CIT Orders Commerce to Reconsider Ruling on Electrical Conduit as Subject to AD Duties on Pipe Fittings
The Court of International Trade on May 15 ordered the Commerce Department to reconsider a 2017 scope ruling that found fittings used with electrical conduit are subject to antidumping duties on malleable iron pipe fittings from China. The court said Commerce failed to consider whether the term “pipe” in the scope of the AD duty order includes products like electrical conduit that are not designed to withstand pressure.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Atkore Steel Components had argued that its electrical conduit should not be covered because the petition that originally requested the AD duties on pipe fittings said that subject merchandise is principally used in gas, oil and water lines. But Commerce had found the scope of the AD duty order unambiguously covers all ungrooved malleable cast iron pipe fittings, with the exception of metal compression couplings. End use was not relevant to the analysis, Commerce had said (see 1703200026).
The trade court was not convinced that the scope is that straightforward. “The court concludes that the scope of the relevant order is not so clear that the conduit fittings in question are covered by the order, such that no further assessment is needed,” it said. “'Pipe,' a broad term, is undefined within the scope of the Antidumping Order, and is reasonably subject to interpretation.”
Commerce should have paid more attention to other factors like descriptions of covered products in the original petition for AD duties and other documents from the original investigation, as well as prior scope rulings, CIT said. Though Commerce pointed to some statements from the investigation that indicated the type of pipe was irrelevant to whether its fittings were covered, other documents cited by Atkore indicated the contrary. For example, the petition for AD duties said malleable pipe fittings have a minimal performance rating of 150 PSI. CIT ordered Commerce to reopen its scope ruling and consider other sources of information in coming to a new decision.
(Atkore Steel Components, Inc. v. U.S., Slip Op. 18-52, CIT # 17-00077, dated 05/15/18, Judge Restani)