Sango International L.P. v. United States

556 F. Supp. 2d 1327, 32 Ct. Int'l Trade 316, 32 C.I.T. 316, 2008 Ct. Intl. Trade LEXIS 38
United States Court of International Trade·Decided April 3, 2008·No. Slip Op. 08-37; Court 05-00145·Published·Cited by 2 cases

Opinion

OPINION

BARZILAY, Judge.

This case returns to the court following a redetermination by the U.S. Department of Commerce (“Commerce”) pursuant to the court’s remand order in Sango Int’l L.P. v. United States, Slip Op. 07-101, 2007 WL 1888342 (July 2, 2007) (not reported in F.Supp.) (“Sango III”). 1 Plaintiff Sango International L.P. challenges Commerce’s final scope ruling, which determined that gas meter swivels and nuts fell within the scope of the antidumping order on certain malleable iron pipe fittings from China. See Final Scope Ruling on Whether Meter Swivels and Meter Nuts are Excluded from the Scope of the Antidumping Duty Order on Malleable Iron Pipe Fittings from the People’s Republic of China (ITA Jan. 11, 2005) (‘Final Scope Ruling”); Antidumping Duty Order: Certain Malleable Iron Pipe Fittings from the People’s Republic of China, 68 Fed.Reg. 69,376, 69,377 (Dep’t Commerce Dec. 12, 2003) (the “AD Order”). For the reasons stated herein, the court now holds that substantial evidence supports Commerce’s conclusion that gas meter swivels and nuts are within the scope of the AD Order. See Final Redetermination Pursuant to Court Remand: Sango International L.P. v. United States (ITA Oct. 26, 2007) (“Final Redetermination”), available at http://ia.ita.doc.gov/remands/ 07-101.pdf. Therefore, Commerce’s Final Redetermination is affirmed.

I. Background

In its January 2005 Final Scope Ruling, Commerce determined that gas meter swivels and nuts fall within the scope of the AD Order based on its conclusions that the scope language was dispositive and that further analysis under the 19 C.F.R. § 351.225(k)(2) criteria was unnecessary. 2 See Final Scope Ruling at 14. Plaintiff appealed the ruling to this court, alleging that Commerce’s holding was unsupported by substantial evidence on the record. See Sango I, 30 CIT at --•, 429 F.Supp.2d at 1357.

The court affirmed Commerce’s ruling, holding that the facts presented in the administrative record when read together “in the light of the [AD Order ]’s language, reasonably provide adequate evidence to place gas meter swivels and gas meter nuts within the scope of the [AD Order]. ” Id. at-, 429 F.Supp.2d at 1362. Finding that “the language of the antidumping petition, [the] administrative factual findings and legal conclusions, and the preliminary antidumping order dispositively place[d] gas meter swivels and gas meter *1331 nuts within the scope of the antidumping order,” this court held that Commerce “did not err by not examining the Diversified Products factors in 19 C.F.R. § 351.225(k)(2)....” Id. at -, 429 F.Supp.2d at 1362 n. 10; see Diversified Prods. Corp. v. United States, 6 CIT 155, 162, 572 F.Supp. 883, 889 (1983) (setting out scope inquiry criteria that were subsequently codified in § 351.225(k)(2)). Plaintiff then appealed.

In May 2007, the Federal Circuit reversed and remanded with instructions that Commerce “consider the criteria in section 351.225(k)(2) in arriving at a scope determination,” making clear that it “express[ed] no views as to what the results of that determination should be.” Sango II, 484 F.3d at 1382 & n. 10. The Federal Circuit explained that “when the criteria set forth in section 351.225(k)(l) — the description of the merchandise contained in the antidumping petition, the initial investigation by Commerce and the Commission, and the determinations of Commerce and the Commission — are not ‘dispositive,’ then Commerce must, in issuing its scope ruling, ‘further consider’ the criteria set forth in section 351.225(k)(2).” Id. at 1379.

The case was remanded to Commerce on July 2, 2007, for “consider[ation of] the factors set forth in 19 C.F.R. § 351.225(k)(2)....” Sango III, Slip Op. 07-101, 2007 WL 1888342, at * 1. After releasing a draft remand determination to interested parties in September 2007, Commerce received comments from Plaintiff, as well as Defendanh-Intervenors Ward Manufacturing, Inc. and Anvil International, Inc., regarding the new evidence and arguments that Plaintiff placed on the record. In October 2007, Commerce adopted the findings in its draft and filed its final remand redetermination with the Court. See generally Final Redetermination. Specifically, Commerce found that

the physical characteristics of the merchandise at issue, the expectations of the ultimate purchasers, the ultimate use, and the channels of trade in which gas meter swivels and nuts are sold are the same as the type of merchandise covered by the scope of the [AD Order] on [malleable iron pipe fittings (“MIPF”) ] from the PRC.[ 3 ] We further found that the manner in which gas meter swivels and nuts are advertised is not the same as MIPF covered by the [AD Order], However, we determined that the manner in which gas meter swivels and nuts are advertised alone is not enough to determine that gas meter swivels and nuts fall outside the scope of the [AD Order].

Id. at 18. Based on these findings, Commerce ultimately concluded that “gas meter swivels and nuts are within the scope of the [AD Order].” Id. Plaintiff then brought this action to contest Commerce’s Final Redetermination.

II. Standard of Review

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Sango International L.P. v. United States, 556 F. Supp. 2d 1327, 32 Ct. Int'l Trade 316, 32 C.I.T. 316, 2008 Ct. Intl. Trade LEXIS 38 (cit 2008).

556 F. Supp. 2d 1327 (Sango International L.P. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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