2018-03375. Certain Circular Welded Non-Alloy Steel Pipe From Mexico: Notice of Court Decision Not in Harmony With Final Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court Decision  

  • Start Preamble

    AGENCY:

    Enforcement and Compliance, International Trade Administration, Department of Commerce.

    SUMMARY:

    The Department of Commerce (Commerce) is notifying the public that the Court of International Trade's (CIT or the Court) final judgment in this case is not in harmony with Commerce's final scope ruling and is, therefore, finding that certain black, circular tubing produced to ASTM A-513 specifications by Maquilacero S.A. de C.V. (Maquilacero) is not within the scope of the antidumping duty order on circular welded non-alloy steel pipe from Mexico.

    DATES:

    Applicable Date: February 19, 2018.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Mark Flessner, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6312.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    Background

    On July 27, 2015, Commerce issued the Maquilacero Scope Ruling,[1] in which it determined, under 19 CFR 351.225(k)(1), that 46 products produced by Maquilacero to specification A-513 did not meet the exclusion for “mechanical tubing” in the scope of the Order,[2] and were, therefore, within the scope of the Order. In particular, Commerce relied upon a prior scope ruling pertaining to certain mechanical tubing products produced by Productos Laminados de Monterrey, S.A. de C.V., and Prolamsa, Inc. (Prolamsa), which was conducted under 19 CFR 351.225(k)(2), and which defined “mechanical tubing” as tubing that met a variety of physical, chemical, and mechanical characteristics, and was stenciled.[3] Commerce found that Maquilacero's tubing was not stenciled, and, thus, was not “mechanical tubing.” [4] Maquilacero challenged Commerce's final scope ruling before the CIT.

    On August 30, 2017, the Court remanded the Maquilacero Scope Ruling to Commerce.[5] Specifically, the Court held that Commerce did not “properly consider how the mention of stenciling came to be found in the ruling excluding Prolamsa's pipe from the Order,” particularly given that stenciling “does not change the inherent quality or the intended use of the product.” [6] As such, the Court concluded that “the imposition of a requirement {(i.e., stenciling)} having nothing to do with the physical characteristics of mechanical tubing and that appeared in the Prolamsa Final Scope Ruling by chance { } was unreasonable.” [7] Thus, the Court found “that Commerce's ruling unlawfully expanded the scope of the Order to include {Maquilacero}'s merchandise,” [8] and remanded the Final Scope Ruling to Commerce to “(1) not impose a stenciling requirement, and (2) find that Maquilacero's tubing is excluded from the Order based on its analysis found on pages 6-9 of the Final Scope Ruling.” [9] In particular, the Court instructed Commerce to “find plaintiff's products are excluded from the Order using the same analysis in the Final Scope Ruling and that is found in this opinion.” [10]

    Pursuant to the Court's instructions, Commerce issued the Final Remand Start Printed Page 7154Results.[11] Consistent with the Court's instructions, Commerce found that the 46 products included in Maquilacero's scope ruling request are excluded from the Order, because those products meet all physical, chemical, and mechanical properties of mechanical tubing, notwithstanding that the products are not stenciled. On February 9, 2018, the Court sustained Commerce's Final Remand Results in their entirety.[12]

    Timken Notice

    In its decision in Timken,[13] as clarified by Diamond Sawblades,[14] the United States Court of Appeals for the Federal Circuit (CAFC) held that, pursuant to sections 516A(c) and (e) of the Act, Commerce must publish a notice of a court decision that is not “in harmony” with a Department determination and must suspend liquidation of entries pending a “conclusive” court decision. The CIT's February 9, 2018, judgment in Maquilacero, sustaining Commerce's decision in the Final Remand Results that the 46 products included in Maquilacero's scope ruling request are excluded from the Order constitutes a final decision of the court that is not in harmony with the Maquilacero Scope Ruling. This notice is published in fulfillment of the publication requirements of Timken. Accordingly, Commerce will continue the suspension of liquidation of the 46 products at issue pending expiration of the period to appeal or, if appealed, pending a final and conclusive court decision.

