Exporter Protests Continued AFA Rate Upon Second Remand in EBCP Case

Commenting upon the results of a second remand, Chinese cabinet exporter Ancientree Cabinet Co. challenged the Commerce Department’s continued use of adverse facts available when calculating the exporter’s countervailing duty rate, imposed because Commerce claimed it couldn't verify the exporter’s participation in China’s Export Buyer’s Credit Program (Dalian Meisen Woodworking Co. v. U.S., CIT # 20-00110).

Ancientree said Commerce's requests for information from unaffiliated customers, rather than Ancientree itself, were "unprecedented." The case involves the CVD investigation on wooden cabinets and vanities from China.

The Chinese government regularly refuses to provide certain information to Commerce for the latter’s calculations of CVD rates for potential EBCP participants, and Commerce often imposes AFA rates on exporters as a result. Ancientree was again hit with an AFA rate on remand after Commerce was able to verify the non-use certificates of most, but not all, of Ancientree’s U.S. customers (see 2312080058).

“Ultimately, the Department used the same excuse as the earlier remand and investigation that Ancientree had not perfectly filled the gap and thus it was appropriate to apply AFA for this program entirely as to all importers/export buyers,” Ancientree said in its remand comments.

No evidence indicates any U.S. customer used EBCP; all information Commerce has received has, rather, supported the certificates of non-use the customers provided, the exporter said.

Ancientree admitted that some customers refused to participate in the follow-up verification processes Commerce requested, but said that “the circumstances of the verification must be considered.” In particular, Commerce’s request was “very expansive and onerous,” it said.

“These are not large companies, and as evidenced by the sales values, did not necessarily have a significant amount of monetary interest in the case,” it said. “One company in particular explained that they are a small company with staff shortages and no longer purchases from Ancientree.”

“There have been a couple instances where the Department has verified a single affiliated U.S. importer for the EBC program. But in Counsel’s expansive experience, the Department has never proceeded with in person verification of unaffiliated U.S. customers until this case,” it said.