in costs between merchandise that was physically
    similar. Def.’s Br. at 17; I & D Mem. Cmt. 1 at 12.
    B.   DIFMER
    In calculating normal value, Commerce utilizes a DIFMER
    standard – i.e., a “difference in physical characteristics” or
    “difference-in-merchandise” adjustment –   in its review of what
    constitutes a reasonable allowance for differences in the
    physical characteristics of products sold in the U.S. and in
    foreign markets. See 
    19 C.F.R. § 351.411
    (b).   Commerce also has a
    Consol. Court No. 11-00086                                   Page 13
    practice of comparing cost allocations using physical
    characteristics of the product in its determination of whether a
    company’s cost allocation strategy reasonably reflects actual
    costs. Def.’s Br. at 18.
    In the Final Results Commerce stated that it considered
    physical differences in its cost analysis because these
    differences ultimately affect price. Def.’s Br. at 20.    Commerce
    argues that it analyzes subject merchandise costs by using
    physical characteristics because this is a dependable way to
    compare the different products, and that cost comparisons
    utilizing physical characteristics are “key” to Commerce’s
    analysis. Def.’s Br. at 18; Prelim. Cost Mem. For TPBI, A-549-
    821, ARP 08-09 (Aug. 26, 2010), Admin. R. Con. Doc. 36 [Pub. Doc.
    105] at 2 (“Prelim. Cost Mem.”); Def.’s Br. Ex. I at 2.
    TPBI challenges Commerce’s reliance on its physical
    differences, or DIFMER, analysis. TPBI’s Br. at 23-24.    TPBI
    argues that the DIFMER standard is not appropriate here, as it
    was intended for use in the context of price adjustments to
    normal value when there are variable cost differences between
    non-identical foreign like products and the subject merchandise.
    TPBI’s Br. at 24.
    TPBI argues that Commerce misapplied the DIFMER
    standard both in improperly weight-averaging conversion cost
    differences across all products and by calculating the DIFMER
    Consol. Court No. 11-00086                                 Page 14
    adjustment to normal value based solely on cost differences in
    materials (because the DIFMER standard is not to be used for cost
    differences unrelated to physical differences). TPBI’s Br. at 26-
    27.
    However TPBI did not offer any meaningful evidence to
    explain why physical differences in the CONNUM pairs resulted in
    such large differences in conversion costs.   As cost allocation
    based on physical characteristics is a primary factor in
    Commerce’s analysis, Commerce may adjust a company’s allocation
    method to more reasonably reflect costs. I & D Mem. Cmt. 1 at 10;
    Def.’s Br. at 19; See also 19 U.S.C.§ 1677b(b)(1)-(b)(2)(c).
    PRCBC adds that it would be distortive to use different
    costs for the COP, CV and DIFMER contexts; PRCBC’s Resp. Br.
    at 15-17. See also I & D Mem. Cmt. 1 at 10 n.3; NTN Bearing Corp.
    of America v. United States, 
    368 F.3d 1369
    , 1374 (Fed. Cir.
    2004).
    To the contrary, as Thai Plastic Bags I explained:
    In its determination, Commerce decided to revise
    TPBG's cost allocations (regarding direct labor,
    variable overhead and fixed overhead costs) to
    eliminate a “distortion” based on factors not
    attributable to physical characteristics. 74
    Fed.Reg. 39, 931 . . . . Commerce reallocated
    TPBG's costs for the sales-below-cost test, the
    constructed-value calculations and the difference-
    in-merchandise adjustment. 
    Id.
     The governments'
    [sic] legal determination to apply its adjustment
    for all three purposes was reasonable because the
    calculation of costs “reasonably reflect[ed]” the
    associated costs of production and sales. See 19
    U.S.C. § 1677b (f)(1)(A). As the SAA explains,
    Consol. Court No. 11-00086                                   Page 15
    Commerce must use a methodology that reasonably
    captures all of the costs incurred in manufacturing
    and selling the product at issue. SAA at 835.
    Further, “if Commerce determines that costs,
    including financing costs, have been shifted away
    from the production of the subject merchandise, or
    the foreign like product, it will adjust costs
    appropriately, to ensure they are not artificially
    reduced”. Id. See NTN Bearing Corp. of America v.
    U.S.,    
    368 F.3d 1369
    ,    1374    (Fed.Cir.,
    2004)(“Commerce noted that it ‘does not rely on a
    respondent's   reported   costs   solely  for   the
    calculation of COP and CV,’ Final Results, 63
    Fed.Reg. at 2574, and concluded that it would be
    distortive to adjust those costs only for those
    calculations, but not for others in which they were
    used. 
    Id.
     (‘[I]f we determine a component of a
    respondent's COP and CV is distortive for one
    aspect of our analysis, it is reasonable to make
    the same determination with respect to those other
    aspects of our margin calculations where we relied
    on the identical cost data.’). We concur with
    Commerce's analysis and hold that it did not err in
    interpreting these provisions to permit it to
    employ affiliated supplier cost data to calculate
    cost deviations to limit the definition of similar
    merchandise, the difmer adjustment, and inventory
    carrying costs.”).
    Thai Plastic Bags I, 34 CIT __, 
    752 F. Supp. 2d at
    1328 n.28.
    TPBI also asserts that Commerce’s determination was
    arbitrary because Commerce failed to cite a benchmark and did not
    address all of the factors that might influence cost differences
    between similar products. TPBI’s Br. at 18-20.   In addition, TPBI
    contends that Commerce’s regulations did not require that cost
    differences   unrelated   to   physical   characteristics   must   be
    reallocated or that the DIFMER standard be applied. Id. at 27-28.
    However, Commerce correctly notes that it may, but is not
    Consol. Court No. 11-00086                                               Page 16
    under an obligation to cite benchmarks or address all potential
    cost factors, and Plaintiff did not provide the record evidence
    necessary     to   do    so.   Def.’s   Br.   at   20-21;    See    
    19 C.F.R. § 351.407
    (c).11 Commerce differentiates TPBI’s cited authority from
    the present matter, stating that Commerce is not required to
    conduct a factor by factor analysis in this case, as there is only
    one product at issue. Def.’s Br. at 22-24. Commerce also relies on
    its past decisions in support of its practice. I & D Mem. Cmt. 1
    at 11-12.12
    Despite TPBI’s argument that each of the cited cases is
    distinguishable, Commerce analyzed TPBI’s costs in line with the
    agency    practice      of   considering   whether   costs    are    allocated
    according to physical characteristics of the product as a primary
    factor. Def.’s Br. at 17.        Recognizing that the DIFMER adjustment
    11
    Commerce notes that in Certain Preserved Mushrooms from
    India, 
    63 Fed. Reg. 72
    , 246 (Dep’t Commerce Dec. 31, 1998)
    (notice of final determination of sales at less than fair value),
    Commerce rejected the reported methodology because it may
    consider other factors in analyzing the costs of production, but
    that it is not obligated to do so. Def.’s Br. at 22-23.
    12
    Commerce states that the common thread in the three cited
    cases is Commerce’s consistent actions in reallocating costs to
    address distortions on the record. See Stainless Steel Bar from
    the United Kingdom, 
    72 Fed. Reg. 43,598
     (Dep’t Commerce Aug. 6,
    2007) (final results of antidumping duty administrative review);
    Hot-Rolled Flat-Rolled Carbon-Quality Steel Products from Japan,
    
