Linyi City Kangfa Foodstuff Drinkable Co. v. United States , 2016 CIT 89 ( 2016 )


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  •                                         Slip Op 16 - 89
    UNITED STATES COURT OF INTERNATIONAL TRADE
    :
    LINYI CITY KANGFA FOODSTUFF               :
    DRINKABLE CO., LTD., and                  :
    ZHANGZHOU GANGCHANG CANNED                :
    FOODS CO., LTD.,                          :
    Plaintiffs, :
    :
    v.                      : Before: R. Kenton Musgrave, Senior Judge
    :
    UNITED STATES,                            : Court No. 15-00184
    :
    Defendant, :
    :
    and                      :
    :
    MONTEREY MUSHROOMS, INC.,                 :
    :
    Defendant-Intervenors. :
    :
    OPINION
    [Sustaining fifteenth administrative review of antidumping duty order on certain preserved
    mushrooms from the PRC.]
    Decided: September 21, 2016
    Lizbeth R. Levinson and Ronald M. Wisla, Kutak Rock LLP, of Washington, DC, for the
    plaintiff.
    Justin R. Miller, Senior Trial Counsel, U.S. Department of Justice, Civil Division,
    International Trade Field Office, of New York, NY, for the defendant. With him on the brief were
    Benjamin C. Mizer, Principal Deputy Assistant Attorney General, Jeanne E. Davidson, Director, and
    Patricia McCarthy, Assistant Director. Of Counsel on the brief was Shelby M. Anderson, Attorney,
    Office of the Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce,
    of Washington, DC.
    Michael J. Coursey and John M. Herrmann, Kelly Drye & Warren LLP, of Washington, DC,
    for the defendant-intervenors.
    Court No. 15-00184                                                                           Page 2
    Musgrave, Senior Judge: The plaintiffs, Linyi City Kangfa Foodstuff Drinkable Co.
    Ltd. (“Kangfa”) and Gangchang Canned Foods Co., Ltd. (“Gangchang”), exporters of subject
    merchandise from the People’s Republic of China (“PRC”), contest aspects of Certain Preserved
    Mushrooms from the PRC: Final Results of Antidumping Duty Administrative Review; 2013-2014;
    and Partial Rescission of Review, 80 Fed. Reg. 32355 (June 8. 2015) (“Final Results”), public
    document (“PDoc”) 142, and accompanying final results decision memorandum dated June 1, 2015,
    PDoc 137 (“IDM”), as compiled by the U.S. International Trade Administration of the U.S.
    Department of Commerce (“Commerce”). Specifically, the plaintiffs challenge Commerce’s
    selection of surrogate values for labor, for steam coal, and for glass jars and metal caps. In the
    interest of brevity this opinion will presume general familiarity with Commerce’s non-market
    economy (“NME”) surrogate valuation methodology.
    Background
    The plaintiffs were interested parties to the proceeding and their standing here is
    uncontested. Initiated pursuant to requests from the petitioner and respondent parties,1 the Final
    Results concern the fifteenth administrative review, covering the period February 1, 2013 to January
    31, 2014 (“POR”), of the underlying antidumping duty order sub nom. Notice of Amendment of Final
    Determination of Sales At Less Than Fair Value and Antidumping Duty Order; Certain Preserved
    Mushrooms from the PRC, 64 Fed. Reg. 8308 (Feb. 19, 1999).
    For the proceeding, the plaintiffs were selected as mandatory respondents, and both
    cooperated with Commerce thereat in responding to all information requests. Commerce determined
    1
    See Initiation of Antidumping and Countervailing Duty Administrative Reviews and
    Request for Revocation in Part, 79 Fed. Reg. 18262, 18269 (Apr. 1, 2014), PDoc 6.
    Court No. 15-00184                                                                             Page 3
    preliminary antidumping duty rates of 78.69% and 102.87% for Kangfa and Gangchang,
    respectively. Certain Preserved Mushrooms from the PRC: Preliminary Results of Antidumping
    Duty Administrative Review; 2013-2014, 79 Fed. Reg. 71746 (Dec. 3, 2014) (“Preliminary Results”),
    PDoc 152. For the Final Results, the margins were 75.67% and 99.71%, respectively. Final Results,
    80 Fed. Reg. at 32357. The plaintiffs then timely commenced this suit, see ECF Nos. 7 (July 2,
    2015) & 8 (July 17, 2015), and liquidation of entries covered by the POR are currently suspended
    pursuant to consented-to enjoinder, see ECF No. 10. The matter being assigned to the undersigned
    shortly thereafter, the plaintiffs’ motion for judgment was taken under advisement. Cf. ECF No. 45.
    Jurisdiction and Standard of Review
    Commerce’s final results are to be sustained unless they are “unsupported by
    substantial evidence on the record or otherwise not in accordance with law.” 19 U.S.C.
    §l516a(b)(1)(B). In practice, this means that the record must contain sufficient evidence to
    substantiate the conclusion, finding, or inference drawn thereon or therefrom. See, e.g., PAM, S.p.A.
    v. United States, 
    582 F.3d 1336
    , 1339 (Fed. Cir. 2009) (“more than a mere scintilla,” substantial
    evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a
    conclusion”), quoting Consol. Edison Co. v. NLRB, 
