Importer Eteros Technologies USA could not have imported its motor frame assemblies -- a product deemed "drug paraphernalia" -- since there was no law specifically authorizing Eteros to possess or distribute the drug paraphernalia, the Department of Justice argued in a Nov. 5 brief to the Court of International Trade. Countering Eteros' position that it was allowed to import the drug paraphernalia since it was allowed under state law, DOJ said that Washington state law merely decriminalized the possession of drug paraphernalia but did not explicitly allow its importation (Eteros Technologies USA, Inc. v. United States, CIT #21-00287).
Court of International Trade activity
Lawyers for the Department of Justice and Section 301 sample-case plaintiffs HMTX Industries and Jasco Products, “in preparation for scheduling oral argument” in the case, have until Nov. 12 to email the Court of International Trade about any “scheduling conflicts that would preclude their attendance at the hearing” in January or February of 2022, an order entered on Nov. 10 said. Akin Gump attorneys for HMTX and Jasco are scheduled to file their final papers with the court on Nov. 15. the Nov. 10 order appeared to dash any possibility oral argument would be held before year-end, as some lawyers involved in the litigation had expected, as an outside chance. Several thousand complaints have been filed in the massive Section 301 litigation since September 2020, all seeking to have the lists 3 and 4A tariffs on Chinese imports declared unlawful and any paid duties refunded with interest (In Re Section 301 Cases, CIT #21-00052).
The Court of International Trade "created a paradox" when ruling that CBP's seizure of alleged drug paraphernalia is not an admissibility determination, while at the same time finding that the seizure prevents a deemed exclusion of the merchandise, importer Root Sciences said in a Nov. 8 brief. Looking to get CIT to reconsider a previous ruling that found that the court didn't have jurisdiction over cases in which CBP seized goods, Root said CIT's ruling has caused it to be "cast into a jurisdictional wilderness" (Root Sciences, LLC v. United States, CIT #21-00123).
The Court of International Trade granted on Nov. 9 a voluntary remand motion from the Commerce Department to reconsider the terms of an alleged benefit conferred to a countervailing duty review respondent. In particular, Commerce will reconsider a South Korean government program relating to the payments of sewerage fees that allegedly gave respondent Hyundai Steel Co.a countervailable benefit. The case concerns the 2018 CVD administrative review of cut-to-length carbon-quality steel plate from South Korea. Commerce said it wants to reconsider the sewerage fees program since it learned more about the program when conducting the 2019 CVD review of the same goods (see 2111080050). The agency has 90 days to reconsider its position (Hyundai Steel Company v. U.S., CIT #21-00012).
The Commerce Department further defended its decision to continue relying on facts otherwise available in Nov. 8 comments submitted to the Court of International Trade, despite a U.S. Court of Appeals for the Federal Circuit opinion finding that such reliance on the current data was inappropriate. The plaintiff in the case, Dillinger France, argued that Commerce ignored the Federal Circuit's directive by continuing to rely on the "likely selling prices" in Dillinger France's records rather than the actual cost of production. Commerce responded that the plaintiff failed to submit the actual product-specific costs of producing the non-prime products or the physical characteristics of the non-prime products, leading to no other choice but to use facts otherwise available (Dillinger France S.A. v. United States, CIT #17-00159).
The Court of International Trade should remand the Commerce Department's particular market situation adjustment to an exporter's constructed value, the exporter, Garg Tube Export, argued in a Nov. 8 brief at CIT. Substantial evidence does not support Commerce's evidence of a PMS existing, so the holding should be remanded, Garg Tube said. Though Commerce correctly reversed its PMS adjustment to its sales-below-cost test for some Garg Tube products on a first remand, the agency should not have found a PMS existed at all for Garg Tube, the exporter said.
Hyundai Steel Co. attempted to explain away an attack from antidumping petitioner U.S. Steel that it has a "troubling history" on a key issue in the AD review, in a Nov. 8 brief submitted to the Court of International Trade. Asserting that its prior positions are irrelevant to the issue at hand, Hyundai characterized U.S. Steel's attacks as "without merit," arguing instead that its "perceived deficiency" in certain data fields can be easily explained to Commerce (Hyundai Steel Co. v. United States, CIT Consol. # 19-00099).
The following lawsuits were recently filed at the Court of International Trade:
The Commerce Department wants another chance to consider a countervailing duty review after it learned more about the alleged benefit conferred to the respondent, the Department of Justice said in an unopposed remand motion filed Nov. 8 at the Court of International Trade. In particular, Commerce wants to reconsider a South Korean government program relating to the payments of sewerage fees that allegedly gave respondent Hyundai Steel Co.a countervailable benefit (Hyundai Steel Company v. U.S., CIT #21-00012).
Antidumping duty investigation respondent Hyundai Steel Co.'s arguments against the Commerce Department's particular market situation finding for South Korean hot-rolled coil cannot be considered because they don't apply to Hyundai, the Department of Justice told the Court of International Trade in a Nov. 8 brief. Even if the court were to consider Hyundai's arguments on this issue, nothing in the court's latest opinion in the case precludes Commerce from finding a PMS, the brief said. Rather, CIT only took issue with Commerce's application of the PMS finding.