Universal Tube and Plastic Indus., Ltd. v. United States , 2024 CIT 85 ( 2024 )


Menu:
  •                                  Slip Op. 24-85
    UNITED STATES COURT OF INTERNATIONAL TRADE
    UNIVERSAL TUBE AND
    PLASTIC INDUSTRIES, LTD.,
    THL TUBE AND PIPE
    INDUSTRIES, LLC, and KHK
    SCAFFOLDING & FORMWORK,
    LLC,
    Plaintiffs,
    Before: Jennifer Choe-Groves, Judge
    v.
    Court No. 23-00113
    UNITED STATES,
    Defendant,
    and
    WHEATLAND TUBE COMPANY,
    Defendant-Intervenor.
    OPINION
    [Remanding the U.S. Department of Commerce’s final results in the 2020‒2021
    antidumping duty review of circular welded carbon-quality steel pipe from the
    United Arab Emirates.]
    Dated: July 26, 2024
    Robert G. Gosselink, Jonathan M. Freed, and MacKensie R. Sugama, Trade
    Pacific, PLLC, of Washington, D.C., for Plaintiffs Universal Tube and Plastic
    Industries, Ltd., THL Tube and Pipe Industries, LLC, and KHK Scaffolding &
    Formwork, LLC. With them on the brief was Kenneth N. Hammer.
    Court No. 23-00113                                                               Page 2
    Franklin E. White, Jr., Assistant Director, and Kelly M. Geddes, Trial Attorney,
    Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of
    Washington, D.C., for Defendant United States. With them on the brief were
    Brian M. Boynton, Principal Deputy Assistant Attorney General, and Patricia M.
    McCarthy, Director. Of counsel was Brishaila Brown, Attorney, Office of the
    Chief Counsel for Trade Enforcement and Compliance, U.S. Department of
    Commerce. Vania Y. Wang also appeared.
    Roger B. Schagrin and Luke A. Meisner, Schagrin Associates, of Washington,
    D.C., for Defendant-Intervenor Wheatland Tube Company. Christopher T.
    Cloutier, Elizabeth Jackson Drake, Jeffrey D. Gerrish, Justin M. Neuman, Michelle
    R. Avrutin, Nicholas J. Birch, Nicholas Phillips, Saad Younus Chalchal, William
    A. Fennell, and Alessandra A. Palazzolo, also appeared.
    Choe-Groves, Judge: This case presents a unique issue that Plaintiffs
    describe as an “internal inconsistency.” Plaintiffs argue that the U.S. Department
    of Commerce correctly applied one methodology to compare costs in one segment
    of the case, yet failed to apply that same methodology in another segment of the
    case, and thus there is an internal inconsistency that is not in accordance with law.
    The Court agrees with Plaintiffs and remands the U.S. Department of Commerce’s
    Final Results.
    Plaintiffs Universal Tube and Plastic Industries, Ltd. (“UTP”), THL Tube and
    Pipe Industries, LLC (“TTP”), and KHK Scaffolding & Formwork, LLC (“KHK”)
    (collectively, “Plaintiffs” or “Universal”) filed this action pursuant to 
    19 U.S.C. § 1675
     contesting the final results of the U.S. Department of Commerce
    (“Commerce”) in Circular Welded Carbon-Quality Steel Pipe from the United Arab
    Emirates (“Final Results”), 
    88 Fed. Reg. 28,483
     (Dep’t of Commerce May 4, 2023)
    Court No. 23-00113                                                              Page 3
    (final results of antidumping duty administrative review; 2020‒2021) and
    accompanying Issues and Decision Memorandum for the Final Results of the 2020‒
    2021 Administrative Review of the Antidumping Duty Order on Circular Welded
    Carbon-Quality Steel Pipe from the United Arab Emirates (Dep’t of Commerce Apr.
    27, 2023) (“Final IDM”), ECF No. 22-5.
