81_FR_66446 81 FR 66259 - Aluminum Extrusions 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

81 FR 66259 - Aluminum Extrusions 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

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 187 (September 27, 2016)

Page Range66259-66259
FR Document2016-23305

On August 26, 2016, the United States Court of International Trade (CIT or Court) sustained the Department of Commerce's (Department) final results of redetermination in which the Department determined, under protest, that Whirlpool Corporation's (Whirlpool) kitchen appliance door handles with plastic end caps (handles with end caps) are not covered by the scope of the antidumping (AD) and countervailing duty (CVD) orders on aluminum extrusions from the People's Republic of China.

Federal Register, Volume 81 Issue 187 (Tuesday, September 27, 2016)
[Federal Register Volume 81, Number 187 (Tuesday, September 27, 2016)]
[Notices]
[Page 66259]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23305]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-967; C-570-968]


Aluminum Extrusions 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: On August 26, 2016, the United States Court of International 
Trade (CIT or Court) sustained the Department of Commerce's 
(Department) final results of redetermination in which the Department 
determined, under protest, that Whirlpool Corporation's (Whirlpool) 
kitchen appliance door handles with plastic end caps (handles with end 
caps) are not covered by the scope of the antidumping (AD) and 
countervailing duty (CVD) orders on aluminum extrusions from the 
People's Republic of China.

DATES: Effective: September 5, 2016.

FOR FURTHER INFORMATION CONTACT: James Terpstra, AD/CVD Operations, 
Office III, Enforcement and Compliance, U.S. Department of Commerce, 
14th Street and Constitution Avenue NW., Washington, DC 20230; 
telephone: 202-482-3965.

SUPPLEMENTARY INFORMATION: 

Background

    On August 4, 2014, the Department issued a final scope ruling in 
which it determined that two types of kitchen appliance door handles 
imported by Whirlpool are within the scope of the Orders \1\ and did 
not meet the scope exclusion for ``finished merchandise'' or ``finished 
goods kits.'' \2\ Whirlpool challenged the Department's final scope 
ruling at the CIT.
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    \1\ See Aluminum Extrusions from the People's Republic of China: 
Antidumping Duty Order, 76 FR 30650 (May 26, 2011) and Aluminum 
Extrusions from the People's Republic of China: Countervailing Duty 
Order, 76 FR 30653 (May 26, 2011) (the Orders).
    \2\ See ``Final Scope Ruling on Whirlpool Kitchen Appliance Door 
Handles,'' dated August 4, 2014 (Whirlpool Kitchen Appliance Door 
Handles Scope Ruling).
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    On February 1, 2016, in Whirlpool I the Court issued an opinion and 
order sustaining the Department's findings in the original scope ruling 
that Whirlpool's kitchen appliance door handles consisting of a single 
piece of extruded aluminum are within the scope of the Orders based on 
a plain reading of the scope language.\3\ However, the Court remanded 
the Department's determination that the scope of the Orders covers 
handles consisting of a single piece of aluminum extrusion with plastic 
end caps fastened on with screws. The Court found that the general 
language of the scope did not support the Department's 
determination.\4\ The Court further found that, assuming arguendo that 
Whirlpool's handles with end caps were covered by the general scope 
language, the Department erred in finding that the products did not 
satisfy the ``finished merchandise'' exclusion.\5\
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    \3\ See Whirlpool Corporation v. United States, Court No. 14-
00199, Slip Op. 16-8 (Whirlpool I), at 16-17.
    \4\ Id., at 8-11.
    \5\ Id., at 11-14.
---------------------------------------------------------------------------

