SeAH Steel VINA Corp. v. United States
This text of 2025 CIT 157 (SeAH Steel VINA Corp. 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.
Opinion
Slip Op. 25-157
UNITED STATES COURT OF INTERNATIONAL TRADE
SEAH STEEL VINA CORPORATION,
Plaintiff,
v.
UNITED STATES,
Defendant, Before: Mark A. Barnett, Chief Judge and Court Nos. 23-00256, 23-00257, 23-00258 BULL MOOSE TUBE COMPANY; MARUICHI AMERICAN CORPORATION; WHEATLAND TUBE COMPANY; THE UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION, AFL-CIO, CLC; AND NUCOR TUBULAR PRODUCTS INC.,
Defendant-Intervenors.
OPINION AND ORDER
[Remanding the U.S. Department of Commerce’s affirmative finding of circumvention of the antidumping duty and countervailing duty orders on certain circular welded steel pipe products from the Republic of Korea, India, and the People’s Republic of China.]
Dated: December 16, 2025
Jeffrey M. Winton, Amrietha Nellan, and Vi N. Mai, Winton & Chapman PLLC, of Washington, DC, argued for Plaintiff SeAH Steel VINA Corporation. Also on the brief were Jooyoun Jeong and Ruby Rodriguez.
Tate Walker, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, argued for Defendant United States. On the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. Court Nos. 23-00256, 23-00257, 23-00258 Page 2
McCarthy, Director, Franklin E. White, Jr., Assistant Director, and Stephen C. Tosini, Senior Trial Counsel. Of counsel was Vania Y. Wang, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, DC.
Jeffrey D. Gerrish, Schagrin Associates, of Washington, DC, argued for Defendant- Intervenors Bull Moose Tube Company; Maruichi American Corporation; Wheatland Tube Company; The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC. Also on the brief were Roger B. Schagrin and Nicholas C. Phillips.
Alan H. Price, Robert E. DeFrancesco, III, Jake R. Frischknecht, Theodore P. Brackemyre, Kimberly A. Reynolds, and Paul A. Devamithran, Wiley Rein LLP, of Washington, DC, for Defendant-Intervenor Nucor Tubular Products Inc.
Barnett, Chief Judge: These cases come to the court as parallel challenges to
three circumvention determinations by the U.S. Department of Commerce (“Commerce”
or “the agency”). All orders concern some type of circular welded steel pipe (“CWP”)
(and tube, in the case of India) exported from the Socialist Republic of Vietnam
(“Vietnam”) and made using hot-rolled steel (“HRS”) produced in the Republic of Korea
(“Korea”), India, or the People’s Republic of China (“China”) (collectively referred to as
“CWP products”). See Certain Circular Welded Non-Alloy Steel Pipe From the Republic
of Korea, 88 Fed. Reg. 77,270 (Dep’t Commerce Nov. 9, 2023) (final affirmative
determination of circumvention of the antidumping duty order) (“Korea Final
Determination”), and accompanying Issues & Decision Mem., A-580-809 (Nov. 2, 2023)
(“Korea I&D Mem.”); 1 Certain Welded Carbon Steel Standard Pipes and Tubes From
1 Plaintiff challenged Korea Final Determination in Court No. 23-00256. The Administrative Record for that determination is divided into a Public Administrative Record, ECF No. 28-1, and a Confidential Administrative Record, ECF No. 28-2; see also Analysis for the Prelim. Determination of the Antidumping Duty Investigation of CWP from Vietnam, A-552-811 (May 23, 2012), ECF No. 40-1 (contained in the Court Nos. 23-00256, 23-00257, 23-00258 Page 3
India, 88 Fed. Reg. 77,279 (Dep’t Commerce Nov. 9, 2023) (final affirmative
determination of circumvention of the antidumping duty order) (“India Final
Determination”), and accompanying Issues & Decision Mem., A-533-502 (Nov. 2, 2023)
(“India I&D Mem.”); 2 Circular Welded Carbon Quality Steel Pipe From the People’s
Republic of China, 88 Fed. Reg. 77,287 (Dep’t Commerce Nov. 9, 2023) (final
affirmative determination of circumvention of the antidumping duty and countervailing
duty orders) (“China Final Determination”), and accompanying Issues & Decision Mem.,
A-570-910/C-570-911 (Nov. 2, 2023) (“China I&D Mem.”)3 (collectively, “Circumvention
Determinations”). In these Circumvention Determinations, Commerce found that
administrative record pursuant to Slip Op. 24-134 (Dec. 5, 2024)). The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices containing record documents from that proceeding that were cited in the parties’ briefs. See Confid. J.A. (“23-256 CJA”), ECF Nos. 55–58; Public J.A. (“23-256 PJA”), ECF Nos. 59–62. Except for citations to documents contained in the respective joint appendices filed in each case, ECF citations are to filings in Court No. 23-00256. 2 Plaintiff challenged India Final Determination in Court No. 23-00257. The
Administrative Record for that determination is filed on that court docket and is divided into a Public Administrative Record, ECF No. 28-1, and a Confidential Administrative Record, ECF No. 28-2. The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices on the docket of that case containing record documents from India Final Determination that were cited in the parties’ briefs. See Confid. J.A. (“23-257 CJA”), ECF Nos. 50–55; Public J.A. (“23-257 PJA”), ECF Nos. 56–59. 3 Plaintiff challenged China Final Determination in Court No. 23-00258. The
Administrative Record for that determination is filed on that court docket and is divided into a Public Administrative Record, ECF Nos. 30-1 (antidumping), 30-3 (countervailing duty), and a Confidential Administrative Record, ECF No. 30-2 (antidumping). The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices on the docket of that case containing record documents from China Final Determination that were cited in the parties’ briefs. See Confid. J.A. (“23-258 CJA”), ECF Nos. 52–58; Public J.A. (“23-258 PJA”), ECF Nos. 59–62. Court Nos. 23-00256, 23-00257, 23-00258 Page 4
imports of certain CWP products completed in Vietnam using HRS inputs produced in
Korea, India, or China were circumventing antidumping duty (“AD”) or countervailing
duty (“CVD”) orders on CWP products from these countries.
Plaintiff SeAH Steel VINA Corporation (“SeAH”), a producer and exporter of
CWP products from Vietnam, challenged the Circumvention Determinations in three
separate actions, which the court joined for consideration in this proceeding. 4 Plaintiff
filed a motion for judgment on the agency record for these joined cases pursuant to U.S.
Court of International Trade Rule 56.2. Confid. Br. of Pl. [SeAH] in Supp. of its Rule
56.2 Mot. for J. on the Agency R. (“Pl.’s Br.”), ECF No. 38-1; see also Reply Br. of Pl.
[SeAH] (“Pl.’s Reply”), ECF No. 51. Defendant United States and Defendant-
Intervenors support Commerce’s determinations. See Def.’s Resp. to Pl.’s Mot. for J.
on the Admin. Rs. (“Def.’s Resp.”), ECF No. 42; Def-Ints.’ Resp. in Opp’n to Pl.’s Rule
56.2 Mot. for J. on the Agency R. (“Def.-Ints.’ Resp.”), ECF No. 44. 5 For the reasons
4 Defendant-Intervenors moved to consolidate these cases. Mot. to Consolidate, ECF No. 32. Defendant opposed that motion. Def.’s Opp’n to Def.-Ints.’ Mot. to Consolidate, ECF No. 33.