    64 Fed. Reg. 24,329
     (Dep’t Commerce May 6, 1999) (notice of final
    determination of sales at less than fair value); Small Diameter
    Circular Seamless Carbon and Alloy Steel, Standard, Line and
    Pressure Pipe from Brazil, 
    60 Fed. Reg. 31,960
     (Dep’t Commerce
    June 19, 1995) (notice of final determination of sales at less
    than fair value).
    Consol. Court No. 11-00086                                            Page 17
    is a price adjustment, Commerce still found that using physical
    characteristics was necessary for its analysis as the physical
    differences influence the price of products. I & D Mem. Cmt. 1
    at 10 n.2; Def.’s Br. at 19-20. See also 19 C.F.R. 351.411(a)-(b).
    Commerce notes that its regulations do not prohibit Commerce from
    adjusting reported costs to ensure that there would not be a DIFMER
    adjustment for conversion cost differences. I & D Mem. Cmt. 1
    at 13; PRCBC’s Resp. Br. at 14.
    Commerce also counters TPBI’s argument that Commerce’s
    costs reallocation was inappropriate because there was no evidence
    of under-reporting. See TPBI’s Br. at 22.          Commerce notes that it
    is not required to wait for under-reporting before determining that
    those costs did not reasonably reflect actual costs. Def.’s Br. at
    24.    Commerce found a distortion in that the reported conversion
    costs were understated for some models and overstated for others;
    resulting in the need to adjust the costs. I & D Mem. Cmt. 1 at 13;
    Def.’s Br. at 25.
    Thus,    Commerce’s     cost     analysis    in   this    fifth
    administrative review is consistent with Commerce’s determination
    in    the   fourth   review,   in   which   Commerce   reasonably   adjusted
    reported costs to reasonably reflect actual costs. Thai Plastic
    Bags I, 34 CIT at __, 
    752 F. Supp. 2d at
    1328 n.28; Def.’s Br. at
    26.
    Consol. Court No. 11-00086                                         Page 18
    C.     Alternate Cost Methodology
    In responding to Commerce’s request for cost data, TPBI
    submitted two alternate sets of costs for its margin calculation,
    both of which Commerce rejected, finding that they distorted TPBI’s
    actual conversion costs. TPBI Pl.’s Br. at 15-16; Def.’s Br. at 29.
    While Commerce may consider alternative methods, Commerce should
    only choose such a method if it minimizes distortions. Def.’s Br.
    at 29-30; See also U.S. Steel Group v. United States, 
    24 CIT 757
    (2000); 
    19 C.F.R. § 351.407
    (c).
    TPBI argues that Commerce should have used one of TPBI’s
    two proposed cost allocation methodologies, as they were both
    reasonable alternatives. TPBI’s Br. at 15-16.          TPBI also claims –
    without proof – that by using weight-averaging for all of its labor
    and   fixed    and    variable   overhead   costs,   Commerce   added   more
    distortions, not fewer. TPBI’s Br. at 31.
    TPBI further argues that Commerce should have accorded it
    a chance to correct any deficiency in its cost allocations and that
    Commerce should not have applied “facts otherwise available.”
    TPBI’s Br. at 32-33. See also 19 U.S.C. § 1677m(d)-(e)13; 19 U.S.C.
    13
    (e) Use of certain information
    In reaching a determination under section 1671b, 1671d,
    1673b, 1673d, 1675, or 1675b of this title the
    administering authority and the Commission shall not
    decline to consider information that is submitted by an
    interested party and is necessary to the determination
    but does not meet all the applicable requirements
    established by the administering authority or the
    (continued...)
    Consol. Court No. 11-00086                                        Page 19
    § 1677e(a).   TPBI also asserts that its cost information can be
    used without undue difficulty because Commerce’s analysis is flawed
    and TPBI’s information is more reasonable. TPBI’s Br. at 32.
    Commerce’s    conclusion,   however   —   “that   it   was   more
    important to use a cost allocation methodology that diminished the
    possibility of extreme undervaluation or overvaluation, even if
    that meant that a DIFMER adjustment could not be made[,]” Def.’s
    Br. at 31; I & D Mem. Cmt. 1 at 12 – was not unreasonable.
    Commerce correctly states that after finding TPBI’s methodologies
    to be distortive, Commerce was under no obligation to utilize them.
    Def.’s Br. at 29; I & D Mem. Cmt. 1 at 13 - 14.             In addition,
    Commerce reasonably found that there was an undue difficulty as
    13
    (...continued)
    Commission, if—
    (1) the information is submitted by the deadline
    established for its submission,
    (2) the information can be verified,
    (3) the information is not so incomplete that it cannot
    serve as a reliable basis for reaching the applicable
    determination,
    (4) the interested party has demonstrated that it acted
    to the best of its ability in providing the information
    and meeting the requirements established by the
    administering authority or the Commission with respect
    to the information, and
    (5) the information can be used without undue
    difficulties.
    19 U.S.C. § 1677m(e).
    Consol. Court No. 11-00086                                      Page 20
    well as a distortion in Plaintiff’s cost allocations. I & D Mem.
    at 14.
    Moreover, despite TPBI’s contention that it was not
    notified, TPBI’s Br. at 33, Commerce did notify Plaintiff when it
    rejected its method in the fourth review and issued supplemental
    questionnaires. Def.’s Br. at 6-7, 32; Id. Ex. E at SID-2.
    Based on the record here, Commerce reasonably found
    Plaintiff’s methodologies to be distortive.       Commerce’s
    determination on this issue is therefore affirmed.
    II.        TPBI Issue 2: Zeroing
    Where imported goods are being sold in the United States
    at less than fair value and to the detriment of domestic industry,
    the statute directs Commerce to impose an antidumping duty on those
    imported goods “equal to the amount by which the normal value
    exceeds the export price (or the constructed export price) for the
    merchandise.” 
    19 U.S.C. § 1673.14
    Here   Commerce   applied   its   “zeroing”   methodology   in
    arriving at Plaintiff’s weighted-average dumping margins.15       In the
    14
    “Dumping margin” is defined as “the amount by which the
    normal value exceeds the export price or constructed export
    price.” 
    19 U.S.C. § 1677
    (35)(A). Weighted average dumping margin
    is defined as “the percentage determined by dividing the
    aggregate dumping margins determined for a specific exporter or
    producer by the aggregate export prices and constructed export
    prices of such exporter or producer.” 
    19 U.S.C. § 1677
    (35)(B).
    15
    Zeroing refers to the method used by Commerce to
    aggregate positive margins (margins for sales of merchandise sold
    (continued...)
    Consol. Court No. 11-00086                                 Page 21
    administrative review, TPBI argued that zeroing in this context was
    incorrect, because the World Trade Organization (“WTO”) has ruled
    against this practice. TPBI Case Br. at 59.
    Before the court, TPBI contends, based on current law,
    that “Commerce failed to explain why its inconsistent statutory
    interpretation [i.e., differing in administrative reviews from
    the interpretation applied in investigations] with regard to
    zeroing is reasonable., TPBI Pl.’s Br. at 36, and that the court
    should remand because Commerce must either explain its
    inconsistent interpretation of 
    19 U.S.C. § 1677
    (35) or adopt a
    consistent interpretation for both investigations and reviews.
    TPBI Pl.’s Br. 36-37.
    Commerce argues that denying offsets and applying zeroing
    serves the policy rationale of combating masked dumping. I & D Mem.
    Cmt. 4 at 22.   In addition, Commerce contends that Plaintiff has
    failed to exhaust its administrative remedies because Plaintiff did
    15
    (...continued)
    at dumped prices)and give a value of zero for negative margins
    (margins for sales of merchandise sold at non-dumped prices).
    Dongbu Steel Co. v. United States, 
    635 F.3d 1363
    , 1366 (Fed. Cir.
    2010).
    When calculating weighted average dumping margins,
    Commerce may employ either of two methodologies: zeroing or
    offsetting. Timken Co. v. United States, 
    354 F.3d 1334
    , 1341–45
    (Fed. Cir. 2004) (holding that 
    19 U.S.C. § 1677
    (35) is ambiguous
    and that zeroing is a reasonable interpretation); U.S. Steel
    Corp. v. United States, 
    621 F.3d 1351
    , 1360–63 (Fed. Cir. 2010)
    (holding that 
    19 U.S.C. § 1677
    (35) is ambiguous and that
    offsetting is also a reasonable interpretation).
    Consol. Court No. 11-00086                                  Page 22
    not rely in its briefing on Commerce’s differing interpretations of
    