    On April 18, 2016, the Department issued its Final Results of 
Redetermination, in which it found that although it respectfully 
disagreed with the Court that Whirlpool's handles with end caps were 
not covered by the general scope language, it found under protest that 
Whirlpool's handles with end caps were outside the scope of the 
Orders.\6\ As a result, the Department did not consider whether 
Whirlpool's handles with end caps were subject to the exclusion for 
``finished merchandise.'' \7\
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    \6\ See Results Of Redetermination Pursuant To Court Remand, 
Whirlpool Corp. v. United States, Court No. 14-000199, Slip Op. 16-
08 (CIT February 1, 2016) (Final Results of Redetermination).
    \7\ Id.
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    On August 26, 2016, in Whirlpool II the Court sustained the 
Department's finding in the Final Results of Redetermination that 
Whirlpool's handles with plastic end caps are not covered by the scope 
of the Orders.\8\ Consistent with the decision of the United States 
Court of Appeals for the Federal Circuit (Federal Circuit) in Timken 
Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) (Timken), as 
clarified by Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d 1374 (CAFC 2010) (Diamond Sawblades), the Department is notifying 
the public that the final judgment in this case is not in harmony with 
the Department's final scope ruling and is amending the final scope 
ruling to find that the handles with end caps imported by Whirlpool are 
not covered by the scope of the Orders.
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    \8\ See Whirlpool Corporation v. United States, Court No. 14-
00199, Slip Op. 16-81 (Whirlpool II).
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Timken Notice

    In its decision in Timken, 893 F.2d at 341, as clarified by Diamond 
Sawblades, the Federal Circuit held that, pursuant to section 516A(e) 
of the Tariff Act of 1930, as amended (the Act), the Department must 
publish a notice of a court decision that is not ``in harmony'' with a 
Department determination and must suspend liquidation of entries 
pending a ``conclusive'' court decision. The CIT's August 26, 2016, 
judgment in Whirlpool II sustaining the Department's finding in the 
Final Results of Redetermination that Whirlpool's handles with end caps 
are not covered by the scope of the Orders constitutes a final decision 
of the Court that is not in harmony with the Whirlpool Kitchen 
Appliance Door Handles Scope Ruling. This notice is published in 
fulfillment of the publication requirements of Timken. Accordingly, the 
Department will continue the suspension of liquidation of Whirlpool's 
handles with end caps at issue pending expiration of the period for 
appeal or, if appealed, pending a final and conclusive court decision.

Amended Final Scope Ruling

    Because there is now a final court decision with respect to the 
Whirlpool Kitchen Appliance Door Handles Scope Ruling, the Department 
amends its final scope ruling and finds that the scope of the Orders 
does not cover Whirlpool's handles with end caps. The Department will 
instruct U.S. Customs and Border Protection (CBP) that the cash deposit 
rate will be zero percent for Whirlpool's handles with end caps. In the 
event the CIT's ruling is not appealed, or if appealed, upheld by the 
Federal Circuit, the Department will instruct CBP to liquidate entries 
of Whirlpool's handles with end caps without regard to antidumping and/
or countervailing duties, and to lift suspension of liquidation of such 
entries.
    This notice is issued and published in accordance with section 
516A(c)(1) of the Act.

    Dated: September 15, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2016-23305 Filed 9-26-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                              Federal Register / Vol. 81, No. 187 / Tuesday, September 27, 2016 / Notices                                                 66259

