Jiangsu Nova Intelligent Logistics Equip. Co. v. United States
CourtUnited States Court of International Trade
Date FiledSeptember 4, 2026
Docket25-00175
JudgeStanceu
StatusPublished
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Full Opinion
Slip Op. 26-108
UNITED STATES COURT OF INTERNATIONAL TRADE
JIANGSU NOVA INTELLIGENT
LOGISTICS EQUIPMENT CO., LTD., ET AL.,
Plaintiffs,
v.
Before: Timothy C. Stanceu, Judge
UNITED STATES,
Defendant, Court No. 25-00175
and
COALITION FOR FAIR RACK IMPORTS,
Defendant-Intervenor.
OPINION AND ORDER
[Remanding for reconsideration a final agency determination concluding a
review of an antidumping duty order]
Dated: September 4, 2026
David John Craven, Craven Trade Law LLC, of Chicago, Illinois, for plaintiffs.
Tate N. Walker, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S.
Department of Justice, of Washington, D.C., for defendant. Also on the motion were
Brett A. Shumate, Assistant Attorney General, Patricia M. McCarthy, Director, and Tara K.
Hogan, Assistant Director. Of counsel was Charlie Chung, Attorney, Office of the Chief
Counsel for Trade Enforcement & Compliance, U.S. Department of Commerce.
Roger Brian Schagrin, Schagrin Associates, of Washington, D.C., for defendant-
intervenor. With him on the motion were Alessandra A. Palazzolo, Christopher Todd
Cloutier, Elizabeth Jackson Drake, Jeffrey David Gerrish, Justin M. Neuman, Luke Anthony
Court No. 25-00175 Page 2
Meisner, Maliha Khan, Nicholas Joel Birch, Nicholas Phillips, Saad Younus Chalchal and
William A. Fennell.
Stanceu, Judge: Plaintiffs, producers and exporters of certain steel racks from the
People’s Republic of China, brought this action to contest the final results of an
administrative review of an antidumping duty order. Following plaintiffs’ motion for
judgment on the agency record, defendant United States moved for a “voluntary
remand,” which motion is now before the court. Def.’s Mot. for Voluntary Remand
(June 29, 2026), ECF No. 39 (“Def.’s Mot.”). The court orders a remand for review and
reconsideration of the Final Results and provides a schedule for further proceedings.
I. BACKGROUND
The decision contested in this case (the “Final Results”) is Certain Steel Racks and
Parts Thereof from the People’s Republic of China: Final Results of Antidumping Duty
Administrative Review; 2022-2023, 90 Fed. Reg. 30,629 (July 10, 2025) (“Final Results”),
issued by the International Trade Administration, U.S. Department of Commerce
(“Commerce” or the “Department”). The decision concluded the eighth review of an
antidumping duty order issued in 2019. Certain Steel Racks and Parts Thereof from the
People’s Republic of China: Amended Final Affirmative Antidumping Duty Determination and
Antidumping Duty Order; and Countervailing Duty Order, 84 Fed. Reg. 48,584 (Sept. 16,
2019). The review applied to entries occurring during the period of review (“POR”) of
September 1, 2022 through August 31, 2023. Final Results, 90 Fed. Reg. at 30,629.
Court No. 25-00175 Page 3
Commerce selected Plaintiff Jiangsu Nova Intelligent Logistics Equipment Co.,
Ltd. (“Jiangsu Nova”) as a “mandatory respondent” in the review, i.e., a respondent for
which Commerce would determine an individual weighted-average dumping margin
and assigned to it the margin of 11.18% ad valorem. Id. at 30,630. Based on the rate
assigned to Jiangsu Nova, Commerce assigned margins of 11.18% to Nanjing Jinshidai
Storage Equipment Co., Ltd. and Hebei Nova Intelligent Logistics Equipment Co., Ltd,
id., companies that also are plaintiffs in this litigation. The Coalition for Fair Rack
Imports, the petitioner in the antidumping duty investigation, is a defendant-intervenor
in this litigation.
Plaintiffs commenced this action in August 2025, Summons (Aug. 4, 2025), ECF
No. 1; Compl. (Aug. 19, 2025), ECF No. 7, and moved for judgment on the agency
record earlier this year. Rule 56.2 Mot. of Pls. for J. Upon the Agency R. (Feb. 12, 2026),
ECF No. 32 (“Pls.’ Mot.”). In its motion, defendant informs the court that plaintiffs
indicated their consent to the motion, Def.’s Mot. 2, and that defendant-intervenor took
no position on the issue, id. at 3.