    305 U.S. 197
    , 229 (1951).
    Discussion
    I
    Turning to the surrogate valuation of labor for the Final Results, during the review
    proceeding the plaintiffs described their production of subject merchandise as a two-stage process.
    In the first stage, two affiliates of the plaintiffs grew fresh mushrooms, and in the second stage the
    Court No. 15-00184                                                                            Page 4
    plaintiffs processed the fresh mushrooms into subject merchandise, i.e., preserved mushrooms. See
    PDoc 49 at D-3 to D-7; PDoc 48 at D-2 to D-3. The plaintiffs each separately reported the amounts
    of indirect and direct labor at both stages of the production process. See CDoc 19 at Exhibits D-3
    and D-4 (reporting factors of production for “Fresh Mushroom” and “Canned Mushroom”); CDoc
    17 at Exhibit D-3 (describing factors, and separately identifying direct and indirect labor consumed
    in the fresh and canned mushroom processing stages) and Exhibits D-4-1 and D-4-2 (providing
    factors of production of “Fresh Mushroom” and “Canned Mushroom”).
    In the Preliminary Results, Commerce valued labor using the only surrogate value
    on the record. In particular, Commerce derived a surrogate value from the line item “Manufacture
    of Food Products and Beverages” of Chapter 6A of the International Labor Organization (ILO)
    Yearbook of Labor Statistics, which is Commerce’s preferred valuation source for labor. See PDoc
    115 at 8, 122 at 2-3, 123 at 2-3; Antidumping Methodologies in Proceedings Involving Non-Market
    Economies: Valuing the Factor of Production: Labor, 76 Fed. Reg. 36092, 36092-94 (June 21,
    2011) (“Labor Methodologies”) (announcing intention to use ILO Yearbook Chapter 6A data “as
    its primary source of labor cost data in NME antidumping proceedings,” as it “reflects all costs
    related to labor including wages, benefits, housing, training, etc.”).
    As in their administrative case brief, the plaintiffs here argue that Commerce should
    have used two different surrogate values to value labor. While they agree it was appropriate to value
    their canning labor using Chapter 6A data, they argue Commerce should have used data from
    Chapter 5A to value the labor consumed in the comparatively more labor-intensive process of
    growing mushrooms. See Pls.’ Br. at 8-11. According to the plaintiffs, it is “self-evident” that
    Court No. 15-00184                                                                             Page 5
    Chapter 5A data are “more specific to the direct and indirect labor factors of production reported by
    the growers for the cultivation of fresh mushrooms” than Chapter 6A data for manufacturing food
    and beverage products. 
    Id. at 9.
    In relying on Chapter 6A data, the plaintiffs contend, Commerce
    not only failed to follow its own policy of using industry-specific labor rates, resulting in vastly
    overinflated labor cost due to the proportionally larger number of labor hours required in the
    mushroom growing stage, 
    id. at 9-10
    (citing Labor Methodologies), it relied on a “surrogate value
    that has no rational relationship to agricultural labor inputs”, 
    id. at 11.
    The problem with the argument is that the ILO Chapter 5A were not made a part of
    the record. The plaintiffs’ reply emphasizes that surrogate values must be based on the “best
    information available” and not simply on “the best information available on the record submitted by
    the parties”. Pls’ Reply at 2. The plaintiffs thus chastize Commerce for not gathering such data (for
    which they had argued in their administrative case brief) because gathering such data would have
    involved “only a slight modicum of effort”. 
    Id. at 3.
    Ultimately, they contend that for Commerce
    to act affirmatively to place similar such information on the record of QVD Foods Co., Ltd., 
    658 F.3d 1318
    , 1321 (Fed. Cir. 2011), 
    id. at 5,
    but not do so in this instance is arbitrary and capricious.
    See 
    id. at 5-7.
    Insofar as QVD Foods allows for the possibility of “unfairness or impropriety in
    Commerce’s decision to submit [documents] into the record”2, the plaintiffs make a valid point.
    However, as in that appellate opinion, the court here cannot discern arbitrariness in Commerce’s
    “inaction” of not placing relevant Chapter 5A data on the record of the proceeding at bar, and QVD
    2
    QVD 
    Foods, 658 F.3d at 1324
    .
    Court No. 15-00184                                                                            Page 6
    Foods cannot be read as requiring Commerce to act to ferret out “necessary” information for the
    record because regardless of the fact that “Commerce has authority to place documents in the
    administrative record that it deems relevant, ‘the burden of creating an adequate record lies with
    [interested parties] and not with Commerce.’ ” QVD 
    Foods, 658 F.3d at 1324
    , quoting Tianjin
    Machinery Import & Export Corp. v. United States, 
    16 CIT 931
    , 936, 
    806 F. Supp. 1008
    , 1015
