[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.225]

[Page 238-241]
 
                        TITLE 19--CUSTOMS DUTIES
 
            CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION,
                         DEPARTMENT OF COMMERCE
 
PART 351--ANTIDUMPING AND COUNTERVAILING DUTIES--Table of Contents
 
        Subpart B--Antidumping and Countervailing Duty Procedures
 
Sec. 351.225  Scope rulings.

    (a) Introduction. Issues arise as to whether a particular product is 
included within the scope of an antidumping or countervailing duty order 
or a suspended investigation. Such issues can arise because the 
descriptions of subject merchandise contained in the Department's 
determinations must be written in general terms. At other times, a 
domestic interested party may allege that changes to an imported product 
or the place where the imported product is assembled constitutes 
circumvention under section 781 of the Act. When such issues arise, the 
Department issues ``scope rulings'' that clarify the scope of an order 
or suspended investigation with respect to particular products. This 
section contains rules regarding scope rulings, requests for scope 
rulings, procedures for scope inquiries, and standards used in 
determining whether a product is within the scope of an order or 
suspended investigation.
    (b) Self-initiation. If the Secretary determines from available 
information that an inquiry is warranted to determine whether a product 
is included within the scope of an antidumping or countervailing duty 
order or a suspended investigation, the Secretary will initiate an 
inquiry, and will notify all parties on the Department's scope service 
list of its initiation of a scope inquiry.
    (c) By application--(1) Contents and service of application. Any 
interested party may apply for a ruling as to whether a particular 
product is within the scope of an order or a suspended investigation. 
The application must be served upon all parties on the scope service 
list described in paragraph (n) of this section, and must contain the 
following, to the extent reasonably available to the interested party:
    (i) A detailed description of the product, including its technical 
characteristics and uses, and its current U.S. Tariff Classification 
number;
    (ii) A statement of the interested party's position as to whether 
the product is within the scope of an order or a suspended 
investigation, including:
    (A) A summary of the reasons for this conclusion,
    (B) Citations to any applicable statutory authority, and
    (C) Any factual information supporting this position, including 
excerpts from portions of the Secretary's or the Commission's 
investigation, and relevant prior scope rulings.
    (2) Deadline for action on application. Within 45 days of the date 
of receipt of an application for a scope ruling, the Secretary will 
issue a final ruling under paragraph (d) of this section or will 
initiate a scope inquiry under paragraph (e) of this section.
    (d) Ruling based upon the application. If the Secretary can 
determine, based solely upon the application and the descriptions of the 
merchandise referred to in paragraph (k)(1) of this section, whether a 
product is included within the scope of an order or a suspended 
investigation, the Secretary will issue a

