Notice2022-20307

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

Primary source

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Published
September 20, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

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.

Full Text

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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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Indexed from Federal Register on September 20, 2022.

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