Aluminum extrusion importer Global Aluminum Distributor filed a lawsuit challenging the constitutionality of Enforce and Protect A investigations, becoming the latest to challenge the process for countering antidumping duty evasion. In an April 28 complaint, Global Aluminum said CBP's EAPA process violated procedural requirements and the importer's constitutional rights related to due process and excessive fines, and that CBP is unfairly subjecting a company to two EAPA investigations for the same conduct and entries. Separate from other EAPA complaints, Global Aluminum claims that the duties assessed via the evasion finding constitutes a violation of the Eight Amendment for excessive fines.
Country of origin cases
Five aluminum extrusion importers evaded antidumping and countervailing duties on goods from China by commingling shipments in the Dominican Republic, CBP said in a Jan. 28 determination notice posted by the agency April 27. The finding is a result of an investigation that began following a 2019 allegation from the Aluminum Extrusions Fair Trade Committee (AEFTC) that the companies were evading AD/CV orders A-570-967 and C-570-968. The importers are Florida Aluminum Extrusion, Classic Metals Supplies, Global Aluminum Inc., H&E Home, Industrias Feliciano Aluminum Inc. JL Trading Corp. and Puertas y Ventanas J.M., Inc.
The Customs Rulings Online Search System (CROSS) was updated April 27 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
The scope of antidumping and countervailing duty orders cannot be expanded to include goods that were not part of the International Trade Commission's original injury determination, Thai steel exporter Saha Thai Steel Pipe Public Company argued in an April 27 reply brief to the Court of International Trade. Citing, among other things, the fact that the ITC's final injury determination did not cover tariff subheadings for dual-stenciled pipe, Saha seeks to overturn the Commerce Department's final scope ruling that dual-stenciled pipe is subject to antidumping duties on circular welded carbon steel pipes and tubes from Thailand (Saha Thai Steel Pipe Public Company Limited v. U.S., CIT #20-00133). Saha says the trade court is bound by the precedent of a 1998 Federal Circuit decision involving Wheatland Tube.
Steel importer Norca Industrial Company filed a challenge to an affirmative Enforce and Protect Act determination, claiming that CBP did not have a legal basis to initiate the investigation and violated its due process rights. In an April 27 complaint in the Court of International Trade, Norca made six claims against its EAPA investigation, including on the constitutionality of the process and whether CBP unfairly made adverse inferences against the company to determine that evasion took place (Norca Industrial Company LLC v. U.S., CIT # 21-00192).
The following are short summaries of recent CBP “NY” rulings issued by the agency's National Commodity Specialist Division in New York:
The following are short summaries of recent CBP “NY” rulings issued by the agency's National Commodity Specialist Division in New York:
The Department of Justice and defendant-intervenor American Kitchen Cabinet Alliance moved to strike part of Chinese cabinet exporter's argument in an antidumping case, claiming the exporter included a new argument in a court filing that was not part of the underlying investigation. In dual April 22 motions to strike in the Court of International Trade, both DOJ and the AKCA said the argument by the exporter, The Ancientree Cabinet Co., over the proper classification of its inputs for wooden cabinets and vanities in selecting surrogate values for an antidumping investigation from a nonmarket economy was not raised during oral argument. A lawyer associated with the case confirmed Ancientree will file a response to the motion to strike.
The Department of Justice intends to file a counterclaim seeking unpaid duties against an importer challenging the classification of its dried or bleached plant parts, according to a joint status report filed in the case April 21. Though Second Nature originally filed the 19 USC 1581(a) denied protest challenge, DOJ “is now in the process of seeking internal U.S. Government approval to assert counterclaims for underpaid duties on products imported under cover of the subject entries that were previously inaccurately or incompletely described by Plaintiff,” the status report said. Second Nature says it “will not consent to allow [DOJ] to amend its Answer to raise a counterclaim after years of litigation, noting under USCIT Rule 15 leave of Court would be required to allow such an amendment.” Second Nature is challenging classification of the dried or bleached plant parts that are painted, dyed or glittered as not dried or bleached at a 7% duty. If classified as dried or bleached, they would be duty free.
Wood importer Richmond International Forest Products launched a challenge in the Court of International Trade claiming its imports of hardwood plywood from Cambodia were erroneously deemed to be of Chinese origin by CBP. In an April 21 complaint, RIFP said its imports were improperly hit with antidumping and countervailing duties, Section 301 tariffs, Merchandise Processing Fees and additional Harbor Maintenance Fee. In addition, RIFP claims that CBP's failure to consider what it sees as key evidence violated the Administrative Procedure Act and the importer's Fifth Amendment rights of due process.