PrimeSource Decision Shows Further Need for Injunction in Steel Nail AD Case, Exporter Tells CIT
The U.S. Court of Appeals for the Federal Circuit's recent decision upholding President Donald Trump's imposition of Section 232 national security tariffs on steel and aluminum derivative products provides further evidence that exporter Oman Fasteners will suffer irreparable harm without an injunction in an antidumping duty case, Oman Fasteners argued. Filing a motion to take judicial notice at the Court of International Trade on Feb. 7, the exporter said that in light of the Federal Circuit's decision it will be required to pay the Section 232 duties on its steel nails entered after Feb. 8, 2020 (Oman Fasteners v. United States, CIT # 22-00348).
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The case concerns the sixth administrative review of the antidumping duty order on steel nails from Oman, covering entries in 2020-2021. In the past five reviews, the exporter said it received a 0.56%, zero, zero, zero and 1.65% dumping margin, respectively. Oman Fasteners was a fully cooperating respondent in the review with the only hang-up coming from the exporter's supplemental Section C questionnaire responses. Part of the response was filed 16 minutes late, resulting in a total adverse facts available rate of 154.33%.
In its complaint and motion for a PI (see 2212280043), Oman Fasteners dubbed the AFA rate "draconian" and said that the company already had to stop all U.S. shipments of its goods subject to the duties, and it will face insolvency unless it can quickly resume U.S. sales and maintain them through the case.
In a separate case, PrimeSource Building Products v. U.S., the Federal Circuit said that Section 232 duties were legally imposed (see 2302070030). Oman Fasteners says the decision exacerbates the need for the injunction.
"With Oman Fasteners’ already limited reserves and cash on hand further drawn down, Oman Fasteners is more dependent than ever on its lines of credit, most of which are at or near their limits," the brief said. "The Federal Circuit’s decision drives home that Oman Fasteners does not have the financial resources to mitigate the irreparable harm that it is suffering as a result of the Department of Commerce’s unlawful decision in this case, and that those harms will continue to grow progressively more devastating without an injunction from this Court."