Guizhou Tyre Co. v. United States , 2019 CIT 155 ( 2019 )


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  •                                  Slip Op. 19-
    UNITED STATES COURT OF INTERNATIONAL TRADE
    GUIZHOU TYRE CO., LTD.; GUIZHOU TYRE
    IMPORT & EXPORT CO., LTD.,
    Plaintiffs,
    and
    TIANJIN UNITED TIRE & RUBBER                           Before: Richard W. Goldberg, Senior Judge
    INTERNATIONAL CO., LTD.; WEIHAI                        Consolidated Court No. 18-00100
    ZHONGWEI RUBBER CO., LTD.;
    Consolidated Plaintiffs,
    v.
    UNITED STATES,
    Defendant.
    OPINION AND ORDER
    [The court remands to Commerce for a further analysis of the Export Buyer’s Credit Program.
    All other determinations made by the Department are sustained.]
    Dated: December 10, 2019
    Matthew P. McCullough, Tung Nguyen, Curtis, Mallet-Prevost, Colt & Mosle LLP, of
    Washington, D.C., for plaintiffs Guizhou Tyre Co., Ltd., and Guizhou Tyre Import & Export
    Co., Ltd.
    John Todor, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, U.S.
    Department of Justice, of Washington, D.C., for defendant. With him on the brief were Joseph
    H. Hunt, Assistant Attorney General, Jeanne E. Davidson, Director, and Franklin E. White, Jr.,
    Assistant Director. Of counsel on the brief was Orga Cadet, Office of the Chief Counsel for
    Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C.
    Consol. Ct. No. 18-00100                                                                   Page 2
    Goldberg, Senior Judge: Now before the court are the Final Results of Redetermination
    Pursuant to Court Remand, ECF 46-1 (Aug. 27, 2019) (“Remand Results”), of the Department of
    Commerce (“the Department” or “Commerce”) in the countervailing duty (“CVD”) investigation
    of off-the-road tires from the People’s Republic of China (“PRC”) during the period of review
    between January 1, 2015 and December 31, 2015. Certain New Pneumatic Off-the-Road Tires
    from the People’s Republic of China, 83 Fed. Reg. 16,055 (Dep’t Commerce Apr. 13, 2018)
    (final results), amended by Certain New Pneumatic Off-the-Road Tires from the People’s
    Republic of China, 83 Fed. Reg. 32,078 (Dep’t Commerce July 11, 2018) (am. final results)
    (“Amended Final Results”) and accompanying Issues & Decision Mem. (“I&D Mem.”).
    Following the court’s remand back to Commerce, Guizhou Tyre Co. v. United States, 43 CIT __,
    
    389 F. Supp. 3d 1315
    (2019) (“Guizhou II”), the Department reviewed its determination on the
    Export Buyer’s Credit Program (“EBCP” or “the Program”) and provided additional support for
    its findings on distortion in the synthetic rubber market in 2015. See generally Remand Results.
    Specifically, the Department affirmed its findings regarding the EBCP and doubled down on its
    decision to apply an adverse inference that Plaintiffs used and benefited from the Program. 
    Id. at 3í14.
    Additionally, the Department further explained its finding that the synthetic market was
    not distorted in 2015. 
    Id. at 14í16.
    This additional explanation demonstrated that the
    composition of the synthetic rubber market in China changed significantly between 2014 and
    2015. 
    Id. at 15.
    Plaintiffs Guizhou Tyre Co. and Guizhou Tyre Import and Export Co.,
    (collectively “Guizhou” or “Plaintiffs”) oppose Commerce’s Remand Results in its entirety. See
    Pls.’ Comments on the Department of Commerce’s Remand Redetermination, ECF No. 48 (Sept.
    26, 2019) (“Pls.’ Comments”).
