DynaEnergetics U.S. Inc. v. United States

298 F. Supp. 3d 1363, 2018 CIT 23
CourtUnited States Court of International Trade
DecidedMarch 16, 2018
Docket16-00045
StatusPublished
Cited by2 cases

This text of 298 F. Supp. 3d 1363 (DynaEnergetics U.S. Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DynaEnergetics U.S. Inc. v. United States, 298 F. Supp. 3d 1363, 2018 CIT 23 (cit 2018).

Opinion

Barnett, Judge:

This action involves a challenge to a U.S. Department of Commerce ("Commerce" or the "agency") scope determination for the antidumping and countervailing duty orders on Certain Oil Country Tubular Goods from the People's Republic of China, 75 Fed. Reg. 28,551 (Dep't Commerce May 21, 2010) (am. final determination of sales at less than fair value and antidumping *1366 duty order) (" AD Order "); Certain Oil Country Tubular Goods from the People's Republic of China , 75 Fed. Reg. 3,203 (Dep't Commerce Jan. 20, 2010) (am. final affirmative countervailing duty determination and countervailing duty order) (" CVD Order ") (collectively, " AD & CVD Orders " or "the Orders "). Before the court is the remand redetermination issued pursuant to DynaEnergetics U.S. Inc. v. United States , 41 CIT ----, 203 F.Supp.3d 1351 (2017). See Final Results of Redetermination Pursuant to Court Remand ("Remand Results"), ECF No. 53-1. 1 DynaEnergetics U.S. Inc. ("Plaintiff" or "DynaEnergetics") challenges the Remand Results in which Commerce determined that Plaintiff's customized tubing for perforating gun carriers ("gun carrier tubing") is within the scope of the Orders . See generally Pl.'s Comments on the U.S. Department of Commerce's Remand Redetermination ("Pl.'s Comments") at 5-26, ECF No. 57; Remand Results. Plaintiff also challenges Commerce's instructions to U.S. Customs and Border Protection ("Customs" or "CBP") associated with this ruling. Pl.'s Comments at 26-28. Defendant, the United States, and Defendant-Intervenor, Maverick Tube Corporation, defend Commerce's Remand Results with respect to both issues. See generally Def.'s Resp. to Comments on the Remand Redetermination ("Def.'s Resp."), ECF No. 60; Def.-Int. Maverick Tube Corporation's Reply Comments on Final Results of Redetermination Pursuant to Court Remand ("Def.-Int's Resp."), ECF No. 64. 2 For the reasons discussed below, the court sustains Commerce's Remand Results.

BACKGROUND

On May 5, 2009, Commerce initiated antidumping and countervailing duty investigations of certain oil country tubular goods ("OCTG") from the People's Republic of China ("PRC"). Certain Oil Country Tubular Goods from the People's Republic of China , 74 Fed. Reg. 20,671 (Dep't Commerce May 5, 2009) (initiation of antidumping duty investigation) (" AD Investigation "); Certain Oil Country Tubular Goods from the People's Republic of China , 74 Fed. Reg. 20,678 (Dep't Commerce May 5, 2009) (initiation of countervailing duty investigation) (" CVD Investigation "). Commerce subsequently issued the antidumping and countervailing duty orders on May 21, 2010, and Jan 20, 2010, respectively. See generally AD & CVD Orders . The Orders defined their scope as follows:

[C]ertain OCTG, which are hollow steel products of circular cross-section, including oil well casing and tubing, of iron (other than cast iron) or steel (both carbon and alloy), whether seamless or welded, regardless of end finish (e.g., whether or not plain end, threaded, or threaded and coupled) whether or not conforming to American Petroleum Institute ("API") or non-API specifications, whether finished (including limited service OCTG products) or unfinished (including green tubes and limited service *1367 OCTG products), whether or not thread protectors are attached. The scope of the order also covers OCTG coupling stock. Excluded from the scope of the order are: casing or tubing containing 10.5 percent or more by weight of chromium; drill pipe; unattached couplings; and unattached thread protectors.

AD Order , 75 Fed. Reg. at 28,553. 3 The Orders also included relevant U.S. Harmonized Tariff Schedule ("HTSUS") subheadings, which Commerce provided for "convenience and customs purposes only," noting that the "written description of the scope of the order is dispositive." Id.

On September 25, 2015, Plaintiff, a U.S. producer of oil and gas well perforating systems that imports gun carrier tubing for use in those systems, requested a scope ruling to determine whether its gun carrier tubing falls outside the scope of the Orders . Request for a Scope Ruling on Certain Tubing for Perforating Gun Carriers (Sep. 25, 2015) ("Scope Ruling Request"), PJA Tab 1, PR 1-6, ECF No. 67. On February 12, 2016, based on its analysis of the factors enumerated in 19 C.F.R. § 351.225 (k)(1), Commerce determined that DynaEnergetics' gun carrier tubing is within the scope of the Orders . Final Scope Ruling on DynaEnergetics U.S. Inc.'s Perforating Gun Carriers (February 12, 2016) ("Final Scope Ruling") at 10-13, PJA Tab 8, PR 20, ECF No. 67. Plaintiff timely challenged Commerce's scope determination and the accompanying instructions to Customs before this court. DynaEnergetics U.S. Inc. , 203 F.Supp.3d at 1354 . Defendant requested a remand to "reconsider [Commerce's] findings in light of DynaEnergetics' contentions" before the court. Id. As the court previously noted, "Defendant acknowledged that the agency's analysis was cursory and did not fully address [Plaintiff's] arguments." Id. at 1355 . The court granted the request and remanded the matter for the agency to reconsider the scope determination at issue and, if appropriate, its instructions to Customs associated with the scope determination. Id.

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Bluebook (online)
298 F. Supp. 3d 1363, 2018 CIT 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dynaenergetics-us-inc-v-united-states-cit-2018.