    (1992).3 Cf. American Tubular Products, LLC v. United States, 38 CIT ___, Slip Op. 14-116 (Sep.
    26, 2014) (“American Tubular I”) at 28 (rejecting notion that Commerce must “hunt for surrogates
    when relevant data are already on the record”), appeal docketed, Fed. Cir. 16-1127 (Oct. 27, 2015).
    Furthermore, as the defendant argues, the plaintiffs’ assertions appear to rest on the
    unsubstantiated assumption that the Chapter 5A and the Chapter 6A data are otherwise equal in all
    relevant respects. See Def’s Resp. at 10-11, citing Lucent Technologies, Inc. v. Gateway, Inc., 
    580 F.3d 1301
    , 1327 (Fed. Cir. 2009) (“[i]t is well established that speculation does not constitute
    substantial evidence”), quoting Novosteel SA v. United States, 
    284 F.3d 1261
    , 1276 (Fed. Cir. 2002)
    (Dyk, J., dissenting), Jinxiang Yuanxin Import & Export Co. v. United States, 39 CIT ___, ___, 
    71 F. Supp. 3d 1338
    , 1351 (2015) (quoting same), and American Tubular Products, LLC v. United
    States, 39 CIT ___, ___, Slip Op. 15-98 at 17 (Aug. 28, 2015) (“American Tubular II”)
    (“[s]peculative claims that are plausible in theory but unsupported in fact do not make the cut”)
    (citations omitted). Cf. Labor Methodologies, 76 Fed. Reg. at 36093 (noting that data from Chapter
    5 of the ILO Yearbook, in particular, Chapter 5B, reflect “only direct compensation and bonuses”).
    Commerce explained in its decision memorandum that its stated preference is to value labor using
    3
    See also Zenith Elecs. Corp. v. United States, 
    988 F.2d 1573
    , 1583 (Fed. Cir. 1993) (“[t]he
    burden of production should belong to the party in possession of the necessary information”).
    Court No. 15-00184                                                                            Page 7
    Chapter 6A data because those values “best capture certain direct and indirect labor costs (e.g.,
    bonuses and gratuities, meals, and other payments in kind, workers’ housing, social security
    payments, training costs, other miscellaneous elements of labor cost, and taxes).” IDM at 11. In any
    event,4 in the absence of Chapter 5A information on the record, it cannot support concluding that
    Chapter 5A data are more specific to the labor associated with the growing of fresh mushrooms.
    II
    Similarly, the plaintiffs argue that Commerce erred in choosing surrogate values on
    the record when valuing inputs of glass jars and metal caps. In the underlying review, they reported
    consuming glass jars and caps in manufacturing some of the subject merchandise exported to the
    United States during the POR.5 In both its preliminary and final results, Commerce valued the glass
    jars Commerce using GTA data for Colombian imports under HTS 7010.90 (i.e., “Carboys, Bottles,
    Flasks, Jars, Pots, Vials, and Other Containers, of Glass, Of A Kind Used For The Conveyance or
    Packing Of Goods; Preserving Jars”) and it valued the caps using GTA data for Colombian imports
    under HTS 8309.90 (i.e., “Stoppers, Caps and Lids Nesoi (Not Crown), Capsules For Bottles, Bungs,
    Seals And Other Packing Accessories, And Parts Thereof, Of Base Metal”). See PDoc 70 at Exs.
    4
    The plaintiffs state only that Chapter 5A contains data related to “monthly wages for
    workers employed in the agricultural, hunting, and fishing sector”, which are lower than the Chapter
    6A labor cost data, and appear to have no rejoinder to the defendant’s contention that that point does
    not adequately illuminate how Chapter 5A’s description more closely parallels the labor experience
    of its affiliated growers than a category for the “Manufacture of Food Products”, i.e., the Chapter 6A
    data relied upon by Commerce. Cf. Pls.’ Br. at 8 & Def’s Resp. at 11 with Pls’ Reply at 2-6.
    5
    See CDoc 70 at Exs. SQ2-1 and SQ2-4 (showing columns for glass jars and glass jar caps);
    CDoc 73 at Exs. SQ2-3 and SQ2-4 (showing CONNUMs associated with glass jars and glass caps).
    Court No. 15-00184                                                                            Page 8
    13 & 14; PDoc 115 (surrogate values for the prelim. results at 6). These values, submitted by the
    petitioner, were apparently the only sources on the record for such valuation. See IDM at 13-14.
    In their administrative brief, the plaintiffs argued that Commerce should have relied
    on jar-specific and size-specific surrogate values applicable to covered glass jars “with a capacity
    greater than 150 millimeters and less than 330 millimeters” as set forth in the Tariff Schedules of
    Ecuador and Bulgaria. Respondents’ Case Brief at 22-23. Alternatively, the plaintiffs referred
    Commerce to the precise HTS numbers as used in the import statistics of South Africa. The
    plaintiffs contend here, as in their administrative case brief, that the surrogate values on which
    Commerce relied were aberrantly high (and in the case of glass jars, insufficiently specific) for
    surrogate valuation of their inputs. See Pls’ Br. at 17-22.
    With respect to the first argument, the plaintiffs do not adequately address the