    Amended Final Scope Ruling

    Because there is now a final court decision with respect to the Maquilacero Scope Ruling, Commerce is amending its final scope ruling. Commerce finds that the scope of the Order does not cover the products addressed in the Maquilacero Scope Ruling. Commerce will instruct U.S. Customs and Border Protection (CBP) that the cash deposit rate will be zero percent for the 46 products subject to Maquilacero's scope ruling request. In the event that the CIT's ruling is not appealed, or if appealed, upheld by the CAFC, Commerce will instruct CBP to liquidate entries of the 46 products at issue without regard to antidumping and/or countervailing duties, and to lift suspension of liquidation of such entries.

    Notification to Interested Parties

    This notice is issued and published in accordance with sections 516A(e)(1), 751(a)(1), and 777(i)(1) of the Act.

    Start Signature

    Dated: February 13, 2018.

    Christian Marsh,

    Deputy Assistant Secretary for Enforcement and Compliance, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.

    End Signature End Supplemental Information

    Footnotes

    1.  See Memorandum, “Final Scope Ruling on Certain Black, Circular Tubing Produced to ASTM A-513 Specifications by Maquilacero S.A. de C.V.,” dated July 27, 2015 (Maquilacero Scope Ruling).

    Back to Citation

    2.  See Notice of Antidumping Duty Orders: Certain Circular Welded Non-Alloy Steel Pipe from Brazil, the Republic of Korea (Korea), Mexico, and Venezuela and Amendment to Final Determination of Sales at Less Than Fair Value: Certain Welded Non-Alloy Steel Pipe from Korea, 57 FR 49453 (November 2, 1992) (the Order).

    Back to Citation

    3.  See Memorandum, “Final Scope Ruling on Certain Black, Circular Tubing Produced to ASTM A-513 Specifications by Productos Laminados de Monterrey, S.A. de C.V., and Prolamsa, Inc.,” dated January 12, 2015 (Prolamsa Final Scope Ruling).

    Back to Citation

    4.  See Maquilacero Scope Ruling.

    Back to Citation

    5.  See Maquilacero S.A. de C.V. v. United States, Slip Op. 17-117, Court No. 15-00287 (CIT 2017).

    Back to Citation

    6.  See Maquilacero, Slip Op. 17-117, at 29.

    Back to Citation

    7.  See Maquilacero, Slip Op. 17-117, at 32.

    Back to Citation

    8.  Id., at 26.

    Back to Citation

    9.  See Maquilacero, Slip Op. 17-117, at 32-33.

    Back to Citation

    10.  Id., at 33.

    Back to Citation

    11.  See Final Results of Redetermination Pursuant to Remand in Maquilacero S.A. de C.V. v. United States, Ct. No. 15-00287, November 27, 2017 (Final Remand Results).

    Back to Citation

    12.  See Maquilacero S.A. de C.V. v. United States, Slip Op. 18-8, Court No. 15-00287 (CIT 2018).

    Back to Citation

    13.  See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (Timken) , at 341.

    Back to Citation

    14.  See Diamond Sawblades Mfrs. Coalition v. United States, 626 F.3d 1374 (Fed. Cir. 20 10) (Diamond Sawblades).

    Back to Citation

    [FR Doc. 2018-03375 Filed 2-16-18; 8:45 am]

    BILLING CODE 3510-DS-P

Document Information

Published:
02/20/2018
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
2018-03375
Dates:
Applicable Date: February 19, 2018.
Pages:
7153-7154 (2 pages)
Docket Numbers:
A-201-805
PDF File:
2018-03375.Pdf
Supporting Documents:
» Requests for Nominations: Trade Promotion Coordinating Committee
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Drawn Stainless Steel Sinks from the People's Republic of China; Recission
» Determinations of Sales at Less than Fair Value: Certain Carbon and Alloy Steel Cut-to-Length Plate from Brazil, South Africa, and Republic of Turkey
» Meetings: United States Travel and Tourism Advisory Board
» Investigations; Determinations, Modifications, and Rulings, etc.: Solid Fertilizer Grade Ammonium Nitrate from the Russian Federation
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from Republic of Turkey
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Carbon and Alloy Steel Cut-to-Length Plate from People's Republic of China
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Pasta from Italy
» Determinations of Sales at Less Than Fair Value: Truck and Bus Tires From People's Republic of China
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Initiation of Five-Year (Sunset) Review