Changzhou Hawd Flooring Co. v. United States

In 2010, the Department of Commerce initiated an antidumping-duty investigation of multilayered wood flooring from China (19 U.S.C. 1673a(b)) and sent questionnaires to Chinese exporters and producers, selecting the three largest exporters as mandatory respondents. Commerce deems China to be a nonmarket economy and presumes that each Chinese exporter and producer is state-controlled, and covered by a single China-wide antidumping-duty rate, but a firm may rebut the presumption. Commerce determined that 74 firms established their independence from the Chinese government (not individually investigated, but not covered by the China-wide rate) and calculated a “separate rate.” Commerce did not individually investigate the appellants to determine firm-specific dumping margins. It assigned them a rate that, though not specified numerically, was declared to be more than de minimis, even though it found zero or de minimis dumping margins for all three of the Chinese firms that were individually investigated. The Trade Court affirmed. The Federal Circuit subsequently held that the “separate rate” method used in this case was a departure from the congressionally-approved “expected method” applicable when all of the individually investigated firms have a zero or de minimis rate, and that certain findings are necessary to justify such a departure. Under the “expected method,” appellants would be entitled to a de minimis rate. Because Commerce did not make the necessary findings, the Federal Circuit vacated. View "Changzhou Hawd Flooring Co. v. United States" on Justia Law