Rubbermaid Commercial Prods. LLC v. United States

2015 CIT 79
United States Court of International Trade·Decided July 22, 2015·No. 11-00463·Published

Opinion

Slip Op. 15- 79

UNITED STATES COURT OF INTERNATIONAL TRADE RUBBERMAID COMMERCIAL PRODUCTS LLC, :

Plaintiff, :

v. : Court No. 11-00463 UNITED STATES, :

Defendant. :

[Sustaining Commerce’s remand results revising interpretation of exclusions from scope of antidumping and countervailing duty orders on aluminum extrusions from the People’s Republic of China]

Dated: July 22, 2015

Daniel J. Cannistra and Alexander H. Schaefer, Crowell & Moring LLP, of Washington, D.C., for Plaintiff.

Tara K. Hogan, Senior Trial Counsel, Commercial Litigation Branch, Civil Division, U.S.

Department of Justice, of Washington, D.C., for Defendant. With her on the brief were Benjamin C. Mizer, Acting Assistant Attorney General, and Jeanne E. Davidson, Director, and Reginald T. Blades, Jr., Assistant Director, Commercial Litigation Branch. Of counsel on the brief was Jessica M. Link, Office of the Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, D.C.

OPINION

RIDGWAY, Judge:

In this action, Plaintiff Rubbermaid Commercial Products LLC (“Rubbermaid”) – a U.S.

importer of certain cleaning system components – contested the determination of the U.S. Department of Commerce (“Commerce”) that 13 of the company’s products were within the scope of the antidumping and countervailing duty orders on aluminum extrusions from the People’s Republic of China. See Final Scope Ruling on Certain Cleaning System Components (Oct. 25, 2011) (“Scope Ruling”); Aluminum Extrusions from the People’s Republic of China: Antidumping

Court No. 11-00463 Page 2

Duty Order, 76 Fed. Reg. 30,650 (May 26, 2011) (“Antidumping Duty Order”); Aluminum Extrusions From the People’s Republic of China: Countervailing Duty Order, 76 Fed. Reg. 30,653 (May 26, 2011) (“Countervailing Duty Order”).

Each of the 13 Rubbermaid products at issue consists of one or more aluminum extrusions, along with other components. The products include a variety of mop frames and handles, as well as mopping kits. The mop frames and handles are specially designed to be interchangeable, and feature swiveling mounts that allow users to connect any mop frame, for instance, to any handle in Rubbermaid’s cleaning system. The products’ interchangeable design also gives users the ability to attach a variety of damp or dry mops and cleaning cloths to any frame.

Rubbermaid argued that its 13 products should be excluded from the coverage of the Antidumping and Countervailing Duty Orders based on language defining the scope of the Orders to exclude “finished merchandise” and “finished goods kits.” The Orders state:

The scope . . . excludes finished merchandise containing aluminum extrusions as parts that are fully and permanently assembled and completed at the time of entry, such as finished windows with glass, doors with glass or vinyl, picture frames with glass pane and backing material, and solar panels. The scope also excludes finished goods containing aluminum extrusions that are entered unassembled in a “finished goods kit.” A finished goods kit is understood to mean a packaged combination of parts that contains, at the time of importation, all of the necessary parts to fully assemble a final finished good and requires no further finishing or fabrication, such as cutting or punching, and is assembled “as is” into a finished product. An imported product will not be considered a “finished goods kit” and therefore excluded from the scope of the investigation merely by including fasteners such as screws, bolts, etc. in the packaging with an aluminum extrusion product.

Antidumping Duty Order, 76 Fed. Reg. at 30,651 (emphases added); Countervailing Duty Order, 76 Fed. Reg. at 30,654 (emphases added).

In sum and substance, Commerce’s Scope Ruling stated that the bulk of the Rubbermaid

Court No. 11-00463 Page 3

products at issue (i.e., the mop frames and handles)1 were no different from the retractable awnings and the baluster kits that the agency had previously ruled to be within the scope of the Orders. See generally Scope Ruling at 9 (discussing Issues and Decision Memorandum for the Final Determination in the Less-Than-Fair-Value Investigation of Aluminum Extrusions from the People’s Republic of China at 27-28 (Comment 3.H) (April 4, 2011) (“Baluster Kits Scope Determination”); Final Scope Ruling on Certain Retractable Awning Mechanisms (Oct. 14, 2011) (“Retractable Awnings Scope Ruling”)).

Commerce’s Scope Ruling here explained that, in its Retractable Awnings Scope Ruling, the agency concluded that imported awnings “lacked the integral components necessary to assemble full and complete finished goods kits” because they did not include the fabric covers, and, thus, the awnings “did not constitute a packaged combination of parts that contains, at the time of importation, all of the necessary parts to fully assemble a final finished good.” See Scope Ruling at 9 (quoting Retractable Awnings Scope Ruling). The Scope Ruling here also noted that Commerce had similarly concluded that baluster kits “were within the scope of the Order[s] because they represented a ‘packaged collection of individual parts, which comprised a single element of a railing or deck system, and, therefore, did not represent a finished product.’” Id. (quoting Baluster Kits Scope Determination).

The Scope Ruling further stated that, like the retractable awnings and the baluster kits, Rubbermaid’s products are designed to function only when used in conjunction with other products

1 Rubbermaid’s mop frames and handles were entered into the United States as fully assembled merchandise, but the mopping kits were not. Rubbermaid therefore argued that the mop frames and handles were subject to the “finished merchandise” exclusion, and that the mopping kits were subject to the exclusion for “finished goods kits.”

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(here, mop heads) that are not included at the time of importation. See Scope Ruling at 9. The Scope Ruling therefore concluded that the Rubbermaid merchandise at issue did not constitute “finished merchandise” and thus did not satisfy the criteria for the “finished merchandise” exclusion. Id.

As to Rubbermaid’s mopping kits, the Scope Ruling similarly stated that a complete mopping kit would require inclusion of a mop head. Scope Ruling at 9. Because the mopping kits lack the interchangeable, disposable mop heads at the time of importation, the Scope Ruling concluded that the mopping kits did not constitute “finished goods kits” and thus fell within the scope of the Orders. Id.

Rubbermaid prevailed on its Motion for Judgment on the Agency Record challenging the Scope Ruling, and this matter was remanded to Commerce for further consideration. See generally Rubbermaid Commercial Products LLC v. United States, 38 CIT ____, 2014 WL 4723733 (2014). Now pending are Commerce’s Final Results of Redetermination Pursuant to Court Remand, and the parties’ comments on those results. See generally Final Results of Redetermination Pursuant to Court Remand (“Remand Results”); Comments on Results of Redetermination (“Pl.’s Comments on Remand Results”); Defendant’s Response to Plaintiff’s Comments on the Remand Redetermination (“Def.’s Response to Pl.’s Comments on Remand Results”).

In the Remand Results, Commerce “clarified [the agency’s] interpretation of the exclusion[s]

. . . for ‘finished merchandise’ and ‘finished goods kits.’” Remand Results at 13. Based on those clarifications, the Remand Results concluded that all of the Rubbermaid merchandise falls within one or the other of the two exclusions and is therefore beyond the scope of the Antidumping and

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Countervailing Duty Orders. See id. at 2, 14-15, 16-17, 24, 28; see also id. at 11-12 (summarizing Draft Remand Results).

For the reasons summarized below, the Remand Results must be sustained.

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Rubbermaid Commercial Prods. LLC v. United States, 2015 CIT 79 (cit 2015).

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