CIT Faults ITA Scope Inclusion for China Wooden Bedroom Furniture

Since the AD duty order on wooden bedroom furniture from China excludes benches but includes chests, importer Legacy Classic Furniture, Inc. challenged a finding by the International Trade Administration that the company’s combination bench-chests are included in the order. Among other factors it cited, the ITA reasoned that although the product has a padded top which purchasers could use for seating, the box design and cedar-lined storage unit were the item’s defining characteristics.

The Court of International Trade agreed with the ITA that a scope determination for the combination bench-chests could not be reached on the basis of the descriptions of subject merchandise in the petition, the initial investigation, and preceding scope determinations. However, the court found the agency’s reasoning inadequate with respect to each of the five scope criteria the agency must evaluate when the language of the AD order alone does not provide sufficient guidance: (i) the physical characteristics of the product; (ii) the expectations of the ultimate purchasers; (iii) the ultimate use of the product; (iv) the channels of trade in which the product is sold; and (v) the manner in which the product is advertised and displayed.

Accordingly, the CIT set aside the ITA’s in-scope ruling and gave the agency instructions “to make a redetermination that reconsiders each of the five factors.”

(Slip Op. 11-157, dated 12/15/11)