A Scope Determination — also called a Scope Ruling — is a written decision by the Commerce Department on whether a specific product falls within the scope of an existing antidumping or countervailing duty order. Procedures are codified at 19 CFR § 351.225.
The scope of an AD/CVD order is defined in the order's text, not by HTS code (the HTS numbers in an order are explicitly "for convenience only"). When the scope language is ambiguous as applied to a particular product, an interested party — importer, foreign producer, or domestic petitioner — can request a scope ruling.
Commerce applies a two-step analysis:
- (k)(1) factors — The plain language of the order, descriptions in petitions and investigations, prior scope rulings, and prior determinations
- (k)(2) factors — Physical characteristics, expectations of the ultimate purchasers, ultimate use, channels of trade, and manner of advertising and display (used only when (k)(1) is inconclusive)
A scope ruling can be issued without a formal inquiry if the answer is clear from the (k)(1) factors. Otherwise, Commerce conducts a formal scope inquiry, lasting roughly 120–300 days.
If a product is found to be in-scope, suspension of liquidation and cash deposits apply retroactively to all unliquidated entries, sometimes going back years. Scope rulings are binding on CBP and importers and are appealable to the Court of International Trade.
Scope rulings have become a flashpoint in AD/CVD enforcement, particularly around minor processing in third countries that may amount to circumvention.