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CBP Seeks Scope Ruling on Iron Pipe Fittings in EAPA Remand Case

CBP recently asked Commerce for a scope ruling in an Enforce and Protect Act investigation involving whether imports of rough fittings originated in China and processed in Vietnam prior are evading the antidumping duty order on carbon steel butt-weld pipe fittings from China (A-570-814), according to a recently released Sept. 6 notice.

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CBP said it is unable to determine if the AD order's scope covers the rough fittings. It asked Commerce for a ruling on whether Chinese-origin fittings that underwent both the second-stage and third-stage of production in Vietnam and fittings that underwent only third-stage of production in Vietnam are within the order's scope. CBP said such a determination will assist the remand proceedings in a court case on its evasion determination in EAPA Investigation No. 7335.

The AD order covers “carbon steel butt-weld pipe fittings, having an inside diameter of less than 14 inches, imported in either finished or unfinished form.” The order further details that “[these] formed or forged pipe fittings are used to join sections in piping systems where conditions require permanent, welded connections, as distinguished from fittings based on other fastening methods (e.g., threaded, grooved, or bolted fittings).”

In October 2020, CBP determined there was substantial evidence that Norca Industrial and International Piping & Procurement Group (IPPG) entered Chinese-origin carbon steel butt-weld pipe fittings covered by the AD order. Based on the scope of the AD order, rough, unfinished carbon steel butt-weld pipe fittings from China that underwent finishing processes in a third country would remain Chinese-origin upon importation into the U.S., CBP said. In March 2021, Regulations and Rulings affirmed CBP's initial determination.

Norca and IPPG appealed that decision to the Court of International Trade (see 2104270046). On March 11, CIT granted CBP’s motion for voluntary remand. CBP reexamined the production processes undertaken in Vietnam to convert China-origin rough fittings into finished CSBW pipe fittings as well as arguments submitted by Norca. CBP found it was unable to determine whether the imports by Norca and IPPG constituted covered merchandise.