    Consol. Ct. No. 18-00100                                                                       Page 3
    The Department has provided adequate support for its finding distortion in the synthetic
    rubber market. The evidence provided by Commerce indicates that market conditions in 2015
    were not “nearly identical” to those in 2014, as Plaintiffs claim. For example, pursuant to
    Commerce’s explanation, the synthetic rubber market underwent a significant increase in import
    penetration. Therefore, the court sustains Commerce’s remand results as to the distortion
    analysis. However, the court is not satisfied with Commerce’s remand results relating to the
    EBCP. Once again, substantial evidence does not support the requisite threshold finding that
    there is a gap in the record warranting the use of adverse facts available (“AFA”). The court
    remands this issue back to Commerce for reconsideration in accordance with this opinion.
    DISCUSSION
    The court exercises jurisdiction under 28 U.S.C. § 1581(c). The court must hold
    unlawful any determination, finding, or conclusion found “to be unsupported by substantial
    evidence on the record, or otherwise not in accordance with law.” 19 U.S.C. § 1516a(b)(1)(B)(i).
    Further, “[t]he results of a redetermination pursuant to court remand are also reviewed ‘for
    compliance with the court’s remand order.’” SolarWorld Ams., Inc. v. United States, 41 CIT __,
    __, 
    229 F. Supp. 3d 1362
    , 1365 (2017) (quoting Xinjiamei Furniture (Zhangzhou) Co. v. United
    States, 38 CIT __, __, 
    968 F. Supp. 2d 1255
    , 1259 (2014)).
    The Department has failed to “compl[y] with the court’s remand order,” 
    id., as it
    relates
    to Commerce’s application of the AFA statute to the EBCP. Therefore, the court remands that
    portion of the Department’s determination back to Commerce for reconsideration consistent with
    this opinion. As for the Department’s market distortion analysis, the court upholds Commerce’s
    redetermination as now supported by substantial evidence on the record, in light of the reasoned
    explanation now available to the court.
    Consol. Ct. No. 18-00100                                                                          Page 4
    I.      Synthetic Rubber Market Distortion Analysis
    The Department determined that the 2015 synthetic rubber market was not distorted
    during the period of review because state-owned producers accounted for 23.97 percent of
    market consumption for synthetic rubber. Remand Results at 14. Therefore, Commerce used
    Tier 1 benchmarks for imports to measure the adequacy of remuneration for this input. Plaintiffs
    challenged this determination, arguing that the results were inconsistent with the Department’s
    distortion findings in 2014 because similar market conditions existed in the two years. The court
    agreed, noting that the evidence in the record demonstrated that the synthetic rubber market
    between 2014 and 2015 was distinguished by only a few percentage points. Guizhou II, 43 CIT
    at __, 389 F. Supp. 3d at 1324. And so, the court concluded, the Department would be
    hard-pressed to justify a change in its distortion analysis, especially where it failed to provide
    much additional insight into its ultimate determination. 
    Id. See also
    Hussey Copper. v. United
    States, 
    17 CIT 993
    , 997, 
    834 F. Supp. 413
    , 418 (1993) (“It is ‘a general rule that an agency must
    either conform itself to its prior decisions or explain the reasons for its departure . . . . This rule is
    not designed to restrict an agency’s consideration of the facts from one case to the next, but
    rather it is to insure [sic] consistency in an agency’s administration of a statute.’”) (citing
    Citrosuco Paulista, S.A. v. United States, 
    12 CIT 1196
    , 1209, 
    704 F. Supp. 1075
    , 1088 (1988)).
    On remand, the court ordered Commerce to “specifically explain how the market for
    synthetic rubber in the PRC changed between 2014 and 2015 and what aspects of those changes
    caused Commerce to find that the market was not distorted in 2015.” Guizhou II, 43 CIT at __,
    389 F. Supp. 3d at 1325. The Remand Results show that Commerce did just that. Commerce
    further explained how the “composition of the synthetic market in China showed significant
    Consol. Ct. No. 18-00100                                                                     Page 5
    change between 2014 and 2015,” Remand Results at 15. The “significant change” is largely
    based on the dramatic increase in imports from 2014 to 2015 (a 33.36 percent jump).
