POGUE, Chief Judge:
This matter concerns the selection of "surrogate" countries as a source for data with which to calculate the labor wage rate in an antidumping investigation involving wooden bedroom furniture from China, a non-market economy ("NME"). The case
Plaintiff/Respondent, Dorbest Ltd. ("Dorbest"), seeks review of Commerce's data choices in the 2011 Redetermination. Dorbest claims that Commerce's methodology for selecting the endpoint or "bookend" countries, which form the range of countries available for consideration as a data source, was contrary to established agency precedent and unsupported by substantial evidence, and that Commerce should have used absolute numerical differences in per-capita Gross National Income ("GNI") for the identification of "bookend" countries. Dorbest Comments on Fifth Remand Redetermination 2-4, (May 18, 2011) ("Dorbest Comments"). Dorbest further asserts that Commerce's inclusion of Equatorial Guinea in the initial list of countries available for consideration, and Commerce's determination that Guinea was a significant producer of the subject merchandise, are unsupported by substantial evidence.
The court has jurisdiction pursuant to 28 U.S.C. § 1581(c) (2006). After a brief review of the agency's methodology and the applicable standard of review, the court will explain why it concludes that Commerce's methodology for selecting its initial bookend countries, as adopted in the 2011 Redetermination, is reasonable in the context here, and supported by a reasonable reading of the record evidence. The court also concludes that Dorbest has waived its other arguments. Commerce's final redetermination pursuant to remand is therefore affirmed.
When determining surrogate labor rates, Commerce is required by statute to use data from countries that are both "economically comparable" to the nonmarket economy at issue, and "significant producers" of comparable merchandise. 19 U.S.C. § 1677b(c)(4); Dorbest Ltd. v. United States, 604 F.3d 1363, 1372-73 (Fed.Cir. 2010) ("Dorbest IV").
In its 2010 Redetermination, following the Court of Appeals for the Federal Circuit's
The result in the 2010 Redetermination was a group of countries with GNIs which were largely skewed toward a spectrum below China's GNI. Upon review of that decision, in Dorbest V, the court held that Commerce must either reconsider its selection of that significantly unbalanced pair of endpoint or "bookend" countries, or provide a reasonable explanation as to why it selected these countries as its starting point. Dorbest V, 755 F.Supp.2d at 1299.
In its 2011 Redetermination, responding to Dorbest V, Commerce has amended its methodology by expanding the range of countries available for initial consideration as the source of surrogate labor rate data. Under this amended methodology, Commerce has selected a pair of "bookend" countries so that the range includes a number of countries with GNIs higher than China's GNI equal to the number of countries with GNIs lower than China's. 2011 Redetermination at 6.
The next step in Commerce's methodology is to ascertain which countries in this "basket" are also significant producers of wooden bedroom furniture.
Based on this analysis, Commerce has identified Colombia, India, Indonesia, Pakistan and Macedonia as countries economically comparable to China which are significant producers of wooden bedroom furniture, and from which the preferred wage data is available. Using the data from these five countries, Commerce has calculated an average wage rate of 0.44 USD/hour. Using that average wage rate as a surrogate for the cost of labor in the production of Dorbest's merchandise, Commerce has determined that Dorbest has an antidumping margin of 2.40 percent. Id. at 24.
The court will find Commerce's remand redetermination unlawful if it is "unsupported by substantial evidence on the record, or otherwise not in accordance with law[.]" 19 U.S.C. § 1516a(b)(1)(B)(i). Substantial evidence is that which, given the record as a whole, "`a reasonable mind might accept as adequate to support a conclusion[,]'" when evaluating the agency's findings. Universal Camera Corp. v. N.L.R.B., 340 U.S. 474, 477, 491, 71 S.Ct. 456, 95 L.Ed. 456 (1951) (quoting Consol. Edison Co. v. N.L.R.B., 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938)).
The court notes further that, in presenting its findings, the agency must explain its standards and "rationally connect them to the conclusions drawn from the record." U.S. Steel Corp. v. U.S., Slip Op. 10-104, 2010 WL 3564705 at *1 (CIT 2010)(citing Motor Vehicle Mfrs. Ass'n of the U.S., Inc. v. State Farm Mut. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983); Matsushita Elec. Indus. Co. v. United States, 750 F.2d 927, 933 (Fed.Cir. 1984)). The conclusion Commerce reaches need not be the best or only possible conclusion, merely a reasonable one. See Lifestyle Enterprise, Inc. v. United States, ___ CIT ___, 768 F.Supp.2d 1286, 1305 (2011).
Dorbest asserts that Commerce's determination was contrary to its established agency practice in counting upwards from China's per-capita GNI to ensure a more balanced set of bookends from which to select economically comparable countries. Dorbest Comments at 10-11. Dorbest further asserts that this method is results-oriented and arbitrary and that using a range based on numerical difference in GNI would have resulted in a more reasonable set of results. Specifically, Dorbest advocates placing Egypt (GNI 1,470 USD) as the upper bookend country. Id. at 17. Dorbest claims that because Egypt's GNI is USD 530 above China's and Pakistan's is USD 530 below China, this is a more appropriate way to achieve balanced bookends. Id. at 19. Accordingly, Dorbest claims, Commerce's bookend choices are unsupported by substantial evidence in the record.
