Stein Industries Inc. v. United States

365 F. Supp. 3d 1364, 2019 CIT 29
CourtUnited States Court of International Trade
DecidedMarch 5, 2019
DocketSlip Op. 19-29; Court 18-00150
StatusPublished
Cited by1 cases

This text of 365 F. Supp. 3d 1364 (Stein Industries Inc. 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
Stein Industries Inc. v. United States, 365 F. Supp. 3d 1364, 2019 CIT 29 (cit 2019).

Opinion

Barnett, Judge:

This action involves a challenge to a U.S. Department of Commerce ("Commerce" or "the agency") scope determination for the antidumping and countervailing duty orders on light-walled rectangular ("LWR") pipe and tube from the People's Republic of China ("the PRC" or "China"). See Compl., ECF No. 5 ; Final Scope Ruling on the Antidumping and Countervailing Duty Orders on Light-Walled Rectangular Pipe and Tube from the People's Republic of China: Carlson AirFlo Merchandising Systems Scope Ruling Req., A-570-914, A-570-915, A-583-803 (May 29, 2018) ("Final Scope Ruling"), ECF No. 12-4 ; Light-Walled Rectangular Pipe and Tube from Mexico, the People's Republic of China, and the Republic of Korea , 73 Fed. Reg. 45,403 (Dep't Commerce Aug. 5, 2008) (antidumping duty orders and notice of am. final determination of sales at less than fair value with respect to the Republic of Korea) (" AD Order "); Light-Walled Rectangular Pipe and Tube from the People's Republic of China , 73 Fed. Reg. 45,405 (Dep't Commerce Aug. 5, 2008) (notice of countervailing duty order) (" CVD Order ") (together, "the Orders "). 1

Plaintiff, Stein Industries Inc., d/b/a Carlson AirFlo Merchandising Systems ("Plaintiff" or "Carlson"), challenges Commerce's determination that its merchandising bar and adjustable welded mounted bar kit are each within the scope of the Orders . See Mot. of Pl. Stein Industries Inc. for J. on the Agency R., ECF No. 18, and Confidential Mem. of P. & A. of Pl. Stein Industries Inc., d/b/a Carlson Airflo Merchandising Systems in Supp. of its Mot. for J. on the Agency R. ("Pl. 's Mem."), ECF No. 20 ; Reply Br. of Pl. Stein Industries Inc., d/b/a Carlson Airflo Merchandising Systems ("Pl. 's Reply"), ECF No. 23. Defendant United States ("the Government") urges the court to sustain Commerce's scope determination. See Def.'s Resp. to Pl.'s Rule 56.2 Mot. for J. on the Agency R. ("Def.'s Resp."), ECF No. 22. For the reasons discussed herein, the court remands the Final Scope Ruling.

BACKGROUND

I. Legal Framework for Scope Determinations

Because descriptions of merchandise contained in the scope of an antidumping or countervailing duty order must be written in general terms, issues may arise as to whether a particular product is included within the scope of such an order. See 19 C.F.R. § 351.225 (a). When those issues arise, Commerce's regulations direct it to issue "scope rulings" that clarify whether the contested product falls within the purview of an antidumping or countervailing duty order's scope. Id. Although there are no specific statutory provisions that govern the interpretation of the scope of an order, the determination of whether a product is included within the scope of an order is governed by case law and the regulations published at 19 C.F.R. § 351.225 . Meridian Prods., LLC v. United States , 851 F.3d 1375 , 1381 (Fed. Cir. 2017) (citation omitted); see also Eckstrom Indus., Inc. v. United States , 254 F.3d 1068 , 1071-72 (Fed. Cir. 2001) (noting that 19 C.F.R. § 351.225 provides the process for determining whether an antidumping duty order covers a product). 2

Commerce's inquiry must begin with the relevant scope language. See, e.g. , Duferco Steel, Inc. v. United States , 296 F.3d 1087 , 1097 (Fed. Cir. 2002) (explaining that the language in the order is the "predicate for the interpretive process" and the "cornerstone" of a scope analysis"). If the language is ambiguous, Commerce interprets the scope "with the aid of" the sources set forth in 19 C.F.R. § 351.225 (k). Meridian Prods. , 851 F.3d at 1381 (quoting Duferco Steel , 296 F.3d at 1097 ).

Specifically, Commerce first considers the description of the merchandise in the petition and initial investigation, and prior determinations by Commerce (including scope determinations) and the International Trade Commission ("ITC"). See Meridian Prods. , 851 F.3d at 1382 (citing 19 C.F.R. § 351.225 (k)(1) (the "(k)(1) factors") ). If the (k)(1) factors are dispositive, Commerce issues a final scope ruling. See 19 C.F.R. § 351.225 (d). 3 When the (k)(1) factors are not dispositive, Commerce considers the sources in subsection (k)(2) of the regulation. See

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Bluebook (online)
365 F. Supp. 3d 1364, 2019 CIT 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stein-industries-inc-v-united-states-cit-2019.