    defendant’s point that the record contained no other valuation sources. See IDM at 13-14. The
    plaintiffs repeat the similar 
    argument, supra
    , that Commerce had every opportunity to calculate the
    most accurate antidumping margins possible based on the surrogate values the plaintiffs identified
    in their case brief but “flouted” its obligation on the ground that the numerical values for these
    surrogate values were absent from the administrative record. Pls’ Reply, referencing IDM at 10.
    However, as discussed above, Commerce complied with its statutory obligation, and necessarily
    relied on the “best available information” for valuing glass jars and caps when it relied on the only
    available information on the record. See 19 U.S.C. §1677b(c)(1); see also Jacobi Carbons AB v.
    United States, 619 F. Appx. 992, 1002 (Fed. Cir. 2015) (“Jacobi Carbons II”). (noting that the best
    available information is limited to the record before the agency, not a hypothetical record). The law
    Court No. 15-00184                                                                           Page 9
    does not require Commerce to build the record on the plaintiffs’ behalf. E.g., QVD 
    Food, 658 F.3d at 1324
    . The plaintiffs attempt to distinguish QVD Food as actually supporting their own position
    (because Commerce itself in that case placed a possibly “appropriate source of information for
    valuing whole pangas fish” on the record) but the attempt is unavailing for the reasons discussed
    above. The plaintiffs also attempt to distinguish American Tubular I on the ground that the parties
    thereto had not briefed alternative choices for surrogate values as the plaintiffs here did before
    Commerce, but it cannot be conclude therefrom that Commerce’s “inertia” on gathering the data that
    would “complete” the plaintiffs’ arguments (in the form of the factual record support therefor) was
    arbitrary or capricious for the same reasons stated above.
    The plaintiffs also assert that the surrogate value on which Commerce relied was
    aberrantly high. Commerce’s practice when confronted with a claim that data are aberrational is to
    compare the allegedly aberrant data with the data from other countries found by Commerce to be
    “equally” economically comparable to the PRC. See, e.g., Citric Acid from the PRC, 80 Fed. Reg.
    77323 (Dec. 14, 2015) (final admin. review), and accompanying issues and decision memorandum
    at cmt. 8. Commerce’s position is that there were no such comparative data on this record that
    would have enabled concluding that the data on which it relied were aberrant. In lieu thereof, the
    plaintiffs argue that the values used by Commerce resulted in a scenario whereby the price of glass
    jars and caps exceeded the average price of the merchandise sold in the United States. See Pls.’ Br.
    at 17-19. The plaintiffs argue that it is inconceivable that a manufacturer in a market economy
    surrogate country would package its product in a container whose value exceeds the gross sales price
    Court No. 15-00184                                                                               Page 10
    of the item, and that Commerce’s methodology produces this “absurd” result that “def[ies]
    commercial reality.” See 
    id. at 19.
    The problems with the argument are twofold: (1) it assumes that the plaintiffs’ U.S.
    price can be regarded, from other evidence in the record and not in the abstract, as approximating
    a “fair” market price that recoups production costs, and (2) it does not clarify why, in the absence
    of data from other countries found be equally economically comparable to the PRC, Commerce’s
    reliance upon the only surrogate value data of record for valuing the glass jars and metal caps can
    be concluded, necessarily, as producing an “absurd” result in this instance. The Court of Appeals
    for the Federal Circuit recently clarified that while commercial reality is a “reliable guidepost[ ] for
    Commerce’s determinations,” that concept “must be considered against what the antidumping
    statutory scheme demands.” Nan Ya Plastics Corp. v. United States, 
    810 F.3d 1333
    , 1343 (Fed. Cir.
    2016) (citation omitted). The statute “demands” that Commerce calculate normal value by valuing
    the factors of production with the “best available information” regarding the values of those factors
    in a market economy country. See 19 U.S.C. §1677b(c)(1). While “the emphasis should be on
    economic reality”,6 Commerce appears to have satisfied that statutory obligation in this instance, as
    set forth above.
    The plaintiffs’ last argument on this issue is that the surrogate value for glass jars is
    insufficiently specific. It is undisputed that the HTS category on which Commerce relied in the
    Final Results includes the merchandise being valued (i.e., glass jars), but, citing to statements in their
    administrative case brief, the plaintiffs assert that the HTS schedules of South Africa, Ecuador, and
    6
    United States v. Eurodif S.A., 
    555 U.S. 305
    , 317-18 (2009), quoting Tcherepnin v. Knight,
    
