Changzhou Hawd Flooring Co. v. United States, No. 18-2335 (Fed. Cir. 2020)Annotate this Case
The Department of Commerce investigated (19 U.S.C. 1673−1673h) dumping of multilayered wood flooring from China and individually investigated the dumping margins of the three largest exporters. Commerce identified “separate-rate firms,” exporters and producers whose dumping margins were not individually investigated but that Commerce found to be independent of the Chinese government and concluded those firms should be assigned an antidumping-duty rate separate from the “China-wide rate” assigned to firms lacking such independence. Some separate-rate firms did not seek individual review, while voluntary-review firms requested review but were denied. Commerce issued an antidumping duty order but did not terminate the investigation, finding a non-de minimis positive dumping margin for the companies that were part of the China-wide entity. All three individually-investigated firms had zero dumping margins; Commerce freed those firms from further obligations. Commerce applied the zero rate to the separate-rate firms but did not free those firms from obligations accompanying the order. Although such firms’ merchandise initially would not be subject to cash deposits upon entry, the merchandise would remain subject to suspension of liquidation of entries, with the ultimate duty to be determined later; the firms would have to participate and the duty might increase, thereafter requiring cash deposits.
The Trade Court and Federal Circuit affirmed the inclusion of the “no request” separate-rate firms in the order but held that Commerce had not justified the inclusion of the voluntary-review firms. Nothing in the statute unambiguously provides that all separate-rate firms, including those not individually investigated, must be excluded from all obligations under an antidumping duty order when they are assigned a zero rate based on zero or de minimis dumping margins of individually investigated firms.