Here, Commerce clearly explains that the methodology employed is "appropriate only in this unique instance." 2011 Redetermination at 8. Conceding that the set of bookends used in the 2010 redetermination resulted in a basket of countries that was "largely unbalanced," Commerce has applied a methodology explicitly designed to address the problem as identified by the court in Dorbest V. Id. at 8, 16-17. Commerce further explains that, given the inherent imbalance in the first set of bookend countries and the "uniqueness of the data in this investigation," this methodology constitutes the "best option in this instance." Id. at 17 & n. 42 (noting other instances where the bookend countries based on surrogate country memoranda resulted in an "initial basket of economically comparable countries [that] was more equitably distributed around [China]").
In response to Dorbest's assertion that Commerce should have used a specific numerical difference in per-capita GNI to calculate the number of countries, with Egypt as the upper bookend, Commerce responds that, in the global context, it finds countries with GNIs as high as Colombia's to be economically comparable to China's and that its decision is consistent with the CAFC's holding in Dorbest IV. 2011 Redetermination 7, 18 (noting that the CAFC held in Dorbest IV that countries with GNIs "between one and two times that of China" could be found economically comparable). Furthermore, Commerce has not established a practice of using absolute differences in per-capita GNI to select bookend countries and has in the past rejected a strict adherence to that approach. See Def.-Int. Br. at 6 (citing Certain Aluminium Extrusions from the People's Republic of China, 76 Fed.
Commerce has provided sufficient reasonable explanation for choosing the country count methodology in this instance. Here, the parties have not objected to Commerce's approach of using some "bookends" to frame its initial selection. Given that the agency is using "bookends" to make such an initial selection, it is not obligated to choose the best methodology, but merely one that is reasonable given the circumstances and supported by a rational connection to the record. See Natl. Fisheries Inst. v. U.S. Bureau of Customs & Border Prot., 637 F.Supp.2d 1270, 1286 (2009). Faced with the task of replacing an unbalanced and invalidated selection based on a surrogate country memorandum compiled for other purposes, Commerce has explicitly chosen a methodology in response to the court's concerns. It has also provided a reasonable explanation for its selection in this context, and it has selected bookend countries based on a reasonable reading of the record evidence. The fact that Dorbest can suggest other reasonable methods does not alter this result. See Lifestyle Enterprise, Inc. v. United States, ___ CIT ___, 768 F.Supp.2d 1286, 1305 (2011).
Dorbest next asserts that Commerce erred in including data from Equatorial Guinea because that data was from a different time period than other GNI data. Dorbest Comments 21-22.
The court need not address Dorbest's concerns regarding the inclusion of Equatorial Guinea because Dorbest waived its right to challenge this Commerce finding, which first appeared in the 2010 Redetermination. Bond Street, Ltd. v. United States, 774 F.Supp.2d 1251, 1261 (CIT 2011)
In that 2010 Redetermination, Commerce used the 2002 GNI figures, as reported in the 2004 World Development Report, to generate a list of 24 countries with GNIs between USD 410 and USD 1,020. 2010 Redetermination 12. Equatorial Guinea, with a GNI of USD 700, is on that list. Request for Comment Regarding Wage Rate Data, 2010 PR Doc. 1 Attach. 1 (August 11, 2010). In its comments on those remand results, Dorbest raised a general concern with the use of multiple countries to generate a surrogate wage rate, but did not object to, or even address, the inclusion of Equatorial Guinea. See Dorbest 2010 Comments ("Dorbest concurs with the result of the U.S. Department of Commerce remand redetermination filed on November 10, 2010"); Dorbest 2010 Remand Comments on Wage Rate Data 2, 2010 Remand PR Doc. 4 (Aug. 16, 2010) (arguing in part that wage rates from one country, India, should be used and failing to raise the issue of 2002 Equatorial Guinea data) ("Dorbest 2010 Wage Rate Data Comments"); Dorbest 2010 Remand Rebuttal to AMFC Raw Data Comments 8, 2010 Remand PR Doc. 5 (Aug. 18, 2010) (reiterating the argument that only India should be used to provide surrogate wage rate and failing to raise the issue of 2002 Equatorial Guinea data) ("Dorbest 2010 Rebuttal"); Dorbest 2010 Remand Comments on Draft Remand Redetermination 3, 2010 Remand PR Doc. 12 (Oct. 22, 2010) (stating which arguments are preserved in the event that the margin rises above de minimis) ("Dorbest 2010 Draft Comments"). Dorbest has thus waived this argument.
Finally, Dorbest correctly argues that Commerce erred in including Guinea because its reported export figure, USD $308 over the course of three years, cannot possibly be sufficient, by itself, to support a determination that Guinea is a significant producer of wooden bedroom furniture. Dorbest Comments 24 (citing Shandong Rongxin Import & Export Co. v. United States, 774 F.Supp.2d 1307, 1316-17 (CIT 2011)); Analysis Memorandum for the Redetermination, 2011 PR Doc. 2, ECF Doc. 475-1, Attach. 3 at 85, (Mar. 14, 2011).
As with its Equatorial Guinea claim, however, Dorbest's arguments with regards to Guinea are waived. Guinea was first identified as a significant producer in the 2010 Redetermination, see 2010 Redetermination at 13, and Dorbest failed to timely contest this decision. See Dorbest 2010 Comments ("Dorbest concurs with the result of the U.S. Department of Commerce remand redetermination filed on November 10, 2010"); Dorbest 2010 Wage Rate Data Comments 2 (failing to raise the issue of data from Guinea); Dorbest 2010 Rebuttal 8; Dorbest 2010 Draft Comments 3 (stating which arguments are preserved in the event that the margin rises above de minimis). Dorbest has thus waived its argument in this regard.
The court finds that Commerce's methodology for calculating surrogate labor rate is
Judgment will be entered accordingly.