    389 U.S. 332
    , 336 (1967) (italics added).
    Court No. 15-00184                                                                             Page 11
    Bulgaria offer greater specificity insofar as they contain size-specific values. See Pls.’ Br. at 20-21.
    Commerce responds, and the court must agree, that the plaintiff’s statements in their case brief
    appear unsupported by record evidence, and Commerce must make its determinations based on the
    record before it. See Jacobi Carbons II, 619 F. Appx. at 1002. The record in this case contains no
    data from South Africa, Bulgaria, or Ecuador, and therefore the plaintiffs’ reliance on cases where
    Commerce was confronted with alternative valuation options from the record is unavailing. See,
    e.g., Pls.’ Br. at 20, citing Jinan Yipin Corp. v. United States, 35 CIT ___, ___, 
    800 F. Supp. 2d 1226
    , 1296 (2011) (inappropriate to rely on “basket” HTS provision import when more
    representative surrogate data are available). The plaintiffs’ arguments thus do not persuade that
    Commerce erred in according weight to the data relevant to the primary surrogate country when
    making its surrogate value decisions. See 19 C.F.R. § 351.408(c)(2); see also Jacobi Carbons AB
    v. United States, 38 CIT ___, ___, 
    992 F. Supp. 2d 1360
    , 1376 (2014).
    III
    Lastly, the plaintiffs contest the surrogate value that Commerce applied when valuing
    the steam coal consumed during both the growing and canning production process. See Pls.’ Br. at
    11-16. In the Preliminary Results, Commerce valued all reported coal inputs using Colombian GTA
    import data for “Bituminous Coal, Not Agglomerated,” which describes HTS 2701.12. See PDoc
    115 (surrogate values for the prelim. results at 7). The plaintiffs did not comment on this issue in
    their joint case brief, and Commerce’s regulatory requirement is that case briefs must “present all
    arguments that continue in the submitter’s view to be relevant to [Commerce’s] final determination
    or final results”. See 19 C.F.R. § 351.309(c)(2). The defendant emphasizes that at no point in the
    Court No. 15-00184                                                                              Page 12
    underlying review did the plaintiffs provide any indication of their position with respect to the proper
    valuation of coal, nor did they submit suggested surrogate values on the record of the review.
    Accordingly, the defendant explains, in the Final Results Commerce continued to rely upon the same
    value as that of the Preliminary Results when valuing plaintiffs’ reported coal inputs.
    The plaintiffs now contend that the value used for coal was insufficiently specific and
    aberrantly high, and they assert that the correct HTS category for steam coal is either HTS 2701.19,
    a category they contend reflects steam coal, or HTS 2701.11, a category for anthracite coal. See Pls’
    Br. at 12-13. However, once again, the only two surrogate values on the record are those specific
    to bituminous and anthracite coal. See PDoc 72 at Ex. 19. Aside from the fact that one of the two
    suggested values is not on the record of the review, the defendant argues that this is the first time the
    plaintiffs have raised these arguments and that they should not be accorded consideration because
    they were not raised before Commerce in the underlying review.
    Pursuant to 28 U.S.C. § 2637(d), the court “shall, where appropriate, require the
    exhaustion of administrative remedies” in civil actions arising from Commerce’s antidumping duty
    determinations. The doctrine of exhaustion provides “that no one is entitled to judicial relief for a
    supposed or threatened injury until the prescribed administrative remedy has been exhausted.”
    Sandvik Steel Co. v. United States, 
    164 F.3d 596
    , 599 (Fed. Cir. 1998) (citation and internal
    quotation marks omitted). The statutory exhaustion requirement concurrently protects administrative
    agency authority and promotes judicial efficiency, Corus Staal BV v. United States, 
    502 F.3d 1370
    ,
    1379 (Fed. Cir. 2007), and it is well-settled that “[a] reviewing court usurps the agency’s function
    when it sets aside an agency determination upon a ground not theretofore presented and deprives the
    Court No. 15-00184                                                                              Page 13
    [agency] of an opportunity to consider the matter, make its ruling, and state the reason for its action.”
    Rhone Poulenc, Inc. v. United States, 
    13 CIT 218
    , 226, 