    19 U.S.C. § 1677
    (35) in the context of administrative reviews as
    opposed to investigations, or regarding average to transaction and
    average to average comparison methods, respectively. Def.’s Br.
    at 34.
    Despite arguing that Plaintiff has not exhausted its
    administrative remedies here, that the Federal Circuit has already
    rejected TPBI’s argument regarding WTO related activities, and that
    exhausting remedies would not have been futile, in the alternative,
    Commerce requests a remand. Def.’s Br. at 34, 37.16   The court will
    grant this request.17   Here, the briefing in the administrative
    review occurred before the parties had sufficient time to consider
    the Federal Circuit’s decision in Dongbu.   Commerce will now have
    the opportunity to fully explain its reasoning regarding the
    16
    See Grobest & I-Mei Indus. (Vietnam) Co., Ltd. v. United
    States, 36 CIT __, 
    815 F. Supp. 2d 1342
    , 1348-50. (2012).
    17
    Two recent decisions from the Court of Appeals for the
    Federal Circuit guide this court’s decision of this issue: Dongbu
    Steel Co. v. United States, 
    635 F.3d 1363
     (Fed. Cir. 2011) and
    JTEKT Corp. v. United States, 
    642 F.3d 1378
     (Fed. Cir. 2011),
    which addressed Commerce’s inconsistent interpretations of 
    19 U.S.C. § 1677
    (35). Dongbu held that “[i]n the absence of
    sufficient reasons for interpreting the same statutory provision
    inconsistently, Commerce’s action is arbitrary.” 
    635 F.3d at
    1372–73.
    Subsequently, JTEKT concluded that “[w]hile Commerce
    did point to differences between investigations and
    administrative reviews, it failed to address the relevant
    question — why is it a reasonable interpretation of the statute
    to zero in administrative reviews, but not in investigations?”
    
