The
Kompass and Kirsch Groups attempt a post hoc rationalization of Vitas
conduct. They argue that the severe economic crisis in Thailand crippled
Vita and prevented it from responding. The Thai economic crisis, however,
likely would have affected all respondents in the review. Commerce emphasizes
that two other respondents were not represented by counsel but managed
to respond to the questionnaires. See, e.g., Siam Fruit
Canning Co. Supplemental Questionnaire Response (Feb. 12, 1998),
at 1, P.R. Doc. 139 (submitted to Commerce without counsel); Prachuab
Fruit Canning Co. Supplemental Questionnaire Response (Feb. 3, 1998),
at 1, P.R. Doc. 118 (submitted to Commerce without counsel). Vita, too,
had informed Commerce it would continue to participate despite the economic
difficulties. If the situation worsened, Vita should have informed Commerce
and provided a proper explanation. See, e.g., 19 U.S.C. §
1677m(c)(1) (1994) (requiring respondent to notify Commerce if it is
unable to submit information requested).
The
Kompass and Kirsch Groups also argue that Vita was a first-time participant
and Commerce should have made it clear that ceasing communication would
result in the use of adverse inferences. Commerce, however, repeatedly
warned Vita that a failure to provide information would result in the
use of facts available. See Letter from Commerce to Vita (Jan. 2, 1998), at 2, Pl.s App., Ex. 12, at 2 (notifying Vita
that facts available would be used if Vita did not respond to supplemental
questionnaire for section A); Letter from Commerce to Vita (Jan.
13, 1998), at 1, Pl.s App., Ex. 15, at 1 (notifying Vita that
failure to respond to Section D of questionnaire would lead to use of
facts available as set forth in Section 776(b) of Act); Letter from
Commerce to Vita (Jan. 27, 1998), at 2, Pl.s App., Ex. 17,
at 2 (notifying Vita that failure to respond to supplemental questionnaires
for sections B and C would result in use of facts available as defined
in glossary of original questionnaire). Contrary to the Kompass and
Kirsch Groups assertions, Commerce attempted to assist Vita as
well as warn Vita of the consequences. With no response from Vita forthcoming,
further assistance from Commerce was not warranted.
Accordingly,
the court sustains Commerces finding that Vita did not act to
the best of its ability.
II. Corroboration
of Adverse Facts Available Rate
Background
In
the underlying LTFV investigation,
Commerce assigned Vita the all-others rate of 24.64 percent. Final Determination, 60 Fed. Reg. at 36,776. In the Final
Results of this administrative review, Commerce assigned Vita a
margin of 51.16 percent. Final Results, 63 Fed. Reg. at 43,673.
This margin represents the highest calculated margin from a cooperative
respondent, Siam Agro Industry Pineapple and Others Company (SAICO),
in the original LTFV investigation. Id. at 43,665.
Discussion
The
Kompass and Kirsch Groups contest the use of the highest calculated
margin in the underlying LTFV investigation.
They assert that the margin is not relevant because it does not reflect
the difficulties of Vita's situation. Commerce responds that the rate
assigned to Vita is both corroborated and relevant. It argues that it
has used a margin properly calculated from a fully cooperative respondent
from the underlying LTFV investigation.
Additionally, Commerce contends SAICO's business practices are representative
of the Thai pineapple industry. The court agrees.
Pursuant
to 19 U.S.C. § 1677e(c), Commerce must corroborate any secondary
information it relies on from independent sources reasonably at its
disposal. 19 U.S.C. § 1677e(c).4 According
to the Statement of Administrative Action ("SAA"), [c]orroborate
means that the agencies will satisfy themselves that the secondary information
to be used has probative value." SAA accompanying the Uruguay Round
Agreements Act (URAA), H.R. Rep. No. 103-826(I) at 870 (1994), reprinted in 1994 U.S.C.C.A.N. 3773, 4199.
In Ferro Union, this court instructed Commerce that the margin selected
has to be reliable and relevant. 44 F. Supp.2d at 1335. Furthermore,
Commerce must use a margin that bears a rational relationship to the
respondent or the past practices of the industry. Id. at 1334-35
(citations omitted).
The
Kompass and Kirsch Groups challenge Commerces use of SAICOs
margin because it is not an attempt to find Vitas true
dumping margin. Once a respondent refuses to respond to a questionnaire
or does not supply Commerce with an adequate explanation for refusing
to respond, Commerce no longer focuses on calculating the true
margin but instead must focus on determining an adverse margin that
will induce cooperation in the future.
