MCC Holdings v. United States

684 F. Supp. 3d 1378, 2024 CIT 30
CourtUnited States Court of International Trade
DecidedMarch 11, 2024
Docket18-00248
StatusPublished

This text of 684 F. Supp. 3d 1378 (MCC Holdings 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
MCC Holdings v. United States, 684 F. Supp. 3d 1378, 2024 CIT 30 (cit 2024).

Opinion

SlipȱOp.ȱ24Ȭ30ȱ

UNITEDȱSTATESȱCOURTȱOFȱINTERNATIONALȱTRADEȱ

MCCȱHOLDINGSȱdoingȱbusinessȱasȱ CRANEȱRESISTOFLEX,ȱ

Plaintiff,ȱ

v.ȱ

ȱȱBefore:ȱȱTimothyȱC.ȱStanceu,ȱJudgeȱ UNITEDȱSTATES,ȱ

ȱȱCourtȱNo.ȱ18Ȭ00248ȱ Defendant,ȱ

andȱ

ASCȱENGINEEREDȱSOLUTIONS,ȱLLC,ȱ

DefendantȬIntervenor.ȱ

OPINIONȱ

[Sustainingȱaȱremandȱredeterminationȱsubmittedȱinȱresponseȱtoȱcourtȱorderȱinȱ litigationȱcontestingȱaȱscopeȱruling]ȱ

Dated:ȱMarch 11, 2024

PeterȱJ.ȱKoenig,ȱSquireȱPattonȱBoggsȱ(US)ȱLLP,ȱofȱWashington,ȱD.C.,ȱforȱplaintiff.ȱȱ WithȱhimȱonȱtheȱsubmissionȱwereȱJeremyȱW.ȱDutraȱandȱChristopherȱD.ȱClark.ȱ

JoshuaȱE.ȱKurland,ȱTrialȱCounsel,ȱU.S.ȱDepartmentȱofȱJustice,ȱofȱWashington,ȱD.C.,ȱ forȱdefendant.ȱȱWithȱhimȱonȱtheȱsubmissionȱwereȱBrianȱM.ȱBoynton,ȱPrincipalȱDeputyȱ AssistantȱAttorneyȱGeneral,ȱPatriciaȱM.ȱMcCarthy,ȱDirector,ȱandȱL.ȱMishaȱPreheim,ȱ AssistantȱDirector.ȱȱOfȱcounselȱwasȱW.ȱMitchellȱPurdy,ȱAttorney,ȱOfficeȱofȱtheȱChiefȱ CounselȱforȱTradeȱEnforcementȱ&ȱCompliance,ȱU.S.ȱDepartmentȱofȱCommerce,ȱofȱ Washington,ȱD.C.ȱ CourtȱNo.ȱ18Ȭ00248ȱ Pageȱ2ȱ ȱ DanielȱL.ȱSchneiderman,ȱKingȱ&ȱSpaldingȱLLP,ȱofȱWashingtonȱD.C.,ȱforȱdefendantȬ intervenor.ȱȱWithȱhimȱonȱtheȱsubmissionȱwasȱJ.ȱMichaelȱTaylor.ȱ ȱ Stanceu,ȱJudge:ȱȱPlaintiffȱMCCȱHoldingsȱdbaȱCraneȱResistoflexȱ(“Crane”),ȱanȱ

importerȱofȱcertainȱductileȱironȱlapȱjointȱflangesȱ(“Crane’sȱflanges”),ȱbroughtȱthisȱactionȱ

toȱcontestȱanȱadministrativeȱdecisionȱbyȱtheȱInternationalȱTradeȱAdministration,ȱU.S.ȱ

DepartmentȱofȱCommerceȱ(“Commerce”ȱorȱtheȱ“Department”)ȱthatȱitsȱimportedȱ

merchandiseȱisȱwithinȱtheȱscopeȱofȱanȱantidumpingȱdutyȱorderȱonȱcertainȱpipeȱfittingsȱ

fromȱtheȱPeople’sȱRepublicȱofȱChinaȱ(theȱ“Order”).ȱȱNoticeȱofȱAntidumpingȱDutyȱOrder:ȱ