    642 F.3d at 1384
    .
    Consol. Court No. 11-00086                                            Page 23
    zeroing issue.18 See also Union Steel v. United States, 35 CIT __,
    
    804 F. Supp. 2d 1356
    , 1367-68 (2011) (“The court concludes, upon
    reconsidering its decision in Union II, that it is appropriate to
    set aside its affirmance of the use of zeroing and to direct
    Commerce to provide the explanation contemplated by the Court of
    Appeals in Dongbu and JTEKT Corp.”).
    III.             PRCBC Issue 3: Transactions-Disregarded Rule
    During the POR, TPBI purchased three types of resin19 from
    suppliers (both affiliated and unaffiliated). TPBI’s Supp. Section
    D Resp., A-549-821, ARP 08-09 (Mar. 22, 2010), Admin. R. Con. Doc.
    14 [Pub. Doc. 55] at Ex. S1D-3 (“Supp. Resp. 1").                      In its
    Preliminary Results, Commerce determined that TPBI purchased resin
    from    an       affiliated   supplier.   Prelim.   Results,   75   Fed.   Reg.
    at 53,955; Def.’s Br. at 42. Commerce then applied the major input
    rule20 and adjusted the COM to reflect the market value of the
    18
    As the decision in Dongbu was not available prior to the
    Final Results in this administrative review, the court does not
    credit Commerce’s exhaustion argument. See JTEKT, 
    642 F.3d at 1384
     (“[Appellant] did not have the benefit of the Dongbu
    opinion before filing its briefs and thus could not have argued
    that the case requires us to vacate, but it nonetheless preserved
    the issue on appeal by arguing that Commerce’s continuing
    practice of zeroing in administrative reviews, but not in
    investigations, is unreasonable.”).
    19
    [[                                                        ]]
    20
    The AD Statute defines the major input rule as follows:
    If, in the case of a transaction between affiliated
    persons involving the production by one of such persons
    (continued...)
    Consol. Court No. 11-00086                                      Page 24
    resin. 
    Id.
       Commerce then compared only the transfer prices and
    purchases of LLD resin from the affiliated Supplier. See I & D Mem.
    Cmt. 2 at 18–19; Def.’s Br. at 42.
    More   specifically,   in   adjusting   the   COM,   Commerce
    compared the transfer price of LLD resin with the arm’s-length
    transaction price of LLD resin. See Prelim. Cost Mem. at 4.
    Commerce thus compared purchases separately for a specific resin
    type. Id.; Br. of PRCBC in Support of Mot. for J. on Agency R.
    at 11-12, ECF No. 49 (“PRCBC’s Br.”).
    However, in the Final Results, Commerce changed its
    methodology and used the transactions-disregarded rule,21 comparing
    20
    (...continued)
    of a major input to the merchandise, the administering
    authority has reasonable grounds to believe or suspect
    that an amount represented as the value of such input
    is less than the cost of production of such input, then
    the administering authority may determine the value of
    the major input on the basis of the information
    available regarding such cost of production, if such
    cost is greater than the amount that would be
    determined for such input under paragraph (2).
    19 U.S.C. § 1677b(f)(3).
    21
    A transaction directly or indirectly between
    affiliated persons may be disregarded if, in the case
    of any element of value required to be considered, the
    amount representing that element does not fairly
    reflect the amount usually reflected in sales of
    merchandise under consideration in the market under
    consideration. If a transaction is disregarded under
    the preceding sentence and no other transactions are
    available for consideration, the determination of the
    amount shall be based on the information available as
    to what the amount would have been if the transaction
    (continued...)
    Consol. Court No. 11-00086                                             Page 25
    average transfer and market prices across all types of resin; even
    though    the    parties   did   not   argue   for   revising   the   level   of
    specificity at which to apply the transactions disregarded rule.
    PRCBC’s Br. at 11-12; I & D Mem. at 19.22
    TPBI, as a respondent, argued that Commerce should not
    have applied the major input rule because the affiliated supplier
    was not a resin manufacturer. See TPBI’s Case Br. at 50-51, 59.
    PRCBC argues that the court should remand this issue,
    stating that Commerce changed its analysis for the Final Results
    without providing an avenue for comments by the interested parties
    or a chance for Commerce to consider those comments. PRCBC’s Br.
    at 11-15.       Commerce now agrees. Def.’s Br. at 41.
    As an agency may request a remand to reconsider its
    position, SKF USA, Inc. v. United States, 
    254 F.3d 1022
    , 1028 (Fed.
    Cir. 2001), the court will remand this issue so that Commerce can
    (...continued)
    had occurred between persons who are not affiliated.
    19 U.S.C. § 1677b(f)(2).
    22
