Trade Associates Group, Ltd. v. United States

128 F. Supp. 3d 1322, 2015 CIT 145, 37 I.T.R.D. (BNA) 2600, 2015 Ct. Intl. Trade LEXIS 146, 2015 WL 9465242
CourtUnited States Court of International Trade
DecidedDecember 28, 2015
DocketSlip Op. 15-145; Court 11-00397
StatusPublished
Cited by1 cases

This text of 128 F. Supp. 3d 1322 (Trade Associates Group, Ltd. 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.

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Trade Associates Group, Ltd. v. United States, 128 F. Supp. 3d 1322, 2015 CIT 145, 37 I.T.R.D. (BNA) 2600, 2015 Ct. Intl. Trade LEXIS 146, 2015 WL 9465242 (cit 2015).

Opinion

OPINION AND ORDER

Stanceu, Chief Judge:

In this litigation, plaintiff Trade Associates Group, Ltd. (“Trade Associates”), a U.S. importer of candles, contested a 2011 “Final Scope Ruling” of the International Trade Administration, U.S. Department of Commerce (“Commerce” or the “Depart *1323 ment”), which interpreted the scope of an antidumping duty order (the “Order”) on certain petroleum wax candles from the People’s Republic of China (“China” or the “PRC”). Final Scope Ruling: Antidump-ing Duty Order on Petroleum Wax Candles from the People’s Republic of China (Aug. 5, 2011), (Admin.R.Doe. No. 56) (“Final Scope Ruling”). In the Final Scope Ruling, Commerce rejected the position taken by Trade Associates in a 2009 request (“Scope Ruling Request”) that Commerce should determine various specialty-shaped or holiday-themed candles to be outside the scope of the Order.

Before the court is the Department’s decision on remand (“Remand Redetermi-nation”) issued in response to the court’s opinion and order in Trade Assocs. Grp., Ltd. v. United States, 38 CIT -, 961 F.Supp.2d 1306 (2014) (“Trade Associates I”). Results of Redetermination Pursuant to Trade Assocs. Grp., Ltd. v. United States (June 16, 2014), ECF No. 66-1 (“Remand Redetermination ”). The court orders a second remand, concluding that the Remand Redetermination is based on an unreasonable interpretation of the scope language of the Order.

I. Background

The court’s prior opinion in Trade Associates I, 38 CIT at-, 961 F.Supp.2d at 1308-09, presents background information on this case, which is summarized briefly and supplemented herein with developments since the issuance of that opinion.

A. Administrative Proceedings Following Submission of the Scope Ruling Request

Trade Associates filed the Scope Ruling Request on June 11, 2009, in which it identified 261 Chinese-origin petroleum wax candles that Trade Associates described as having the shape of identifiable objects or as being associated with Christmas or other holidays. Trade Assocs. Grp. Application for Scope Ruling on An-tidumping Duty Order A-570-50I on Petroleum Wax Candles from the People’s Republic of China 2 (June 11, 2009) (Admin.R.Doc. No. 1) (“Scope Ruling Request ”). After receiving the Scope Ruling Request, Commerce published, on August 21, 2009, a Federal Register notice seeking “comments from interested parties on the best method to consider whether novelty candles should or should not be included within the scope of the Order given the extremely large number of scope determinations requested by outside parties.” Petroleum Wax Candles from the People’s Republic of China: Request for Comments on the Scope of the Antidumping Duty Order and the Impact on Scope Determinations, 74 Fed.Reg. 42,230, 42,230 (Int’l Trade Admin. Aug. 21, 2009) (“Request for Comments”). In the notice, Commerce defined the term “novelty candles” as “candles in the shape of an identifiable object or with holiday-specific design both being discernable from multiple angles.” Id. Commerce proposed two options. Under “Option A,” only candles in shapes identified in the Order, which were “tapers, spirals, and straight-sided dinner candles; rounds, columns, pillars, votives; and various wax-filled containers” would be within the scope of the Order. Id., 74 Fed.Reg. at 42,231. For purposes of Option A, candles in the specified shapes would be considered to be within the scope “regardless of etchings, prints, moldings or other artistic or decorative enhancements including any holiday-related art.” Id. Under “Option B,” Commerce would consider all candle shapes, including novelty candles, to be within the scope of the Order. Id.

Approximately a year later, Commerce published preliminary results of its request for comments. Petroleum Wax Candles From the People’s Republic of China: Preliminary Results of Request for Comments on the Scope of the Petroleum Wax *1324 Candles from the People’s Republic of China Antidumping Duty Order, 75 Fed.Reg. 49,475 (Int’l Trade Admin. Aug. 13, 2010) (“Preliminary Results”). Approximately a year after that, on August 2, 2011, Commerce published the final results of its request for comments. Petroleum Wax Candles From the People’s Republic of China: Final Results of Request for Comments on the Scope of the Antidumping Duty Order, 76 Fed.Reg. 46,277 (Int’l Trade Admin. Aug. 2, 2011) {“Final Results”). The Final Results incorporated by reference an “Issues and Decision Memorandum.” Issues & Decision Mem. for Final Results of Request for Comments on the Scope of the Petroleum Wax Candles from the People’s Republic of China Antidumping Duty Order, A-570-504, (July 26, 2011) (Admin.R.Doe. No. 54), available at http://enforcement.trade.gov/ frn/summary/PRC/2011-19529-l.pdf (last visited Dec 18, 2015) {“Final Results Decision Mem.”). On August 5, 2011, Commerce issued a final determination on the scope request of Trade Associates {“Final Scope Ruling”) in which it incorporated by reference the final results of the request for comments. Final Scope Ruling 3 & n.10 (citation omitted). In the Final Scope Ruling, Commerce concluded that, as a general matter, “the scope of the Order includes candles of any shape, with the exception of birthday candles, birthday numeral candles, utility candles, and figurine candles.” Final Scope Ruling 3. Commerce described its figurine candle exception as applying to “a candle that is in the shape of a human, animal, or deity.” Id. at 5.

B. Initiation of this Action and the Court’s First Remand Opinion and Order

In late 2011, Trade Associates commenced this action contesting the Final Scope Ruling. Summons (Oct. 5, 2011), ECF No. 1; Compl. (Nov. 2, 2011), ECF No. 13. Upon judicial review of the Final Scope Ruling, the court concluded that “the Final Scope Ruling applied an impermissible interpretation of the scope language in the Order.” Trade Associates I, 38 CIT at -, 961 F.Supp.2d at 1322. The court ordered Commerce “to file a. remand redetermination comprising a new scope ruling that complies with this Opinion and Order and addresses the products in the Scope Ruling Request submitted by Trade Associates.” Id. at -, 961 F.Supp.2d at 1323.

C. The Remand Redetermination

In response to the court’s opinion and order in Trade Associates I, Commerce issued the Remand Redetermination on June 16, 2014. Remand Redetermination 1, 3. Commerce included an attachment to the Remand Redetermination in which it ruled individually on 269 candles, as identified by product number and including a photographic illustration. Attach. 1 to Remand Redetermination (June 16, 2014), ECF No. 66-1 {“Department’s Candle Chart ”).

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128 F. Supp. 3d 1322, 2015 CIT 145, 37 I.T.R.D. (BNA) 2600, 2015 Ct. Intl. Trade LEXIS 146, 2015 WL 9465242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trade-associates-group-ltd-v-united-states-cit-2015.