[Federal Register Volume 85, Number 122 (Wednesday, June 24, 2020)]
[Notices]
[Page 37828]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13642]
[[Page 37828]]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-475-832; C-475-833; A-570-026; C-570-027]
Corrosion-Resistant Steel Products From Italy and the People's
Republic of China: Notice of Court Decision Not in Harmony With Final
Scope Ruling and Notice of Amended Final Scope Ruling Pursuant to Court
Decision
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) final judgment in this
case is not in harmony with Commerce's final scope ruling. Commerce is
therefore amending its scope ruling to find that certain corrosion-
resistant steel (CORE) products exported by Trendium Pools, Inc.
(Trendium) are not within the scope of the antidumping (AD) and
countervailing duty (CVD) orders on CORE products from Italy and the
People's Republic of China (China).
DATES: Applicable March 29, 2020.
FOR FURTHER INFORMATION CONTACT: Lauren Caserta, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4737.
SUPPLEMENTARY INFORMATION:
Background
On February 9, 2018, Trendium submitted a complete scope ruling
request,\1\ asking Commerce to confirm its claim that pool kits and
individual pool walls containing components manufactured from CORE of
Chinese and Italian origin are outside the scope of the AD and CVD
Orders on CORE from Italy and China.\2\
---------------------------------------------------------------------------
\1\ See Trendium's Letter, ``Certain Corrosion-Resistant Steel
Products from India, Italy, the People's Republic of China, Korea
and Taiwan, Scope Ruling Request for Finished Pool Kits and Pool
Walls,'' dated November 28, 2017; see also Trendium's Letter,
``Certain Corrosion-Resistant Steel Products from India, Italy, the
People's Republic of China, Korea and Taiwan, Supplemental
Questionnaire Response Regarding Scope Ruling Request for Finished
Pool Kits and Pool Walls,'' dated February 9, 2018.
\2\ See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016), and Certain Corrosion-Resistant Steel Products from India,
Italy, Republic of Korea and the People's Republic of China:
Countervailing Duty Order, 81 FR 48387 (July 25, 2016)
(collectively, the Orders).
---------------------------------------------------------------------------
Commerce issued its Final Scope Ruling on May 10, 2018. In
evaluating the merchandise at issue, which included potentially subject
merchandise as components, Commerce looked to the Court of Appeals for
the Federal Circuit's (Federal Circuit) reasoning in Mid Continent
Corporation v. United States \3\ for guidance. As a result of this
analysis, Commerce determined that the components of Trendium's pool
kits and pool walls manufactured from Italian- and Chinese-origin CORE
that otherwise satisfy the size and composition requirements of the
Orders are covered by the scope of the Orders. As a result of the Final
Scope Ruling, Commerce instructed U.S. Customs and Border Protection
(CBP) to continue the suspension of liquidation of entries of certain
CORE products from Italy and China by Trendium, including components of
pool kits and pool walls that have been fabricated by Trendium from
CORE manufactured in Italy or China.\4\
---------------------------------------------------------------------------
\3\ See Mid Continent Nail Corporation v. United States, 725
F.3d 1295 (Fed. Cir. 2013) (Mid Continent).
\4\ See Message Numbers 8141305, 8141304, 8040303, and 8141312,
dated May 21, 2018.
---------------------------------------------------------------------------
Trendium challenged Commerce's Final Scope Ruling before the CIT.
On August 20, 2019, the CIT issued its decision, holding that Commerce
had erred in relying on Mid Continent and conducting the two-step
analysis explained therein because, in the Court's opinion, the record
evidence showed that Trendium's pool products were finished goods.\5\
The CIT also concluded that Trendium's pool products were not covered
by scope of the Orders because, in its view, the plain language of the
Orders excluded downstream products and the information relied upon by
Commerce did not support finding otherwise.\6\ The CIT remanded the
Final Scope Ruling to Commerce for further consideration, consistent
with the CIT's opinion.\7\
---------------------------------------------------------------------------
\5\ See Trendium Pool Products, Inc. v. United States, Court No.
18-00132, Slip Op. 19-113 (CIT August 20, 2019) at 11 n.3.
\6\ Id. at 10, 14, 16.
\7\ Id. at 17-18.
---------------------------------------------------------------------------
Pursuant to the CIT's instructions, on remand, and under respectful
protest, Commerce found that the CORE components of Trendium's pool
kits and pool walls manufactured from Chinese- and Italian-origin CORE
did not fall within the scope of the Orders.\8\ On March 19, 2020, the
CIT sustained Commerce's Final Remand Results.\9\
---------------------------------------------------------------------------
\8\ See Final Results of Redetermination Pursuant to Court
Remand, Trendium Pool Products, Inc. v. United States, Court No. 18-
00132, Slip Op. 19-113 (CIT August 20, 2019), dated November 17,
2019 (Final Remand Results).
\9\ See Trendium Pool Products, Inc. v. United States, Court No.
18-00132, Slip Op. 20-36 (CIT March 19, 2020) at 1.
---------------------------------------------------------------------------
Timken Notice
In its decision in Timken,\10\ as clarified by Diamond
Sawblades,\11\ the Federal Circuit held that, pursuant to sections
516A(c) and (e) of the Tariff Act of 1930, as amended (the Act),
Commerce must publish a notice of a court decision that is not ``in
harmony'' with a Commerce determination and must suspend liquidation of
entries pending a ``conclusive'' court decision. The CIT's March 19,
2020 judgment in this case constitutes a final decision of the court
that is not in harmony with Commerce's Final Scope Ruling. This notice
is published in fulfilment of the publication requirements of Timken.
---------------------------------------------------------------------------
\10\ See Timken Co. v. United States, 893 F. 2d 337, 341 (Fed.
Cir. 1990) (Timken).
\11\ See Diamond Sawblades Mfrs. Coalition v. United States, 626
F. 3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
---------------------------------------------------------------------------
Amended Final Scope Ruling
There is now a final court decision with respect to the Trendium
Final Scope Ruling. Therefore, Commerce is amending its scope ruling
and finds that the scope of the Orders does not cover the products
addressed in the Final Scope Ruling and the Final Remand Results. The
period to appeal the CIT's ruling expired on May 18, 2020. Because no
parties appealed the CIT's ruling, Commerce will instruct CBP to lift
suspension of liquidation of the CORE components subject to Trendium's
Scope Request and to liquidate such entries without regard to
antidumping or countervailing duties. In addition, Commerce will
instruct CBP to release any cash deposits collected pursuant to the
Orders on such entries currently awaiting liquidation.
Notification to Interested Parties
This notice is issued and published in accordance with section
516A(e)(1) of the Act.
Dated: June 16, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-13642 Filed 6-23-20; 8:45 am]
BILLING CODE 3510-DS-P