    Before the Court is Plaintiffs’ Rule 56.2 Motion for Judgment on the Agency
    Record. Pls.’ R. 56.2 Mot. J. Agency R. (“Plaintiffs’ Motion” or “Pls.’ Mot.”), ECF
    Nos. 23, 24; see also Mem. Supp. Pls.’ Mot. J. Agency R. (“Pls.’ Br.”), ECF Nos.
    23, 24. Defendant United States (“Defendant” or “the Government”) filed
    Defendant’s Response to Plaintiffs’ Rule 56.2 Motion for Judgment Upon the
    Agency Record. Def.’s Resp. Pls.’ R. 56.2 Mot. J. Agency R. (“Def.’s Resp.”),
    ECF No. 27. Defendant-Intervenor Wheatland Tube Company (“Defendant-
    Intervenor” or “Wheatland”) filed Defendant-Intervenor’s Response in Opposition
    to Plaintiffs’ Rule 56.2 Motion for Judgment on the Agency Record. Def.-Interv.’s
    Resp. Opp’n Pls.’ R. 56.2 Mot. J. Agency R. (“Def.-Interv.’s Resp.”), ECF No. 26.
    Plaintiffs filed Reply Brief of Plaintiffs Universal Tube and Plastic Industries, Ltd.,
    THL Tube and Pipe Industries, LLC, and KHK Scaffolding and Formwork, LLC.
    Pls.’ Reply Br. (“Pls.’ Reply”), ECF No. 33.
    ISSUES PRESENTED
    The Court reviews the following issues:
    Court No. 23-00113                                                               Page 4
    1.     Whether Universal failed to exhaust its administrative remedies with
    respect to its arguments regarding Commerce’s use of quarters as time
    periods for the comparison of sales prices in the Cohen’s d test.
    2.     Whether Commerce’s determination to compare sales prices made in
    different quarters of the period of review under one provision of the
    antidumping statute while declining to utilize the same comparisons
    of sales prices under another provision of the antidumping statute is in
    accordance with law.
    BACKGROUND
    Commerce conducted an administrative review for the period from
    December 1, 2020 to November 30, 2021. Initiation of Antidumping and
    Countervailing Duty Administrative Reviews, 
    87 Fed. Reg. 6487
    , 6492 (Dep’t of
    Commerce Feb. 4, 2022), PR 7.1 Commerce selected Universal as one of the
    mandatory respondents in the investigation.2 See Commerce’s 2020‒2021
    1
    Citations to the administrative record reflect the public administrative record
    (“PR”) document numbers. ECF No. 35.
    2
    Commerce collapsed UTP, TTP, and KHK into a single entity, Universal, in a
    prior investigation and treated Universal as one respondent. See Circular Welded
    Carbon-Quality Steel Pipe from the United Arab Emirates, 
    81 Fed. Reg. 36,881
    ,
    36,881 (Dep’t Commerce June 8, 2016) (affirmative preliminary determination of
    sales at less than fair value and postponement of final determination). For the
    current period of review, Commerce continued to collapse Universal. Commerce’s
    2020‒2021 Antidumping Duty Administrative Review of Circular Welded Carbon-
    Court No. 23-00113                                                               Page 5
    Antidumping Duty Administrative Review of Circular Welded Carbon-Quality
    Steel Pipe from the United Arab Emirates: Selection of Respondents for Individual
    Examination, PR 22.
    On December 28, 2022, Commerce published its preliminary results.
    Circular Welded Carbon-Quality Steel Pipe from the United Arab Emirates
    (“Preliminary Results”), 
    87 Fed. Reg. 79,862
     (Dep’t of Commerce Dec. 28, 2022)
    (preliminary results of antidumping duty administrative review; 2020‒2021), and
    accompanying Decision Memorandum for the Preliminary Results of the 2020‒
    2021 Administrative Review of the Antidumping Duty Order on Circular Welded
    Carbon-Quality Steel Pipe from the United Arab Emirates (Dec. 20, 2022)
    (“Preliminary Determination Memorandum” or “PDM”), PR 105.