    For the Final Results, Commerce revised its preliminary
    results and changed the analysis for TPBI’s affiliated resin
    input purchases to “include all purchases of resin that TPBI made
    during the POR.” Final Cost Mem., A-549-821, ARP 08-09 (Mar. 1,
    2011), Admin. R Con. Doc. 47 [Pub. Doc. 137] at 1-2, Pub. Doc. 47
    (March 1, 2011). PRCBC notes that because Commerce ultimately
    decided to apply only the transactions disregarded rule, which
    does not depend upon whether a raw material is a “major output,”
    that TPBI’s argument regarding whether resin was a major input is
    moot. PRCBC’s Br. at 12 n.5; see also I & D Mem. at 18-19.
    Consol. Court No. 11-00086                                  Page 26
    give the parties the proper opportunity to comment.23
    IV.        PRCBC Issue 4 : Inventory-Valuation Losses
    Under the statute, the calculation of COP includes an
    amount for general and administrative (“G&A”) expenses.24
    Commerce’s practice is to include inventory valuation losses in
    G&A expenses except for those losses relating to finished good’s
    inventories. Def.’s Br. at 38; Stainless Steel Wire Rod from the
    Republic of Korea, 
    69 Fed. Reg. 19,153
    , 19,161 (Dep’t Commerce
    Apr. 12, 2004) (final results of antidumping duty administrative
    review) and accompanying Issues and Decision Memorandum, A-580-
    829, ARP 01-02 (Apr. 5, 2004) Cmt. 7; PRCBC’s Br. at 15.
    Here, Commerce did not include inventory-valuation losses
    in TPBI’s G&A expenses. See Pet’rs’ Case Br., A-549-821, ARP 08-09
    23
    The court notes that Commerce must require a cost
    adjustment for materials purchased from an affiliated supplier at
    below market price, see 19 U.S.C. § 1677b(f)(2), but this
    regulation is silent on what price data Commerce should use in
    applying the transactions-disregarded rule.
    While no regulation directly addresses this issue,
    Commerce’s adjustment in the Final Results appears contrary to
    its past practice. In Certain Pasta from Italy, Commerce limited
    its cost adjustment analysis to a comparison of the weighted-
    average transfer price for semolina from affiliated suppliers to
    the arms-length price for this input. 
    69 Fed. Reg. 6,255
    , 6,257
    (Dep’t Commerce Feb. 10, 2004) (notice of final results of the
    sixth administrative review of the antidumping order) and
    accompanying Issues and Decision Memorandum, A-475-818, ARP 01-02
    (Feb. 3, 2004) Cmt. 32. In applying the transactions-disregarded
    rule, Commerce did not include all purchases from the affiliated
    supplier but only took into account the input at issue. 
    Id.
    24
    G&A expenses are expenses incurred in running a business,
    as distinguished from expenses incurred in manufacturing or
    selling. Black’s Law Dictionary 618 (8th ed. 2004).
    Consol. Court No. 11-00086                                              Page 27
    (Dec. 10, 2010), Admin. R. Con. Doc. 41 [Pub. Doc. 126] at 4.
    PRCBC        contends   that   Commerce’s   finding   that   TPBI’s   inventory
    valuation losses were attributable to finished goods inventory, and
    thus excluded from G&A expenses, was unreasonable. PRCBC’s Br. at
    16.    PRCBC argues that instead these losses should have been part
    of the cost of production. PRCBC’s Br. at 18.
    However, because Commerce may exercise its authority to
    draw reasonable inferences from the record, Daewoo Elecs. Co. v.
    Int’l Union of Electronic Elec., Technical, Salaried and Mach.
    Workers, AFL-CIO, 
    6 F.3d 1511
    , 1520 (Fed. Cir. 1993); Grobest, 36
    CIT at __, 815 F. Supp. 2d at 1356 (2012), Commerce’s determination
    that Plaintiff’s inventory-valuation losses should be excluded from
    the cost calculations was supported by the record.
    In its determination, Commerce concluded that TPBI’s 2009
    inventory losses should be excluded because the evidence suggested
    that these reported losses were related to finished goods. Def.’s
    Br. at 38; I & D Mem. Cmt. 6 at 26.             PRCBC claims that Commerce
    relied upon evidence that cannot support its determination. PRCBC’s
    Br. at 16-17.25         Specifically, PRCBC argues that, as no amount for
    inventory valuation losses was explicitly listed in the statement
    of    administrative       expenses,   Commerce’s     determination    was   not
    25
    TPBI had changed its inventory losses accounting between
    2008-2009 and submitted comparative 2009 schedules showing that
    the 2008 inventory valuation losses related to finished goods.
    Def.’s Br. at 38-39.
    Consol. Court No. 11-00086                                               Page 28
    reasonable. PRCBC’s Br. at 18-19.
    However,   in   the   Final   Results,     Commerce     reasonably
    articulated its basis for excluding TPBI’s inventory-valuation
    losses from the G&A expenses. See I & D Mem. Cmt. 6 at 26.
    Commerce explained that TPBI provided documentary support to show
    that its 2008 inventory-losses related to finished goods.26 Id.