                                                      Dated: September 20, 2016.                               On February 1, 2016, in Whirlpool I                that the handles with end caps imported
                                                    Andrew McGilvray,                                       the Court issued an opinion and order                 by Whirlpool are not covered by the
                                                    Executive Secretary.                                    sustaining the Department’s findings in               scope of the Orders.
                                                    [FR Doc. 2016–23303 Filed 9–26–16; 8:45 am]             the original scope ruling that
                                                                                                            Whirlpool’s kitchen appliance door                    Timken Notice
                                                    BILLING CODE 3510–DS–P
                                                                                                            handles consisting of a single piece of                  In its decision in Timken, 893 F.2d at
                                                                                                            extruded aluminum are within the                      341, as clarified by Diamond Sawblades,
                                                    DEPARTMENT OF COMMERCE                                  scope of the Orders based on a plain
                                                                                                                                                                  the Federal Circuit held that, pursuant
                                                                                                            reading of the scope language.3
                                                    International Trade Administration                                                                            to section 516A(e) of the Tariff Act of
                                                                                                            However, the Court remanded the
                                                                                                                                                                  1930, as amended (the Act), the
                                                                                                            Department’s determination that the
                                                    [A–570–967; C–570–968]                                  scope of the Orders covers handles                    Department must publish a notice of a
                                                                                                            consisting of a single piece of aluminum              court decision that is not ‘‘in harmony’’
                                                    Aluminum Extrusions From the                                                                                  with a Department determination and
                                                                                                            extrusion with plastic end caps fastened
                                                    People’s Republic of China: Notice of                                                                         must suspend liquidation of entries
                                                                                                            on with screws. The Court found that
                                                    Court Decision Not in Harmony With                                                                            pending a ‘‘conclusive’’ court decision.
                                                                                                            the general language of the scope did
                                                    Final Scope Ruling and Notice of                                                                              The CIT’s August 26, 2016, judgment in
                                                                                                            not support the Department’s
                                                    Amended Final Scope Ruling Pursuant                                                                           Whirlpool II sustaining the Department’s
                                                                                                            determination.4 The Court further found
                                                    to Court Decision                                                                                             finding in the Final Results of
                                                                                                            that, assuming arguendo that
                                                    AGENCY:   Enforcement and Compliance,                   Whirlpool’s handles with end caps were                Redetermination that Whirlpool’s
                                                    International Trade Administration,                     covered by the general scope language,                handles with end caps are not covered
                                                    Department of Commerce.                                 the Department erred in finding that the              by the scope of the Orders constitutes a
                                                    SUMMARY: On August 26, 2016, the                        products did not satisfy the ‘‘finished               final decision of the Court that is not in
                                                    United States Court of International                    merchandise’’ exclusion.5                             harmony with the Whirlpool Kitchen
                                                    Trade (CIT or Court) sustained the                         On April 18, 2016, the Department                  Appliance Door Handles Scope Ruling.
                                                    Department of Commerce’s                                issued its Final Results of                           This notice is published in fulfillment
                                                    (Department) final results of                           Redetermination, in which it found that               of the publication requirements of
                                                    redetermination in which the                            although it respectfully disagreed with               Timken. Accordingly, the Department
                                                    Department determined, under protest,                   the Court that Whirlpool’s handles with               will continue the suspension of
                                                    that Whirlpool Corporation’s                            end caps were not covered by the                      liquidation of Whirlpool’s handles with
                                                    (Whirlpool) kitchen appliance door                      general scope language, it found under                end caps at issue pending expiration of
                                                    handles with plastic end caps (handles                  protest that Whirlpool’s handles with                 the period for appeal or, if appealed,
                                                    with end caps) are not covered by the                   end caps were outside the scope of the                pending a final and conclusive court
                                                    scope of the antidumping (AD) and                       Orders.6 As a result, the Department did
                                                                                                                                                                  decision.
                                                    countervailing duty (CVD) orders on                     not consider whether Whirlpool’s