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Slip Op. 25-157
UNITED STATES COURT OF INTERNATIONAL TRADE
SEAH STEEL VINA CORPORATION,
Plaintiff,
v.
UNITED STATES,
Defendant, Before: Mark A. Barnett, Chief Judge and Court Nos. 23-00256, 23-00257, 23-00258 BULL MOOSE TUBE COMPANY; MARUICHI AMERICAN CORPORATION; WHEATLAND TUBE COMPANY; THE UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION, AFL-CIO, CLC; AND NUCOR TUBULAR PRODUCTS INC.,
Defendant-Intervenors.
OPINION AND ORDER
[Remanding the U.S. Department of Commerce’s affirmative finding of circumvention of the antidumping duty and countervailing duty orders on certain circular welded steel pipe products from the Republic of Korea, India, and the People’s Republic of China.]
Dated: December 16, 2025
Jeffrey M. Winton, Amrietha Nellan, and Vi N. Mai, Winton & Chapman PLLC, of Washington, DC, argued for Plaintiff SeAH Steel VINA Corporation. Also on the brief were Jooyoun Jeong and Ruby Rodriguez.
Tate Walker, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, argued for Defendant United States. On the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, Patricia M. Court Nos. 23-00256, 23-00257, 23-00258 Page 2
McCarthy, Director, Franklin E. White, Jr., Assistant Director, and Stephen C. Tosini, Senior Trial Counsel. Of counsel was Vania Y. Wang, Office of Chief Counsel for Trade Enforcement and Compliance, U.S. Department of Commerce, of Washington, DC.
Jeffrey D. Gerrish, Schagrin Associates, of Washington, DC, argued for Defendant- Intervenors Bull Moose Tube Company; Maruichi American Corporation; Wheatland Tube Company; The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC. Also on the brief were Roger B. Schagrin and Nicholas C. Phillips.
Alan H. Price, Robert E. DeFrancesco, III, Jake R. Frischknecht, Theodore P. Brackemyre, Kimberly A. Reynolds, and Paul A. Devamithran, Wiley Rein LLP, of Washington, DC, for Defendant-Intervenor Nucor Tubular Products Inc.
Barnett, Chief Judge: These cases come to the court as parallel challenges to
three circumvention determinations by the U.S. Department of Commerce (“Commerce”
or “the agency”). All orders concern some type of circular welded steel pipe (“CWP”)
(and tube, in the case of India) exported from the Socialist Republic of Vietnam
(“Vietnam”) and made using hot-rolled steel (“HRS”) produced in the Republic of Korea
(“Korea”), India, or the People’s Republic of China (“China”) (collectively referred to as
“CWP products”). See Certain Circular Welded Non-Alloy Steel Pipe From the Republic
of Korea, 88 Fed. Reg. 77,270 (Dep’t Commerce Nov. 9, 2023) (final affirmative
determination of circumvention of the antidumping duty order) (“Korea Final
Determination”), and accompanying Issues & Decision Mem., A-580-809 (Nov. 2, 2023)
(“Korea I&D Mem.”); 1 Certain Welded Carbon Steel Standard Pipes and Tubes From
1 Plaintiff challenged Korea Final Determination in Court No. 23-00256. The Administrative Record for that determination is divided into a Public Administrative Record, ECF No. 28-1, and a Confidential Administrative Record, ECF No. 28-2; see also Analysis for the Prelim. Determination of the Antidumping Duty Investigation of CWP from Vietnam, A-552-811 (May 23, 2012), ECF No. 40-1 (contained in the Court Nos. 23-00256, 23-00257, 23-00258 Page 3
India, 88 Fed. Reg. 77,279 (Dep’t Commerce Nov. 9, 2023) (final affirmative
determination of circumvention of the antidumping duty order) (“India Final
Determination”), and accompanying Issues & Decision Mem., A-533-502 (Nov. 2, 2023)
(“India I&D Mem.”); 2 Circular Welded Carbon Quality Steel Pipe From the People’s
Republic of China, 88 Fed. Reg. 77,287 (Dep’t Commerce Nov. 9, 2023) (final
affirmative determination of circumvention of the antidumping duty and countervailing
duty orders) (“China Final Determination”), and accompanying Issues & Decision Mem.,
A-570-910/C-570-911 (Nov. 2, 2023) (“China I&D Mem.”)3 (collectively, “Circumvention
Determinations”). In these Circumvention Determinations, Commerce found that
administrative record pursuant to Slip Op. 24-134 (Dec. 5, 2024)). The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices containing record documents from that proceeding that were cited in the parties’ briefs. See Confid. J.A. (“23-256 CJA”), ECF Nos. 55–58; Public J.A. (“23-256 PJA”), ECF Nos. 59–62. Except for citations to documents contained in the respective joint appendices filed in each case, ECF citations are to filings in Court No. 23-00256. 2 Plaintiff challenged India Final Determination in Court No. 23-00257. The
Administrative Record for that determination is filed on that court docket and is divided into a Public Administrative Record, ECF No. 28-1, and a Confidential Administrative Record, ECF No. 28-2. The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices on the docket of that case containing record documents from India Final Determination that were cited in the parties’ briefs. See Confid. J.A. (“23-257 CJA”), ECF Nos. 50–55; Public J.A. (“23-257 PJA”), ECF Nos. 56–59. 3 Plaintiff challenged China Final Determination in Court No. 23-00258. The
Administrative Record for that determination is filed on that court docket and is divided into a Public Administrative Record, ECF Nos. 30-1 (antidumping), 30-3 (countervailing duty), and a Confidential Administrative Record, ECF No. 30-2 (antidumping). The public record filings also contain the relevant Federal Register notice and Issues and Decision Memorandum. Plaintiff submitted joint appendices on the docket of that case containing record documents from China Final Determination that were cited in the parties’ briefs. See Confid. J.A. (“23-258 CJA”), ECF Nos. 52–58; Public J.A. (“23-258 PJA”), ECF Nos. 59–62. Court Nos. 23-00256, 23-00257, 23-00258 Page 4
imports of certain CWP products completed in Vietnam using HRS inputs produced in
Korea, India, or China were circumventing antidumping duty (“AD”) or countervailing
duty (“CVD”) orders on CWP products from these countries.
Plaintiff SeAH Steel VINA Corporation (“SeAH”), a producer and exporter of
CWP products from Vietnam, challenged the Circumvention Determinations in three
separate actions, which the court joined for consideration in this proceeding. 4 Plaintiff
filed a motion for judgment on the agency record for these joined cases pursuant to U.S.
Court of International Trade Rule 56.2. Confid. Br. of Pl. [SeAH] in Supp. of its Rule
56.2 Mot. for J. on the Agency R. (“Pl.’s Br.”), ECF No. 38-1; see also Reply Br. of Pl.
[SeAH] (“Pl.’s Reply”), ECF No. 51. Defendant United States and Defendant-
Intervenors support Commerce’s determinations. See Def.’s Resp. to Pl.’s Mot. for J.
on the Admin. Rs. (“Def.’s Resp.”), ECF No. 42; Def-Ints.’ Resp. in Opp’n to Pl.’s Rule
56.2 Mot. for J. on the Agency R. (“Def.-Ints.’ Resp.”), ECF No. 44. 5 For the reasons
4 Defendant-Intervenors moved to consolidate these cases. Mot. to Consolidate, ECF No. 32. Defendant opposed that motion. Def.’s Opp’n to Def.-Ints.’ Mot. to Consolidate, ECF No. 33. Plaintiff “believe[d] that the three appeals should be consolidated but only for the purposes of briefing and argument, while the joint appendix for each appeal should be prepared and submitted separately.” Pl.’s Resp. to Mot. to Consolidate at 1, ECF No. 34. The court “joined [the cases] for hearing and decision” and ordered the parties to submit a separate joint appendix for each case. Order (Apr. 9, 2024) at 2, ECF No. 35. 5 Defendant-Intervenors are Bull Moose Tube Company; Maruichi American
Corporation; Wheatland Tube Company; the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL- CIO, CLC; and Nucor Tubular Products, Inc (“Nucor”). Nucor joined the response brief filed by the other Defendant-Intervenors but did not participate in the oral argument. Court Nos. 23-00256, 23-00257, 23-00258 Page 5
discussed below, the court remands the Circumvention Determinations for
reconsideration or further explanation consistent with this opinion.
