Valeo North America, Inc. v. United States

Court of Appeals for the Federal Circuit·Decided August 12, 2025·No. 24-1189·Published

Opinion

United States Court of Appeals for the Federal Circuit

VALEO NORTH AMERICA, INC., Plaintiff-Appellant

v.

UNITED STATES, ALERIS ROLLED PRODUCTS, INC., ARCONIC CO., COMMONWEALTH ROLLED PRODUCTS INC., CONSTELLIUM ROLLED PRODUCTS RAVENSWOOD, LLC, JUPITER ALUMINUM CO., JW ALUMINUM COMPANY, NOVELIS CORPORATION, ALUMINUM ASSOCIATION COMMON ALLOY ALUMINUM SHEET TRADE ENFORCEMENT WORKING GROUP,

Defendants-Appellees

2024-1189

Appeal from the United States Court of International Trade in No. 1:21-cv-00581-MAB, Chief Judge Mark A. Barnett.

Decided: August 12, 2025

PIERCE LEE, Crowell & Moring LLP, Washington, DC, argued for plaintiff-appellant. Also represented by DANIEL CANNISTRA; WERONIKA BUKOWSKI, New York, NY.

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KYLE SHANE BECKRICH, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington , DC, argued for defendant-appellee United States. Also represented by REGINALD THOMAS BLADES, JR., BRIAN M. BOYNTON, PATRICIA M. MCCARTHY.

JOHN M. HERRMANN, Kelley Drye & Warren, LLP, Washington, DC, argued for defendants-appellees Aleris Rolled Products, Inc., Arconic Co., Commonwealth Rolled Products Inc., Constellium Rolled Products Ravenswood, LLC, Jupiter Aluminum Co., JW Aluminum Company, Novelis Corporation, Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement Working Group. Also represented by JOSHUA MOREY, PAUL C. ROSENTHAL.

Before TARANTO, HUGHES, and STOLL, Circuit Judges.

STOLL, Circuit Judge.

This case involves the scope of antidumping and countervailing duty orders on common alloy aluminum sheets from the People’s Republic of China. Valeo North America appeals the Court of International Trade’s affirmance of the United States Department of Commerce’s ruling on the scope of those orders. Specifically, Commerce determined that the scope of the orders encompassed Valeo’s product, T-series aluminum sheets imported from China. For the following reasons, we affirm.

BACKGROUND

When Commerce finds that “foreign merchandise is . . .

sold in the United States at less than its fair value,” and the United States International Trade Commission determines that a domestic industry is, or is threatened to be, materially injured, Commerce must impose an antidumping duty “equal to the amount by which the normal value exceeds the export price (or the constructed export price) for the [foreign] merchandise.” 19 U.S.C. § 1673.

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Similarly, countervailing duties shall be imposed if “a country is providing, directly or indirectly, a countervailable subsidy with respect to the manufacture, production, or export of a class or kind of merchandise imported, or sold (or likely to be sold) for importation, into the United States,” and a United States domestic industry is, or is threatened to be, materially injured. Id. § 1671.

Antidumping and countervailing duty orders contain narrative descriptions defining the merchandise covered. These orders “must be written in general terms.” 19 C.F.R. § 351.225(a) (2020). 1 And as Commerce has acknowledged, sometimes “[i]ssues arise as to whether a particular product is included within the scope of an of an antidumping or countervailing duty order.” Id. When such questions arise, Commerce’s regulations—specifically 19 C.F.R. § 351.225—direct it to issue “scope rulings” that clarify whether the product is within the scope. Id. Interested parties may apply for a scope ruling, or Commerce may self-initiate a scope inquiry. Id. § 351.225(b)–(c).

