Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court Decision
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Issuing agencies
Abstract
On September 8, 2022, the U.S. Court of International Trade (CIT) issued its final judgment in Vandewater International, Inc. v. United States, Court No. 18-00199, sustaining the U.S. Department of Commerce (Commerce)'s remand redetermination pertaining to the scope ruling for the antidumping duty order on carbon steel butt-weld pipe fittings from the People's Republic of China finding steel branch outlets imported by Vandewater International Inc. (Vandewater) to be covered by the order. Commerce is notifying the public that the CIT's final judgment is not in harmony with Commerce's scope ruling, and that Commerce is amending the scope ruling to clarify that a different effective date for suspension of liquidation now applies.
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<title>Federal Register, Volume 87 Issue 181 (Tuesday, September 20, 2022)</title>
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[Federal Register Volume 87, Number 181 (Tuesday, September 20, 2022)]
[Notices]
[Pages 57456-57457]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-20307]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-814]
Certain Carbon Steel Butt-Weld Pipe Fittings From the People's
Republic of China: Notice of Court Decision Not in Harmony With Final
Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court
Decision
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On September 8, 2022, the U.S. Court of International Trade
(CIT) issued its final judgment in Vandewater International, Inc. v.
United States, Court No. 18-00199, sustaining the U.S. Department of
Commerce (Commerce)'s remand redetermination pertaining to the scope
ruling for the antidumping duty order on carbon steel butt-weld pipe
fittings from the People's Republic of China finding steel branch
outlets imported by Vandewater International Inc. (Vandewater) to be
covered by the order. Commerce is notifying the public that the CIT's
final judgment is not in harmony with Commerce's scope ruling, and that
Commerce is amending the scope ruling to clarify that a different
effective date for suspension of liquidation now applies.
DATES: Applicable September 18, 2022.
FOR FURTHER INFORMATION CONTACT: Kelsie Hohenberger, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2517.
SUPPLEMENTARY INFORMATION:
Background
On September 10, 2018, Commerce found that Vandewater's steel
branch outlets were covered by the order.\1\ Commerce's determination
was based on the sources enumerated under 19 CFR 351.225(k)(1).
Vandewater
[[Page 57457]]
appealed Commerce's Final Scope Ruling.
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\1\ See Memorandum, ``Antidumping Duty Order on Carbon Steel
Butt-Weld Pipe Fittings from the People's Republic of China: Final
Scope Ruling on Vandewater International Inc.'s Steel Branch
Outlets,'' dated September 10, 2018 (Final Scope Ruling).
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On October 16, 2020, the CIT remanded the Final Scope Ruling to
Commerce, holding that Commerce's determination that the sources
identified in 19 CFR 351.225(k)(1) were dispositive as to whether
Vandewater's outlets were covered by the scope of the order was not
supported by substantial evidence.\2\ The CIT instructed Commerce to
conduct a full scope inquiry on remand and analyze the criteria set
forth in 19 CFR 351.225(k)(2).\3\
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\2\ See Vandewater International, Inc. v. United States, 476 F.
Supp. 3d 1357, 1359 (CIT October 16, 2020) (Remand Order).
\3\ Id.
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In its remand redetermination proceedings, Commerce initiated a
full scope inquiry and reopened the record, prior to issuing the final
results of redetermination in July 2021.\4\ Commerce also evaluated the
criteria set forth in 19 CFR 351.225(k)(2) and continued to find that
Vandewater's steel branch outlets are covered by the order.\5\ As a
consequence of initiating a scope inquiry on remand, Commerce clarified
that it would no longer instruct U.S. Customs and Border Protection
(CBP) to suspend or continue to suspend entries that were suspended
pursuant to the instructions issued following the September 10, 2018,
Final Scope Ruling. Rather, Commerce indicated that it would instruct
CBP (upon a final and conclusive court decision) to suspend or continue
to suspend entries of steel branch outlets that entered, or were
withdrawn from warehouse, for consumption on or after October 30, 2020
(i.e., the date of initiation of the scope inquiry).\6\ The CIT
sustained Commerce's final redetermination.\7\
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\4\ See Commerce's Letter, ``Carbon Steel Butt-Weld Pipe
Fittings from the People's Republic of China: Initiation of Scope
Inquiry,'' dated October 30, 2020.
\5\ See Final Results of Redetermination Pursuant to Court
Remand, Vandewater International, Inc. v. United States, Court No.
18-00199, Slip Op. 20-146, dated July 22, 2021 (Final Results of
Redetermination), available at <a href="https://access.trade.gov/Resources/remands/20-146.pdf">https://access.trade.gov/Resources/remands/20-146.pdf</a>.
\6\ Id. at 103.
\7\ See Vandewater International, Inc. v. United States, Court
No. 18-00199, Slip Op. 22-104 (September 8, 2022).
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Timken Notice
In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\
the Court of Appeals for the Federal Circuit held that, pursuant to
section 516A(c) and (e) of the Tariff Act of 1930, as amended (the
Act), Commerce must publish a notice of court decision that is not ``in
harmony'' with a Commerce determination and must suspend liquidation of
entries pending a ``conclusive'' court decision. The CIT's September 8,
2022, judgment constitutes a final decision of the CIT that is not in
harmony with Commerce's Final Scope Ruling. Thus, this notice is
published in fulfillment of the publication requirements of Timken.
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\8\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\9\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Scope Ruling
In accordance with the CIT's September 8, 2022, final judgment,
Commerce has revised the analysis contained in its Final Scope Ruling
and continues to find that the scope of the order covers the products
addressed in the Final Scope Ruling. However, as summarized above,
Commerce has modified its determination with respect to the suspension
of liquidation for entries of Vandewater's steel branch outlets.
Specifically, if Commerce's decision on remand is sustained, we no
longer intend to instruct CBP to suspend or continue to suspend entries
that were suspended pursuant to the instructions issued following the
September 10, 2018, Final Scope Ruling. Rather, Commerce intends to
instruct CBP (upon a final and conclusive court decision) to suspend or
continue to suspend entries of steel branch outlets that entered, or
were withdrawn from warehouse, for consumption on or after October 30,
2020.\10\
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\10\ See Final Results of Redetermination at 103.
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Liquidation of Suspended Entries
At this time, Commerce remains enjoined by the CIT from liquidating
Vandewater's entries of steel branch outlets covered by the scope of
the order entered, or withdrawn from warehouse for consumption, on or
after September 10, 2018. These entries will remain enjoined pursuant
to the terms of the injunction during the pendency of any appeals
process.
With respect to entries predating October 30, 2020, that were
suspended pursuant to the instructions issued following the September
10, 2018, Final Scope Ruling, Commerce will instruct CBP that, pending
any appeals, the cash deposit rate will be zero percent for steel
branch outlets imported by Vandewater. In the event that the CIT's
final judgment is not appealed or is upheld on appeal, Commerce intends
to instruct CBP to lift suspension of liquidation and liquidate such
entries without regard to antidumping duties.
Notification to Interested Parties
This notice is issued and published in accordance with sections
516A(c) and (e) and 777(i)(1) of the Act.
Dated: September 14, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-20307 Filed 9-19-22; 8:45 am]
BILLING CODE 3510-DS-P
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