BACKGROUND
I. Legal Framework
If certain criteria are met through investigations by Commerce and the U.S.
International Trade Commission (“ITC”), the United States may impose antidumping and
countervailing duty orders on goods determined to be sold in the U.S. market at less
than fair value or subsidized by a foreign government and materially injuring a U.S.
industry. See 19 U.S.C. §§ 1671, 1673 (governing countervailing and antidumping
duties, respectively).
To prevent companies from avoiding or circumventing such orders, among other
things, Congress authorized Commerce, upon making certain findings, to include
“[m]erchandise completed or assembled in other foreign countries” within the scope of
the orders. Id. § 1677j(b). Three subsections guide Commerce’s decision making.
Pursuant to subsection (b)(1), Commerce must determine that five enumerated
statutory requirements are met to reach an affirmative determination. Id.
§ 1677j(b)(1)(A)–(E). First, the merchandise imported into the United States must be “of
the same class or kind” of merchandise that is subject to the duty order. Id.
§ 1677j(b)(1)(A). Second, the imported merchandise must have been “completed or
assembled in another foreign country from merchandise which . . . is subject to such an
order or finding, or . . . is produced in the foreign country with respect to which such
order or finding applies.” Id. § 1677j(b)(1)(B). Third, “the process of assembly or Court Nos. 23-00256, 23-00257, 23-00258 Page 6
completion” must be “minor or insignificant.” Id. § 1677j(b)(1)(C). Fourth, “the value of
the merchandise produced in the foreign country” to which the antidumping duty order
applies 6 must be “a significant portion of the total value of the merchandise exported to
the United States.” Id. § 1677j(b)(1)(D). Finally, Commerce must “determine[] that
action is appropriate . . . to prevent evasion of such order.” Id. § 1677j(b)(1)(E). These
factors comprise the “so-called mandatory factors,” meaning they are required for an
affirmative circumvention finding. Uruguay Round Agreements Act, Statement of
Administrative Action (“SAA”), H.R. Doc. No. 103–316 vol. 1, at 893 (1994), reprinted in
1994 U.S.C.C.A.N. 4040, 4216. 7
To determine if the process of assembly or completion is “minor or insignificant,”
subsection (b)(2) requires Commerce to “take into account”:
(A) the level of investment in the foreign country, (B) the level of research and development in the foreign country, (C) the nature of the production process in the foreign country (D) the extent of production facilities in the foreign country, and (E) whether the value of the processing performed in the foreign country represents a small proportion of the value of the merchandise imported into the United States.
19 U.S.C. § 1677j(b)(2).
Finally, subsection (b)(3) directs Commerce to consider the following factors in
determining whether to include the assembled or completed merchandise in the
underlying order:
(A) the pattern of trade, including sourcing patterns,
6 The statute does not contain a parallel reference to a countervailing duty order;
however, no party has argued that the absence of such parallel language is meaningful in this litigation. 7 The SAA is the authoritative interpretation of the statute. 19 U.S.C. § 3512(d). Court Nos. 23-00256, 23-00257, 23-00258 Page 7
(B) whether the manufacturer or exporter of the merchandise [from the country subject to the order] is affiliated with the [third-country] person who uses [that] merchandise . . . to assemble or complete in the foreign country the merchandise that is subsequently imported into the United States, and (C) whether imports into the foreign country of the merchandise [from the country subject to the order] have increased after the initiation of the investigation which resulted in the issuance of such order or finding.
Id. § 1677j(b)(3).
II. Factual Background
The United States has antidumping and countervailing duty orders on various
CWP products from Korea, India, and China. Certain Welded Carbon Steel Standard
Pipes and Tubes from India, 51 Fed. Reg. 17,384 (Dep’t Commerce May 12, 1986)
(antidumping duty order); Certain Circular Welded Non-Alloy Steel Pipe from Brazil, the
Republic of Korea (Korea), Mexico, and Venezuela, 57 Fed. Reg. 49,453 (Dep’t
Commerce Nov. 2, 1992) (notice of antidumping orders; amendment to final
determination of sales at less than fair value); Circular Welded Carbon Quality Steel
Pipe from the People’s Republic of China, 73 Fed. Reg. 42,547 (Dep’t Commerce 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 (Dep’t Commerce July 22,
2008) (notice of am. final affirmative countervailing duty determination and notice of
countervailing duty order). Court Nos. 23-00256, 23-00257, 23-00258 Page 8
Commerce and the ITC investigated imports of CWP products from Vietnam in
2012 and 2016, but the investigations did not result in any duty orders. 8 In 2012,
Commerce reached an affirmative determination that CWP from Vietnam was being
sold at less than fair value. Circular Welded Carbon-Quality Steel Pipe from the
Socialist Republic of Vietnam, 77 Fed. Reg. 64,483 (Dep’t Commerce Oct. 22, 2012)
(notice of final determination of sales at less than fair value). However, Commerce did
not find that countervailable subsidies were being provided to Vietnamese CWP
producers or exporters, and the ITC reached a negative injury determination in the
antidumping investigation. Circular Welded Carbon-Quality Steel Pipe From the
Socialist Republic of Vietnam, 77 Fed. Reg. 64,471 (Dep’t Commerce Oct. 22, 2012)
(final negative countervailing duty determination); Circular Welded Carbon-Quality Steel
Pipe from India, Oman, the United Arab Emirates, and Vietnam, Inv. Nos. 701-TA-482-
484 and 731-TA-1191-1194, USITC Pub. 4362 (Dec. 2012) (final).
In 2016, Commerce again reached an affirmative determination that CWP from
Vietnam was being sold at less than fair value. Circular Welded Carbon-Quality Steel
Pipe From the Socialist Republic of Vietnam, 81 Fed. Reg. 75,042 (Dep’t Commerce
8 In each case, SeAH was selected as a mandatory respondent and individually
investigated. See Circular Welded Carbon-Quality Steel Pipe From the Socialist Republic of Vietnam, 77 Fed. Reg. 32,552 (Dep’t Commerce June 1, 2012) (prelim. determination of sales at less than fair value and postponement of final determination); Circular Welded Carbon-Quality Steel Pipe From the Socialist Republic of Vietnam, 77 Fed. Reg. 19,211 (Dep’t Commerce Mar. 30, 2012) (prelim. affirmative countervailing duty determination and alignment of final countervailing duty determination with final antidumping duty determination); Circular Welded Carbon-Quality Steel Pipe From the Socialist Republic of Vietnam, 81 Fed. Reg. 75,042 (Dep’t Commerce Oct. 28, 2016) (final determination of sales at less than fair value). Court Nos. 23-00256, 23-00257, 23-00258 Page 9
Oct. 28, 2016) (final determination of sales at less than fair value). The ITC, however,
determined that imports from Vietnam were negligible and terminated the investigation.