    710 F. Supp. 341
    , 348 (1989), quoting United
    States v. L.A. Tucker Truck Lines, 
    344 U.S. 33
    , 37 (1952) (internal quotation marks omitted; Rhone
    court’s bracketing), aff’d, 
    899 F.2d 1185
    (Fed. Cir. 1990). Further, the court “generally takes a
    ‘strict view’ of the requirement that parties exhaust their administrative remedies before . . .
    Commerce in trade cases.” Corus 
    Staal, 502 F.3d at 1379
    (citations omitted); accord Clearon Corp.
    v. United States, 35 CIT ___, ___, 
    800 F. Supp. 2d 1355
    , 1362 (2011); Fuwei Films (Shangdong)
    Co. v. United States, 35 CIT ___, ___, 
    791 F. Supp. 2d 1381
    , 1384 (2011).
    Furthermore, none of the limited exceptions to the exhaustion doctrine appear to
    apply in this case, i.e.: (1) where exhaustion would be a useless formality or futile; (2) intervening
    legal authority might have materially affected the agency’s actions; (3) the issue involves a pure
    question of law not requiring further factual development; (4) where clearly applicable precedent
    should have bound the agency; or (5) where the party had no opportunity to raise the issue before the
    agency. See SeAH Steel Corp. v. United States, 35 CIT ___, ___, 
    764 F. Supp. 2d 1322
    , 1325-26
    (2011) (citation omitted). The plaintiffs cannot establish that it would have been futile for them to
    present their arguments to Commerce during the review, as the futility exception is a narrow one in
    that parties must demonstrate that they “would be required to go through obviously useless motions
    in order to preserve their rights.” Corus 
    Staal, 502 F.3d at 1379
    (citations and internal quotation
    marks omitted). If the plaintiffs had raised their arguments before Commerce in the proceeding, the
    agency would have addressed those arguments in the first instance, as it did with respect to every
    other surrogate value disputed by plaintiffs in their case brief. Additionally, despite the plaintiffs’
    Court No. 15-00184                                                                           Page 14
    contention otherwise, this issue does not require resolution of a pure question of law. The plaintiffs
    contend Commerce’s decision was unsupported by substantial evidence, see Pls’ Br. at 11-16, and
    in their reply they contend “Commerce did not cite to any evidence in the record that would have led
    it to believe that steam coal was the equivalent of bituminous coal.” Pls’ Reply at 7. That was not
    the issue before Commerce, the issue was the availability of the evidence on the record to value
    steam coal, a finding of fact. The plaintiffs’ administrative case brief is apparently devoid of the
    allegations they would raise here, see CDoc 89, and the answer to the question of whether they “had
    no opportunity to raise the issue before the agency” appears inarguable.
    As above indicated, the claims that plaintiffs would raise at this point are factual in
    nature. Cf. Franklin v. United States, 
    289 F.3d 753
    , 757 (Fed. Cir. 2002) (while the scope and
    meaning of a tariff classification term is a question of law, determining whether goods fall within
    a particular tariff term as properly construed is a question of fact). Because Commerce, as the finder
    of fact, has not made a finding in regard to these arguments, further discussion would infringe upon
    Commerce’s scope of expertise. See F. LLI de Cecco di Filippo Fara S. Martino S.p.A. v. United
    States, 
    216 F.3d 1027
    , 1032 (Fed. Cir. 2000). Furthermore, defending Commerce’s determination
    on a new allegation would necessarily appear to involve inappropriate post hoc rationalizations. See
    Vinh Quang Fisheries Corp. v. United States, 
    33 CIT 1277
    , 1282, 
    637 F. Supp. 2d 1352
    , 1358
    (2009); see also, e.g., Fujian Lianfu Forestry Co. v. United States, 
    33 CIT 1056
    , 1081, 638. F. Supp.
    2d 1325, 1352 (2009). Cf. Arkansas v. Oklahoma, 
    503 U.S. 91
    , 112-13 (1992) (a “court should not
    supplant the agency’s findings merely by identifying alternative findings that could be supported by
    substantial evidence”).
    Court No. 15-00184                                                                     Page 15
    Conclusion
    In accordance with the foregoing, Commerce’s Final Results must be sustained as
    supported by substantial evidence on the record and in accordance with law. Judgment will enter
    accordingly.
    /s/ R. Kenton Musgrave
    R. Kenton Musgrave, Senior Judge
    Dated: September 21, 2016
    New York, New York
    