II. DISCUSSION
A. Jurisdiction
The Court has exclusive jurisdiction under 28 U.S.C. § 1581(c), pursuant to which
the court reviews actions commenced under section 516A of the Tariff Act of 1930, as
Court No. 25-00175 Page 4
amended 19 U.S.C. § 1516a, including an action contesting a final determination that
Commerce issued to conclude an antidumping duty investigation.
B. Plaintiffs’ Claim and the Grounds Offered in Support
In the review, Commerce conducted a “differential pricing analysis,” as a
consequence of which Commerce decided to depart from the normal “average to
average” (“A-to-A”) method it uses to compare U.S. prices of the subject merchandise to
normal value in favor of an “average to transaction” (“A-to-T”) method. Plaintiffs claim
the decision to conduct a differential pricing analysis and to use the A-to-T method was
unlawful for a number of reasons.
First, plaintiffs argue that Section 777A(d)(1)(B) of the Tariff Act of 1930,
19 U.S.C. § 1677f-1(d)(1)(B), allows the use of a differential pricing analysis only in
antidumping duty investigations, not in reviews of antidumping duty orders. Pls.’ Mot.
8-11. According to plaintiffs, the decision of the Court of Appeals for the Federal
Circuit (“Court of Appeals”) sustaining an interpretation under which a differential
pricing analysis can be applied in reviews, JBF RAK LLC v. United States, 790 F.3d 1358
(Fed. Cir. 2015), was based on “gap filling” under the deference principle of Chevron
U.S.A. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984). Pls.’ Mot. 10. Plaintiffs submit
that the former precedent established by the Court of Appeals is no longer applicable in
light of the Supreme Court’s rejection of the principle of Chevron deference in Loper
Court No. 25-00175 Page 5
Bright Enters. v. Raimondo, 603 U.S. 369 (2024), and that “this Court should consider
anew the plain language of the statute.” Pls.’ Mot. 11.
Second, plaintiffs say that the Department’s differential pricing analysis used a
“flawed” and “arbitrary” methodology that Commerce has not shown to comport with
the statutory requirement of being based on a recognizable “pattern of export prices (or
constructed export prices) for comparable merchandise that differ significantly among
purchasers, regions, or periods of time,” id. at 13 (citing 19 U.S.C. § 1677f-1(d)(1)(B)), or
that is “grounded in substantial evidence,” Pls.’ Mot. 15 (citing Cresswell Trading Co.,
Inc. v. United States, 15 F.3d 1054 (Fed. Cir. 1994)).
Third, plaintiffs maintain that Commerce, having not allowed parties the
opportunity to comment on its new methodology during the review, “should have
provided plaintiffs an opportunity to address this issue in the administrative process,
and this matter should, at a minimum, be remanded to the Department to permit
plaintiffs to comment on this new calculation methodology, permit the Department’s
position to be enumerated in response to such comments, and then, if necessary, to
judicially review the determination.” Pls.’ Mot. 12.
Fourth, plaintiffs take issue with the Department’s applying a “two percent”
price test “to determine whether prices differ significantly,” under which, “[f]or
comparable merchandise, the new price difference test examines whether the weighted-
average net price to a given purchaser, region, or time period is within two percent of
Court No. 25-00175 Page 6
the weighted average net price to all other purchasers, regions, or time periods.” Id.
at 15. According to their argument, “Commerce has not explained why it chose a ‘two
percent’ test or why a ‘two percent’ difference in weighted-average net prices
constitutes a ‘significant’ difference within the meaning of the statute.” Id. at 16.
Fifth, plaintiffs find fault with the Department’s “ratio test,” under which, they
maintain, Commerce has reduced from 66% to 33% the “ratio of the total value of the
sales that pass the price differential test (the 2% discussed above) to the total value of
sales” at or below which it will not find “that there is a pa ern of price[s] that differ
significantly during the POR.” Id. at 17. Further, they submit that in applying its 33%
test, “Commerce calculates a single combined ratio in which the numerator consists of
all sales that pass the two percent test for any of the three categories (purchasers,
regions, and periods of time) and the denominator consists of all sales.” Id. at 19.
According to their argument, “[t]o be consistent with the statute, Commerce instead
must find a pa ern of significant price differences among ‘purchasers, regions, or
periods of time,’ by calculating separate ratios for each of these groups.” Id. They add
that “[t]he practical impact of this error is that Commerce has lowered the threshold set
forth in the statute for finding a ‘pa ern’ and, thus, for applying the exceptional A-T
price comparison method.” Id.