Circular Welded Carbon-Quality Steel Pipe from Oman, Pakistan, the United Arab
Emirates, and Vietnam, Inv. Nos. 701-TA-549, 731-TA-1299-1300, 731-TA-1299-1302-
1303, USITC Pub. 4651 (Dec. 2016) (final).
In 2022, in response to requests by domestic parties, Commerce initiated an
inquiry into whether CWP products completed in Vietnam were circumventing the
AD/CVD orders on CWP products from Korea, India, or China. Circular Welded Carbon
Quality Steel Pipe From the People’s Republic of China; Certain Circular Welded Non-
Alloy Steel Pipe From the Republic of Korea; Certain Welded Carbon Steel Standard
Pipes and Tubes From India; Certain Circular Welded Non-Alloy Steel Pipe From
Taiwan; Light-Walled Rectangular Pipe and Tube From the People’s Republic of China;
Light-Walled Rectangular Pipe and Tube From the Republic of Korea; Light-Walled
Welded Rectangular Carbon Steel Tubing From Taiwan, 87 Fed. Reg. 47,711 (Dep’t
Commerce Aug. 4, 2022) (initiation of circumvention inquiries on the antidumping and
countervailing duty orders). 9 SeAH was selected as a mandatory respondent for these
inquiries. [Korea] Resp’t Selection (Aug. 30, 2022), 23-256 CJA, ECF No. 55-1; [India]
9 Commerce issued a negative determination for circumvention of the AD orders on
CWP products from Taiwan, finding that CWP products imported into the United States during the inquiry period were not completed in Vietnam using HRS manufactured in Taiwan. Certain Circular Welded Carbon Steel Pipes and Tubes From Taiwan and Circular Welded Non-Alloy Steel Pipe From Taiwan, 88 Fed. Reg. 53,864 (Dep’t Commerce Aug. 9, 2023) (negative final determinations of circumvention of the antidumping duty orders). Court Nos. 23-00256, 23-00257, 23-00258 Page 10
Resp’t Selection (Aug. 30, 2022), 23-257 CJA, ECF No. 50-2; [China] Resp’t Selection
(Aug. 30, 2022), 23-258 CJA, ECF No. 52-2.
Commerce issued preliminary determinations of circumvention for all four orders
regarding the three countries. Certain Circular Welded Non-Alloy Steel Pipe From the
Republic of Korea, 88 Fed. Reg. 21,989 (Dep’t Commerce Apr. 12, 2023) (prelim.
affirmative determination of circumvention of the antidumping duty order), and
accompanying Prelim. Decision Mem. (Apr. 6, 2023) (“Korea Prelim. Mem.”), 23-256
PJA, ECF No. 61-2; Certain Welded Carbon Steel Standard Pipes and Tubes From
India, 88 Fed. Reg. 21,994 (Dep’t Commerce Apr. 12, 2023) (prelim. affirmative
determination of circumvention of the antidumping duty order), and accompanying
Prelim. Decision Mem. (Apr. 6, 2023) (“India Prelim. Mem.”), 23-257 PJA, ECF No. 58-
2; Circular Welded Carbon Quality Steel Pipe From the People’s Republic of China, 88
Fed. Reg. 21,975 (Dep’t Commerce Apr. 12, 2023) (prelim. affirmative determination of
circumvention of the antidumping duty and countervailing duty orders), and
accompanying Prelim. Decision Mem. (Apr. 6, 2023) (“China Prelim. Mem.”), 23-258
PJA, ECF No. 61-2.
In its final determination, Commerce continued to find that CWP products
completed or assembled in Vietnam using HRS from Korea, India or China were
circumventing the relevant duty orders. See Circumvention Determinations. These Court Nos. 23-00256, 23-00257, 23-00258 Page 11
appeals followed. The court heard oral argument on September 30, 2025. Oral Arg.
(Sept. 30, 2025), ECF No. 75. 10
JURISDICTION AND STANDARD OF REVIEW
The court has jurisdiction pursuant to section 516A(a)(2)(B)(vi) of the Tariff Act of
1930, as amended, 19 U.S.C. § 1516a(a)(2)(B)(vi) (2018), and 28 U.S.C. § 1581(c)
(2018). 11 The court will uphold an agency determination that is supported by substantial
evidence and otherwise in accordance with law. 19 U.S.C. § 1516a(b)(1)(B)(i).
DISCUSSION
I. Relevance of Prior AD/CVD Investigations
A. Parties’ Contentions
Plaintiff first argues that Commerce was bound by its previous determinations
that CWP products from Vietnam were not dumped or subsidized and therefore exports
from Vietnam could not be subject to antidumping or countervailing duty duties. Pl.’s Br.
at 11–22; Pl.’s Reply at 3–12. Plaintiff contends that for SeAH’s U.S. shipments to be
subject to antidumping or countervailing duties, Commerce must first make an
affirmative dumping or subsidy finding with respect to CWP products produced in
Vietnam, and Commerce has not done so. Pl.’s Br. at 15. Plaintiff argues that
10 Subsequent citations to the oral argument include the time stamp from the recording,
which is available at https://www.cit.uscourts.gov/sites/cit/files/20250930_23- 256_MAB.mp3. 11 Citations to the Tariff Act of 1930, as amended, are to Title 19 of the U.S. Code. All
references to the U.S. Code are to the 2018 edition unless otherwise specified. Court Nos. 23-00256, 23-00257, 23-00258 Page 12
Commerce was without authority to initiate circumvention inquiries after the negative
AD/CVD determinations. Id. at 20–22. 12
Defendant contends that Commerce properly rejected Plaintiff’s argument that
previous investigation determinations preclude a circumvention finding here. Def.’s
Resp. at 13–23; see also Def.-Ints.’ Resp. at 14–20. Defendant explains that nothing in
the circumvention statute requires Commerce to consider such previous determinations,
Def.’s Resp. at 13, and an investigation involves distinct statutory provisions, id. at 14–
15. Defendant points out that if affirmative circumvention findings may only occur when
there has been a previous antidumping or countervailing duty determination, then the
circumvention provision would be superfluous. Id. at 15.