    Plaintiffs claim that the Remand Results do little to move the needle, because
    “Commerce is simply leveraging the law of small numbers to reach its ‘significant’ and
    ‘substantial’ findings, where very small absolute changes in small numbers may yield higher
    percentage changes, but objectively the changes are still incredibly small.” Pls.’ Br. 8.
    However, this contention seems to be based on Plaintiffs’ fundamental misunderstanding of
    Commerce’s data points and how percentages work. First, the data provided by the Department
    indicates that although total domestic consumption and the Government of China’s (“GOC”)
    production of synthetic rubber fluctuated only slightly between 2014 and 2015, the (substantial)
    33.36 percent increase in import penetration strongly suggests lower overall government
    involvement. As Commerce explains, a decrease in government production (8.7 percent
    decrease from 2014 to 2015) and a decrease in the GOC’s production as a share of total
    consumption of the product (a 3.65 percent decrease)—coupled with the 33.36 percent increase
    in import penetration—supports the conclusion that the Chinese synthetic rubber market was not
    distorted by government involvement. And, the Department also noted in its Remand Results
    that there is no evidence on the record that the GOC had administered any policies that would
    have a “distorting effect on the market by maintaining an artificially high level of domestic
    supply, leading to artificially lower prices.” Remand Results at 16.
    Second, Plaintiffs claim that Commerce stills “fails to explain why a higher import
    penetration number . . . and a lower GOC market share . . . should necessarily alter its conclusion
    from 2014 that the market was distorted.” Pls.’ Br. 8. But unlike in its initial determination,
    Commerce now does explain how a higher import penetration number affects (at least, the
    Consol. Ct. No. 18-00100                                                                     Page 6
    perception of) government involvement. See Remand Results at 27 (“[T]he significantly higher
    level of imports in 2015 and the correspondingly lower level of the GOC share of consumption
    indicate a significant loss of government dominance in the market.”). Additionally, Guizhou’s
    concern that “Commerce is leveraging the law of small numbers” to manipulate its distortion
    findings, Pls.’ Br. 8, is unsupported by the record. Indeed, the evidence as presented by
    Commerce’s Remand Results demonstrates that the market circumstances did not remain
    unchanged from 2014. While some of the changes reflected minor percentage shifts, others
    yielded significant variations from 2014 to 2015—especially on data points that relate to
    distortion indicators. The fact that Guizhou considers the changes insignificant does not raise
    concerns with “the law of small numbers,” 
    id. The composition
    of the synthetic rubber market in
    China showed significant change due to an increase in imports, and this is a sufficient
    explanation for Commerce’s distortion findings in 2015. The court now sustains the
    Department’s findings on market distortion in the Chinese synthetic rubber market.
    II.     Export Buyer’s Credit Program
    For purposes of this opinion, familiarity with the facts on this issue is generally
    presumed. See Guizhou II, 43 CIT at __, 389 F. Supp. 3d at 1267–69. In this administrative
    review, Commerce examined whether Plaintiffs benefited from the EBCP, a loan program
    instituted by the GOC that provides loans to foreign companies to promote the export of Chinese
    goods. See Clearon Corp v. United States, 43 CIT __, 
    359 F. Supp. 3d 1344
    , 1347 (2019)
    (discussing the EBCP). Previously, in response to Commerce’s questions regarding the
    Program’s operation, both the GOC and the Plaintiffs responded that because “none of
    Guizhou’s customers used the Program,” the respondents could not provide any further
    information about the Program’s operations. Guizhou II, 43 CIT at __, 389 F. Supp. 3d at 1320.
    Consol. Ct. No. 18-00100                                                                   Page 7
    In support thereof, Guizhou submitted declarations from its U.S. customers confirming non-use.
    
    Id. at 1321.