Commerce begins its analysis with the language of the order that is subject to interpretation. ArcelorMittal Stainless Belg. N.V. v. United States, 694 F.3d 82, 84 (Fed. Cir. 2012). This step is “sometimes referred to as the ‘(k)(0)’ inquiry because it precedes the” regulatory framework set forth in 19 C.F.R. § 351.225(k). Vandewater Int’l Inc. v. United States, 130 F.4th 981, 985 (Fed. Cir. 2025). Under its regulations, if Commerce finds the meaning of the scope language at issue clear, the proceedings terminate. Id. at 984–85. On the other hand, if Commerce finds the scope language ambiguous, it looks to two sets of factors spelled out in 19 C.F.R. § 351.225(k)(1) and (k)(2).

1 We cite to the 2020 version of this regulation for the remainder of this opinion. The 2020 version applied during the proceedings below. Commerce has since amended this regulation.

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Commerce first considers the (k)(1) factors, including “[t]he descriptions of the merchandise contained in the petition, the initial investigation, and the determinations of the Secretary (including prior scope determinations) and the Commission ” at (k)(1) to resolve the scope inquiry. 19 C.F.R. § 351.225(k)(1). If these “criteria are not dispositive,” Commerce then considers the (k)(2) factors: (1) “[t]he physical characteristics of the product”; (2) “[t]he expectations of the ultimate purchasers”; (3) “[t]he ultimate use of the product ”; (4) “[t]he channels of trade in which the product is sold”; and (5) “[t]he manner in which the product is advertised and displayed.” Id. § 351.225(k)(2).

I

Here, Valeo sought a scope ruling on whether its T-series aluminum sheet is within Commerce’s 2019 Orders 2 on common aluminum alloy sheet imported from China. The Orders cover:

[A]luminum common alloy sheet (common alloy sheet), which is a flat-rolled aluminum product having a thickness of 6.3 mm or less, but greater than 0.2 mm, in coils or cut-to-length, regardless of width. Common alloy sheet within the scope of this order includes both not clad aluminum sheet, as well as multi-alloy, clad aluminum sheet. With respect to not clad aluminum sheet, common alloy sheet is manufactured from a 1XXX-, 3XXX-, or 5XXX-series alloy as designated by the Aluminum Association. With respect to multi-alloy,

2 Common Alloy Aluminum Sheet From the People’s Republic of China, 84 Fed. Reg. 2813 (Dep’t Commerce Feb. 8, 2019) (antidumping duty order); Common Alloy Aluminum Sheet From the People’s Republic of China, 84 Fed. Reg. 2157 (Dep’t Commerce Feb. 6, 2019) (countervailing duty order) (collectively, the “Orders”).

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clad aluminum sheet, common alloy sheet is produced from a 3XXX-series core, to which cladding layers are applied to either one or both sides of the core.

84 Fed. Reg. at 2815; 84 Fed. Reg. at 2158 (emphasis added to indicate disputed language in scope order).

Much of the dispute in this appeal involves the language “3XXX-. . . series alloy as designated by the Aluminum Association.” Thus, some background on the Aluminum Association is helpful. The Aluminum Association is a private organization that publishes an industry standard in the form of “a numerical designation system for wrought aluminum and wrought aluminum alloys” known as the “Teal Sheets.” Appellant’s Br. 6; Oral Arg. at 7:40–8:25, https://oralarguments.cafc.uscourts.gov/default .aspx?fl=24-1189_05052025.mp3. The Teal Sheets “is the defining source for designations and chemical composition limits for wrought aluminum and wrought aluminum alloys and is relied upon in a number of standards and specifications worldwide.” Appellant’s Br. 6. The Teal Sheets uses a four-digit numerical code that conveys information about the alloy where “[t]he first digit in the grade number indicates the general family, which share a major alloying component.” Id. When referring to the family collectively , “the last three digits are shown as the letter X.” Id. The last three digits “contemplate a unique, registered alloy.” Id. (emphasis added).

Registering an alloy with the Aluminum Association is voluntary but provides potential customers with information about the composition of an alloy so customers can know what they are getting and if the alloy is suitable for their particular purposes. See Oral Arg. at 7:40–8:25; J.A. 867.

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