POGUE, Chief Judge:
This action arises from the sixth administrative review of the antidumping duty order covering certain frozen warmwater shrimp (the "subject merchandise") from
The court has jurisdiction pursuant to Section 516A(a)(2)(B)(iii) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(iii) (2006),
As explained below, because Commerce's well-reasoned selection of Bangladesh as an appropriate market economy surrogate for Vietnam was supported by a reasonable reading of the record evidence, Commerce's reliance on data from Bangladesh to construct normal values in this review is affirmed. Additionally, because Commerce reasonably applied its lawful new policy when calculating surrogate labor rates in this proceeding, Commerce's labor rate valuation is also affirmed.
The court will sustain Commerce's antidumping determinations if they are supported by substantial evidence and otherwise in accordance with law. See 19 U.S.C. § 1516a(b)(1)(B)(i). Substantial evidence refers to "such relevant evidence as a reasonable mind might accept as adequate to support a conclusion," SKF USA, Inc. v. United States, 537 F.3d 1373, 1378 (Fed.Cir.2008) (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 83 L.Ed. 126 (1938) (defining "substantial evidence")), and the substantial evidence standard of review can be roughly translated to mean "is the determination unreasonable?" Nippon Steel Corp. v. United States, 458 F.3d 1345, 1351 (Fed.Cir.2006) (internal quotation and alteration marks and citation omitted).
First, AHSTAC claims that Commerce's determination to estimate respondents'
Because Commerce treats Vietnam as a non-market economy ("NME") country, the agency determines the normal value of merchandise from Vietnam by using surrogate market economy data to calculate production costs and profit. See 19 U.S.C. § 1677b(c)(1). In doing so, Commerce's valuation of the factors of production ("FOPs") must be "based on the best available information regarding the values of such factors in a market economy country or countries considered to be appropriate by the [agency]." Id. "[T]o the extent possible," Commerce is required to use data from countries that are both economically comparable to the NME and significant producers of comparable merchandise. Id. at § 1677b(c)(4).
When choosing appropriate surrogate market economy countries, Commerce first creates a list of potential surrogates whose per capita gross national income ("GNI") falls within a range of comparability to the GNI of the NME country (the "potential surrogates list").
Because Commerce's policy is to treat all of the countries that were initially placed on the potential surrogates list as "equivalent in terms of economic comparability [to the NME country]," regardless of their relative GNI proximity thereto,
In prior opinions, this Court has remanded Commerce's surrogate country selections where the agency applies Policy 4.1 in a way that arbitrarily discounts the value of relative GNI proximity (i.e., relative economic comparability) to the NME country when choosing among potential surrogates for whom quality data is available and who are significant producers of comparable merchandise. See China Shrimp AR5, ___ CIT at ___, 882 F.Supp.2d at 1374-76; Amanda Foods (Vietnam) Ltd. v. United States, 33 CIT 1407, 1413, 647 F.Supp.2d 1368, 1376 (2009) ("Vietnam Shrimp AR2").
Here, AHSTAC challenges Commerce's selection of Bangladesh as the primary surrogate market economy country for Vietnam in this review. AHSTAC's Br. at 13-18. Specifically, AHSTAC contends that Commerce erred by applying Policy 4.1 in such a way that "the GNI differential between Vietnam and the potential surrogate countries was completely excluded from consideration when Commerce selected Bangladesh [in this review]." Id. at 16. Accordingly, AHSTAC argues that Commerce's surrogate country selection should be remanded on the same grounds as those supporting remand in China Shrimp AR5 and Vietnam Shrimp AR2. Id. at 16-18.
But AHSTAC mischaracterizes the record in this case. Commerce has not "completely excluded from consideration" the potential surrogates' relative GNI proximity to the GNI of Vietnam when selecting the primary surrogate country from the potential surrogates list. On the contrary, Commerce explicitly acknowledged that "India's [GNI
Specifically, Commerce determined that the available Philippine data on shrimp (the FOP accounting for the largest portion of normal value) omitted "substantial portions of the range of sizes of shrimp sold by the respondents," while the available Indian data on shrimp was 1) limited to a sole company within India, and thus did not "represent the broad market average [that Commerce] prefers," and 2) provided values that were publicly ranged, and thus values that did not "represent actual, exact prices for shrimp in the Indian market." I & D Mem. cmt. 1 at 5. The available Bangladeshi data, on the other hand, represented a broad-market average, were product-specific, contemporaneous with the POR, and represented actual transaction prices. Id. Accordingly, Commerce determined that, notwithstanding Bangladesh's lesser GNI proximity to Vietnam than that of the other two potential surrogates, "the superiority of the Bangladeshi surrogate value data compared to the Philippine and Indian surrogate value data" outweighed the benefits of using data from a country with a relatively closer GNI to that of Vietnam.
Moreover, Commerce's explanation for why the agency chose to give more weight to the superiority of the Bangladeshi surrogate value data than to India's relatively closer GNI is reasonable.
Accordingly, because Commerce's selection of Bangladesh as the primary surrogate country for Vietnam in this review was supported by a reasoned and reasonable analysis of the record, this determination is sustained as supported by substantial evidence. See Nippon Steel, 458 F.3d at 1351.
AHSTAC also argues that the Final Results should be remanded for additional consideration because they "are devoid of any effort to address Commerce's prior labor findings, let alone explain why those findings are no longer persuasive." AHSTAC Br. at 25 (citation omitted). Specifically, AHSTAC faults Commerce for deciding to value the labor FOP in the same way that the agency values all other surrogate FOPs (i.e., by relying on data from a single surrogate country, unless reliable data for a particular FOP are not available from the primary surrogate), without explaining its departure from its prior position that "labor is different." Id. (internal quotation marks and citation omitted).
In the past, Commerce generally valued the labor FOP for merchandise from NME countries by using "regression-based wage rates reflective of the observed relationship between wages and national income in market economy countries." 19 C.F.R. § 351.408(c)(3) (2010). Regression-based NME wage rates estimated the linear relationship between GNI and wage rates to arrive at the wage for an NME country by using the NME's GNI.
Subsequently, before the results of the fifth review of this antidumping duty order were finalized but after Commerce had already made its preliminary surrogate
In adjudicating AHSTAC's challenge to Commerce's application of its New Labor Rate Policy in the fifth review of this antidumping duty order, this Court sustained the New Labor Rate Policy as reasonable on its face, holding that "Commerce reasonably determined that, in general, the administrative costs of engaging in a complex and lengthy analysis of additional surrogate data for the labor FOP may outweigh the accuracy-enhancing benefits of doing so."
Here, unlike Vietnam Shrimp AR5, Commerce specifically weighed the considerations that the court ultimately ordered Commerce to weigh in the remand of that prior review. See I & D Mem. cmt. 1 at 4-5. Commerce explained that, although India's GNI was closer to that of Vietnam's — implying a more accurate estimate for the FOP values that tend to be very closely correlated with GNI, such as wage rates
AHSTAC does not point to any specific record evidence to suggest that Commerce's analysis resulted in an unreasonable choice of surrogate FOP data as a whole — i.e., AHSTAC has not pointed to any evidence that Commerce has not already considered and weighed when making its primary surrogate country selection and implementing its new policy of sourcing all FOP data from that primary surrogate.
Thus AHSTAC's challenge to Commerce's reliance on its New Labor Rate Policy to value all relevant FOPs in this
For all of the foregoing reasons, Commerce's Final Results are sustained. Judgment will issue accordingly.