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Court of Federal Appeals Trade activity
The U.S. Court of Appeals for the Federal Circuit issued its mandate June 16 in two cases contesting whether the Commerce Department properly modified the scope of its antidumping and countervailing duty investigations on quartz surface products from China in response to evasion. Building materials company Bruskin International argued that Commerce was wrong to accept the petitioner's scope request, claiming that the agency should have treated it as a request to amend the petition. In the opinion, the appellate court held that the agency is not bound to the preliminary scope and that it had properly changed the scope under its own authority and not per the petitioner's request (see 2204250029) (M S International, et al. v. U.S., Fed. Cir. #21-1679, -1680).
By saying that membership in a Chinese labor union by some of the ownership of an antidumping duty respondent precludes it from proving the absence of de facto Chinese government control, the Commerce Department "radically" changed its separate rate analysis, exporter Zhejiang Machinery Import & Export Corp. (ZMC) said in a June 14 reply brief. Arguing to the U.S. Court of Appeals for the Federal Circuit, ZMC said that the Commerce's new concept of potential government control created by this standard is "too abstract to be lawful" (Zhejiang Machinery Import & Export v. U.S., Fed. Cir. #21-2257).
The Commerce Department properly found that Shelter Forest International Acquisition's hardwood plywood exports didn't circumvent the antidumping and countervailing duty orders on hardwood plywood from China, the U.S. Court of Appeals for the Federal Circuit said in a June 15 opinion. Affirming the Court of International Trade's opinion, the Federal Circuit said that the merchandise was commercially available before Dec. 8, 2016, and was thus not later-developed merchandise that circumvented the AD/CVD orders.
The U.S. Court of Appeals for the Federal Circuit issued revised protocols for in-person oral arguments beginning with the July court sitting and until further notice. The new rules "clarify and expand the testing or medical documentation available" to arguing counsel allowing them to enter the court.
The U.S. Court of Appeals for the Federal Circuit issued its mandate on June 13 in an antidumping case over the Commerce Department's differential pricing analysis. In the case's opinion, the Federal Circuit said that Commerce must reconsider its decision to use a simple average to calculate the pooled standard deviation when using the Cohen's d test in the DPA to target "masked dumping" (see 2204210031). Ruling that Commerce strayed from the statistical literature without a proper explanation, Judges Pauline Newman, Alan Lourie and Richard Taranto said the agency should reconsider whether a weighted average for calculating the Cohen's d denominator is more appropriate (Mid Continent Steel & Wire v. United States, Fed. Cir. #21-1747).
The Court of Appeals for the Federal Circuit in a June 15 opinion affirmed the Court of International Trade's ruling in an anti-circumvention inquiry on hardwood plywood from China. The trade court sustained the Commerce Department's ruling that certain hardwood plywood was commercially available before Dec. 8, 2016, and did not constitute later-developed merchandise that circumvented the antidumping and countervailing duty orders. The appellate court ruled this decision was properly made and said the record reflects the availability of the merchandise before the orders.
The Commerce Department properly found that electricity was not provided below cost in South Korea in a countervailing duty investigation, the Court of International Trade said in a June 13 opinion. Following a remand from the Court of Appeals for the Federal Circuit, Judge Jennifer Choe-Groves said that both of the remanded issues -- Commerce's reliance on the preferential-rate standard and its failure to address the Korean Power Exchange's (KPX's) impact on the South Korean electricity market as rendering cost-recovery analysis -- now comply with the appellate court's ruling.
President Donald Trump's move to expand the Section 232 steel and aluminum tariffs onto "derivative" products was part of the president's original "plan of action," thus making the expansion legal, the U.S. argued in a June 10 reply brief at the U.S. Court of Appeals for the Federal Circuit. Centering the reply on a key Federal Circuit opinion, Transpacific Steel v. U.S., which said the president can carry out certain Section 232 tariff action beyond procedural deadlines, DOJ told the appellate court that the derivatives expansion sought to carry out the president's original goal of reaching an 80% domestic capacity utilization rate for steel and aluminum.
The U.S. Court of Appeals for the Federal Circuit in a June 10 order invited the U.S. to file an amicus brief in a case on whether the Commerce Department can conduct expedited countervailing duty reviews. The plaintiff-appellants, led by Fontaine Inc., filed their opening brief in February, seeking statutory cover for Commerce to perform the expedited reviews (Committee Overseeing Action for Lumber International Trade Investigations or Negotiations v. United States, Fed. Cir. #22-1021).