The U.S. District Court for the District of Columbia on June 3 stayed its decision finding that the International Emergency Economic Powers Act doesn't provide for tariffs, pending the government's appeal of the ruling to the U.S. Court of Appeals for the D.C. Circuit. Judge Rudolph Contreras said a stay is "appropriate to protect the President’s ability to identify and respond to threats to the U.S. economy and national security" (Learning Resources v. Trump, D.D.C. # 25-01248).
The Court of International Trade in a confidential May 30 order remanded parts and sustained parts of the Commerce Department's 2019-20 review of the antidumping duty order on Chinese solar cells. Judge Claire Kelly sustained Commerce's valuation of air freight but sent back the agency's valuation of solar glass under Romanian Harmonized System subheading 7007.19.80 and its methodology for calculating adverse facts available. The judge also sent back Commerce's "determination of the review specific rate" for exporters JA Solar and BYD. Kelly gave the parties until June 5 to review the confidential information in the decision before the court releases a public version (Jinko Solar Import and Export Co. v. United States, CIT # 22-00219).
Importer FCMT filed a trio of complaints at the Court of International Trade last week challenging CBP's appraisement of its apparel entries. In all three cases, the importer argued that CBP failed to use the products' transaction value to appraise the merchandise and that CBP engaged in an "arbitrary and fictitious appraisement" of the merchandise (FCMT v. United States, CIT #s 21-00242, -00243, -00247).
The U.S. and Detroit Axle, an importer challenging the elimination of the de minimis threshold for Chinese products, sparred at the Court of International Trade on whether to stay the company's case in light of the trade court's decision to vacate all tariff executive orders issued by President Donald Trump under the International Emergency Economic Powers Act (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The U.S. on June 2 asked the U.S. Court of Appeals for the D.C. Circuit for an emergency stay of the D.C. district court's decision last week finding that the International Emergency Economic Powers Act doesn't confer tariff-setting authority (see 2505290037). The government said that while the district court's preliminary injunction only extends to the plaintiffs, two small importers, the ruling undermines the president's ability to negotiate trade deals and wield broader diplomatic power (Learning Resources v. Donald J. Trump, D.C. Cir. # 25-5202).
The U.S. Court of Appeals for the Federal Circuit on May 30 issued its mandate in an antidumping duty scope case from importers Smith-Cooper International and Sigma after denying a petition for panel rehearing and rehearing en banc. The importers petitioned for a rehearing of the court's March decision finding the term "butt-weld" to be ambiguous and that the Commerce Department was right to find steel branch outlets to be covered by an AD order on butt-weld pipe fittings from China (see 2503060073). Judge Timothy Dyk dissented in that three-judge decision, finding that the agency erred by refusing to properly consider the regular industry definition of the term (Vandewater International v. United States, Fed. Cir. #s 23-1093, -1141).
Importer Mitsubishi Power Americas will appeal a Court of International Trade decision from April 29 on the classification of the company's catalyst blocks, according to a notice of appeal. The trade court said the catalyst blocks were filters or purifiers and properly classified under Harmonized Tariff Schedule heading 8421 and not as "other" catalytic reactors under heading 3815 (see 2504300067). Mitsubishi had requested Section 301 exclusions for its products but the importer failed to specify a particular HTS heading for the exclusion. However, the Office of the U.S. Trade Representative's exclusion that would apply to the products didn't actually cover Mitsubishi's goods, but even if had, the exclusion was drafted to cover products under heading 3815, the court said (Mitsubishi Power Americas, Inc. v. U.S., CIT # 21-00573).
The Court of International Trade gave plaintiffs in the two successful challenges to President Donald Trump's tariff action taken under the International Emergency Economic Powers Act more time to respond to the government's motion to stay the trade court's decision to vacate Trump's executive orders imposing the tariffs (V.O.S. Selections v. Donald J. Trump, Fed. Cir. # 25-1812).
The Court of International Trade, in a decision made public May 29, said failing to act as a mandatory respondent isn't "unrelated to government control" for purposes of getting a separate antidumping duty rate. Judge Mark Barnett said Commerce isn't required to establish that companies are part of the Chinese government, because that is the presumption. Rather, he said, it's the companies that must show evidence if they are independent of the government.
Following decisions from the Court of International Trade and the U.S. District Court for the District of Columbia invalidating tariff action taken under the International Emergency Economic Powers Act, questions remain about which court has the right view on whether the trade court has exclusive jurisdiction to hear cases on IEEPA tariffs. Relatedly, the issue affects where importers may file suit to contest the imposition of IEEPA tariffs or seek refunds of duties paid under tariff action found to be unlawful.