NonȬMalleableȱCastȱIronȱPipeȱ[Fittings]ȱFromȱtheȱPeopleȇsȱRepublicȱofȱChina,ȱ68ȱFed.ȱReg.ȱ

16,765ȱ(Int’lȱTradeȱAdmin.ȱApr.ȱ7,ȱ2003)ȱ(theȱ“Order”).ȱ

Beforeȱtheȱcourtȱisȱaȱredeterminationȱuponȱremandȱ(theȱ“ThirdȱRemandȱ

Redetermination”),ȱwhichȱCommerceȱsubmittedȱinȱresponseȱtoȱtheȱcourt’sȱopinionȱandȱ

orderȱinȱMCCȱHoldingsȱdbaȱCraneȱResistoflexȱv.ȱUnitedȱStates,ȱ46ȱCITȱ__,ȱ607ȱF.ȱSupp.ȱ3dȱ

1201ȱ(2022)ȱ(“CraneȱII”).ȱȱFinalȱResultsȱofȱRedeterminationȱPursuantȱtoȱCourtȱOrderȱ

(Dec.ȱ19,ȱ2022),ȱECFȱNo.ȱ64ȱ(“ThirdȱRemandȱRedetermination”).ȱ

CommerceȱdeterminedȱinȱtheȱThirdȱRemandȱRedetermination,ȱunderȱprotest,ȱ

thatȱCrane’sȱflangesȱareȱnotȱsubjectȱtoȱtheȱOrder.ȱȱPlaintiffȱhasȱcommentedȱinȱfavorȱofȱ

theȱThirdȱRemandȱRedetermination.ȱȱPl.ȱMCCȱHoldingsȱDBAȱCraneȱResistoflex’sȱ

CommentsȱonȱCommerceȱThirdȱRemandȱRedeterminationȱ(Jan.ȱ3,ȱ2023),ȱECFȱNo.ȱ66ȱ

(“Crane’sȱComments”).ȱȱDefendantȬintervenor,ȱASCȱEngineeredȱSolutions,ȱLLCȱ CourtȱNo.ȱ18Ȭ00248ȱ Pageȱ3ȱ ȱ (“ASC”),ȱhasȱcommentedȱinȱopposition.ȱȱDef.ȬIntervenor’sȱCommentsȱonȱtheȱFinalȱ

ResultsȱofȱRemandȱRedeterminationȱ1ȱ(Jan.ȱ3,ȱ2023),ȱECFȱNo.ȱ67ȱ(“ASC’sȱ2023ȱ

Comments”)ȱ(incorporatingȱbyȱreferenceȱDef.ȬIntervenor’sȱCommentsȱonȱtheȱFinalȱ

ResultsȱofȱRedeterminationȱ(Jan.ȱ20,ȱ2022),ȱECFȱNo.ȱ60ȱ(“ASC’sȱ2022ȱComments”)).ȱȱȱȱ

DefendantȱarguesȱthatȱtheȱcourtȱshouldȱenterȱjudgmentȱforȱtheȱGovernment,ȱ

maintainingȱthatȱtheȱThirdȱRemandȱRedeterminationȱisȱsupportedȱbyȱsubstantialȱ

evidenceȱandȱotherwiseȱinȱaccordanceȱwithȱlaw.ȱ

TheȱcourtȱsustainsȱtheȱThirdȱRemandȱRedetermination.ȱ

I.ȱȱBACKGROUNDȱ

Backgroundȱonȱthisȱcaseȱisȱpresentedȱinȱtheȱcourt’sȱpriorȱopinionsȱandȱisȱ

summarizedȱandȱsupplementedȱherein.ȱȱCraneȱII,ȱ46ȱCITȱatȱ__,ȱ607ȱF.ȱSupp.ȱ3dȱ1202—03;ȱ

MCCȱHoldingsȱdbaȱCraneȱResistoflexȱv.ȱUnitedȱStates,ȱ45ȱCITȱ__,ȱ__,ȱ537ȱF.ȱSupp.ȱ3dȱ1350,ȱ

