Commerce’s conclusive determination, delivered later, ruled that the oil piping imports from these Southeast Asian countries indeed circumvented duty orders. Subsequently, the duty orders applicable to China were applied to HLDS and HLD.
HLD’s Tenacious Legal Battle Unfolds
Undeterred, HLD took the legal battlefield, filing a lawsuit with the CIT in January 2022. In June 2022, the company intensified its offensive with a motion for judgment on the agency record, challenging multiple facets of Commerce’s determination.
In addition to disputing Commerce’s approach to manufacturing versus assembly, HLD contested the very initiation of the anti-circumvention action. The company argued that the oil piping from the Southeast Asian countries had only a minimal presence in the U.S. market. Moreover, HLD criticized Commerce for an alleged lack of adequate explanation for self-initiating the probe.
Judge Baker’s Resounding Verdict
On Tuesday, Judge Baker delivered a resounding verdict, stating that Commerce was mandated to consider specific factors before initiating an anti-circumvention action. These factors included trade patterns, affiliations between input manufacturers and producers in third countries, and the increase in input shipments to third countries since the duty order imposition.