    Universal submitted an administrative case brief arguing that Commerce
    should ensure that its differential pricing analysis for Universal was not impacted
    inaccurately by comparing perceived patterns of price differences among quarters.
    Universal’s Admin. Case Br. at 2‒5, PR 117.
    In the Final Results, Commerce continued to compare sales prices across
    different quarters of the period of review as part of the differential pricing analysis
    and determined that there was a pattern of export prices that differed significantly
    Quality Steel Pipe from the United Arab Emirates: Selection of Respondents for
    Individual Examination at 1 n.2, PR 22.
    Court No. 23-00113                                                              Page 6
    across purchasers, regions, or time periods. Final IDM at 10‒11, 14‒15.
    Commerce did not make any changes to its determination to calculate the cost of
    production using a method based on the weighted-average of costs within
    individual quarters of the period of review. See 
    id.
     at 5‒6. Commerce calculated
    Universal’s antidumping duty margin at 2.63%. Final Results, 88 Fed. Reg. at
    28,484.
    Plaintiffs filed this action timely pursuant to 
    19 U.S.C. § 1675
     contesting
    Commerce’s Final Results. See Compl., ECF No. 10.
    JURISDICTION AND STANDARD OF REVIEW
    The U.S. Court of International Trade has jurisdiction pursuant to 19 U.S.C.
    § 1516a(a)(2)(B)(iii) and 
    28 U.S.C. § 1581
    (c), which grant the Court authority to
    review actions contesting the final results of an administrative review of an
    antidumping duty order. The Court shall hold unlawful any determination 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).
    DISCUSSION
    I.     Administrative Exhaustion
    As an initial matter, Defendant argues that Universal failed to exhaust its
    administrative remedies with respect to the specific argument that “Commerce
    could have considered other periods of time to determine whether the ‘pattern’ and
    Court No. 23-00113                                                               Page 7
    ‘significant difference criteria’ were satisfied” because Universal allegedly did not
    raise that issue in the administrative case brief and Defendant contends that none of
    the exceptions to the exhaustion requirement apply. Def.’s Resp. at 17‒19.
    Universal counters that it did not fail to exhaust its administrative remedies
    because Universal put Commerce on notice of Universal’s concerns about time
    periods during the administrative proceeding. Pls.’ Reply at 8.
    Before commencing suit in the U.S. Court of International Trade, an
    aggrieved party must exhaust all administrative remedies available to it. “In any
    civil action . . . the Court of International Trade shall, where appropriate, require
    the exhaustion of administrative remedies.” 
    28 U.S.C. § 2637
    (d). The Court
    “generally takes a ‘strict view’ of the requirement that parties exhaust their
    administrative remedies[.]” Yangzhou Bestpak Gifts & Crafts Co. v. United States,
    
    716 F.3d 1370
    , 1381 (Fed. Cir. 2013).
    There are limited exceptions to the exhaustion requirement. See Pakfood
    Pub. Co. v. United States, 
    34 CIT 1122
    , 1145, 1147, 
    724 F. Supp. 2d 1327
    , 1351‒
    1352 (2010) (“[T]he court has waived the exhaustion requirement where it would
    have been futile for the party to raise its argument at the administrative level, as
    well as where the record indicates that . . . the agency in fact thoroughly considered
    the issue in question.”); see also Holmes Prod. Corp. v. United States, 16 CIT
    Court No. 23-00113                                                                Page 8
    1101, 1104 (1992) (“[E]xhaustion may be excused if the issue was raised by
    another party, or if it is clear that the agency had an opportunity to consider it.”).
    In its administrative case brief, Universal argued that although 19 U.S.C.
    § 1677f-1(d)(1)(B) indicates that Commerce may make comparisons when there is
    a pattern of comparable merchandise that differs significantly among purchasers,
    regions, or time periods, the use of “may” implies that “there are circumstance[s]
    where Commerce need not consider certain criteria, such as periods of time, when
    evaluating whether a pattern of prices that differs significantly existed.”