    As in nearly every recent administrative review of this Program, Commerce has
    requested information surrounding two 2013 revisions to the EBCP that now purportedly
    “limit[ed] the provision of Export Buyer’s Credits to business contracts exceeding USD [two]
    million,” and “use[d] third-party banks to disburse/settle Export Buyer’s Credits.” I&D Mem. at
    14. The GOC has repeatedly refused to provide information about the 2013 revisions, stating
    that the revisions were “internal to the bank, non-public, and not available for release.” Remand
    Results at 9. Based on this non-cooperation, the Department determined that the GOC both
    withheld requested information and significantly impeded the administrative proceeding. I&D
    Mem. at 14í15. According to Commerce, “[t]he GOC has not provided the requested
    information and documentation necessary for Commerce to develop a complete understanding of
    this program,” and therefore, the Department could not verify Guizhou’s submitted non-use
    declarations from its U.S. customers. 
    Id. at 14.
    Through the application of AFA, Commerce
    found that the Plaintiffs had used and benefited from the Program, despite non-use declarations
    demonstrating the contrary. 
    Id. at 14í15.
    The court disagreed with Commerce on its first pass, and now Commerce’s remand
    results fare no better. Below, the court found that “the Department’s decision to apply AFA as to
    the EBCP based on an alleged lack of cooperation was unlawful because Commerce
    demonstrated no gap in the record, the respondents submitted evidence of non-use of the
    Program, and the Department’s findings of unverifiability of necessary information was
    unsupported by record evidence.” Guizhou II, 43 CIT at __, 389 F. Supp. 3d at 1329. Therefore,
    on the first remand, the court ordered Commerce to “reconsider its adverse inference that the
    Consol. Ct. No. 18-00100                                                                   Page 8
    [EBCP] was used by Guizhou’s customers and reach a new determination on this issue based on
    findings supported by substantial record evidence[.]” 
    Id. Commerce continues
    to find that there is a gap in the record because the Department
    cannot verify the submitted non-use declarations without additional information surrounding the
    2013 revisions to the EBCP. Remand Results at 9í11. One of the revisions involved routing
    EBCP loans through (undisclosed) third-party banks, and not through the Export-Import Bank of
    China (“EX-IM Bank”) as Commerce originally thought. 
    Id. at 9.
    As in the previous
    administrative review, the Department reiterated that “[t]he GOC once again refused to provide
    the sample application documents or any regulations or manuals governing the approval process
    [for the Program].” 
    Id. at 4.
    Without this information, Commerce concluded that it could “not
    verify non-use of export buyer’s credits” “in a manner consistent with its verification methods,
    which are primarily the methods of an auditor, attempting to confirm usage or claimed non-usage
    by examining books and records which can be reconciled to audited financial statements, or
    other documents.” 
    Id. at 5í6.
    Commerce asserts that the “completeness” principle is “an
    essential element of Commerce’s verification methodology,” 
    id. at 6,
    and without the allegedly
    “missing” information, the Department’s verification “would amount to looking for a needle in a
    haystack with the added uncertainty that Commerce might not even be able to identify the needle
    when it was found.” 
    Id. at 14.
    Therefore, Commerce continues to impute usage of the EBCP
    based on the application of adverse facts available.
    The Department’s (flawed) reasoning has remained unwavering—despite now eleven
    decisions from this Court urging Commerce to correct the repeated blatant deficiencies in its
    AFA analyses of the EBCP. See, e.g., Changzhou Trina Solar Energy Co. et al. v. United States,
    Slip Op. 19-143, 
    2019 WL 6124908
    (CIT Nov. 18, 2019) (“Changzhou V”); Changzhou Trina
    Consol. Ct. No. 18-00100                                                                         Page 9
    Solar Energy Co. et al. v. United States, Slip Op. 19-137, 
    2019 WL 5856438
    (CIT Nov. 8, 2019)
    (“Changzhou IV”); Jiangsu Zhongji Lamination Materials Co. v. United States, Slip Op. 19-122,
    
    2019 WL 4467099
    (CIT Sept. 18, 2019); Guizhou Tyre Co. et al. v. United States, Slip Op. 19-
    114, 
    2019 WL 3948913
    (CIT Aug. 21, 2019) (“Guizhou III”); Guizhou II, 43 CIT __, 389 F.
