CIT Orders Redo of AD/CVD Scope Ruling on Rectangular Pipe

The Court of International Trade on March 5 rejected a Commerce Department scope ruling that found refrigerated merchandising and display structures are subject to antidumping and countervailing duties on light-walled rectangular pipe and tube from China (A-570-914/C-570-915), sending it back down to Commerce for reconsideration. Stein Industries (dba Carlson Airflo) had argued its products, though steel and mostly rectangular, were not covered by AD/CV duties because, prior to importation, parts had been welded on perpendicularly, making the entire cross-section no longer rectangular. Stein also said that they are downstream products that the International Trade Commission had considered to be outside of scope. According to CIT, Commerce did not adequately address either argument in its May 2018 scope ruling (see 1807160041), remaining silent as to whether products that are not uniformly rectangular can be covered by the scope, and misconstruing Stein’s argument that the downstream products are exempt. CIT gave the agency until June 3 to file its redetermination.