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final ruling as to whether the product is included within the order or 
suspended investigation. The Secretary will notify all persons on the 
Department's scope service list (see paragraph (n) of this section) of 
the final ruling.
    (e) Ruling where further inquiry is warranted. If the Secretary 
finds that the issue of whether a product is included within the scope 
of an order or a suspended investigation cannot be determined based 
solely upon the application and the descriptions of the merchandise 
referred to in paragraph (k)(1) of this section, the Secretary will 
notify by mail all parties on the Department's scope service list of the 
initiation of a scope inquiry.
    (f) Notice and procedure. (1) Notice of the initiation of a scope 
inquiry issued under paragraph (b) or (e) of this section will include:
    (i) A description of the product that is the subject of the scope 
inquiry; and
    (ii) An explanation of the reasons for the Secretary's decision to 
initiate a scope inquiry;
    (iii) A schedule for submission of comments that normally will allow 
interested parties 20 days in which to provide comments on, and 
supporting factual information relating to, the inquiry, and 10 days in 
which to provide any rebuttal to such comments.
    (2) The Secretary may issue questionnaires and verify submissions 
received, where appropriate.
    (3) Whenever the Secretary finds that a scope inquiry presents an 
issue of significant difficulty, the Secretary will issue a preliminary 
scope ruling, based upon the available information at the time, as to 
whether there is a reasonable basis to believe or suspect that the 
product subject to a scope inquiry is included within the order or 
suspended investigation. The Secretary will notify all parties on the 
Department's scope service list (see paragraph (n) of this section) of 
the preliminary scope ruling, and will invite comment. Unless otherwise 
specified, interested parties will have within twenty days from the date 
of receipt of the notification in which to submit comments, and ten days 
thereafter in which to submit rebuttal comments.
    (4) The Secretary will issue a final ruling as to whether the 
product which is the subject of the scope inquiry is included within the 
order or suspended investigation, including an explanation of the 
factual and legal conclusions on which the final ruling is based. The 
Secretary will notify all parties on the Department's scope service list 
(see paragraph (n) of this section) of the final scope ruling.
    (5) The Secretary will issue a final ruling under paragraph (k) of 
this section (other scope rulings) normally within 120 days of the 
initiation of the inquiry under this section. The Secretary will issue a 
final ruling under paragraph (g), (h), (i), or (j) of this section 
(circumvention rulings under section 781 of the Act) normally within 300 
days from the date of the initiation of the scope inquiry.
    (6) When an administrative review under Sec. 351.213, a new shipper 
review under Sec. 351.214, or an expedited antidumping review under 
Sec. 351.215 is in progress at the time the Secretary provides notice of 
the initiation of a scope inquiry (see paragraph (e)(1) of this 
section), the Secretary may conduct the scope inquiry in conjunction 
with that review.
    (7)(i) The Secretary will notify the Commission in writing of the 
proposed inclusion of products in an order prior to issuing a final 
ruling under paragraph (f)(4) of this section based on a determination 
under:
    (A) Section 781(a) of the Act with respect to merchandise completed 
or assembled in the United States (other than minor completion or 
assembly);
    (B) Section 781(b) of the Act with respect to merchandise completed 
or assembled in other foreign countries; or
    (C) Section 781(d) of the Act with respect to later-developed 
products which incorporate a significant technological advance or 
significant alteration of an earlier product.
    (ii) If the Secretary notifies the Commission under paragraph 
(f)(7)(i) of this section, upon the written request of the Commission, 
the Secretary will consult with the Commission regarding the proposed 
inclusion, and any such consultation will be completed within 15 days 
after the date of such request. If, after consultation, the Commission 
believes that a significant injury issue is presented by the proposed 
inclusion

[[Page 240]]

of a product within an order, the Commission may provide written advice 
to the Secretary as to whether the inclusion would be inconsistent with 
the affirmative injury determination of the Commission on which the 
order is based.
    (g) Products completed or assembled in the United States. Under 
section 781(a) of the Act, the Secretary may include within the scope of 
an antidumping or countervailing duty order imported parts or components 
referred to in section 781(a)(1)(B) of the Act that are used in the 
completion or assembly of the merchandise in the United States at any 
time such order is in effect. In making this determination, the 
Secretary will not consider any single factor of section 781(a)(2) of 
the Act to be controlling. In determining the value of parts or 
components purchased from an affiliated person under section 
781(a)(1)(D) of the Act, or of processing performed by an affiliated 
person under section 781(a)(2)(E) of the Act, the Secretary may 
determine the value of the part or component on the basis of the cost of 
producing the part or component under section 773(f)(3) of the Act.
    (h) Products completed or assembled in other foreign countries. 
Under section 781(b) of the Act, the Secretary may include within the 
scope of an antidumping or countervailing duty order, at any time such 
order is in effect, imported merchandise completed or assembled in a 
foreign country other than the country to which the order applies. In 
making this determination, the Secretary will not consider any single 
factor of section 781(b)(2) of the Act to be controlling. In determining 
the value of parts or components purchased from an affiliated person 
under section 781(b)(1)(D) of the Act, or of processing performed by an 
affiliated person under section 781(b)(2)(E) of the Act, the Secretary 
may determine the value of the part or component on the basis of the 
cost of producing the part or component under section 773(f)(3) of the 
Act.
    (i) Minor alterations of merchandise. Under section 781(c) of the 
Act, the Secretary may include within the scope of an antidumping or 
countervailing duty order articles altered in form or appearance in 
minor respects.
    (j) Later-developed merchandise. In determining whether later-
developed merchandise is within the scope of an antidumping or 
countervailing duty order, the Secretary will apply section 781(d) of 
the Act.
    (k) Other scope determinations. With respect to those scope 
determinations that are not covered under paragraphs (g) through (j) of 
this section, in considering whether a particular product is included 
within the scope of an order or a suspended investigation, the Secretary 
will take into account the following:
    (1) The descriptions of the merchandise contained in the petition, 
the initial investigation, and the determinations of the Secretary 
(including prior scope determinations) and the Commission.
    (2) When the above criteria are not dispositive, the Secretary will 
further consider:
    (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.
    (l) Suspension of liquidation. (1) When the Secretary conducts a 
scope inquiry under paragraph (b) or (e) of this section, and the 
product in question is already subject to suspension of liquidation, 
that suspension of liquidation will be continued, pending a preliminary 
or a final scope ruling, at the cash deposit rate that would apply if 
the product were ruled to be included within the scope of the order.
    (2) If the Secretary issues a preliminary scope ruling under 
paragraph (f)(3) of this section to the effect that the product in 
question is included within the scope of the order, any suspension of 
liquidation described in paragraph (l)(1) of this section will continue. 
If liquidation has not been suspended, the Secretary will instruct the 
Customs Service to suspend liquidation and to require a cash deposit of 
estimated duties, at the applicable rate, for each unliquidated entry of 
the product entered, or withdrawn from warehouse, for consumption on or 
after the

