This case involves an antidumping investigation into hardwood plywood products imported from China. The Department of Commerce selected two mandatory respondents, Linyi Chengen Import and Export Co., Ltd. and Shandong Dongfang Bayley Wood Co., Ltd., to undergo individual investigation. Chengen initially reported that it calculated the volume of its primary raw material, poplar logs, using third-party invoices. However, during the on-site verification phase, Commerce verifiers discovered that Chengen actually used a two-page conversion chart based on log diameter and length, and did not possess the invoices it had claimed to use. When Chengen later submitted a 12-page document at verification that allegedly explained the chart, Commerce accepted only the two-page chart and rejected the remainder as untimely new factual information. Commerce subsequently determined that Chengen's log volume data was unreliable and applied an intermediate input methodology, valuing the wood veneers produced from the logs instead. This resulted in a dumping margin of 183.36% for Chengen and the same rate for non-mandatory respondents. The Court of International Trade had previously remanded the case multiple times, eventually ordering Commerce to accept the full 12-page document and rejecting the intermediate input method. The United States and a trade coalition appealed the Court of International Trade's final order.
The Federal Circuit addressed three primary issues. First, regarding the administrative record, the court held that Commerce did not abuse its discretion in accepting only the two-page conversion chart. The court emphasized that the burden lies with the respondent to create an accurate record in response to questionnaires. Chengen failed to disclose the conversion chart or the Chinese National Standard during the initial questionnaire phase, instead claiming reliance on third-party invoices which it could not produce. The court reasoned that verification is a 'test' of information already on the record, not an opportunity to submit new facts. While there is a tension between finality and accuracy, Commerce has broad discretion to balance these interests. In this case, Commerce reasonably determined that accepting the untimely 12-page document would undermine the finality of the investigation and deter noncompliance with document requests. The court distinguished this from cases involving fraud or material inaccuracy that would require reopening the record, noting that Chengen's failure was a lack of cooperation rather than fraud. Second, the court found substantial evidence supporting Commerce's use of the intermediate input methodology. Because Chengen's method of measuring log volume was inherently imprecise—relying on diameter measurements at the thin end of irregularly shaped logs—Commerce was justified in valuing the intermediate product, veneers, which were produced by a mechanical process designed for consistent results. The court rejected the argument that this methodology is only permissible when major costs are missing, stating that Commerce has discretion to use it when raw material data is unreliable. Third, the court affirmed the exclusion of two non-mandatory respondents, Jiangyang Wood and Dehua TB, from the all-others rate. The statute requires Commerce to grant individual rates to voluntary respondents who timely submit the same information as mandatory respondents. The court found that these two entities met this requirement by submitting hundreds of pages of data, and that Commerce's decision was consistent with the statute and not bound by a non-final preliminary determination in a separate case.
The decision reinstates a 183.36% antidumping duty rate for Linyi Chengen and the non-mandatory respondents, significantly increasing the cost of importing Chinese hardwood plywood. It reinforces the Federal Circuit's stance that Commerce has broad discretion to reject untimely information submitted during verification to ensure the finality of administrative proceedings. The ruling clarifies that respondents bear the burden of disclosing all relevant production methods and documents during the initial questionnaire phase, and failure to do so may result in the application of less favorable methodologies, such as intermediate input calculations, which can lead to higher dumping margins. The case is remanded to the Court of International Trade to direct Commerce to apply the 183.36% rate.
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