Bell Supply Co, LLC v. United States

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The Department of Commerce investigated imports of oil country tubular goods (OCTG). To make OCTG, steel is made into “green tube,” which must be finished to meet specifications for oil and gas well applications. The finishing process includes heat treatment, threading, coating, and other processes. Commerce issued duty orders on OCTG from China, covering "OCTG . . . whether finished (including limited service OCTG products) or unfinished (including green tubes and limited service OCTG products), whether or not thread protectors are attached .... also ... OCTG coupling stock. Excluded from the scope of the order are casing or tubing containing 10.5 percent or more by weight of chromium; drill pipe; unattached couplings; and unattached thread protectors. Customs later determined that OCTG made with unfinished OCTG from China, but finished in Korea or Japan, had a country of origin of Korea or Japan because “heat treating has been held to substantially transform green tubes into oil well tubing.” Commerce addressed the issue in a 2014 Scope Ruling. After remands, the Trade Court concluded that the Orders do not include OCTG finished in third countries and that OCTG finished in third countries does not meet the requirements for circumvention (19 U.S.C. 1677j). The Federal Circuit vacated. The Trade Court improperly proscribed Commerce from using the substantial transformation analysis to determine the country of origin for imported OCTG. View "Bell Supply Co, LLC v. United States" on Justia Law