B. Analysis
Plaintiff fails to provide statutory support for its argument that Commerce must
make an affirmative finding of dumping or subsidization with respect to CWP products
from Vietnam in order to make an affirmative finding of circumvention. 13 Countervailing
12 Plaintiff also argues that Commerce may not assign the dumping margins or subsidy
rates of other companies to SeAH. Pl.’s Br. at 22–24; Pl.’s Reply at 12–14. However, Plaintiff did not raise this issue in its administrative case brief to Commerce. See, e.g., Second Case Br. of SeAH Steel VINA Corp. (June 1, 2023) (“Second Case Br.”), 23- 256 CJA, ECF No. 58-3. Plaintiff failed to exhaust its administrative remedies by raising this issue in the first instance before this court and has not argued that any exception to the exhaustion requirement applies. Therefore, the court declines to consider the issue. See 28 U.S.C. § 2637(d). 13 During oral argument, Plaintiff pointed to section 1677j(b)(1)(E) as the statutory basis
for its claim. Oral Arg. 0:05:05–0:11:16. Plaintiff argued that the dictionary definition of “evasion”—the act of avoiding a duty or responsibility—as used in that subsection, means that prior investigations into dumping or subsidization are relevant to the circumvention determination. However, this argument is forfeited because Plaintiff Court Nos. 23-00256, 23-00257, 23-00258 Page 13
and antidumping duties are imposed in accordance with 19 U.S.C. §§ 1671 (CVD) and
1673 (AD), while circumvention of those orders is addressed by 19 U.S.C. § 1677j. For
the purposes of a circumvention inquiry, the relevant AD or CVD orders are those that
have been imposed on the country subject to the original order (the source of the input
material that is assembled or completed in the third country), rather than any AD/CVD
investigations that may have been conducted with respect to the third country that is the
alleged conduit of circumvention. Indeed, “[c]ircumvention can only occur if the articles
are from a country not covered by the relevant AD or CVD orders.” Bell Supply Co.,
LLC v. United States, 888 F.3d 1222, 1229 (Fed. Cir. 2018) (emphasis added). To the
extent that Plaintiff emphasizes “the concern expressed by Congress . . . that products
subject to an existing antidumping order might be shipped in incomplete form and
completed elsewhere,” Pl.’s Br. at 18, that concern applies to the existing orders
covering the three subject countries that are being evaded through assembly and
completion in Vietnam (the third country). That concern is not obviated simply because
Commerce and the ITC did not find injurious dumping or countervailable subsidies with
respect to the third country in earlier investigations. Accordingly, Commerce’s prior
negative AD/CVD determinations on CWP products from Vietnam do not constrain
failed to raise it in its moving brief (and only alluded to it in Plaintiff’s reply brief). Pl.’s Reply at 11; see Novosteel SA v. United States, 284 F.3d 1261, 1273–74 (Fed. Cir. 2002). Even if the argument had been timely raised, Plaintiff did not adequately explain why the duty being avoided must pertain to an order on CWP products from Vietnam as opposed to CWP products from the three countries subject to the AD/CVD orders. Court Nos. 23-00256, 23-00257, 23-00258 Page 14
Commerce’s ability to find circumvention with respect to those same CWP products
made from HRS inputs produced in Korea, India or China.
II. Requirements for “Assembly or Completion”
Plaintiff argues that “production” of a finished good, here, the CWP products in
question, is not completion or assembly. Pl.’s Br. at 24–25. Plaintiff first focuses on the
legislative history of the circumvention provision, discussing actions that occurred after
an antidumping duty order was placed on color televisions. Id. at 26–30. According to
Plaintiff, the House Committee Report on the bill adding the circumvention provisions to
the statute indicates that “‘completed or assembled’ must be understood as the process
by which an ‘incomplete’ product is turned into a finished product.” Id. at 28 (discussing
H.R. Rep. No. 100-40, pt. 1, at 134 (1987)). Plaintiff further relies on the General Rules
of Interpretation (“GRI(s)”) to the Harmonized Tariff Schedule of the United States
(“HTSUS”), which provide that an “incomplete” article must have the same “essential
character” as the completed item. Id. at 28–29 (citing GRI 2(a)); see also Pl.’s Reply at
15. 14 Finally, Plaintiff points to legislative history to argue that the circumvention
provisions were meant to address “slight” changes to the method of production, and that
SeAH’s “production of pipe using steel coils purchased from the same suppliers” from
14 In the reply brief, Plaintiff argues for the court to apply Loper Bright Enterprises v.
Raimondo, 603 U.S. 369 (2024), as a “new standard of review.” Pl.’s Reply at 2. Loper Bright does not alter the court’s statutory standard of review, see 19 U.S.C. § 1516a; rather, it declares that “[c]ourts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority,” Loper Bright, 603 U.S. at 412. Plaintiff does not otherwise develop arguments based on Loper Bright and the court will not develop such arguments on Plaintiff’s behalf. Court Nos. 23-00256, 23-00257, 23-00258 Page 15
which SeAH’s Korean parent purchases coils for its own production process does not
constitute a slight change because the “entire production process for [SeAH’s] Korean
parent had been transferred to Vietnam.” Pl.’s Br. at 31.
Defendant disagrees with Plaintiff’s interpretation of what constitutes “assembly
or completion.” Def.’s Resp. at 23–27; see also Def.-Ints.’ Resp.at 20–28. Defendant
argues that Plaintiff’s “reading of ‘assembly or completion’ . . . is contradicted by the
ordinary meaning of these terms” and unsupported by case law. Def.’s Resp. at 24.
Producing finished CWP products “commences with the production of the input
or component made in and imported from the subject country (in this case, HRS).”
Korea I&D Mem. at 29. The production process for HRS consists of “high-intensity
steps to turn raw materials into processed products,” including “(1) melting and refining;
(2) casting molten steel into semifinished forms; and (3) hot-rolling semi-finished forms
into HRS.” Id. at 23. This is followed by “slitting, welding, forming, testing, finishing,
and galvanizing” to produce pipe from the HRS. Id. Commerce’s determination that the
latter steps taken to finalize the purchased HRS into CWP products in Vietnam
constitute assembly or completion in the context of the overall production process, see
id., is supported by substantial record evidence and past precedent, see Al Ghurair Iron
& Steel LLC v. United States, 45 CIT __, __, 536 F. Supp. 3d 1357, 1366 (2021)
(sustaining Commerce’s affirmative circumvention determination when the latter steps
of production in the foreign country involved “trimming, pickling, cold rolling, hot-dip
galvanizing, coating, slitting and cutting”), aff'd, 65 F.4th 1351 (Fed. Cir. 2023). Court Nos. 23-00256, 23-00257, 23-00258 Page 16
Plaintiff relies on the discussion of the color televisions proceeding in the
legislative history to define “assembly or completion” as the “process by which an
‘incomplete’ product is turned into a finished item.” Pl.’s Br. at 28. Plaintiff’s claim that,
for circumvention purposes, an incomplete article must bear the “essential character” of
the complete product, id. at 29, and that production of pipe from imported coils does not
constitute completion because steel coils lack the essential characteristics of steel pipe,
id. at 30, is not grounded in the law. Plaintiff offers no reason why the HTSUS or GRIs
should guide the court’s interpretation of the circumvention statute, 19 U.S.C. § 1677j.
The HTSUS and the circumvention provision of the Tariff Act are distinct statutes. 15
While the GRIs, on their face, govern the “[c]lassification of goods in the tariff schedule,”
HTSUS, General Rules of Interpretation (preamble to the rules), the court interprets the
circumvention statute using the rules of statutory interpretation. And considering how
the concepts of “process” and “production” are intertwined, Plaintiff’s definition of
assembly as a process of completion does not undermine Commerce’s application of
that definition to the production of a finished good. See 19 U.S.C. § 1677j(b)(2)(C)
(listing “the nature of the production process” as a factor “[i]n determining whether the
process of assembly or completion is minor or insignificant” (emphases added)).