    Universal’s Admin. Case Br. at 5; see 19 U.S.C. § 1677f-1(d)(1)(B). Universal
    argued that in the Final Results, Commerce “must limit the first part of its Cohen’s
    d differential pricing analysis to a comparison of groups of sales data only for
    particular purchasers and regions, and not for time periods.” Universal’s Admin.
    Case Br. at 4‒5 (emphasis in original).
    On appeal before this Court, Universal asserts that Commerce should not
    have considered time periods at all or should have considered other periods of time
    in the Cohen’s d test. Pls.’ Br. at 23. Universal challenged Commerce’s use of
    quarters within the period of review in the Cohen’s d test. Id. Universal also noted
    that 19 U.S.C. § 1677f-1(d)(1)(B), in permitting Commerce to consider time
    periods, does not mandate how Commerce should determine the existence of
    Court No. 23-00113                                                              Page 9
    patterns of prices that differ or whether Commerce should be required to consider
    time periods at all. Id.
    Defendant contends that, in the administrative case brief, “Universal argued
    that Commerce should not include time periods in its Cohen’s d differential pricing
    analysis, but did not raise the alternative argument that Commerce should use a
    unit of time other than quarters to assess differences in prices over time periods” or
    “suggest a specific alternative time period.” Def.’s Resp. at 18. The Government
    asserts that the Court should not “entertain Universal’s arguments concerning the
    use of a different time period in its Cohen’s d analysis” and that the exceptions to
    the exhaustion doctrine do not apply. Id. at 18‒19.
    The Court holds that an exception to the exhaustion doctrine applies here
    because Commerce was on notice that Universal was challenging the issue of time
    periods when Universal argued that 19 U.S.C. § 1677f-1(d)(1)(B) neither mandates
    how Commerce evaluates whether a pattern of prices that significantly differ exists
    nor requires Commerce to consider time periods at all. Commerce was aware of
    Universal’s challenge to the issue of time periods and had the opportunity to fully
    consider the issue of time periods, including whether to use time periods at all or
    consider using a different unit of time (either annually, quarterly, or some other unit
    of time), or whether to compare sales and cost data within the same quarters, or
    data compared from quarter to quarter, in both the preliminary and final results of
    Court No. 23-00113                                                               Page 10
    the administrative review. Universal’s failure to articulate an alternative argument
    that Commerce should use a specific unit of time or failure to “suggest a specific
    alternative time period,” as Defendant asserts, did not result in a waiver of the
    issue on appeal, when it was clear that Universal was challenging Commerce’s use
    of time periods for analyzing costs and prices. See Def.’s Resp. at 18. The Court
    concludes that Universal did not waive the issue regarding Commerce’s
    consideration of alternative time periods in the Cohen’s d test simply because
    Universal did not argue that Commerce should use a unit of time other than
    quarters or suggest a specific alternative time period.
    II.       Internal Inconsistency in Commerce’s Determinations
    Universal does not challenge Commerce’s cost of production determination
    to consider Universal’s quarterly direct material costs. Pls.’ Br. at 14. Plaintiffs
    explain that:
    Commerce usually compares prices to a weighted-average of costs
    incurred throughout the entire [period of review] (i.e., annual costs). . . .
    But Commerce deviates from its standard methodology when it
    determines that there are significant changes in costs during the [period
    of review]. . . . Commerce concluded that record evidence showed that
    Universal had experienced significant cost changes (i.e., changes that
    exceeded 25 percent) between the high and low quarterly [costs of
    manufacturing] during the [period of review]; that there was linkage
    between Universal’s changing selling prices and [costs of
    manufacturing] during the [period of review] such that changes in
    selling prices correlated reasonably to changes in unit [costs of
    manufacturing]; and that it therefore was necessary for Commerce to
    Court No. 23-00113                                                             Page 11
    employ an alternative costing methodology that relied on Universal’s
    quarterly direct material costs.