1353—55ȱ(2021)ȱ(“CraneȱI”).ȱ

OnȱAugustȱ29,ȱ2018,ȱCraneȱfiledȱaȱrequestȱwithȱCommerceȱforȱaȱscopeȱrulingȱ(theȱ

“ScopeȱRulingȱRequest”),ȱwhichȱadvocatedȱthatȱCrane’sȱflangesȱareȱoutsideȱtheȱscopeȱofȱ

theȱOrder.ȱȱNonȬMalleableȱCastȱIronȱPipeȱFittingsȱfromȱChina:ȱDuctileȱIronȱLapȱJointȱFlanges,ȱ

ScopeȱRequestȱ(P.R.ȱDoc.ȱ1)ȱ(“ScopeȱRulingȱRequest”).1ȱȱInȱtheȱdecisionȱcontestedȱinȱthisȱ

ȱ ȱAllȱcitationsȱtoȱdocumentsȱfromȱtheȱadministrativeȱrecordȱareȱtoȱpublicȱ 1

documents.ȱȱTheseȱdocumentsȱareȱcitedȱasȱ“P.R.ȱDoc.ȱ__.”ȱ CourtȱNo.ȱ18Ȭ00248ȱ Pageȱ4ȱ ȱ litigation,ȱtheȱ“FinalȱScopeȱRuling,”ȱCommerceȱdeterminedȱCrane’sȱflangesȱtoȱbeȱwithinȱ

theȱscope.ȱȱFinalȱScopeȱRulingȱonȱtheȱAntidumpingȱDutyȱOrderȱonȱNonȬMalleableȱCastȱIronȱ

PipeȱFittingsȱfromȱtheȱPeopleȇsȱRepublicȱofȱChina:ȱMCCȱHoldingsȱdbaȱCraneȱResistoflexȱ(P.R.ȱ

Doc.ȱ16)ȱ(“FinalȱScopeȱRuling”).ȱȱCraneȱcommencedȱthisȱactionȱtoȱcontestȱtheȱFinalȱScopeȱ

RulingȱonȱDecemberȱ19,ȱ2018.ȱȱSummons,ȱECFȱNo.ȱ1;ȱCompl.,ȱECFȱNo.ȱ2.ȱ

CraneȱmovedȱforȱjudgmentȱonȱtheȱagencyȱrecordȱunderȱUSCITȱRuleȱ56.2.ȱȱ

Pl.ȱMCCȱHoldingsȱdbaȱCraneȱResistoflex’sȱRuleȱ56.2ȱMot.ȱforȱJ.ȱonȱtheȱAgencyȱR.ȱ

(Aug.ȱ23,ȱ2019),ȱECFȱNo.ȱ27.ȱȱInȱresponseȱtoȱCrane’sȱmotion,ȱdefendantȱfiledȱanȱ

unopposedȱmotionȱforȱthisȱcaseȱtoȱbeȱremandedȱtoȱCommerceȱinȱlightȱofȱthisȱCourt’sȱ

decisionȱinȱStarȱPipeȱProds.ȱv.ȱUnitedȱStates,ȱ43ȱCITȱ__,ȱ365ȱF.ȱSupp.ȱ3dȱ1277ȱ(2019)ȱ(“Starȱ

PipeȱI”).ȱȱDef.’sȱUnopposedȱMot.ȱtoȱStayȱBriefingȱScheduleȱandȱtoȱGrantȱVoluntaryȱ

Remand,ȱ(Dec.ȱ30,ȱ2019),ȱECFȱNo.ȱ32.ȱȱStarȱPipeȱIȱaroseȱfromȱlitigationȱinȱwhichȱaȱ

plaintiffȱcontestedȱaȱscopeȱrulingȱonȱductileȱironȱflangesȱthatȱinȱmanyȱrespectsȱwereȱ

similarȱtoȱCrane’sȱflanges.ȱȱTheȱcourtȱconcludedȱinȱStarȱPipeȱIȱthatȱtheȱfinalȱscopeȱrulingȱ

atȱissueȱinȱthatȱcaseȱdidȱnotȱreflectȱconsiderationȱofȱallȱofȱtheȱfactorsȱ(theȱ“(k)(1)ȱfactors”)ȱ

Commerceȱwasȱrequiredȱtoȱconsiderȱaccordingȱtoȱitsȱregulation,ȱ19ȱC.F.R.ȱ

§ȱ351.225(k)(1).ȱȱTheȱcourtȱgrantedȱdefendant’sȱmotionȱinȱpartȱand,ȱconsideringȱtheȱ CourtȱNo.ȱ18Ȭ00248ȱ Pageȱ5ȱ ȱ Department’sȱrequestedȱremandȱtooȱnarrow,ȱdirectedȱCommerceȱtoȱreconsiderȱtheȱFinalȱ