15 While the HTSUS is considered statutory law, pursuant to 19 U.S.C. § 1202, “[t]he
Harmonized Tariff Schedule of the United States . . . is not published in the Code. A current version of the Harmonized Tariff Schedule is maintained and published periodically by the United States International Trade Commission.” 19 U.S.C. § 1202. Court Nos. 23-00256, 23-00257, 23-00258 Page 17
Moreover, a process employed in a third country that substantially transforms the
merchandise—beyond a “slight” change 16—and consequently locates the
merchandise’s country of origin in the third country pursuant to the regulations
governing scope inquiries, can nevertheless be found to be “minor or insignificant”
pursuant to a circumvention inquiry and, thus, subject that merchandise to an AD or
CVD order. Bell Supply, 888 F.3d at 1230–31 (“[E]ven if a product assumes a new
identity, the process of ‘assembly or completion’ may still be minor or insignificant, and
undertaken for the purpose of evading an AD or CVD order.”). 17 Thus, Plaintiff has
16 Plaintiff suggests that SeAH’s production in Vietnam using coil supplied from the
countries subject to the orders is a “transfer” of the “entire production process” and thus not a “slight” change as intended by the circumvention statute. Pl.’s Br. at 30–31. Plaintiff does not, however, identify factual support for its argument that SeAH’s use of subject country HRS to produce CWP products was a transfer of the entire production process. 17 For example, the Bell Supply court discussed that while “hot-rolled steel or cold-rolled
steel from China [may] be ‘substantially transformed’ when it is processed into corrosion-resistant steel [(“CORE”)] in Vietnam,” Commerce nevertheless “preliminarily determine[d] that imported [CORE] products from Vietnam circumvented AD and CVD orders directed to steel products from China.” 888 F.3d at 1230–31 (internal citation omitted). In its final determination, Commerce “continue[d] to find, consistent with the Preliminary Determination, that CORE, produced in [Vietnam] . . . [is] circumventing the AD and CVD orders on CORE from China” even “where we have previously found that a particular process results in substantial transformation.” Issues and Decision Mem. for Anti-Circumvention Inquiries on AD/CVD Orders on Certain CORE Prods. from China, A-570-026/C-570-027 (May 16, 2018) at 1, 13–14. Commerce further explained that “[t]here is nothing inherently contradictory in finding input substrate to be substantially transformed into a finished product, in terms of its physical characteristics and uses, while also finding the process of effecting that transformation to be minor vis- à-vis the manufacturing process, as a whole, for producing the finished product.” Id. at 18. Commerce’s decision memoranda are publicly available at https://access.trade.gov/ public/FRNoticesListLayout.aspx, with separate links for pre- and post- June 2021 memoranda. Court Nos. 23-00256, 23-00257, 23-00258 Page 18
failed to identify any flaw in Commerce’s minor or insignificant completion or assembly
analysis.
III. U.S. Production as Comparator
Plaintiff contends that its operations in Vietnam cannot be minor or insignificant
because the operations are essentially identical to those of U.S. producers of CWP
products that requested the circumvention inquiry. Pl.’s Br. at 33–34; Pl.’s Reply 21–24.
Plaintiff argues that Commerce erred by not comparing Vietnamese production to the
U.S. production process because the agency is not limited to only the factors listed in
the statute. See Pl.’s Br. at 34.
Defendant responds that Commerce properly rejected SeAH’s proposal to use
the U.S. industry as a comparator. Def.’s Resp. at 27–29; see also Def.-Ints.’ Resp. at
13. According to Defendant, because 19 U.S.C. § 1677j(b)(2) directs Commerce to
“take into account” certain factors in determining whether assembly or completion is
minor or insignificant, and the comparability of U.S. industry is not a listed factor,
Commerce is not obligated to consider the comparability with the U.S. industry. Def.’s
Resp. at 27–28; see also Def.-Ints.’ Resp. at 28–30. Defendant maintains that the
statute instead directs Commerce to compare production information for manufacturing
the CWP products in Vietnam to the production information for the HRS from a country
subject to the AD/CVD orders. Def.’s Resp. at 27–28. Court Nos. 23-00256, 23-00257, 23-00258 Page 19
In determining whether the process of assembly or completion in Vietnam is
minor or insignificant, Commerce considered various factors pursuant to 19 U.S.C.
§ 1677j(b)(2)—level of investment, research and development, production process, and
extent of production facilities—in the foreign country where merchandise is completed
or assembled from merchandise subject to an AD/CVD order. Specifically, Commerce
compared SeAH’s level of investment in Vietnam, the nature of the production process
in Vietnam, and the extent of production facilities and equipment in Vietnam—to those
of input (HRS) producers in the subject countries (Korea, India, and China). See, e.g.,
Korea I&D Mem. at 28–29. Relying on its explanations in past proceedings “examining
circumvention in the context of downstream steel production,” id. at 29, Commerce
acknowledged that although HRS is not the same class or kind of merchandise as
finished pipe, the production of HRS is relevant to understanding how the latter steps fit
into the overall production process, see, e.g., id. at 29–30 (first citing, inter alia, Issues
and Decision Mem. for Oil Country Tubular Goods from China, A-570-943/C-570-944
(Nov. 19, 2021) at 6–7; then citing Issues and Decision Mem. for the Anti-Circumvention
Inquiries Involving the UAE on the AD/CVD Orders on Certain CORE from China, A-
570-026/C-570-027 (July 6, 2020) at 18). Commerce also explained that comparing the
levels of investment, production processes, and production facilities in Vietnam to the
corresponding upstream factors in the countries subject to the AD/CVD orders is
consistent with its judicially-affirmed practice. See, e.g., id. at 30–31 (citing Al Ghurair,
65 F.4th at 1359–61). Court Nos. 23-00256, 23-00257, 23-00258 Page 20
While Plaintiff would prefer Commerce to compare the Vietnamese production
process to the production process utilized by the U.S. companies that requested the
circumvention inquiry, Plaintiff provides no statutory basis for that preference.
Moreover, the statutory circumvention provisions are consistent with Commerce’s
comparison to the production process for the HRS in the countries subject to the
AD/CVD orders. Specifically, both sections 1677j(b)(1)(D) and 1677j(b)(2)(E) speak in
terms of the value of the merchandise exported to the United States as compared,
respectively, to the value of the input produced in the country subject to the AD/CVD
orders or to the value of the processing performed in the third country (here, Vietnam).
Commerce’s comparison parallels that of section 1677j(b)(1)(D), which directs the
administering authority here to compare the value of the HRS produced in the subject
countries with the value of the CWP products completed or assembled in Vietnam and
exported to the United States.
Furthermore, Plaintiff has failed to establish that a comparison to the U.S.
industry is relevant for the purposes of the circumvention determination. While Plaintiff
suggests that the domestic industry may no longer be considered “producers” by
Commerce as a result of such a comparison, Pl.’s Br. at 34; Pl.’s Reply at 23–24,
Plaintiff did not challenge the domestic industry’s ability to request the circumvention
inquiry or otherwise challenge its standing with respect to the AD/CVD orders. Absent a
justiciable challenge to the domestic industry’s status, the court will not engage with
Plaintiff’s “what if” scenarios. Court Nos. 23-00256, 23-00257, 23-00258 Page 21
IV. Substantial Evidence to Support Commerce’s Determination
Plaintiff contends that Commerce failed to consider properly the factors identified
in 19 U.S.C. § 1677j(b)(3) (“the (b)(3) factors”). Pl.’s Br. at 35–41; Pl.’s Reply 24–27.
Plaintiff argues that Commerce was required to make a finding pursuant to 19 U.S.C.