    Id. (citing PDM at 23‒24). Notably, Plaintiffs emphasize that Commerce
    “limited its price comparisons for purposes of calculating dumping to sales
    made only within the same quarter. . . . to prevent any inter-quarter sales price
    comparisons.” Id. at 15. The Court refers to Commerce’s determination to
    consider Universal’s quarterly direct material costs as the “same-quarter
    comparison,” meaning that Commerce compared only sales made within the
    same quarters.
    When calculating the cost of production, Commerce explained that its
    normal practice is to calculate an annual weighted-average cost based on the
    average of the annual cost of production for the period of review. See PDM at 23‒
    24. Commerce stated that it deviates from the normal practice of using the annual
    weighted-average cost method if using the annual weighted-average cost method
    during a time of significant cost changes results in possible distortions. See id. at
    23. Based on the cost data provided by Universal, Commerce determined that
    deviating from the normal practice of calculating an annual weighted-average cost
    was warranted. Id. To determine whether to deviate from the annual weighted-
    average cost method, Commerce evaluated whether (1) the changes in the cost of
    manufacturing during the period of review were significant and (2) whether the
    Court No. 23-00113                                                              Page 12
    record evidence showed that there was a correlation between the changes in cost of
    manufacturing and the sales prices during the period of review. Id. Changes in
    cost of manufacturing were deemed significant if the changes exceeded 25%
    between the high cost of manufacturing and the low cost of manufacturing in each
    quarter of a period of review. Id. To determine whether there was a correlation
    between the changes in cost of manufacturing and the sales prices during the
    period of review, Commerce compared the weighted-average of the sales prices
    within a quarter of the period of review to the corresponding cost of manufacturing
    within the same quarter. Id.
    Commerce determined that the record evidence established that Universal
    experienced significant changes in cost between the high cost of manufacturing
    and the low cost of manufacturing in each quarter of the period of review, and that
    there was a reasonable correlation between Universal’s sales prices and the
    changes in cost of manufacturing for the period of review. Id. at 23‒24.
    Commerce determined that it was appropriate to base cost of production on a
    calculation of a weighted-average within individual quarters of the period of
    review. Id. at 24. Commerce did not make any changes to the determination to
    calculate a weighted-average cost based on an average of the cost of production
    within individual quarters of the period of review for the cost of production
    analysis in the Final Results. See Final IDM at 5‒6.
    Court No. 23-00113                                                            Page 13
    In contrast to the “same-quarter comparison” with which Universal agrees,
    Plaintiffs challenge Commerce’s determination in the Final Results as follows:
    But after having determined that it was not appropriate to calculate
    Universal’s dumping margin by comparing the selling prices of U.S.
    and home market sales made in different [period of review] quarters,
    Commerce nonetheless did exactly that, i.e., Commerce compared the
    selling prices of U.S. sales made in different [period of review] quarters
    for purposes of its differential pricing analysis.
    Pls.’ Br. at 16. Commerce’s Cohen’s d test analysis compared sales prices
    made in different quarters of the period of review. See Final IDM at 14; PDM
    at 11‒12 (unchanged in Final Results). The Court refers to this determination
    as the “inter-quarter comparison.”
    Universal argues that:
    In the first stage of the differential pricing analysis, Commerce applied
    the “Cohen’s d test,” and found that the extent to which prices in
    particular time periods differed from the prices of all other sales was
    large. . . . But, as discussed above, Commerce already had determined
    in this review (1) that Universal had significant cost changes between
    its high and low quarterly costs of manufacturing during the [period of
    review], (2) that there was a close linkage between Universal’s
    changing selling prices and quarterly costs of manufacturing for the
    same periods, and (3) that the change in Universal’s costs of
    manufacturing and selling prices between and among quarters was so
    significant that Commerce, in fact, modified its margin calculation
    program specifically to prevent comparisons of sales in different
    quarters. Having already concluded that it could not compare the
    selling prices of sales made in different [periods of review] quarters, it
    was inconsistent and contradictory for Commerce to compare the
    selling prices of Universal’s U.S. sales across the four quarters of the
    [period of review] as part of its differential pricing analysis.
