Texas company Kubota North America was ordered Jan. 25 to pay $2 million for falsely labeling replacement parts for tractors, mowers, utility vehicles, and construction and agricultural equipment as having been made in the U.S. The U.S. District Court for the Northern District of Texas entered a stipulated judgment against the company, which included the penalty and compliance reporting and record-keeping requirements for the next 20 years (U.S. v. Kubota North America Corp., N.D. Tex. # 3:24-00159).
The Court of International Trade on Jan. 31 remanded for a third time the Commerce Department's use of Mexican wage data to calculate surrogate labor costs in the antidumping duty investigation on beer kegs from China. Judge M. Miller Baker said Commerce abused its discretion in rejecting Brazilian data, favored by petitioner American Keg, and continuing to use Mexican International Labour Organization data.
The Commerce Department on Jan. 31 finalized an interim rule on the dispute settlement mechanism for reviewing antidumping and countervailing duty decisions from the U.S., Canada and Mexico. The rule references the provision under the United States-Mexico-Canada Agreement as opposed to the relevant article under the North American Free Trade Agreement -- the predecessor to the USMCA.
The following trade-related lawsuits were recently filed at the Court of International Trade:
The U.S. Court of Appeals for the Federal Circuit on Jan. 29 issued its mandate in a customs case on the classification of textile gloves with a plastic coating on the palm and fingers. The appellate court said the gloves fit under Harmonized Tariff Schedule heading 6116 as gloves and not as articles of plastic under heading 3926 (see 2312060028). Importer Magid argued that Section XI Note 1(h) excluded the gloves from heading 6116 and that the Federal Circuit's ruling in Kalle USA v. U.S., a case concerning sausage casing, precluded classification as textiles and apparel of Section XI (Magid Glove & Safety Manufacturing Co. v. U.S., Fed. Cir. # 22-1793).
Exporter Oman Fasteners asked the U.S. Court of Appeals for the Federal Circuit on Jan. 29 to dismiss petitioner Mid Continent Steel & Wire's appeal of a Court of International Trade decision imposing an injunction on the Commerce Department's antidumping duty cash deposits on Oman Fasteners' steel nail imports. The exporter said the injunction is no longer active because the Commerce Department completed the next administrative review of the AD order, so there is no live controvery in the case (Oman Fasteners v. United States, Fed. Cir. # 23-1661).
The Court of International Trade on Jan. 30 said that for drawback purposes the 10-digit Harmonized Tariff Schedule subheadings should be read starting with their directly adjacent text and not the superior indented text. Judge Claire Kelly said the "plain meaning" of the statute governing substituted unused merchandise drawbacks refers to the "words describing the article adjacent to the 10-digit number."
Rick Sofield, former partner at Vinson & Elkins, joined Debevoise & Plimpton as co-head of the national security practice based in Washington, D.C., the firm announced. Sofield will center his practice on security reviews by the Committee on Foreign Investment in the U.S. and other cross-border transactions and investments. Sofield previously was director of the Foreign Investment Review Staff for DOJ's National Security Division.
The sixth iteration of a draft consolidated text on World Trade Organization reform was circulated to WTO members on Jan. 29, the global trade body announced. WTO members were briefed on the latest updates regarding informal talks on dispute settlement reform during a Jan. 26 meeting of the Dispute Settlement Body, and the WTO said it expects final comments on the text will be incorporated the week of Feb. 5. A final draft text is expected by Feb. 9.
The following trade-related lawsuit was recently filed at the Court of International Trade: