The U.S. Court of Appeals for the Federal Circuit on May 23 extended a stay in an antidumping duty case after the Court of International Trade settled a related lawsuit. Judge Timothy Dyk noted that the parties told the court that, if no party files an appeal in the related case, the present case before CAFC will be withdrawn. As a result, Dyk extended the stay and said the parties have until seven days after June 16 to tell the court how they plan to proceed (Bioparques de Occidente v. United States, Fed. Cir. # 23-2109).
Steel wire importer Deacero filed a motion for judgment May 19 saying the Commerce Department’s circumvention finding regarding its prestressed concrete steel wire (PC) strand, made under Section 781(a), represents a dangerous precedent that would let Commerce impose duties on all intermediate steel products and “endanger investment” in U.S. manufacturing (Deacero v. United States, CIT # 24-00212).
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The U.S. filed another defense of tariff action taken under the International Emergency Economic Powers Act last week at the Court of International Trade, more fulsomely embracing the notion that the president needs tariff-setting authority under IEEPA to address a host of foreign policy issues. Opposing a group of 11 importers' motion for judgment against the reciprocal tariffs and IEEPA tariffs on China, the government argued that "the success of the Nation" in "navigating and addressing a range of extremely consequential threats" is "built off the dispatch and unitary nature of the executive, girded by necessary tools," including IEEPA tariffs (Princess Awesome v. CBP, CIT # 25-00078).
The Court of International Trade on May 28 vacated President Donald Trump's reciprocal tariffs and tariffs on China, Canada and Mexico, all of which were issued under the International Emergency Economic Powers Act. The court held that the retaliatory tariffs "exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs" and that the tariffs on China, Canada and Mexico "fail because they do not deal with the threats set forth in those orders." Judges Gary Katzmann, Jane Restani and Timothy Reif permanently enjoined the tariffs, declaring that if the tariffs are "unlawful as to Plaintiff they are unlawful as to all."
The U.S. District Court for the District of Columbia on May 27 heard arguments concerning the government's motion to transfer a case challenging International Emergency Economic Powers Act tariffs to the Court of International Trade and two importers' bid for a preliminary injunction against the tariffs. Judge Rudolph Contreras asked the government about what remedy the court could impose should it find for the plaintiffs and about the merits of the importers' claim that IEEPA doesn't provide for tariffs (Learning Resources, Inc. v. Donald J. Trump, D. D.C. # 25-01248).
The Court of International Trade upheld CBP's finding that importer Vanguard Trading evaded the antidumping duty order on Chinese quartz countertops, in a decision made public May 27. Judge Timothy Reif held that CBP wasn't required to make a covered merchandise referral to the Commerce Department under the statute, since CBP determined under its own authority that Vanguard's goods were covered products. Reif also said CBP wasn't required to stay the evasion proceeding after Vanguard filed a formal scope inquiry, noting that such a position would let an importer unilaterally achieve a "pause" in an evasion proceeding by filing a separate scope request with Commerce -- a position that is "plainly contrary" to the evasion statute's "legislative history." Reif then concluded that the evasion determination wasn't arbitrary or capricious.
The government has 10 days to issue orders implementing the Court of International Trade’s May 28 permanent injunction shutting down International Emergency Economic Powers Act tariffs on China, Canada and Mexico, as well as the 10% and country-specific IEEPA reciprocal tariffs, according to a judgment issued by the court alongside its opinion. The government has already filed an appeal of the decision.
The following lawsuit was filed recently at the Court of International Trade:
A trade group that requested antidumping and countervailing duties on glass wine bottles brought a 27-count complaint to the Court of International Trade on May 21. The petitioner challenged the International Trade Commission’s determination that bottle imports weren’t harming the domestic industry (U.S. Glass Producers Coalition v. United States, CIT # 25-00076).