Magnum Magnetics Corp. v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 17, 2026
Docket24-1164
StatusPublished

This text of Magnum Magnetics Corp. v. United States (Magnum Magnetics Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magnum Magnetics Corp. v. United States, (Fed. Cir. 2026).

Opinion

Case: 24-1164 Document: 71 Page: 1 Filed: 02/17/2026

United States Court of Appeals for the Federal Circuit ______________________

MAGNUM MAGNETICS CORP., Plaintiff-Appellant

v.

UNITED STATES, FASTENERS FOR RETAIL, INC., DBA SIFFRON, Defendants-Appellees ______________________

2024-1164 ______________________

Appeal from the United States Court of International Trade in No. 1:22-cv-00254-JCG, Judge Jennifer Choe- Groves. ______________________

Decided: February 17, 2026 ______________________

JEREMY WILLIAM DUTRA, Squire Patton Boggs (US) LLP, Washington, DC, argued for plaintiff-appellant.

CHRISTOPHER BERRIDGE, Commercial Litigation Branch, Civil Division, United States Department of Jus- tice, Washington, DC, argued for defendant-appellee United States. Also represented by BRIAN M. BOYNTON, CLAUDIA BURKE, PATRICIA M. MCCARTHY; KENNETH GARRETT KAYS, Office of the Chief Counsel for Trade En- forcement and Compliance, United States Department of Commerce. Case: 24-1164 Document: 71 Page: 2 Filed: 02/17/2026

WILLIAM FRANCIS MARSHALL, Sandler, Travis & Rosen- berg, P.A., New York, NY, argued for defendant-appellee Fasteners for Retail, Inc. ______________________

Before PROST, LINN, and REYNA, Circuit Judges. REYNA, Circuit Judge. Magnum Magnetics Corporation appeals a judgment of the United States Court of International Trade. The Trade Court affirmed a final scope ruling determination by the United States Department of Commerce that certain plas- tic shelf dividers containing magnets are not covered by an- tidumping and countervailing duty orders on U.S. imports of raw flexible magnets from the People’s Republic of China. For the reasons stated below, we affirm. BACKGROUND This appeal involves U.S. imports of certain plastic shelf dividers that contain magnets. The question ad- dressed is whether the shelf dividers are covered by the scope of antidumping and countervailing duty orders on raw flexible magnets from the People’s Republic of China. See Antidumping Duty Order: Raw Flexible Magnets from the People’s Republic of China, 73 Fed. Reg. 53847–48 (Sep. 17, 2008) (“ADD Order”), at J.A. 33–34; Raw Flexible Mag- nets from the People’s Republic of China: Countervailing Duty Order, 73 Fed. Reg. 53849–50 (Sep. 17, 2008) (“CVD Order”), at J.A. 35–36 (collectively, the “Duty Orders”).1

1 The ADD Order and the CVD Order contain iden- tical scope language, and the U.S. Department of Com- merce issued a single scope ruling for both. Compare ADD Order, J.A. 33–34, with CVD Order, J.A. 35–36. As a re- sult, we reference to both orders as “Duty Orders.” Case: 24-1164 Document: 71 Page: 3 Filed: 02/17/2026

