The U.S. on Dec. 9 sought default judgment at the Court of International Trade against importer Rago Tires in its customs penalty suit against the company for failing to pay antidumping and countervailing duties on truck and bus tires from China. The government brought the suit in February, alleging that Rago was grossly negligent in avoiding the AD/CVD (see 2402210061). The U.S. said it served the company's "principal and registered agent" a copy of the summons and complaint but has received no response. As a result, since the deadline to respond has lapsed, the government requested default judgment of $56,435.48 for the gross negligence claim (United States v. Rago Tires, CIT # 24-00043).
Court of International Trade
The United States Court of International Trade is a federal court which has national jurisdiction over civil actions regarding the customs and international trade laws of the United States. The Court was established under Article III of the Constitution by the Customs Courts Act of 1980. The Court consists of nine judges appointed by the President and confirmed by the Senate and is located in New York City. The Court has jurisdiction throughout the United States and has exclusive jurisdictional authority to decide civil action pertaining to international trade against the United States or entities representing the United States.
In a Dec. 3 motion for judgment before the Court of International Trade, domestic producer Edsal Manufacturing again (see 2407120060) said that the Commerce Department should have used the more comparable surrogate it suggested in an antidumping duty investigation on boltless steel shelves from Thailand (Edsal Manufacturing Co. v. U.S., CIT # 24-00108).
The government's cause of action against a surety runs from the date the surety breached the demand for payment on a customs bond and not from the date of liquidation, or deemed liquidation, of the underlying entries covered by the bond, the U.S. argued. Filing a cross-motion for judgment at the Court of International Trade on Dec. 9, the U.S. said it timely filed its case because the suit was brought within six years from the date surety firm Aegis Security Insurance Co. was delinquent on an over $100,000 bill for unpaid duties (United States v. Aegis Security Insurance Co., CIT # 22-00327).
The Court of International Trade in a decision made public Dec. 10 sustained the Commerce Department's calculation of industry support in deciding to open the antidumping and countervailing duty investigations on oil country tubular goods from Argentina, Mexico, South Korea and Russia. After remanding the issue for Commerce to address potential double counting in its calculation, Judge Claire Kelly said the agency sufficiently addressed contrary evidence in finding there to be enough domestic support to launch the proceedings. The judge also said importers led by Tenaris Bay City failed to administratively exhaust more specific claims regarding potential undercounting and commingling of the producers and processors in the industry support data used by Commerce.
Surety firm American Alternative Insurance Corp. filed a cross-claim in a customs penalty suit brought by the U.S. against importer Repwire, its manager Jose Pigna and the surety. On Dec. 9, American Alternative Insurance told the Court of International Trade that Repwire and Pigna should be compelled to pay the over $13 million penalty and that the company and its manager "are obligated to indemnify" the insurance company for the amount of duties and fees being demanded (United States v. Repwire, CIT # 24-00173).
Importer Fine Emeralds will get refunds for duties paid on its rough, unworked emerald stones, the company announced in a stipulated judgment filed on Dec. 9 at the Court of International Trade. While the emeralds were assessed 10.5% duties under Harmonized Tariff Schedule subheading 7103.10.40, the government agreed to classify the products under subheading 7103.10.20, free of duty. Fine Emeralds' preferred subheading covers uncorked precious stones (Fine Emeralds v. U.S., CIT # 20-03928).
Chinese-origin countertop importer Superior Commercial Solutions argued Dec. 6 it hadn’t waived its challenge to the CBP regulation that allows it to initiate Enforce and Protect Act investigations based on a petition’s “date of receipt,” which is determined by the agency (Superior Commercial Solutions v. United States, CIT # 24-00052).
Various U.S. manufacturers dropped a pair of cases at the Court of International Trade on Dec. 5, following the U.S. Court of Appeals for the Federal Circuit's decision finding that the Continued Dumping and Subsidy Offset Act of 2000 doesn't require payouts of interest assessed after liquidation, known as delinquency interest, to affected domestic producers (see 2407150031). The appellate court said earlier this year that the act doesn't require delinquency interest payments but only payments of interest that's "earned" on antidumping and countervailing duties and "assessed" under the associated AD or CVD order. The two cases -- one led by Novolex, doing business as Hilex Poly Co. and the other by Bassett Furniture Industries -- had been stayed pending the outcome of the lead case (Bassett Furniture Industries v. U.S., CIT # 19-00073) (Novolex d/b/a Hilex Poly Co. v. U.S., CIT # 19-00074).
The U.S. opposed Canadian lumber exporters' bid to get the court to clarify its instruction to CBP to "discontinue ... the collection of" cash deposits made on entries brought in before a prior Court of International Trade decision, which said it wasn't equitable to subject the companies' exports to the countervailing duty order on Canadian softwood lumber (Committee Overseeing Action for Lumber International Trade Investigations or Negotiations v. United States, CIT # 19-00122).
Glycine producer Deer Park Glycine said Dec. 3 that the Court of International Trade does have jurisdiction under section 1581(c), or alternatively 1581(i), to hear its challenge of the Commerce Department’s rejection of Deer Park’s “duplicative” scope ruling request (Deer Park Glycine v. U.S., CIT # 24-00016).