ScopeȱRulingȱinȱtheȱentirety.2ȱȱOrderȱ2ȱ(Jan.ȱ7,ȱ2020),ȱECFȱNo.ȱ33.ȱ

Commerceȱsubmittedȱtheȱfirstȱredeterminationȱuponȱremandȱ(“FirstȱRemandȱ

Redetermination”)ȱonȱAprilȱ3,ȱ2020,ȱinȱwhichȱitȱagainȱconcludedȱthatȱCrane’sȱflangesȱ

wereȱwithinȱtheȱscopeȱofȱtheȱOrder.ȱȱFinalȱResultsȱofȱRedeterminationȱPursuantȱtoȱCt.ȱ

Order,ȱECFȱNo.ȱ39Ȭ1ȱ(“FirstȱRemandȱRedetermination”).ȱȱInȱCraneȱI,ȱtheȱcourtȱremandedȱ

theȱFirstȱRemandȱRedeterminationȱtoȱCommerce,ȱrulingȱthatȱCommerceȱhadȱfailedȱtoȱ

considerȱcertainȱmaterialȱevidenceȱonȱtheȱrecordȱthatȱdetractedȱfromȱitsȱdeterminationȱ

andȱreachedȱsomeȱconclusionsȱthatȱwereȱunsupportedȱbyȱsubstantialȱrecordȱevidence.ȱȱ

CraneȱI,ȱ45ȱCITȱatȱ__,ȱ537ȱF.ȱSupp.ȱ3dȱatȱ1353.ȱ

Commerceȱfiledȱaȱredeterminationȱ(theȱ“SecondȱRemandȱRedetermination”)ȱinȱ

responseȱtoȱCraneȱIȱonȱDecemberȱ21,ȱ2021,ȱinȱwhichȱCommerceȱruled,ȱunderȱprotest,ȱthatȱ

Crane’sȱflangesȱwereȱoutsideȱtheȱscopeȱofȱtheȱOrder.ȱȱFinalȱResultsȱofȱRedeterminationȱ

PursuantȱtoȱCourtȱOrder,ȱECFȱNo.ȱ58Ȭ1.ȱȱTheȱcourtȱconcludedȱinȱCraneȱIIȱthatȱtheȱSecondȱ

RemandȱRedeterminationȱwasȱpreliminaryȱtoȱanȱactualȱscopeȱdeterminationȱand,ȱ

therefore,ȱnotȱinȱaȱformȱinȱwhichȱitȱcouldȱgoȱintoȱeffectȱifȱsustainedȱuponȱjudicialȱreview.ȱȱ

ȱ 2ȱTheȱcourtȱrecentlyȱsustainedȱtheȱDepartment’sȱdetermination,ȱsubmittedȱunderȱ

protestȱfollowingȱthisȱcourt’sȱdecisionȱinȱStarȱPipeȱProds.ȱv.ȱUnitedȱStates,ȱ46ȱCITȱ__,ȱ607ȱ F.ȱSupp.ȱ3dȱ1192ȱ(2022)ȱ(“StarȱPipeȱIV”),ȱthatȱStarȱPipe’sȱflangesȱareȱoutsideȱtheȱscopeȱofȱ theȱOrder.ȱȱStarȱPipeȱProds.ȱv.ȱUnitedȱStates,ȱ48ȱCITȱ__,ȱSlipȱOp.ȱNo.ȱ24Ȭ28ȱ(Mar.ȱ6,ȱ2024)ȱ (“StarȱPipeȱV”).ȱ CourtȱNo.ȱ18Ȭ00248ȱ Pageȱ6ȱ ȱ CraneȱII,ȱ46ȱCITȱatȱ__,ȱ607ȱF.ȱSupp.ȱ3dȱatȱ1209ȱ(2022).ȱȱConcludingȱthatȱtheȱSecondȱ

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684 F. Supp. 3d 1378, 2024 CIT 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcc-holdings-v-united-states-cit-2024.