    Court No. 23-00113                                                             Page 14
    Pls.’ Br. at 19.
    Plaintiffs allege that Commerce’s application of the “same-quarter
    comparison” and the “inter-quarter comparison” within the same administrative
    review was internally inconsistent, arbitrary, and contrary to law. Pls.’ Br. at 16‒
    20. Universal asserts that Commerce determined in the “same-quarter
    comparison” that comparing Universal’s sales prices made in different quarters of
    the period of review would be distortive and cause an inaccurate dumping margin
    because the costs and prices changed so significantly from quarter to quarter such
    that Universal’s sales in different quarters were “incomparable,” and that it was
    arbitrary and inconsistent for Commerce to later rely in the “inter-quarter
    comparison” on a comparison of Universal’s sales prices made in different quarters
    when conducting the differential pricing analysis in the same administrative
    review. Id. at 15; 19‒20.
    Defendant contends that Universal’s argument is essentially that the
    differential pricing analysis cannot consider differences in sales prices that are
    caused by changes in cost of production. Def.’s Resp. at 14. Defendant and
    Defendant-Intervenor assert that Commerce’s decision to consider changes in sales
    prices from quarter to quarter of the period of review for the differential pricing
    analysis is consistent with Commerce’s practice and 19 U.S.C. § 1677b(b) because
    Court No. 23-00113                                                            Page 15
    cost determinations and the differential pricing analysis are governed by different
    statutes. Def.’s Resp. at 16, 19‒20; Def.-Interv.’s Resp. at 12‒14.
    Universal counters that Defendant’s characterization of Universal’s
    argument is “an incorrect and oversimplified description of Universal’s claim that
    adopted an internally inconsistent and arbitrary approach for calculating
    Universal’s dumping margin in this review.” Pls.’ Reply at 3. Universal explains
    that it, “challenges only the arbitrary and inconsistent decision by Commerce” to
    compare sales prices made in different quarters of the period of review under one
    provision of the statute while refusing to compare sales prices made in different
    quarters of the period of review under another provision. Pls.’ Br. at 22; Pls.’
    Reply at 3. Universal contends that:
    At its core, Universal’s argument is that it is irrational, unreasonable,
    and inconsistent for Commerce to reject sales comparisons across
    [period of review] quarters to determine dumping while at the same
    time rely[ing] on sales comparisons across [period of review] quarters
    to determine the methodology to be used to calculate dumping. This
    internal inconsistency argument is not one that the [c]ourts have
    previously addressed. It is also not an issue that Commerce addressed
    in its Final Results.
    Pls.’ Reply at 3.
    In support of its argument that Commerce improperly compared sales prices
    made in different quarters of the period of review (the “inter-quarter comparison”)
    under one provision of the statute while refusing to make such comparisons (the
    Court No. 23-00113                                                          Page 16
    “same-quarter comparison”) under another provision of the statute, Universal relies
    on NSK Ltd. v. United States, 
    390 F.3d 1352
     (Fed. Cir. 2004). Id. at 7. In NSK
    Ltd., the United States Court of Appeals for the Federal Circuit (“CAFC”) stated
    that, “Commerce’s classification of repacking expenses as selling expenses is
    internally inconsistent with its classification of U.S. warehousing expenses and
    U.S. warehouse-to-customer-shipping expenses as movement expenses.” NSK
    Ltd., 
    390 F. 3d at 1357
    . The NSK Ltd. court explained that:
    To be consistent, it would appear that Commerce should classify them
    as the same type of expenses, whether that be as movement expenses
    or as sales expenses. If Commerce wants to treat these expenses
    inconsistently, then . . . Commerce [must] reasonably explain[] the
    inconsistency and . . . not act arbitrarily.