§ 1677j(b)(1)(E) and that such a finding must be informed by the (b)(3) factors. Pl.’s Br.
at 35–36. Plaintiff further argues that, because Commerce’s findings on the (b)(3)
factors were “mixed and inconclusive” and Commerce failed to explain what “other
factors” the agency considered, Commerce’s affirmative determinations lack substantial
evidence. Id. at 36–37; see also id. at 40–41 (acknowledging that Commerce may
consider other factors beyond the three enumerated in subsection (b)(3)). Plaintiff also
asserts that the three enumerated factors do not support Commerce’s finding. Id. at
37–40. 18
18 Commerce, in its preliminary decision memoranda, pointed to “the totality of factors,”
including the (b)(3) factors, to “determine that action is appropriate to prevent evasion . . . pursuant to [subsection (b)(1)(E)].” Korea Prelim. Mem. at 23; see also India Prelim. Mem. at 23; China Prelim. Mem. at 24. While Plaintiff did not include in its administrative case brief any argument that Commerce did not explain, or point to evidence supporting, its subsidiary finding with respect to 19 U.S.C. § 1677j(b)(1)(E), Plaintiff did make arguments as to the evidentiary basis for each of the (b)(3) factors. See, e.g., Second Case Br. at 21–23. To the extent that Plaintiff did not exhaust its administrative remedies for the particular argument it makes before this court, neither Defendant nor Defendant-Intervenors argue that the court should decline to address it. Non-jurisdictional exhaustion claims are “subject to waiver and forfeiture.” Santos- Zacaria v. Garland, 598 U.S. 411, 423 (2023). Here, Defendant has waived any failure- to-exhaust claim, and the record and arguments made are sufficient to permit the court to address Plaintiff’s argument (which is otherwise intertwined with its (b)(3) arguments). Court Nos. 23-00256, 23-00257, 23-00258 Page 22
Defendant takes a different approach to the role of subsection (b)(3). According
to Defendant, “[i]f other statutory criteria and factors in (b)(1) and (b)(2) supportive of
affirmative determinations outweigh the (b)(3) factors, then such determinations are
both reasonable and lawful.” Def.’s Resp. at 30; see also Def.-Ints.’ Resp. at 33.
B. Additional Legal Background
Subsection (b)(1)(E) requires Commerce to “determine that action is appropriate
. . . to prevent evasion.” The statute uses “and” to conjoin subsection (b)(1)(E) with the
factors enumerated in subsection (b)(1)(A)–(D), thereby signaling that it is a coequal
factor that must be independently satisfied for an affirmative circumvention finding. The
significance of subsection (b)(1)(E) beyond the factors in subsection (b)(1)(A)–(D) is
also highlighted by the former subsection’s omission from section 1677j(a)(1), which
addresses merchandise completed or assembled in the United States. Section
1677j(a)(1) otherwise mirrors section 1677j(b)(1) by listing the same four factors (A)
through (D) as are found in subsection (b)(1). It is well settled “that a statute must, if
possible, be construed in such a fashion that every word has some operative effect.”ௗ
United States v. Nordic Village Inc., 503 U.S. 30, 36 (1992);ௗsee also China Diesel
Imports, Inc. v. United States, 18 CIT 1086, 1090, 870 F. Supp. 347, 351
(1994)ௗ(“Courts are required to give effect to each word of a statute, whenever
possible.”). Therefore, Congress’s addition of subsection (b)(1)(E) to section 1677j(b)
indicates that it intended for the determination of whether action is appropriate with
respect to merchandise completed or assembled in other foreign countries to require
something more than evaluating the factors in subsection (b)(1)(A)–(D). Court Nos. 23-00256, 23-00257, 23-00258 Page 23
C. Summary of (b)(3) Factors
Commerce evaluated the (b)(3) factors to determine whether action is
appropriate pursuant to subsection (b)(1)(E). See, e.g., Korea I&D Mem. at 34. For all
three countries, Commerce found “that [the (b)(3) factors] are mixed, but none of them
are dispositive in [the] circumvention analysis,” and that the “totality of factors in this
inquiry” warranted an affirmative finding of circumvention. 19 Id. at 35; see also India I&D
Mem. at 35; China I&D Mem. at 37.
1. Affiliation
With respect to affiliation, Commerce acknowledged that SeAH is not affiliated
with any company producing HRS in any of the subject countries. Korea I&D Mem. at
35; India I&D Mem. at 35; China I&D Mem. at 37. Commerce noted that while
19 Plaintiff claims that “all three of the [(b)(3)] statutory factors pointed against taking
anticircumvention actions.” Pl.’s Br. at 6; see also Pl.’s Reply at 26. With respect to patterns of trade, Plaintiff points to the reduction in SeAH’s exports of CWP from Vietnam to the United States from 2017 to 2021, which is “not consistent with a claim that the third-country producer is circumventing an order” given that “Commerce takes circumvention action only when imports from the third-country have increased much faster than the imports from the countries subject to the order.” Pl.’s Br. at 37–38. With respect to imports into Vietnam, Plaintiff noted that from 2017 to 2021, SeAH’s purchases of hot-rolled coils from Korea and China decreased, and that while SeAH’s purchases of hot-rolled coil from India increased, these were “necessarily . . . used in the production of products other than CWP exported to the United States, since . . . [SeAH’s] total exports of CWP produced using India hot-rolled coils to the United States fell.” Id. at 40. While Plaintiff has pointed to some data that may not support a finding of circumvention, this is not inconsistent with Commerce’s claim that the data are “mixed.” For example, as Defendant explains, Plaintiff did not consider SeAH’s data showing an “increase in the quantity of its CWP exports to the United States produced from hot-rolled steel imported from Korea.” Def.’s Resp. at 31–32. In addition, SeAH’s argument appears to be based only on data examining the four-year period from 2017 to 2021, though Commerce also compared country-wide data across two periods, 2012 to 2016 and 2017 to 2021. Court Nos. 23-00256, 23-00257, 23-00258 Page 24
circumvention is more likely to occur when the producer in the country subject to an
order is affiliated with the third country company performing the completion or assembly,
such affiliation is not a prerequisite to finding circumvention. Korea I&D Mem. at 36;
India I&D Mem. at 36; China I&D Mem. at 37.
2. Patterns of Trade and Imports into Vietnam
While Commerce’s analysis of SeAH’s patterns of trade and imports of HRS was
limited to the inquiry period (i.e., 2017–2021), Commerce’s analysis of country-wide
data not only evaluated changes within the 2017–2021 period but also compared the
pre-inquiry 2012–2016 period to the 2017–2021 period. Patterns of trade and imports
into Vietnam specific to each country are summarized below.
i. Korea
Comparing the 2012–2016 period to the 2017–2021 period, “exports of CWP
from Vietnam increased to the United States and . . . the quantity of CWP exported from
Korea to the United States also increased” while “Vietnam’s sourcing of HRS from
Korea decreased.” Korea Prelim. Mem. at 19. On the other hand, within that 2017 to
2021 period, imports of CWP products into the United States from Vietnam and Korea
both decreased. [Korea] Prelim. Analysis Mem. (Apr. 6, 2023) at 6, 23-256 CJA, ECF
No. 58-3.
Examining the later four-year period, from 2017 to 2021, SeAH’s data on its
purchases of HRS and sales of CWP to the United States “do not show that there is a
definitive increase in the quantity of HRS imported [into Vietnam] from Korea” but do
show an increase in CWP products exported to the United States produced from Court Nos. 23-00256, 23-00257, 23-00258 Page 25
Korean HRS. Korea Prelim. Mem. at 19. Total imports of CWP products into the United
States from SeAH decreased but were “nonetheless . . . not insignificant.” Korea I&D
Mem. at 38. In any case, Commerce stated that “this factor alone is [not] dispositive”
and that SeAH’s fluctuations of HRS purchases from the subject country “did not detract
from the totality of evidence considerations which supported an affirmative
circumvention determination.” Id.
ii. India
Comparing the 2012–2016 period to the 2017–2021 period, “the quantity of pipe
and tube exported from India to the United States increased even more [than the
increase in exports of pipe and tube from Vietnam to the United States],” and “Vietnam’s
sourcing of HRS from India increased.” India Prelim. Mem. at 19.