Document Info

Docket Number: 15-00184

Citation Numbers: 2016 CIT 89

Judges: Musgrave

Filed Date: 9/21/2016

Precedential Status: Precedential

Modified Date: 9/21/2016

Authorities (20)

flii-de-cecco-di-filippo-fara-s-martino-spa-v-united-states-v , 216 F.3d 1027 ( 2000 )

Vinh Quang Fisheries Corp. v. United States , 33 Ct. Int'l Trade 1277 ( 2009 )

Fuwei Films (Shandong) Co. v. United States , 791 F. Supp. 2d 1381 ( 2011 )

United States v. Eurodif S. A. , 129 S. Ct. 878 ( 2009 )

Qvd Food Co., Ltd. v. United States , 658 F.3d 1318 ( 2011 )

Arthur L. Franklin (Doing Business as Health Technologies ... , 289 F.3d 753 ( 2002 )

zenith-electronics-corporation-v-the-united-states-and-mitsubishi , 988 F.2d 1573 ( 1993 )

Sandvik Steel Company v. United States, Fujitsu Ten ... , 164 F.3d 596 ( 1998 )

Novosteel Sa v. United States, and Bethlehem Steel ... , 284 F.3d 1261 ( 2002 )

Jinan Yipin Corp., Ltd. v. United States , 800 F. Supp. 2d 1226 ( 2011 )

Tianjin MacHinery Import & Export Corp. v. United States , 16 Ct. Int'l Trade 931 ( 1992 )

Clearon Corp. v. United States , 800 F. Supp. 2d 1355 ( 2011 )

Tcherepnin v. Knight , 88 S. Ct. 548 ( 1967 )

Pam, S.P.A. v. United States , 582 F.3d 1336 ( 2009 )

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Lucent Technologies, Inc. v. Gateway, Inc. , 580 F.3d 1301 ( 2009 )

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SeAH Steel Corp. v. United States , 764 F. Supp. 2d 1322 ( 2011 )

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