    Supp. 3d 1315; Clearon Corp., 43 CIT __, 
    359 F. Supp. 3d 1344
    ; Changzhou Trina Solar
    Energy Co. v. United States, Slip Op. 18-167, 
    2018 WL 6271653
    (CIT Nov. 30, 2018)
    (“Changzhou III”); Changzhou Trina Solar Energy Co. v. United States, 42 CIT __, 
    352 F. Supp. 3d
    1316 (2018) (“Changzhou II”); Guizhou Tyre Co. v. United States, 42 CIT __, 
    348 F. Supp. 3d
    1261 (2018) (“Guizhou I”); Changzhou Trina Solar Energy Co. v. United States, 41 CIT __,
    
    255 F. Supp. 3d 1312
    (2017) (“Changzhou I”); SolarWorld Ams., Inc. v. United States, 41 CIT
    __, 
    229 F. Supp. 3d 1362
    (2017). In response to Commerce’s dereliction, then, the Court’s
    opinion today will also remain unwavering. The Department is ordered on remand to pursue
    verification of the non-use affidavits on record from Plaintiffs; otherwise, as it stands, the
    Department’s use of adverse facts available to impute use of the EBCP is unlawful on the record
    of this case.
    An adverse inference cannot be applied unless it is first appropriate to use facts otherwise
    available. See 19 U.S.C. § 1677e(b). And then, only if an interested party also “fail[s] to
    cooperate by not acting to the best of its ability to comply with a request for information” can
    Commerce use an adverse inference when choosing from those facts available. 
    Id. § 1677e(b)(1).
    Otherwise, “[a]bsent a valid decision to use facts otherwise available” and a
    finding that a respondent failed to “act[] to the best of its ability,” “Commerce may not use an
    adverse inference.” Shandong Huarong Machinery Co. v. United States, 
    30 CIT 1269
    , 1282,
    1301í02, 
    435 F. Supp. 2d 1261
    , 1274, 1289 (2006). Additionally, the adverse use of facts
    Consol. Ct. No. 18-00100                                                                    Page 10
    otherwise available can only be used fill gaps necessary to complete the factual record and
    ultimately to “find that the elements of the [CVD] statute have been satisfied,” Changzhou Trina
    Solar Energy Co. v. United States, 43 CIT __, __, 
    359 F. Supp. 3d 1329
    , 1338 (2019). See also
    Zhejiang DunAn Hetian Metal Co. v. United States, 
    652 F.3d 1333
    , 1348 (Fed. Cir. 2011) (“[I]t
    is clear that Commerce can only use facts otherwise available to fill a gap in the record.”).
    In its redetermination, Commerce again invoked the authority to use an adverse inference
    based on the finding that the GOC did not act to the best of its ability in responding to the
    Department’s request for “the 2013 administrative rules, as well as other information concerning
    the operation of the EBCP.” Remand Results at 13. Here, the Department’s investigation relates
    to whether the EBCP provides a countervailable subsidy to Plaintiffs. Under the CVD statute,
    this requires a finding that a specific financial contribution occurred, and a benefit was therefore
    conferred. See 19 U.S.C. § 1677(5). The gap then, must relate to either element of this inquiry.
    Just because Commerce resorted to adverse facts available “does not obviate the need for
    Commerce to affirmatively find that the elements of the statute have been satisfied.” Changzhou
    Trina Solar Energy Co., 43 CIT __, __, 359 F. Supp. 3d at 1338. But as it currently stands, the
    Department has assumed the conclusion—that a gap in the record exists as a result of the GOC’s
    failure to cooperate—without addressing what “constitutes a ‘gap’ in the record,” Zhejiang
    DunAn Hetian Metal, 
    652 F.3d 1333
    , 1347, and by pointedly closing its eyes on the evidence
    provided by Guizhou that would “fairly detract[]” from its ultimate conclusion, CS Wind
    Vietnam Co. v. United States, 
    832 F.3d 1367
    , 1373 (Fed. Cir. 2016). The law does not permit
    Commerce to circumvent the statutory requirements of the CVD statute just because a
    respondent fails to cooperate; nor is Commerce “relieve[d] [] from relying on some facts to make
    the requisite determinations to satisfy the elements of 19 U.S.C. § 1677(5).” Changzhou Trina
    Consol. Ct. No. 18-00100                                                                        Page 11
    Solar Energy Co., 43 CIT __, 359 F. Supp. 3d at 1340 (emphasis added). Stripped away of its
    misconceptions surrounding the AFA statute, the Department is left with the most compelling
    facts placed on the record: that Plaintiffs did not use the Program, and therefore, no specific
    benefit was conferred. Despite the court’s instruction, there are still integral flaws in the
    Department’s reasoning on remand. The court again concludes that Commerce erred in invoking
    its “adverse inference” authority with respect to the information (purportedly) missing from the
    record. Both the law and the record are clear, and there is more than enough reason to support the
    Plaintiffs’ position.