Sixth, plaintiffs argue that “Commerce needs to provide explanations for these
new tests and changes from extant tests rather than simply announcing the new and
Court No. 25-00175 Page 7
changed tests” and “should explain how these tests are appropriate in [the] context of
the particular review or investigation.” Id. at 19-20.
Finally, as a remedy, plaintiffs posit that “[t]his Court should remand this ma er
and direct that Commerce modify its approach and use 25 percent instead of two
percent in the ‘price difference test’ to determine whether prices differ significantly”
and “should also revert to the established 66% ratio test.” Id. at 23.
C. Defendant’s Motion for Remand of the Final Results
Defendant states in its motion that “[w]e respectfully request a voluntary remand
for Commerce to provide all parties with an opportunity to comment on Commerce’s
new differential pricing methodology.” Def.’s Mot. 6.
Defendant explains that on June 13, 2025, a short time before the July 3, 2025
deadline for publication of the Final Results, the Court of Appeals issued its mandate in
Marmen Inc. v. United States, 134 F.4th 1334 (Fed. Cir. 2025) (“Marmen”). Defendant
states that in Marmen, the Court of Appeals “held that [] Commerce may no longer use
the Cohen’s d test as part of its differential pricing analysis when that test is applied to
data that do not satisfy the statistical criteria of normal distribution, equal variability,
and equally and sufficiently numerous observation.” Def.’s Mot. 4 (citing Marmen, 134
F.4th at 1345-46). Defendant explains, further, that “[b]ecause Commerce relied on the
Cohen’s d test methodology to reach its preliminary results, which the Federal Circuit
subsequently invalidated in Marmen, Commerce abandoned the Cohen’s d test and
Court No. 25-00175 Page 8
replaced it with the ‘price difference test’ in the final results.” Def.’s Mot. 4. Defendant
adds that “[w]ith only twenty days left between the issuance of the mandate in Marmen
and the nearly fully extended statutory deadline for the final results, Commerce did not
have sufficient time to issue a post-preliminary determination, permit interested parties
time to submit comments on the use of the price difference test, and address their
comments on the new differential pricing analysis in the final results.” Id. at 4-5.
D. The Court Remands the Final Results for Reconsideration
Defendant’s motion invokes the established principle that “Commerce may,
without confessing error, ask the Court to remand a matter so that Commerce may
reconsider its prior position.” Id. at 5 (citation omitted). In this case, Commerce desires
to have the benefit of the comments of plaintiffs and defendant-intervenor on its new
methodology, under which it determines whether or not to invoke the procedure set
forth in 19 U.S.C. § 1677f-1(d)(1)(B). Upon the court’s ordering a remand, Commerce
necessarily would review and reconsider the methodology which Commerce decided to
invoke and implement in the Final Results.
The motion requests that the court allow Commerce 90 days for submission of a
redetermination upon remand (“Remand Redetermination”). Def.’s Mot. 8. The court
agrees with that request.
Defendant’s motion requests, further, that the Court allow comments on Remand
Redetermination “in accordance with Rule 56.2(h) of the Rules of the Court.” Id. Under
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Rule 56.2(h), plaintiff and defendant-intervenor would have 30 days to submit
comments to the court in opposition, or partial opposition, to the Remand
Redetermination, unless the court orders otherwise. USCIT R. 56.2(h). In light of the
complexity of the issues raised by plaintiffs’ claim and supporting arguments, the court
considers it appropriate to allow 60 days for the submission of such comments in
opposition, or partial opposition, by plaintiffs and defendant-intervenor. All other
procedures of Rule 56.2(h) will apply.
III. CONCLUSION AND ORDER
Upon consideration of defendant’s motion and all papers and proceedings had
herein, and upon due deliberation, it is hereby
ORDERED that the International Trade Administration, U.S. Department of
Commerce, shall review and reconsider the Final Results in accordance with this
Opinion and Order; it is further
ORDERED that Commerce shall submit a redetermination in response to this
Opinion and Order (“Remand Redetermination”) within 90 days of the date of this
Opinion and Order; it is further
ORDERED that following submission to the court of the Remand
Redetermination, notwithstanding USCIT Rule 56.2(h)(3), plaintiffs and defendant-
intervenor shall have 60 days to file and serve comments in opposition, or partial
opposition, to the Remand Redetermination; and it is further
ORDERED that all other procedures required by USCIT Rule 56.2(h) shall apply.
_/s/ Timothy C. Stanceu_
Timothy C. Stanceu
Judge
Dated: September 4, 2026
New York, New York