MAGNUM MAGNETICS CORP. v. US 3

Generally, when an interested party believes merchan- dise that is like the merchandise it produces is sold in the United States at less than fair value (i.e., dumped or dump- ing) or benefits from countervailable subsidies, it may pe- tition the U.S. Department of Commerce (“Commerce”) to initiate an antidumping or countervailing duty investiga- tion, or both. 19 U.S.C. §§ 1671, 1673; see also id. §§ 1671a(b), 1673a(b). If Commerce initiates an investiga- tion, it determines whether the imported merchandise is sold in the U.S. market at less than fair value or is improp- erly subsidized. Id. §§ 1671b(b), 1671d(a), 1673b(b), 1673d(a). The U.S. International Trade Commission (“Commis- sion”) conducts a parallel investigation to determine whether a U.S. domestic industry that produces a product like the imported product subject to the investigations is materially injured or threatened with material injury by the subject imports. Id. §§ 1671b(a), 1671d(b), 1673b(a), 1673d(b). If both Commerce and the Commission reach af- firmative determinations, Commerce issues duty orders imposing antidumping or countervailing duties on the im- ported merchandise. Id. §§ 1671e, 1673e. Such duty orders include a description of the merchandise that is subject to the order. Id. §§ 1671e(a)(2), 1673e(a)(2). The description is written in general terms because it pertains to an overall class or kind of goods. 19 C.F.R. § 351.225(a). Questions often arise in the marketplace as to whether a particular product is covered by the scope of an existing order. In such instances, an interested party may request that Commerce issue a ruling on whether the product is covered by the scope of a duty order. Id. This appeal in- volves such a scope ruling. I. The Duty Investigations On September 21, 2007, Plaintiff-Appellant Magnum Magnetics Corporation (“Magnum”), a U.S. producer of flexible magnets, filed a petition with Commerce Case: 24-1164 Document: 71 Page: 4 Filed: 02/17/2026

requesting the initiation of an antidumping duty investiga- tion on imports of raw flexible magnets from the People’s Republic of China. See Notice of Initiation of Antidumping Duty Investigations: Raw Flexible Magnets from the Peo- ple’s Republic of China and Taiwan, 72 Fed. Reg. 59071 (Oct. 18, 2007).2 Commerce initiated an investigation on October 11, 2007, and notified the Commission. Id. at 59076. The investigation generally covered “certain flexi- ble magnet sheeting, strips, and profile shapes.” Id. at 59072. The Commission initiated investigations on September 28, 2007. Raw Flexible Magnets from China and Taiwan, Investigation Nos. 701-TA-452, 731-TA-1129, 731-TA- 1130, 72 Fed. Reg. 55248 (Sept. 28, 2007). On November 5, 2007, the Commission issued an affirmative preliminary determination of material injury or threat of material in- jury. Raw Flexible Magnets from China and Taiwan, In- vestigation Nos. 701-TA-452, 731-TA-1129, 731-TA-1130, 72 Fed. Reg. 63629 (Nov. 9, 2007) (Preliminary). On April 25, 2008, Commerce issued an affirmative prelimi- nary determination of sales at less than fair value. Prelim- inary Determination of Sales at Less Than Fair Value: Raw Flexible Magnets from the People’s Republic of China, 73 Fed. Reg. 22327, 22328 (Apr. 25, 2008). On July 2, 2008, Commerce issued an affirmative final determination of sales at less than fair value. Final Deter- mination of Sales at Less Than Fair Value: Raw Flexible Magnets from the People’s Republic of China, 73 Fed. Reg. 39669 (July 10, 2008). In August 2008, the Commission issued an affirmative final injury determination finding that an industry in the United States was materially in- jured or threatened with material injury by reason of the subject imports. Raw Flexible Magnets from China and

2 This opinion addresses only the investigations in- volving China. Case: 24-1164 Document: 71 Page: 5 Filed: 02/17/2026

MAGNUM MAGNETICS CORP. v. US 5

Taiwan, Inv. Nos. 701-TA-452, 731-TA-1129-1130, USITC Pub. 4030 (August 2008) (Final) (“Commission Injury Re- port”). II. Duty Orders On September 17, 2008, Commerce issued Duty Orders on raw flexible magnets from China. ADD Order, J.A. 33– 34; CVD Order, J.A. 35–36. According to the scope lan- guage of the Duty Orders: The products covered by [the Duty Orders] are cer- tain flexible magnets regardless of shape, color, or packaging. Subject flexible magnets are bonded magnets composed (not necessarily exclusively) of (i) any one or combination of various flexible bind- ers (such as polymers or co-polymers, or rubber) and (ii) a magnetic element, which may consist of a ferrite permanent magnet material (commonly, strontium or barium ferrite, or a combination of the two), a metal alloy (such as NdFeB or Alnico), any combination of the foregoing with each other or any other material, or any other material capable of be- ing permanently magnetized.

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