    For any use of AFA, “Commerce must still explain what information is missing and what
    adverse inferences reasonably lead[] to its conclusion.” Changzhou III, 
    2018 WL 6271653
    , at
    *3. As before, the Department has failed to explain why information about the 2013 rule
    changes is relevant to verifying demonstrative claims of non-use; and, importantly, why the
    omission of this information constitutes a gap necessary to “complete the factual record,” Nippon
    Steel Corp. v. United States, 
    337 F.3d 1373
    , 1381 (Fed. Cir. 2003). The Department alleges that
    the GOC failed to cooperate to the best of its ability and therefore, the record lacks information
    concerning the use of the Program. According to the Department, this permits Commerce to use
    adverse facts available to fill in this “missing” information. But Commerce has the relationship
    backwards. See Guizhou III, Slip Op. 19-114, 
    2019 WL 3948913
    , at *4 (“Commerce does not
    know what the 2013 rule change was, and consequently, the court finds no record support for the
    Department’s determination that the rule change is tied to verification.”). There is evidence in
    the record that squarely detracts from Commerce’s inference that Plaintiffs used and benefited
    from the EBCP. Commerce may not simply declare that the evidence cannot be verified and
    therefore, a gap exists. That is not how it works. Commerce must attempt verification in order to
    Consol. Ct. No. 18-00100                                                                   Page 12
    conclude that a gap exists related to that inquiry; and then only after Commerce finds that the
    “interested party has failed to cooperate by not acting to the best of its ability” can Commerce
    use an adverse inference to fill that gap. 19 U.S.C. § 1677e(b)(1). The AFA statute empowers
    Commerce to apply adverse inferences in those instances, but “it may not do so in disregard of
    information of record that is not missing or otherwise deficient.” Zhejiang DunAn Hetian 
    Metal, 652 F.3d at 1348
    . Here, information related to the CVD inquiry is neither missing nor
    demonstrably deficient, especially in light of the fact that the Department was once able to verify
    declarations from U.S. customers indicating non-use of the EBCP. See generally Changzhou I,
    41 CIT __, 
    255 F. Supp. 3d 1312
    .
    The court recognizes the Department’s quandary when it claims that verification might be
    particularly onerous if EX-IM credits were disbursed through (unnamed) intermediary banks. As
    Commerce explains, this is because there may “not necessary be an account in the name ‘China
    Ex-Im Bank’ in the books and records . . . of the U.S. customer.” Remand Results at 11. But
    even with this supposed explanation (and indeed, the Department is only assuming verification
    here would be onerous based on those circumstances), Commerce has not explained why it
    cannot verify claims of non-use using a different method at its disposal. Just recently, the court
    addressed these potential verification difficulties in Changzhou IV, Slip Op. 19-137, 
    2019 WL 5856438
    and Changzhou V, Slip Op. 19-143, 
    2019 WL 6124909
    . There, as here, the Department
    cited to records in earlier investigations, which gleaned at the various disbursement methods of
    EBCP funds—including some that would make verification more or less difficult. See
    Changzhou IV, 
    2019 WL 5856438
    at *4; Changzhou V, 
    2019 WL 6124909
    at *3. But as in
    Changzhou IV and Changzhou V, it is also “not entirely clear” to this court that “the missing
    information is required to effectively verify respondent’s non-use of the program.” 