Examining the later four-year period, from 2017 to 2021, SeAH’s data “show an
increase in the quantity of HRS imported from India,” but “[t]he data do not show . . .
that there was a subsequent increase in the quantity of pipe and tube exports to the
United States produced from HRS imported from India.” India Prelim. Mem. at 19.
SeAH’s “pipe exports to the United States produced from HRS imported from India
declined from 2017 to 2021” but were “nonetheless . . . not insignificant.” India I&D
Mem. at 38. As with Korea, Commerce stated that “this factor alone is [not] dispositive”
and that SeAH’s fluctuations of HRS purchases from the subject country “did not detract
from the totality of evidence considerations which supported an affirmative
circumvention determination.” Id. Court Nos. 23-00256, 23-00257, 23-00258 Page 26
iii. China
Comparing the 2012–2016 period to the 2017–2021 period, exports of CWP from
Vietnam increased to the United States and the quantity of CWP exported from China to
the United States decreased while Vietnam’s sourcing of HRS from China increased.
China Prelim. Mem. at 20.
Within the 2017 to 2021 period, SeAH’s “pipe exports to the United States
produced from HRS imported from China declined” but were “nonetheless . . . not
insignificant.” China I&D Mem. at 39. As with Korea and India, Commerce stated that
“this factor alone is [not] dispositive” and that SeAH’s fluctuations of HRS purchases
from the subject country 20 “did not detract from the totality of evidence considerations
which supported an affirmative circumvention determination.” Id. at 39–40.
D. Analysis
Commerce ultimately concluded that the (b)(3) factors were “mixed and
inconclusive” for all countries but nevertheless found that action was appropriate to
prevent evasion. Korea Prelim. Mem. at 20; India Prelim. Mem. at 20; China Prelim.
Mem. at 22. Specifically, Commerce concluded its preliminary determination with the
assessment that “[u]pon taking into consideration [section 1677j(b)(3)], . . . action is
appropriate to prevent evasion of the Order pursuant to [section 1677j(b)(1)(E)].” Korea
20 SeAH’s imports of HRS from China decreased in this time frame. [China] Prelim. Analysis Mem. (Apr. 6, 2023) at 7, 23-258 CJA, ECF No. 58-1 (“[T]he quantity of HRS imported from China decreased from . . . 2017 to . . . 2021.”). Commerce seems to have stated in error that the data “show an increase in the quantity of HRS imported from China.” China Prelim. Mem. at 21. Court Nos. 23-00256, 23-00257, 23-00258 Page 27
Prelim. Mem. at 23; see also India Prelim. Mem. at 23; China Prelim. Mem. at 24.
Commerce, however, failed to explain how factors that are “mixed” enabled the agency
to reach the conclusion that action was appropriate. In fact, Commerce’s final
determination suggests that action was deemed appropriate based, instead, on its
consideration of factors (b)(1)(A)–(D):
[N]otwithstanding Commerce’s finding . . . that [SeAH] is not affiliated with any company located in the subject country that produces [HRS], Commerce nevertheless determined, based on the totality of factors in this inquiry . . . that an affirmative finding of circumvention of the order is warranted. In other words, we determined . . . that a lack of affiliation under section [1677j(b)(3)(B)], in itself, does not outweigh our determination that the statutory criteria under sections [1677j(b)(1)(A)–(D)] have been satisfied, and the remaining elements under section [1677j(b)(3)] otherwise did not detract from a finding that an action is appropriate pursuant to section [1677j(b)(1)(E)].
Korea I&D Mem. at 35; India I&D Mem. at 35; China I&D Mem. at 37 (emphasis added).
The assertion that the (b)(3) factors did not detract from a finding that an action is
appropriate assumes that action was found to be appropriate on some other grounds.
However, Commerce did not identify any other grounds beyond the factors that it was
already required to find pursuant to section 1677j(b)(1)(A)–(D). Because section
1677j(b)(1)(E) must be construed to have some operative effect, see Nordic Village Inc.,
503 U.S. at 36, Commerce must reconsider or further explain its basis for the affirmative
circumvention finding. 21 To the extent that Commerce has in fact relied upon “other”
21 Section 1677j(b)(3)(C) requires consideration of “whether imports into the foreign
country of the merchandise [from the country subject to the order] have increased after the initiation of the investigation which resulted in the issuance of such order or finding.” 19 U.S.C. § 1677j(b)(3)(C); see also Al Ghurair, 65 F.4th at 1356 (comparing the periods before and after it initiated the investigations that led to the original AD/CVD Court Nos. 23-00256, 23-00257, 23-00258 Page 28
factors that are distinct from factors (b)(1)(A)–(D) to support its determination that action
is appropriate pursuant to subsection (b)(1)(E), Commerce must identify what these
“other” factors are and identify the substantial evidence that supports its finding. See
Korea Prelim. Mem. at 20; India Prelim. Mem. at 20; China Prelim. Mem. at 21–22
(“Commerce finds that, in this instance, placing more weight on the patterns of trade is
not appropriate when other factors support an affirmative determination.” (emphasis
added)).
CONCLUSION AND ORDER
In accordance with the foregoing, it is hereby
ORDERED that Commerce’s Circumvention Determinations are remanded to the
agency for reconsideration or further explanation consistent with this opinion; it is further
ORDERED that Commerce shall file a separate remand redetermination for each
final determination on the docket of the appropriate case on or before March 16, 2026; it
is further
orders). To the extent that Commerce reconsiders its analysis of the (b)(3) factors, it should explain the basis for the time periods that it used. According to the preliminary decision memorandum, Commerce considered “whether imports of HRS into Vietnam have increased after initiation of the investigation that resulted in the issuance of the Order, which dates back to 1992.” Korea Prelim. Mem. at 20; see also India Prelim. Mem. at 20 (“Order . . . dates back to 1986”); China Prelim. Mem. at 22 (“Orders . . . date back to 2008”). However, Commerce has not reconciled these statements and the statutory requirements with its consideration of the 2012–2016 versus 2017–2021 periods, as well as changes within the latter period, i.e., 2017–2021, for each of the three countries. Court Nos. 23-00256, 23-00257, 23-00258 Page 29
ORDERED that, within 10 days of filing each remand redetermination,
Commerce shall file a certified list of any new administrative record documents
accompanying each remand on the relevant case docket; and it is further
ORDERED that, within 10 days of filing each remand redetermination, the parties
shall file a joint status report on the docket of each case addressing (1) whether the
court should continue to join these cases for hearing and decision or should review
each remand redetermination individually; (2) if proposing to continue with joint
consideration, whether it is necessary to maintain separate joint appendices for the
briefing on remand; and (3) a proposed briefing schedule (or schedules, if proceeding
individually) consistent with the parties’ views on items (1) and (2).
/s/ Mark A. Barnett Mark A. Barnett, Chief Judge
Dated: December 16, 2025 New York, New York
Related
Cite This Page — Counsel Stack
2025 CIT 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seah-steel-vina-corp-v-united-states-cit-2025.