Appeals from the United States Court of International Trade
in No. 1:14-cv-00066-CRK, Judge Claire R. Kelly.
Cameron, Jr., Morris, Manning & Martin, LLP, Washington,
DC, argued for plaintiff-appellee. Also represented by Eugene
Degnan, Mary Hodgins, Julie Mendoza, Brady Mills, R. Will
W. Bohn, Schagrin Associates, Washington, DC, argued for
defendants-appellants Boomerang Tube LLC, TMK IPSCO Tubulars,
V & M Star L.P., Wheatland Tube Company. Also represented
by Roger Brian Schagrin, Christopher Cloutier, Paul Wright
E. DeFrancesco, III, Wiley Rein, LLP, Washington, DC, argued
for defendant-appellant Maverick Tube Corporation. Also
represented by Alan H. Price, Tessa V. Capeloto, Adam Milan
Ansorge, Quinn Emanuel Urquhart & Sullivan, LLP,
Washington, DC, argued for defendant-appellant United States
Steel Corporation. Also represented by Debbie Leilani Shon,
Jonathan Gordon Cooper, Kelsey Rule.
Lourie, Chen, and Hughes, Circuit Judges.
Hughes, Circuit Judge.
Tube LLC, TMK IPSCO Tubulars, V & M Star L.P., Wheatland
Tube Company, Maverick Tube Corporation, and United States
Steel Corporation (collectively, Domestic Steel Companies)
appeal the U.S. Court of International Trade's final
judgment in favor of Bell Supply Company, LLC. The Trade
Court affirmed the U.S. Department of Commerce's
determination that certain imported oil country tubular goods
(OCTG), fabricated as unfinished OCTG in the People's
Republic of China and finished in other countries, were not
subject to the antidumping and countervailing duty orders
covering OCTG imported from China. The Trade Court also
affirmed Commerce's determination that OCTG finished in
third countries do not meet the requirements for
circumvention under 19 U.S.C. § 1677j. Because we
conclude that the Trade Court improperly proscribed Commerce
from using the substantial transformation analysis to
determine the country of origin for imported OCTG, we vacate
the Trade Court's decision and remand for further
Tariff Act of 1930, as amended, allows Commerce to impose
antidumping and countervailing duties on merchandise from
foreign countries. 19 U.S.C. §§ 1671, 1673.
Antidumping duties (AD) provide relief from market
distortions caused by foreign producers who sell their
merchandise in the United States for less than fair market
value, whereas countervailing duties (CVD) seek to address
government subsidies to foreign producers. Allegheny
Ludlum Corp. v. United States, 287 F.3d 1365, 1368 (Fed.
or CVD investigation typically starts with a petition filed
by a domestic industry. During the investigation, Commerce
determines whether the subject merchandise is being sold for
less than fair value or has been subsidized by foreign
governments. Duferco Steel, Inc. v. United States,
296 F.3d 1087, 1089 (Fed. Cir. 2002). The U.S. International
Trade Commission determines whether "the imported
merchandise in question either materially injures or
threatens to materially injure American domestic
industry." Allegheny, 287 F.3d at 1368.
Commerce will issue an AD or CVD order if the investigation
reveals dumping or foreign subsidies that injure American
domestic industry. Duferco Steel, 296 F.3d at 1089.
Commerce issues an AD or CVD order, questions may arise about
the scope of the order. To resolve these questions, Commerce
conducts scope inquiries to clarify which goods are subject
to its AD and CVD orders. 19 C.F.R. § 351.225(a).
Commerce has established factors under 19 C.F.R. §
351.225(k) for determining whether specific articles fall
within the scope of an existing order.
appeal involves Commerce's scope inquiry regarding AD and
CVD orders covering OCTG from China. OCTG are steel pipes and
tubes used in oil drilling. To make OCTG, steel is first made
into "green tube, " which is a steel tube that must
be finished before it can meet specifications for oil and gas
well applications. The finishing process for green tubes
typically includes heat treatment, threading, coating, and
2010, Commerce issued AD and CVD orders (the Orders) on OCTG
from China. The scope ...