    
    Id.
     at 1358 (citing SKF USA, Inc. v. United States, 
    263 F.3d 1369
    , 1381‒82 (Fed.
    Cir. 2001), aff’d, 
    332 F.3d 1370
     (Fed. Cir. 2003) (vacating Commerce’s decision to
    inconsistently define a term in two provisions of the antidumping statute because
    Commerce acted arbitrarily by not providing a reasonable explanation for the
    inconsistency)). The CAFC in NSK Ltd. held that Commerce’s determination was
    arbitrary and impermissible because Commerce did not sufficiently explain the
    internal inconsistencies. 
    Id.
    19 U.S.C. § 1677f requires Commerce to explain the basis for its
    determinations. 19 U.S.C. § 1677f(i)(3); see NMB Sing. Ltd v. United States, 
    557 F.3d 1316
    , 1319 (Fed. Cir. 2009) (“Commerce must explain the basis for its
    Court No. 23-00113                                                               Page 17
    decisions . . . [and] the path of Commerce’s decision must be reasonably
    discernable to a reviewing court.” (citing Motor Vehicle Mfrs. Ass’n of U.S., Inc. v.
    State Farm Mut. Auto. Ins. Co., 
    463 U.S. 29
    , 43 (1983))). As further required by
    NSK Ltd., Commerce must either make consistent determinations in different
    provisions of the antidumping statute or provide a reasonable explanation for any
    inconsistencies, which Commerce failed to do in the Final IDM. See NSK Ltd.,
    390 F. 3d at 1357‒58.
    Similar to NSK Ltd., Commerce here must either make consistent
    determinations, or reasonably explain any inconsistency in why Commerce should
    be permitted to calculate Universal’s cost of production using the “same-quarter
    comparison,” while then comparing the sales prices of U.S. sales made in different
    quarters using the “inter-quarter comparison” for purposes of Commerce’s
    differential pricing analysis. Commerce’s explanation that Universal’s costs and
    prices changed so significantly from quarter to quarter that Commerce had to
    deviate from calculating the cost of production using an annual weighted-average
    cost because of possible distortions suggests that applying the “same-quarter
    comparison” is inconsistent with Commerce’s later “inter-quarter comparison”
    analyzing sales prices made in different quarters for the differential pricing
    analysis. The Court observes that if Commerce’s comparison of costs and prices
    would lead to distortive results because of significant fluctuations from quarter to
    Court No. 23-00113                                                            Page 18
    quarter, thus justifying the “same-quarter comparison” examining sales prices only
    within specific quarters, it does not follow that costs and prices from sales in
    different quarters should be compared across quarters (the “inter-quarter
    comparison”) in a different segment of the administrative review.
    Because Commerce did not explain why it was reasonable to apply the
    “inter-quarter comparison” and the “same-quarter comparison” in the same
    administrative review, the Court holds that Commerce’s internally inconsistent
    determinations are not in accordance with law. The Court remands for Commerce
    to reconsider or provide further explanation in accordance with this Opinion.
    CONCLUSION
    Accordingly, it is hereby
    ORDERED that this case shall proceed according to the following schedule:
    (1) Commerce shall file the remand determination on or before September
    23, 2024;
    (2) Commerce shall file the administrative record on or before September
    30, 2024;
    (3) Comments in opposition to the remand determination shall be filed on or
    before October 18, 2024;
    (4) Comments in support of the remand determination shall be filed on or
    before November 18, 2024; and
    Court No. 23-00113                                                       Page 19
    (5) The joint appendix shall be filed on or before November 22, 2024.
    /s/ Jennifer Choe-Groves
    Jennifer Choe-Groves, Judge
    Dated:      July 26, 2024
    New York, New York
    

Document Info

Docket Number: 23-00113

Citation Numbers: 2024 CIT 85

Judges: Choe-Groves

Filed Date: 7/26/2024

Precedential Status: Precedential

Modified Date: 7/26/2024