[Federal Register Volume 84, Number 180 (Tuesday, September 17, 2019)]
[Notices]
[Pages 48912-48913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20088]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-914, C-570-915]


Antidumping and Countervailing Duty Orders on Light-Walled 
Rectangular Pipe and Tube From 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 and is, 
therefore, finding that certain finished components of refrigerated 
merchandising and display structures imported by Stein Industries Inc., 
d/b/a Carlson AirFlo Merchandising Systems (Carlson) are not within the 
scope of the antidumping (AD) and countervailing duty (CVD) orders on 
light-walled rectangular pipe and tube (LWRPT) from the People's 
Republic of China (China).

DATES: Applicable June 28, 2019.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3477.

SUPPLEMENTARY INFORMATION:

Background

    Commerce issued the AD and CVD orders on LWRPT from China on August 
5, 2008.\1\ On May 29, 2018, in response to a scope ruling request 
filed by Carlson, Commerce issued its Final Scope Ruling, finding that 
certain finished components of refrigerated merchandising and display 
structures (part numbers R10447 and P0228321 and kit numbers 250172 and 
250355) imported by Carlson are covered by the scope of the Orders.\2\ 
Specifically, Commerce indicated that, ``{a{time} ll four parts in 
their original form, that pertain to this scope inquiry, possess the 
physical characteristics of subject merchandise that are described in 
the scope.'' \3\ As a result of the Final Scope Ruling, Commerce 
instructed U.S. Customs and Border Protection (CBP) to continue 
suspension of liquidation of entries of Carlson's certain finished 
components of refrigerated merchandising and display structures.\4\
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    \1\ See Light-Walled Rectangular Pipe and Tube from Mexico, the 
People's Republic of China, and the Republic of Korea: Antidumping 
Duty Orders; Light-Walled Rectangular Pipe and Tube from the 
Republic of Korea: Notice of Amended Final Determination of Sales at 
Less Than Fair Value, 73 FR 45400 (August 5, 2008) and Light-Walled 
Rectangular Pipe and Tube from the People's Republic of China: 
Notice of Countervailing Duty Order, 73 FR 45405 (August 5, 2008) 
(Orders).
    \2\ See Memorandum, ``Final Scope Ruling on the Antidumping and 
Countervailing Duty Order on Light-Walled Rectangular Pipe and Tube 
from the People's Republic of China: Carlson AirFlo Merchandising 
Systems Scope Ruling Request,'' dated May 29, 2018 (Final Scope 
Ruling).
    \3\ Id. at 7.
    \4\ See Message Numbers 8150312 and 8150311 dated May 30, 2018.
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    Carlson challenged Commerce's Final Scope Ruling with respect to 
merchandising bar part number R10447 and welded mounted bar kit number 
250355 before the CIT. On March 5, 2019, the CIT remanded the Final 
Scope Ruling, holding that Commerce did not address certain arguments 
raised by Carlson based on the plain scope language and the sources 
identified under 19 CFR 351.225(k)(1).\5\ The CIT remanded the Final 
Scope Ruling to Commerce for reconsideration.\6\
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    \5\ See Stein Industries Inc., D/B/A/Carlson AirFlo 
Merchandising Systems v. United States, Court No. 18-00150, Slip Op. 
19-29 (CIT March 5, 2019) (Remand Order).
    \6\ Id. at 14-17.
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    Pursuant to the CIT's Remand Order, on remand, Commerce 
reconsidered its Final Scope Ruling and determined that Carlson's 
certain finished components of refrigerated merchandising and display 
structures (merchandising bar part number R10447 and welded mounted bar 
kit number 250355) do not fall within the scope of the Orders.\7\ 
Specifically, Commerce determined that the products do not exhibit a 
rectangular cross-section at the time of importation into the United 
States, as required by the scope of the Orders.\8\ On June 18, 2019, 
the CIT sustained Commerce's Final Remand Results.\9\
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    \7\ See Final Results of Redetermination Pursuant to Court 
Remand, Stein Industries Inc., D/B/A/Carlson AirFlo Merchandising 
Systems v. United States, Court No. 18-00150, Slip Op. 19-29 (CIT 
March 5, 2019), dated May 30, 2019 (Final Remand Results).
    \8\ Id. at 5-6.
    \9\ See Stein Industries Inc., D/B/A/Carlson AirFlo 
Merchandising Systems v. United States, Court No. 18-00150, Slip Op. 
19-75 (CIT June 18, 2019).
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Timken Notice

    In its decision in Timken,\10\ as clarified by Diamond 
Sawblades,\11\ the Court of Appeals for the Federal Circuit (CAFC) held 
that, pursuant to section 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 June 18, 2019, 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 fulfillment of the 
publication requirements of Timken. Accordingly, Commerce will continue 
the suspension of liquidation of certain finished components of 
refrigerated merchandising and display structures (merchandising bar 
part number R10447 and welded mounted bar kit number 250355) imported 
by Carlson pending expiration of the period of appeal or, if

[[Page 48913]]

appealed, pending a final and conclusive court decision.
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    \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).
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Amended Final Scope Ruling

    Because there is now a final court decision with respect to this 
case, Commerce is amending its final scope ruling and finds that the 
scope of the Orders do not cover certain finished components of 
refrigerated merchandising and display structures (merchandising bar 
part number R10447 and welded mounted bar kit number 250355) imported 
by Carlson. Commerce will instruct CBP that the cash deposit rate will 
be zero percent for certain finished components of refrigerated 
merchandising and display structures (merchandising bar part number 
R10447 and welded mounted bar kit number 250355) imported by Carlson. 
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 
certain finished components of refrigerated merchandising and display 
structures (merchandising bar part number R10447 and welded mounted bar 
kit number 250355) imported by Carlson without regard to antidumping 
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) of the Act.

    Dated: September 11, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-20088 Filed 9-16-19; 8:45 am]
 BILLING CODE 3510-DS-P