AD/CVD Court Decisions in Second Half of July 2010

The Court of International Trade (CIT) and the Court of Appeals for the Federal Circuit (CAFC) made the following antidumping and countervailing duty law determinations in the second half of July 2010.

In Wooden Bedroom Furniture AD Remand, CIT Orders ITA to Find New Method of Valuing Chinese Labor

Following three sets of CIT remand results, the CAFC overturned on appeal parts of the CIT’s rulings in the International Trade Administration’s less-than--fair-value determination for wooden bedroom furniture from China. Most significantly, the higher court held that the ITA’s method for calculating wage rates was not permitted by statute, and invalidated the agency’s regulation defining the “regression” method, which included data from developed economies in valuing Chinese factory labor. Without elaboration, the CIT has now instructed the ITA to “revise its final determination in accordance with the decision” of the CAFC, by September 7, 2010. Alternative wage rate calculation methods are likely to result in lower AD rates in the future for most manufactured products from China covered by AD orders. (See ITT's Online Archives or 05/19/10 news, 10051935 for BP summary of CAFC decision.) http://www.cit.uscourts.gov/slip_op/Slip_op10/Slip%20Op.%2010-79.pdf

Court Upholds AD Duty Order Scope in Laminated Woven Sacks from China

Domestic producers challenged a determination by the ITA that Chinese laminated woven sacks imported by Shapiro Packaging are outside the scope of the AD and CVD duty orders on such merchandise, arguing the items fell within the scope of the order because they were printed using three or more ink colors. (Laminated woven sacks are retail packaging sacks used for pet food, bird seed, etc.) However, finding that the agency’s consultations with domestic petitioners before the order was published supported the later scope ruling, the court denied the domestic parties’ motions and upheld the scope exclusion. http://www.cit.uscourts.gov/slip_op/Slip_op10/10-81.pdf

Court Remands Chinese Lined Paper AD Review Results to ITA

An association of domestic paper producers challenged the ITA’s methods of calculating the value of certain lined paper products from China in the AD administrative review for the period April 17, 2006 through August 31, 2007. The CIT upheld the ITA’s use of the Chinese producer’s input quantities data and its supplier’s production data, but faulted the agency’s reliance on overhead and profit ratios from a single Indian paper company, and its exclusion of data from another Indian company, ordering the agency to revisit this issue. http://www.cit.uscourts.gov/slip_op/Slip_op10/10-82.pdf

2nd Remand Results Affirmed in Shrimp from China Fair Value Investigation

A group of Chinese shrimp producers contested the results of the second court remand in the less-than-fair-value investigation of certain frozen shrimp from China by the ITA, accepting the ITA’s revised labor cost recalculation but contesting anew the raw shrimp values the agency used in calculating fair value. However, the court ruled the ITA’s values now comply with its remand order, are supported by evidence, and are in accordance with law. http://www.cit.uscourts.gov/slip_op/Slip_op10/10-83.pdf