Under
the pre-URAA law, the Federal Circuit Court of Appeals approved Commerces
use of the highest margin from prior proceedings as best information
available (BIA). Rhone Poulenc, Inc. v. United States,
899 F.2d 1185, 1190 (Fed. Cir. 1990) (affirming use of highest calculated
margin from prior administrative reviews as BIA for respondent who provided
deficient submissions); see also Mitsuboshi Belting Ltd. v.
United States, No. 93-09-00640, 1997 WL 118397, at *3 (Ct. Intl
Trade Mar. 12, 1997). This court has recognized that an uncooperative
respondent cannot control the results of the administrative process
via its own unresponsiveness. Mitsuboshi, 1997 WL 118397, at
*3. Moreover, the agency relies on the common sense inference that the
highest margins are the most probative because the respondent did not
provide information to rebut this inference. Id.
The
Kompass and Kirsch Groups next attempt to cast doubt upon Commerces
choice of SAICOs margin by claiming that depreciation of the baht
is an indicator that Vita was less likely to engage in LTFV pricing.
The record does not reveal any evidence in support of this contention
nor do the Kompass and Kirsch Groups indicate that any record evidence
supports their assertion. On the contrary, record evidence indicates
that Vita may have engaged in LTFV pricing in Germany. Commerces
Memorandum to File, at 1-4, Pl.s App., Ex. 14, at 1-4.
Commerce
also asserts that SAICO was a fully cooperative respondent, representative
of the Thai pineapple industry. See Final Results, 63 Fed. Reg. at 43,665.
Commerce justifies its finding based on two facts. First, no record
evidence indicates that SAICOs practices differed from the rest
of the Thai pineapple industry. Id. Second, the inclusion of SAICOs
rate5 in the calculation of the all
others rate in the original LTFV investigation also supports the position that SAICO was representative of the industry.6 Id.
Finally,
the Kompass and Kirsch Groups argue that Vita, like Madhya in Stainless
Steel from India, should receive the all-others rate
and not the highest calculated margin from the original LTFV investigation. See Stainless Steel Bar from India, 64 Fed. Reg. 13,771,
13,774-776 (Dept Commerce 1999) (giving Madhya the all-others
rate because it responded to Commerces questionnaires, but in
an untimely fashion). The crucial difference between Madhya and Vita
is that Madhya responded to Commerces questionnaires and never
ceased communicating. See id. at 13,774. Vita, on the
other hand, never responded to Commerces five separate attempts
to elicit a response from Vita.
Commerce
gave Vita ample opportunity to demonstrate that the all-others rate
was still the appropriate rate. Vita either should have supplied Commerce
with the information requested or it should have provided a proper explanation
for its failure to participate further in the review.
Conclusion
For
the foregoing reasons, the court affirms Commerces use of adverse
facts available and the margin Commerce assigned to Vita.
_______________________
Jane A. Restani |
Dated: New York,
New York
This
31st day of July, 2000.
4.
19 U.S.C. § 1677e(c) states:
When the
administering authority or the Commission relies on secondary information
rather than on information obtained in the course of an investigation or review, the administering authority or the Commission, as the case
may be, shall, to the extent practicable, corroborate that information
from independent sources that are reasonably at their disposal.
5.
The Kompass and Kirsch Groups challenge Commerces cost of production
methodology for calculating SAICOs margin. The Federal Circuit,
however, affirmed Commerces cost of production methodology. See Thai Pineapple Public Co. v. United States, 187 F.3d 1362, 1369
(Fed. Cir. 1999).
6.
Given that SAICOs margin is rational and relevant, the mere fact
that it is three years old is an insufficient basis to invalidate the
margin. The cases that the Kompass and Kirsch Groups cite for support
to invalidate SAICOs margin contain facts that differentiate them
from this case. In Manifattura Emmepi S.p.A. v. United States,
the court invalidated the use of an eight year old calculated margin
that bore no relationship to respondent because respondent was not in
the market at the time and, after participating in the prior review,
had received a zero calculated margin. 16 CIT 619, 623-24, 799 F. Supp.
110, 114-15 (1992). In contrast, Vita had received the all others
rate of 24.64 percent in the original LTFV investigation and its marked lack of cooperation would have required a margin higher
than the all others rate to induce cooperation in subsequent
reviews. In Ferro Union, Commerce tried to rely on a margin that
was eight years old and most of the information used to calculate that
margin was based on best information available. 44 F. Supp.2d at 1335.
In this case, Commerce used a properly calculated margin and the record did not reveal any evidence undercutting its validity for
this review.