Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Covered Merchandise Determination and Notice of Amended Covered Merchandise Determination Pursuant to Court Decision

Issuing agencies

Abstract

On July 29, 2026, the U.S. Court of International Trade (CIT) issued its final judgment in Tube Forgings of America, Inc. and Mills Iron Works, Inc. v. United States, Consol. Court No. 23-00231, sustaining the U.S. Department of Commerce (Commerce)'s second remand redetermination pertaining to the covered merchandise inquiry (CMI) for the antidumping duty (AD) order on certain carbon steel butt-weld pipe fittings (butt-weld pipe fittings) from the People's Republic of China (China). Commerce is notifying the public that the CIT's final judgment is not in harmony with Commerce's CMI determination, and that Commerce is amending the CMI determination to find that products cut to length and formed into the rough shape of a butt-weld pipe fitting in China represent "unfinished" fittings, which are covered by the scope of the Order, and that when such products are further processed in the Socialist Republic of Vietnam (Vietnam), they remain subject to the AD order on butt-weld pipe fittings from China.

Full Text

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<title>Federal Register, Volume 91 Issue 166 (Friday, August 28, 2026)</title>
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[Federal Register Volume 91, Number 166 (Friday, August 28, 2026)]
[Notices]
[Pages 55518-55519]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17621]



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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 
Covered Merchandise Determination and Notice of Amended Covered 
Merchandise Determination Pursuant to Court Decision

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: On July 29, 2026, the U.S. Court of International Trade (CIT) 
issued its final judgment in Tube Forgings of America, Inc. and Mills 
Iron Works, Inc. v. United States, Consol. Court No. 23-00231, 
sustaining the U.S. Department of Commerce (Commerce)'s second remand 
redetermination pertaining to the covered merchandise inquiry (CMI) for 
the antidumping duty (AD) order on certain carbon steel butt-weld pipe 
fittings (butt-weld pipe fittings) from the People's Republic of China 
(China). Commerce is notifying the public that the CIT's final judgment 
is not in harmony with Commerce's CMI determination, and that Commerce 
is amending the CMI determination to find that products cut to length 
and formed into the rough shape of a butt-weld pipe fitting in China 
represent ``unfinished'' fittings, which are covered by the scope of 
the Order, and that when such products are further processed in the 
Socialist Republic of Vietnam (Vietnam), they remain subject to the AD 
order on butt-weld pipe fittings from China.

DATES: Applicable August 8, 2026.

FOR FURTHER INFORMATION CONTACT: Miranda Bourdeau, 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) 482-2021.

SUPPLEMENTARY INFORMATION:

Background

    On October 20, 2023, Commerce found that products formed in the 
rough shape of a butt-weld pipe fitting in China, and then further 
processed in Vietnam into either an unfinished butt-weld pipe fitting 
(i.e., referred to as the ``second stage'' of production) or a finished 
butt-weld pipe fitting (i.e., referred to as the ``third stage'' of 
production), to be excluded from the scope of the Order because such 
products are not yet considered ``unfinished'' fittings, as 
contemplated by the Order.\1\ In the same determination, Commerce also 
found that rough shapes from China that undergo the second stage of 
production in China and that then undergo the third and final stage of 
production in Vietnam are subject to the scope Order.\2\
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    \1\ See Certain Carbon Steel Butt-Weld Pipe Fittings from the 
People's Republic of China: Final Determination of Covered 
Merchandise Inquiry, 88 FR 69909 (October 10, 2023) (Final 
Determination); see also Antidumping Duty Order and Amendment to the 
Final Determination of Sales at Less Than Fair Value; Certain Carbon 
Steel Butt-Weld Pipe Fittings from the People's Republic of China, 
57 FR 29702 (July 6, 1992) (Order). We hereinafter refer to these 
products as ``rough shapes.''
    \2\ See Final Determination, 91 FR at 69909.
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    Tube Forgings of America, Inc. and Mills Iron Works, Inc. appealed 
Commerce's Final Determination with respect to the exclusion of rough 
shapes transformed into unfinished and/or finished butt-weld pipe 
fittings in Vietnam. On January 2, 2025, the CIT remanded the Final 
Determination to Commerce, finding that Commerce's Final Determination 
was not supported by substantial evidence and that Commerce deviated 
from its prior practice of considering products in the rough shape of a 
fitting, which were not heated or formed, to be in-scope butt-weld pipe 
fittings.\3\
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    \3\ See Tube Forgings of America, Inc. and Mills Iron Works, 
Inc. v. United States, 750 F.Supp.3d 1364, 1383 (CIT 2025).
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    In its first remand redetermination, issued in May 2025, Commerce 
continued to find rough shapes formed in China and then further 
processed in Vietnam into unfinished or finished butt-weld pipe 
fittings to be excluded from the scope of the Order, based on an 
analysis under 19 CFR 351.225(k)(1).\4\
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    \4\ See Final Results of Redetermination Pursuant to Court 
Remand in Tube Forgings of America, Inc. and Mills Iron Works, Inc. 
v. United States, Court No. 23-00231, Slip Op. 25-1 (CIT January 2, 
2025), dated May 2, 2025.
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    In April 2026, the CIT remanded Commerce's determination for a 
second time, finding that the sources enumerated in 19 CFR 
351.225(k)(1) were non-dispositive and directing Commerce to perform an 
analysis of the factors in 19 CFR 351.225(k)(2).\5\ In its second 
remand redetermination, Commerce found, based on an analysis of the 
factors in 19 CFR 351.225(k)(2), rough shapes formed in China and then 
further processed in Vietnam to be included in the scope of the 
Order.\6\ The CIT sustained Commerce's final redetermination.\7\
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    \5\ See Tube Forgings of America, Inc. and Mills Iron Works, 
Inc. v. United States, 813 F.Supp.3d 1304, 1318 (CIT 2025).
    \6\ See Final Results of Redetermination Pursuant to Court 
Remand in Tube Forgings of America, Inc. and Mills Iron Works, Inc. 
v. United States, Court No. 23-00231, Slip Op. 25-156 (CIT December 
16, 2025), dated April 16, 2026.
    \7\ See Tube Forgings of America, Inc. and Mills Iron Works, 
Inc. v. United States, Court No. 23-00231, Slip Op. 26-83 (CIT July 
29, 2026).
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Timken Notice

    In its decision in Timken,\8\ as clarified by Diamond Sawblades,\9\ 
the U.S. Court of Appeals for the Federal Circuit held that, pursuant 
to sections 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 July 29, 
2026, judgment constitutes a final decision of the CIT that is not in 
harmony with Commerce's Final Determination. 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 Determination

    In accordance with the CIT's July 26, 2026, final judgment, 
Commerce is amending its Final Determination and finds that the scope 
of the Order covers rough shapes of butt-weld pipe fittings that were 
formed in China and which constitute unfinished butt-weld pipe fittings 
within the meaning of the scope of the Order. We also find that these 
unfinished butt-weld pipe fittings which were further processed in 
Vietnam are within the scope of the Order.

Liquidation of Suspended Entries

    Commerce will instruct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of finished and unfinished butt-weld pipe fittings 
which were: (1) formed in China from rough shapes of butt-weld pipe 
fittings; and (2) further processed in Vietnam and to require cash 
deposits at the appropriate rate.\10\ In the event that the CIT's 
ruling is not appealed or is upheld on appeal, Commerce will instruct 
CBP to liquidate entries of unfinished butt-weld pipe fittings formed 
in China that were further processed in Vietnam appropriately.
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    \10\ See Order, 57 FR at 29703.
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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.


[[Page 55519]]


    Dated: August 26, 2026.
Scot Fullerton,
Acting Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations.
[FR Doc. 2026-17621 Filed 8-27-26; 8:45 am]
BILLING CODE 3510-DS-P


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