[[Page 241]]

date of initiation of the scope inquiry. If the Secretary issues a 
preliminary scope ruling to the effect that the product in question is 
not included within the scope of the order, the Secretary will order any 
suspension of liquidation on the product ended, and will instruct the 
Customs Service to refund any cash deposits or release any bonds 
relating to that product.
    (3) If the Secretary issues a final scope ruling, under either 
paragraph (d) or (f)(4) of this section, to the effect that the product 
in question is included within the scope of the order, any suspension of 
liquidation under paragraph (l)(1) or (l)(2) of this section will 
continue. Where there has been no suspension of liquidation, the 
Secretary will instruct the Customs Service to suspend liquidation and 
to require a cash deposit of estimated duties, at the applicable rate, 
for each unliquidated entry of the product entered, or withdrawn from 
warehouse, for consumption on or after the date of initiation of the 
scope inquiry. If the Secretary's final scope ruling is to the effect 
that the product in question is not included within the scope of the 
order, the Secretary will order any suspension of liquidation on the 
subject product ended and will instruct the Customs Service to refund 
any cash deposits or release any bonds relating to this product.
    (4) If, within 90 days of the initiation of a review of an order or 
a suspended investigation under this subpart, the Secretary issues a 
final ruling that a product is included within the scope of the order or 
suspended investigation that is the subject of the review, the 
Secretary, where practicable, will include sales of that product for 
purposes of the review and will seek information regarding such sales. 
If the Secretary issues a final ruling after 90 days of the initiation 
of the review, the Secretary may consider sales of the product for 
purposes of the review on the basis of non-adverse facts available. 
However, notwithstanding the pendency of a scope inquiry, if the 
Secretary considers it appropriate, the Secretary may request 
information concerning the product that is the subject of the scope 
inquiry for purposes of a review under this subpart.
    (m) Orders covering identical products. Except for a scope inquiry 
and a scope ruling that involves section 781(a) or section 781(b) of the 
Act (assembly of parts or components in the United States or in a third 
country), if more than one order or suspended investigation cover the 
same subject merchandise, and if the Secretary considers it appropriate, 
the Secretary may conduct a single inquiry and issue a single scope 
ruling that applies to all such orders or suspended investigations.
    (n) Service of applications; scope service list. The requirements of 
Sec. 351.303(f) apply to this section, except that an application for a 
scope ruling must be served on all persons on the Department's scope 
service list. For purposes of this section, the ``scope service list'' 
will include all persons that have participated in any segment of the 
proceeding. If an application for a scope ruling in one proceeding 
results in a single inquiry that will apply to another proceeding (see 
paragraph (m) of this section), the Secretary will notify persons on the 
scope service list of the other proceeding of the application for a 
scope ruling.
    (o) Publication of list of scope rulings. On a quarterly basis, the 
Secretary will publish in the Federal Register a list of scope rulings 
issued within the last three months. This list will include the case 
name, reference number, and a brief description of the ruling.