    Id. Consol. Ct.
    No. 18-00100                                                                    Page 13
    Commerce has more verification tools at its disposal than the Government would have this court
    believe, including “spot checks and viewing underlying documentation,” as suggested by
    Plaintiffs. See Pls.’ Br. 4. The Department must use these tools to attempt to verify the non-use
    declarations before concluding that the evidence is unverifiable, and a gap exists in the record.
    Finally, Commerce has an “obligation when drawing an adverse inference based on a
    lack of cooperation by a foreign government [] to avoid collaterally impacting respondents to the
    extent practicable by examining the record for replacement information.” Guizhou I, 348 F.
    Supp. 3d at 1271. This sentiment rings especially true where the record’s inadequacies may have
    even originated with Commerce. “Fairness requires that Commerce, before invoking an adverse
    inference, must have communicated its information requests clearly and adequately” to the
    respondents. Peer Bearing Co.-Changshan v. United States, 
    36 CIT 1115
    , 1130, 
    853 F. Supp. 2d 1365
    , 1377–78 (2012). After countless investigations of the EBCP (particularly those initiated
    after Commerce’s knowledge of the 2013 revisions to the Program), Commerce should be able to
    seek information that would aid in its verification process, which includes asking “necessary
    questions to determine whether a review of EXIM Bank’s user database could sufficiently
    demonstrate non-use,” Pls.’ Br. 5. Instead, Commerce has focused its inquiry on the operation of
    the program rather than Guizhou’s alleged use of it. Commerce had an opportunity to “clearly
    and adequately” request additional information that would help the Department to verify the
    submitted non-use declarations (or ascertain Plaintiffs’ alleged use of the Program); it failed to
    do so, and the court will not fault Plaintiffs for the Department’s own shortcomings. Therefore,
    based on the record and the demonstrative evidence available, Commerce has failed to “compl[y]
    with the court’s remand order,” SolarWorld Ams., Inc., 41 CIT at __, 229 F. Supp. 3d at 1365, as
    it relates to Commerce’s application of the AFA statute to the EBCP.
    Consol. Ct. No. 18-00100                                                                    Page 14
    CONCLUSION
    The court sustains the Department’s additional explanation for its findings on market
    distortion in the Chinese synthetic rubber market. However, the Department has not complied
    with the court’s previous remand order regarding the application of AFA to impute Plaintiffs’
    use of the EBCP. Therefore, on this round of remand and redetermination, Commerce is ordered
    to attempt verification using all reasonable tools at its disposal. And as in Changzhou IV and
    Changzhou V, in so doing, “Commerce should detail its process in its remand redetermination.”
    
    2019 WL 5856438
    , at *4; 
    2019 WL 6124908
    .
    For the foregoing reasons, after careful review of all papers, it is hereby
    ORDERED that Commerce’s remand results as to Plaintiffs’ use of the EBCP based on
    an alleged lack of cooperation and a gap in the record were unsupported by substantial evidence;
    and it is further
    ORDERED that on remand, Commerce attempt verification of the submitted non-use
    declarations from Plaintiffs’ U.S. customers, using all reasonable tools at its disposal, including
    methods suggested by Plaintiffs and by this court; it is further
    ORDERED that Commerce detail its process in its remand redetermination as it relates
    to its verification of the non-use declarations; it is further
    ORDERED that all other challenged determinations of Commerce are sustained; and it is
    further;
    ORDERED that Commerce shall have ninety (90) days from the date of this Opinion and
    Order in which to file its redetermination, which shall comply with all directives in this Opinion
    and Order; that the Plaintiff shall have thirty (30) days from the filing of the redetermination in
    which to file comments thereon; and that the Defendant shall have thirty (30) days from the
    filing of Plaintiff’s comments to file comments.
    /s/ Richard W. Goldberg
    Richard W. Goldberg
    Senior Judge
    Dated: 'HFHPEHU
    New York, New York