Star Pipe Products v. United States

365 F. Supp. 3d 1277, 2019 CIT 20
CourtUnited States Court of International Trade
DecidedFebruary 13, 2019
DocketSlip Op. 19-20; Court 17-00236
StatusPublished
Cited by2 cases

This text of 365 F. Supp. 3d 1277 (Star Pipe Products 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
Star Pipe Products v. United States, 365 F. Supp. 3d 1277, 2019 CIT 20 (cit 2019).

Opinion

Stanceu, Chief Judge:

Plaintiff Star Pipe Products ("Star Pipe") contests a 2017 "Final Scope Ruling" in which the International Trade Administration, U.S. Department of Commerce ("Commerce" or the "Department") interpreted the scope of an antidumping duty order (the "Order") on non-malleable cast iron pipe fittings from the People's Republic of China ("China") to include certain ductile iron flanges imported by Star Pipe. Before the court is Star Pipe's motion for judgment on the agency record, in which Star Pipe argues that Commerce should have determined that its ductile iron flanges are excluded from the scope of the Order.

Star Pipe claims in the alternative that Commerce erred in not initiating a formal scope inquiry, under which Commerce would have been required to consider additional criteria as set forth in the Department's regulation. Plaintiff also claims in the alternative that should the Final Scope Ruling be sustained, Commerce must be held to have acted unlawfully in issuing liquidation instructions to U.S. Customs and Border Protection ("Customs") directing the assessment of antidumping duties on entries of its flanges that were made prior to issuance of the Final Scope Ruling.

Defendant United States and defendant-intervenor Anvil International, LLC, a United States manufacturer of the domestic like product, oppose plaintiff's motion.

The court remands the Final Scope Ruling to Commerce for reconsideration. The court holds in abeyance any ruling on plaintiff's alternative claims pending resolution of plaintiff's claim contesting the Final Scope Ruling on the merits.

I. BACKGROUND

Commerce issued the antidumping duty order on non-malleable cast iron pipe fittings from China in April 2003. Notice of Antidumping Duty Order: Non-Malleable Cast Iron Pipe Fittings From the People's Republic of China , 68 Fed. Reg. 16,765 (Apr. 7, 2003) (the " Order "). Star Pipe filed with Commerce a request for a scope ruling (the "Scope Ruling Request") on June 21, 2017, in which it sought a ruling excluding its ductile iron flanges from the scope of the Order. Star Pipe Products Scope Request: Ductile Iron Flanges (June 21, 2017) (P.R. Docs. 1-3) (" Scope Ruling Request "). 1

Commerce issued the Final Scope Ruling on August 17, 2017, in which it ruled that the ductile iron flanges are within the scope of the Order. Final Scope Ruling on the Antidumping Duty Order on Non-Malleable Cast Iron Pipe Fittings from the People's Republic of China: Request by Star Pipe Products (Aug. 17, 2017) (P.R. Doc. 13) (" Final Scope Ruling ").

Star Pipe commenced this action on September 15, 2017. Summons (Sept. 15, 2017), ECF No. 1 ; Compl. (Sept. 15, 2017), ECF No. 4. On May 10, 2018, Star Pipe filed the instant motion for judgment on the agency record. Pl.'s Mot. for J. on the Agency R. under Rule 56.2 (May 10, 2018), ECF No. 29 ("Pl.'s Br."). Defendant responded on August 24, 2018, and defendant-intervenor responded on September 7, 2018. Def.'s Resp. in Opp'n to Pl.'s Mot. for J. on the Agency R. (Aug. 24, 2018), ECF No. 37 ; Def.-Inter.'s Resp. in Opp'n to Pl.'s Mot. for J. on the Agency R. (Sept. 7, 2018), ECF No. 38. Plaintiff replied on September 25, 2018. Pl.'s Reply (Sept. 25, 2018), ECF No. 41.

II. DISCUSSION

A. Jurisdiction and Standard of Review

The court exercises subject matter jurisdiction according to section 201 of the Customs Courts Act of 1980, 28 U.S.C. § 1581 (c) (2012), which grants jurisdiction over civil actions brought under section 516A of the Tariff Act of 1930, 19 U.S.C. § 1516a (2012). 2 Among the decisions that may be contested under section 516A is a determination of "whether a particular type of merchandise is within the class or kind of merchandise described in an ... antidumping or countervailing duty order." 19 U.S.C. § 1516a(a)(2)(B)(vi). In reviewing a contested scope ruling, the court must set aside "any determination, finding, or conclusion found ... to be unsupported by substantial evidence on the record, or otherwise not in accordance with law." Id. § 1516a(b)(1)(B)(i). Commerce may not disregard record evidence that detracts from its intended conclusion. See, e.g. , CS Wind Vietnam Co. v. United States , 832 F.3d 1367 , 1373 (Fed. Cir. 2016) ("The substantiality of evidence must take into account whatever in the record fairly detracts from its weight." (quoting Gerald Metals, Inc. v. United States , 132 F.3d 716 , 720 (Fed. Cir. 1997) ) ).

B. The Final Scope Ruling Must Be Remanded to Commerce for Reconsideration

Determining whether merchandise is within the scope of an antidumping or countervailing duty order begins with the scope language. Mid Continent Nail Corp. v. United States , 725 F.3d 1295 , 1302 (Fed. Cir. 2013) ; see Duferco Steel, Inc. v. United States , 296 F.3d 1087 , 1089 (Fed. Cir. 2002) (" Duferco "). The Court of Appeals for the Federal Circuit ("Court of Appeals") has instructed that "[s]cope orders may be interpreted as including subject merchandise only if they contain language that specifically includes the subject merchandise or may be reasonably interpreted to include it." Duferco , 296 F.3d at 1089 .

Under its regulation governing scope determinations, 19 C.F.R.

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Related

Star Pipe Prods. v. United States
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Bluebook (online)
365 F. Supp. 3d 1277, 2019 CIT 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/star-pipe-products-v-united-states-cit-2019.