Polites v. United States

465 F. App'x 962
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 7, 2012
Docket2011-1606
StatusUnpublished
Cited by2 cases

This text of 465 F. App'x 962 (Polites 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
Polites v. United States, 465 F. App'x 962 (Fed. Cir. 2012).

Opinion

PER CURIAM.

This case concerns a determination by the Department of Commerce that certain imported steel pipe is covered by anti-dumping and countervailing duty orders applicable to pipe imported from China. Plaintiff Constantine M. Polites filed a complaint in the Court of International Trade contending that his steel pipe imports are exempt from the antidumping and countervailing duties because they fall within an exclusion to the duty orders for finished scaffolding. The court upheld Commerce’s interpretation of the anti-dumping and countervailing duty orders as covering Mr. Polites’s imports. We affirm.

I

In 2008, Commerce issued an antidump-ing duty order and a countervailing duty order on circular welded carbon quality steel pipe imported from the People’s Republic of China. See Circular Welded Carbon Quality Steel Pipe from the People’s Republic of China, 73 Fed.Reg. 42,-547 (July 22, 2008) (notice of antidumping duty order); Circular Welded Carbon Quality Steel Pipe from the People’s Republic of China, 73 Fed.Reg. 42,545 (July 22, 2008) (notice of countervailing duty order). The orders covered certain welded carbon pipes and tubes of specified diameters, “regardless of wall thickness, surface finish ..., end finish ..., or industry specification ..., generally known as standard pipe and structural pipe.” The orders excluded several types of pipe products, among them “finished scaffolding.” The scope of that exclusion is the disputed issue in this case.

Mr. Polites imports galvanized high-strength finished steel tubing from China and uses it in the construction of tube and coupler scaffolding. In April 2008, his Chinese supplier informed him that the United States was considering imposing antidumping duties on circular welded steel pipe. Mr. Polites requested a scope ruling from Commerce regarding the importation of such pipe, asserting that the products he imports “are in fact finished scaffolding products” and should be excluded from the steel pipe antidumping and countervailing duty orders. Commerce disagreed. In a memorandum dated August 12, 2009, Commerce concluded that Mr. Polites’s scaffolding tubes did not qualify for the exclusion and fell within the scope of the orders.

Mr. Polites challenged that scope ruling by filing an action in the Court of International Trade. After the action was filed, Commerce requested a voluntary remand to allow it to articulate a definition of the “finished scaffolding” exclusion. The court granted the request and remanded the matter. Commerce then defined “finished scaffolding” as “completed supported elevated platforms” and “component parts that enter the United States unassembled as a ‘kit.’ ” Based on that definition, Commerce once again concluded that Mr. Po-lites’s imports did not meet the definition of “finished scaffolding” and that they remained subject to the antidumping and countervailing duty orders.

Mr. Polites continued to press his case before the Court of International Trade. He asserted that Commerce’s definition of “finished scaffolding” as fully assembled *964 elevated platforms was unreasonable because it would be impractical to import merchandise fitting that description. The court agreed, finding that “nothing in the record demonstrates merchandise matching this definition is imported into the United States or is even possibly imported into the United States.” Polites v. United States, 755 F.Supp.2d 1352, 1357 (Ct. Int’l Trade 2011). The court therefore held that part of the definition to be surplusage. Id. With respect to the “kit” part of the definition, the court found that there was no “showing that scaffolding kits are or may be imported into the United States as complete kits.” Id. at 1358. The court therefore remanded the case to Commerce to determine whether scaffolding kits were being, or were capable of being, imported into the United States. Id. at 1359.

On remand, Commerce pointed to evidence that Chinese-origin scaffolding kits were being imported, or at least were capable of being imported, into the United States. That evidence consisted of (1) excerpts from the websites of several Chinese companies that sold scaffolding kits and listed the United States as an export market; (2) a product listing and a shipping manifest from “Eternal Star,” a Chinese company, reflecting the importation of scaffolding kits into the United States; (3) a Customs and Border Protection tariff classification ruling that referred to a particular importer’s intention to import “scaffolding rollers both alone and in combination with the complete unassembled steel scaffolding”; and (4) evidence that scaffolding kits are classified under the Harmonized Tariff Schedule of the United States (“HTSUS”) category 7308.40.00.00 and that a significant number of Chinese products had been imported into the United States under that tariff classification. Based on that evidence, Commerce ruled that the steel tubes imported by Mr. Po-lites fell within the scope of the antidump-ing and countervailing duty orders and did not satisfy the exclusion for finished scaffolding.

Mr. Polites challenged Commerce’s decision in the Court of International Trade. The court, however, affirmed. Polites v. United States, 780 F.Supp.2d 1351 (Ct. Int’l Trade 2011). Relying on the “Eternal Star” and tariff ruling evidence, the court concluded that “[t]ogether, these two pieces of evidence support the conclusion that scaffolding kits have been imported in the past and that some importers at least intend to import scaffolding kits into the United States.” 1 Id. at 1356. Therefore, the court ruled that the record evidence supported Commerce’s definition of “finished scaffolding” to include scaffolding kits and that Mr. Polites’s imported tubes did not fall within the scope of the “finished scaffolding” exclusion. Id. at 1356-57.

II

On appeal, Mr. Polites makes a number of arguments, some of which are not properly within the scope of this appeal. He contends that the Court of International Trade failed to take into account that there was no domestic manufacturer of the specified material and no record of economic harm or potential economic harm to any *965 domestic industry from materials such as his imports. Those arguments, however, go to the question whether an antidumping duty order or a countervailing duty order should have been issued in the first instance; they are not properly raised in a “scope determination” proceeding, which is limited to defining the proper scope of an issued order.

With respect to the issues properly before the court, Mr. Polites contends that the examples of kits that Commerce presented as evidence that “finished scaffolding” was being imported into the United States included only fabricated elements and did not include plain lengths of tubing. Because such kits lacked plain tubing, he argues, they would not be subject to the antidumping or countervailing duty orders in any event and thus, according to Mr. Polites, such kits were not suitable examples of goods that would be classified under the language of the exclusion.

In challenging Commerce’s scope ruling, Mr. Polites must show that the ruling is “unsupported by substantial evidence on the record, or otherwise not in accordance with law.” 19 U.S.C.

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