The Commerce Department continues to hold that the South Korean government did not provide a countervailable subsidy to producers of hot-rolled steel through cheap electricity and that the agency came to this conclusion in a legal way, despite a decision by the U.S. Court of Appeals for the Federal Circuit to the contrary. In June 10 remand results in the Court of International Trade, Commerce explained why the Federal Circuit was mistaken in its ruling and why it used the appropriate methodology in determining that no benefit was conferred between the Korean government and producers POSCO and Hyundai Steel (POSCO v. United States, CIT #16-00227).
Court of International Trade activity
The following lawsuits were recently filed at the Court of International Trade:
Kazakhstan's Ministry of Trade and Integration is denied the right to join a countervailing duty case on silicon metal from Kazakhstan in the Court of International Trade as a plaintiff-intervenor, Chief Judge Mark Barnett declared June 11. "The motion is denied without prejudice for failure to comply with USCIT Rule 24," Barnett said in a text order. Defendant-intervenors and petitioners in the underlying CVD case, Globe Specialty Metals and Mississippi Silicon, said the trade ministry failed to mention the administrative determination to be reviewed and the issues the proposed intervenor wants to litigate (see 2106090088) (Tau-Ken Temir LLP et al. v. United States, CIT #21-00173).
The Court of International Trade should stay liquidation of PrimeSource Building Products' imports of steel "derivatives" and reinstate the requirement of PrimeSource to monitor future derivative imports and maintain a sufficient continuous bond, pending an appeal of the steel derivative decision, the Department of Justice said in a June 9 filing.
The Court of International Trade found again that President Donald Trump violated procedural time limits when expanding Section 232 tariffs to steel and aluminum “derivatives,” in a June 10 decision. Citing CIT's prior case on the topic, PrimeSource Building Products Inc. v. United States (see 2104050049), Judges Jennifer Choe-Groves and Timothy Stanceu awarded refunds for tariffs paid to steel fastener importers Oman Fasteners, Huttig Building Products and Huttig Inc. In Oman Fasteners, LLC. et al. v. United States, the court ruled that the president illegally announced the tariff expansion after the 105-day deadline laid out by Section 232, but denied the plaintiff's other two claims, without prejudice, on the procedural violations of the tariff expansion. The panel's third member, Judge Miller Baker, concurred in part and dissented in part.
Importers must file protests to preserve their ability to obtain refunds under exclusions from Section 301 tariffs, the Court of International Trade said in a June 11 decision. Dismissing a lawsuit from importers ARP Materials and Harrison Steel Castings, Judge Miller Baker found the court did not have jurisdiction to hear their challenge since the importers did not timely file protests of the CBP liquidations assessing the Section 301 duties.
The Court of International Trade sustained the final results of the second administrative review of the antidumping duty order on steel nails from Oman, in a June 14 decision. Judge Richard Eaton held that there was substantial evidence to back the Commerce Department's decision to use a Japanese company's financial statement to determine constructed value profit and indirect selling expenses for mandatory respondent Oman Fasteners, as opposed to an Indian company's financial statement. Petitioner and plaintiff in the case, Mid Continent Steel & Wire, originally contested the selection.
The Commerce Department and the International Trade Commission published the following Federal Register notices June 11 on AD/CV duty proceedings:
The Court of International Trade consolidated two cases challenging CBP's Enforce and Protect Act administrative review on carbon steel butt-weld pipe fittings, a June 8 order said. The two now-consolidated plaintiffs, Norca Industrial Co. and International Piping & Procurement Group, were subject to an EAPA investigation for allegedly evading antidumping duties on pipe fittings from China by transshipping them through Vietnam. IPPG's case, filed under case number #21-00193, will be consolidated under Norca's case, #21-00192. Both parties alleged due process violations under the EAPA investigation and claimed that the AD order does not cover their imported products (Norca Industrial Co., LLC v. United States, CIT #21-00192).
Kazakhstan's Ministry of Trade and Integration should be barred from intervening as a plaintiff-intervenor in a case challenging a countervailing duty investigation on silicon metal from that country, petitioners Globe Specialty Metals and Mississippi Silicon said in a June 9 brief in the Court of International Trade. The ministry's motion for intervention failed to state the administrative determination to be reviewed and the issues the intervenor wanted to litigate, the petitioners said. The ministry's brief contains only three “misnumbered” paragraphs that simply say it is an “interested party.” Also, since the ministry and the plaintiff in the case have the same counsel, “it is not immediately apparent how participation by [the ministry] could bring any different analyses or arguments to the Court on the very limited issues addressed by [the ministry] in the underlying proceeding” (Tau-Ken Temir LLP et al. v. United States, CIT #21-00173).