    TPBI    also    reconciled     the   2009   data   with   the   2008   data.   See
    Submission of 2009 Financial Statements, A-549-821, ARP 08-09 (July
    7, 2010) Admin. R. Con. Doc. 25 [Pub. Doc. 84], Ex. Supp-1 at 17,
    25. Thus, while PRCBC is correct that there was no express listing
    for finished goods in the 2009 data, this does not topple the
    totality of Commerce’s reasoning, including the record evidence
    that the 2008 inventory valuation losses were related to finished
    goods.
    Commerce cites to record evidence to bolster its claim
    that TPBI’s reported inventory valuation losses were related to
    finished goods.      In particular, in its responses to Commerce, TPBI
    stated that during the POR it had raw materials, work-in-progress
    and finished goods in inventory and that raw materials and work-in-
    progress were valued at actual cost, whereas finished goods were
    valued at actual cost or net realizable value at year’s end,
    depending on which was lower. Def.’s Br. Ex. B at D-11; Def.’s
    26
    In its response to Supplemental D Questionnaire, TPBI
    stated that there were write-downs for finished goods but not raw
    materials or WIPs. See Supp. Resp. 1 at 10.
    Consol. Court No. 11-00086                                          Page 29
    Ex. F at S4D-2 to S4D-3; Def.’s Br. at 39-40.
    TPBI provided documentation showing that an inventory
    valuation loss from 200827 was attributable to finished goods. Supp.
    Resp. 1 at Ex. S1D-10; PRCBC’s Br. at 16.           This same loss appears
    in the comparative schedule in the 2009 financial statements.
    TPBI’s Supp. Section D Resp., A-549-821, ARP 08-09 (July 26, 2010),
    Admin. R. Con. Doc. 27 [Pub. Doc. 90] Ex. S4D2-1, at 17 (“Supp.
    Resp. 2"); PRCBC’s Br. at 16.            PRCBC argues that this is not
    evidence that TPBI’s 2009 inventory valuation losses28 are also
    related to finished goods, as they may also be attributable to raw
    materials and works-in-progress. PRCBC’s Br. at 16-17; Supp. Resp.
    2 Ex. S4D2-1 at 11 n.3.
    PRCBC also states that even though the 2008 to 2009
    change in inventory valuation losses was identified,29 and that this
    same amount appears in the cost reconciliation,30 that this does not
    provide    enough    information    to   conclude   whether   the   loss   is
    attributable to finished goods, WIP or RM. PRCBC’s Br. at 17; Supp.
    Resp. 2 Ex. S4D2-1 at 17; TPBI’s Supp. Section D Resp., A-549-821,
    ARP 08-09 (Aug. 18, 2010), Admin. R. Con. Doc. 32 [Pub. Doc. 99]
    27
    [[             ]] baht.
    28
    [[             ]] baht.
    29
    [[        ]] baht.
    30
    Under the item [[
    ]].
    Consol. Court No. 11-00086                                           Page 30
    Ex. S5D1 worksheet D at 2.        PRCBC claims that it is Commerce’s
    obligation to deny the adjustment instead of assuming that the 2009
    losses should be excluded from normal value. PRCBC’s Br. at 18; 
    19 C.F.R. § 351.401
    (b)(1).31
    Commerce   counters   that    in   analyzing     the   inventory
    valuation    loss   for   2009,   it     looked   to   the   statement   of
    administrative expenses, which showed TPBI’s report of a loss from
    a cost higher than net realizable value for finished goods as a
    2008 administrative expense, but that no amount for 2009 was
    reported. Def.’s Br. at 40; Def’s Br. Ex. F; I & D Mem. at 26.
    In addition, in responding to a questionnaire on the
    issue, TPBI explained that there was a “roll-up into COGS (costs of
    goods sold) of all the relevant cost elements[.]” Def.’s Br. Ex. F
    at S4D-5.32 TPBI also later submitted a cost reconciliation. Def.’s
    Br. Ex. G at S5D-1.
    As Commerce may make reasonable inferences based on the
    record, “[t]he specific determination [the court] make[s] is
    ‘whether the evidence and reasonable inferences from the record
    31
    PRCBC notes that TPBI did not address and Commerce
    ignored the fact that the line item entitled [[
    ]] shows a [[      ]] value
    for 2009. Supp. Resp. 2 at Ex. S4D2-1 (CR 17); PRCBC’s Br. at 18.
    The court notes that this line is [[                 ]].
    32
    While the 2008 chart reported no amount for “loss from
    cost higher than net realizable value,” Def.’s Br. Ex. F, the
    2009 chart reported an amount under the same heading. Def.’s Br.
    Ex. G. at SD5-6; Def.’s Br. at 41.
    Consol. Court No. 11-00086                                  Page 31
    support the [Commerce’s] finding.’. The question is whether the
    record adequately supports the decision of the [Department], not
    whether some other inference could reasonably have been drawn.”
    Daewoo Elecs., 
    6 F.3d at 1520
     (citation omitted) (quoting
    Matsushita Elec. Indus. Co. v. United States, 
    750 F.2d 927
    , 933
    (Fed. Cir. 1984)).
    Even if PRCBC posits evidence that may detract from
    Commerce’s determination, PRCBC’s Br. at 18, just because there
    are alternative inferences that could be drawn does not mean that
    Commerce was unreasonable. Goldlink Indus. Co. v. United States,
    
