Trade Court Approves DOJ's Second Extension to File Remand Comments Over Objections

The Court of International Trade greenlighted the Department of Justice's second motion for an extension to file comments on the remand results in a Dec. 8 order submitted in a case over an antidumping scope ruling. Plaintiff-intervenor SIGMA Corporation opposed the bid, arguing that a further delay will prejudice it. SIGMA currently is wrapped up in parallel litigation in the U.S. District Court for the Central District of California, where the defendant-intervenor in the CIT case, Island Industries Inc., sued SIGMA and others, arguing that the companies violated the False Claims Act by not paying antidumping duties on their welded outlet imports. While a jury verdict has been entered, SIGMA is seeking a new trial since the verdict was "against the weight of the evidence," SIGMA said (Vandewater International Inc., et al. v. United States, CIT #18-00199).

If this post-trial motion fails, SIGMA "intends to avail itself of its appeal rights," so the quick resolution of the CIT case could aid SIGMA in either securing a new trial or on appeal to the U.S. Court of Appeals for the 9th Circuit, the brief said. In the first extension motion, lead counsel for DOJ expressed difficulties resulting from a close family member being hospitalized with COVID-19 and their young child subjected to a 14-day quarantine from getting COVID-19. These issues no longer exist, SIGMA said in opposing the second extension motion.

In October 2020, CIT issued an opinion in the case striking down a then-2-year-old scope ruling that found that steel branch outlets used in fire protection systems are subject to antidumping duties on carbon steel butt-weld pipe fittings from China (see 2010190031). The court found that Commerce failed to adequately explain itself, relying mostly on a previous scope ruling that doesn't fully address the issue. Upon reconsideration, Commerce continued to find that Vandewater's steel branch outlets fall within the scope of the AD order. The agency held that the physical characteristics of the steel branch outlets are similar to the characteristics of the butt-weld pipe fittings (see 2107260042).

In September, the lead plaintiff, Vandewater International, and SIGMA submitted their comments on the remand results (see 2110040034). The pair said Commerce mischaracterized and disregarded key record evidence in its analysis. The litigants are still awaiting DOJ's response because, in its second motion for an extension to file its remand comments, the government said that it has "experienced several unexpected and time-sensitive matters requiring significant attention, in addition to counsel’s already demanding schedule." These commitments include coordinating multi-agency compliance efforts over other CIT decisions and work on time-sensitive bid protest actions at the Court of Federal Claims, the brief said.