                                                    aluminum extrusions from the People’s                   handles with end caps were subject to                 Amended Final Scope Ruling
                                                    Republic of China.                                      the exclusion for ‘‘finished
                                                                                                            merchandise.’’ 7                                         Because there is now a final court
                                                    DATES: Effective: September 5, 2016.                                                                          decision with respect to the Whirlpool
                                                                                                               On August 26, 2016, in Whirlpool II
                                                    FOR FURTHER INFORMATION CONTACT:                        the Court sustained the Department’s                  Kitchen Appliance Door Handles Scope
                                                    James Terpstra, AD/CVD Operations,                      finding in the Final Results of                       Ruling, the Department amends its final
                                                    Office III, Enforcement and Compliance,                 Redetermination that Whirlpool’s                      scope ruling and finds that the scope of
                                                    U.S. Department of Commerce, 14th                       handles with plastic end caps are not                 the Orders does not cover Whirlpool’s
                                                    Street and Constitution Avenue NW.,                     covered by the scope of the Orders.8                  handles with end caps. The Department
                                                    Washington, DC 20230; telephone: 202–                   Consistent with the decision of the                   will instruct U.S. Customs and Border
                                                    482–3965.                                               United States Court of Appeals for the                Protection (CBP) that the cash deposit
                                                    SUPPLEMENTARY INFORMATION:                              Federal Circuit (Federal Circuit) in                  rate will be zero percent for Whirlpool’s
                                                    Background                                              Timken Co. v. United States, 893 F.2d                 handles with end caps. In the event the
                                                                                                            337 (Fed. Cir. 1990) (Timken), as                     CIT’s ruling is not appealed, or if
                                                       On August 4, 2014, the Department                    clarified by Diamond Sawblades Mfrs.                  appealed, upheld by the Federal Circuit,
                                                    issued a final scope ruling in which it                 Coalition v. United States, 626 F.3d                  the Department will instruct CBP to
                                                    determined that two types of kitchen                    1374 (CAFC 2010) (Diamond                             liquidate entries of Whirlpool’s handles
                                                    appliance door handles imported by                      Sawblades), the Department is notifying
                                                    Whirlpool are within the scope of the                                                                         with end caps without regard to
                                                                                                            the public that the final judgment in this            antidumping and/or countervailing
                                                    Orders 1 and did not meet the scope                     case is not in harmony with the
                                                    exclusion for ‘‘finished merchandise’’ or                                                                     duties, and to lift suspension of
                                                                                                            Department’s final scope ruling and is
                                                    ‘‘finished goods kits.’’ 2 Whirlpool                                                                          liquidation of such entries.
                                                                                                            amending the final scope ruling to find
                                                    challenged the Department’s final scope                                                                          This notice is issued and published in
                                                    ruling at the CIT.                                         3 See Whirlpool Corporation v. United States,      accordance with section 516A(c)(1) of
                                                                                                            Court No. 14–00199, Slip Op. 16–8 (Whirlpool I),      the Act.
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                                                      1 See Aluminum Extrusions from the People’s           at 16–17.
                                                                                                               4 Id., at 8–11.                                      Dated: September 15, 2016.
                                                    Republic of China: Antidumping Duty Order, 76 FR
                                                                                                               5 Id., at 11–14.
                                                    30650 (May 26, 2011) and Aluminum Extrusions                                                                  Paul Piquado,
                                                                                                               6 See Results Of Redetermination Pursuant To
                                                    from the People’s Republic of China: Countervailing                                                           Assistant Secretary for Enforcement and
                                                    Duty Order, 76 FR 30653 (May 26, 2011) (the             Court Remand, Whirlpool Corp. v. United States,
                                                    Orders).                                                Court No. 14–000199, Slip Op. 16–08 (CIT February     Compliance.
                                                      2 See ‘‘Final Scope Ruling on Whirlpool Kitchen       1, 2016) (Final Results of Redetermination).          [FR Doc. 2016–23305 Filed 9–26–16; 8:45 am]
                                                                                                               7 Id.
                                                    Appliance Door Handles,’’ dated August 4, 2014                                                                BILLING CODE 3510–DS–P
                                                    (Whirlpool Kitchen Appliance Door Handles Scope            8 See Whirlpool Corporation v. United States,

                                                    Ruling).                                                Court No. 14–00199, Slip Op. 16–81 (Whirlpool II).



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Document Created: 2016-09-27 01:19:20
Document Modified: 2016-09-27 01:19:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective: September 5, 2016.
ContactJames Terpstra, AD/CVD Operations, Office III, Enforcement and Compliance, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-3965.
FR Citation81 FR 66259 

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