    30 CIT 616
    , 619, 
    431 F. Supp. 2d 1323
    , 1327 (2006) (“The Court's
    role in the case at bar is not to evaluate whether the
    information Commerce used was the best available, but rather
    whether a reasonable mind could conclude that Commerce chose the
    best available information.”)
    Based on the foregoing record evidence, including
    TPBI’s past treatment of such losses and its responses to
    Commerce, it is reasonable for Commerce, to infer that the 2009
    inventory-valuation losses related to finished goods.    Commerce’s
    decision to exclude inventory-valuation losses is therefore
    supported by substantial evidence and will be affirmed.
    Consol. Court No. 11-00086                                 Page 32
    CONCLUSION
    For the reasons discussed above, the court grants
    Plaintiffs’ motions regarding issues two and three.   The Final
    Results are otherwise affirmed in all respects.
    Commerce shall have until August 17, 2012 to complete
    and file its remand redetermination.   Both Plaintiffs shall have
    until August 31, 2012 to file comments.   Defendant shall have
    until September 14, 2012 to file any reply.   Plaintiffs, also by
    September 14, 2012, may each reply to the other’s comments.
    It is SO ORDERED.
    /s/ Donald C. Pogue
    Donald C. Pogue, Chief Judge
    Dated: June 18, 2012
    New York, N.Y.
    

