Prosperity Tieh Enterprise Co., Ltd. v. United States, No. 19-1400 (Fed. Cir. 2020)Annotate this Case
In 2015, AK Steel filed a petition with the Department of Commerce, seeking an antidumping duty investigation, 19 U.S.C. 1673, covering corrosion-resistant steel products (CORE) from Taiwan. Commerce instituted an investigation and selected as mandatory respondents the two largest exporters of CORE from Taiwan, Prosperity and Yieh. Those entities disclosed that they were affiliated with a third company, Synn. Commerce decided to “collapse” all three entities The purpose of collapsing multiple entities into a single entity is to prevent affiliated entities from circumventing antidumping duties by “channel[ing] production of subject merchandise through the affiliate with the lowest potential dumping margin.” Under 19 C.F.R. 351.401(f) the entities must be “affiliated” and must have “production facilities for similar or identical products that would not require substantial retooling of either facility in order to restructure manufacturing priorities”; and Commerce must find “a significant potential for the manipulation of price or production.” Commerce found significant potential for manipulation between Prosperity and Synn.
The Federal Circuit vacated Commerce's decision. Commerce acted contrary to law when it collapsed Prosperity, Yieh, and Synn without considering section 351.401(f)'s factors as between the relationships of Prosperity and Yieh or between Prosperity and Yieh/Synn. Commerce must consider the “totality of the circumstances” between all entities.