Document Info

Docket Number: Consol. 11-00086

Citation Numbers: 2012 CIT 86, 853 F. Supp. 2d 1267, 2012 WL 2369325, 34 I.T.R.D. (BNA) 1707, 2012 Ct. Intl. Trade LEXIS 88

Judges: Pogue, Duties

Filed Date: 6/18/2012

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (17)

Union Steel v. United States , 804 F. Supp. 2d 1356 ( 2011 )

Goldlink Industries Co., Ltd. v. United States , 30 Ct. Int'l Trade 616 ( 2006 )

Thai Plastic Bags Industries Co. v. United States , 34 Ct. Int'l Trade 1389 ( 2010 )

daewoo-electronics-co-ltd-and-daewoo-electronics-corp-of-america-inc , 6 F.3d 1511 ( 1993 )

the-timken-company-plaintiff-cross-v-united-states-v-koyo-seiko-co , 354 F.3d 1334 ( 2004 )

Nippon Steel Corporation, Nkk Corporation, Kawasaki Steel ... , 458 F.3d 1345 ( 2006 )

Hynix Semiconductor, Inc. v. United States , 424 F.3d 1363 ( 2005 )

american-silicon-technologies-elkem-metals-company-and-globe , 261 F.3d 1371 ( 2001 )

Matsushita Electric Industrial Co., Ltd. v. The United ... , 750 F.2d 927 ( 1984 )

Jtekt Corp. v. United States , 642 F.3d 1378 ( 2011 )

ntn-bearing-corporation-of-america-american-ntn-bearing-manufacturing , 368 F.3d 1369 ( 2004 )

skf-usa-inc-and-skf-gmbh-and-fag-kugelfischer-georg-schafer-ag-and-fag , 254 F.3d 1022 ( 2001 )

Universal Camera Corp. v. National Labor Relations Board , 71 S. Ct. 456 ( 1951 )

Atlantic Sugar, Ltd. v. The United States and Amstar ... , 744 F.2d 1556 ( 1984 )

Dongbu Steel Co., Ltd. v. United States , 635 F.3d 1363 ( 2011 )

the-thai-pineapple-public-co-ltd-siam-food-products-public-co-ltd , 187 F.3d 1362 ( 1999 )

United States Steel Corp. v. United States , 621 F.3d 1351 ( 2010 )

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