Opposing sides in the Section 301 litigation appeared from the July 15 status conference at the U.S. Court of International Trade to be inching toward a compromise that would spare CBP the administrative burden of complying with the court's July 6 preliminary injunction (PI) order freezing liquidation of many thousands of unliquidated customs entries with lists 3 and 4A tariff exposure. The court called the conference to gauge progress in creating the order's "repository" for importers to seek the suspension of entries due to be liquidated during a 28-day temporary restraining order period that expires Aug. 2.
Court of International Trade activity
The following lawsuits were recently filed at the Court of International Trade:
Importer Amoena USA Corp. wants the Court of International Trade to find that its mastectomy brassieres of Harmonized Tariff Schedule subheading 6212.10.90, dutiable at 16.9%, should properly be classified as the duty-free subheading of 9021.39.0000, according to a July 14 complaint. The former subheading covers "other brassieres of manmade fiber," while the importer's preferred subheading covers "Orthopedic appliances artificial parts of the body; parts and accessories thereof: Other artificial parts of the body and parts and accessories thereof: Other." Mastectomy brassieres are an accessory for artificial breasts for women who have had mastectomies. The brassieres are used to hold the artificial breast in position and are predominantly sold in medical settings, the complaint said. Since they are "principally used as accessories of artificial breast forms" they should be classified in Chapter 90 of the HTS, Amoena said (Amoena USA Corp. v. United States, CIT #20-00100).
The Court of International Trade stayed proceedings in a case brought by Allegheny Technologies Incorporated, challenging the denial of its request for an exclusion from Section 232 duties, in a July 12 order. In the joint motion requesting the stay, counsel for Allegheny said that the government defense reported to the plaintiffs that it was "engaged in internal discussions concerning disposition of this case." The government plans to wrap up the discussions and discuss the results with the plaintiffs in the following week, and said that any resulting status report or motion would be filed "as soon as practicable." Proceedings in the case are stayed until July 21 (Allegheny Technologies Incorporated et al. v. U.S., CIT #20-03923).
The Commerce Department wants a partial remand of its final determination in a countervailing duty investigation on utility scale wind towers from Indonesia, to reconsider whether it erroneously identified an upstream subsidy in the case as an export subsidy. In a July 9 motion for partial remand in the Court of International Trade, the government defense said that it wants the chance to review this determination to see if an error was committed and to potentially recalculate the resulting countervailing duty rate for the plaintiff in the case, PT. Kenertec Power System, which received the all-other respondents rate in the investigation (PT. Kenertec Power System v. United States, CIT #20-03687).
The U.S. Court of Appeals for the Federal Circuit upheld a Court of International Trade ruling dismissing an importer's challenge of CBP's assessment of antidumping and countervailing duties, for improper jurisdiction, in a July 14 opinion. The Federal Circuit found that TR International Trading Company, which filed its case under the trade court's Section 1581(i) "residual" jurisdiction provision, could have instead challenged a denied protest under 1581(a) or a scope ruling under 1581(c), rendering Section 1581(i) unavailable.
The U.S. Court of Appeals for the Federal Circuit remanded in part and sustained in part the Commerce Department's final determination in an antidumping investigation into welded line pipe from South Korea in a July 15 opinion. The appellate court affirmed all but one of the Court of International Trade's findings, sending the case back to Commerce to reconsider the use of Cohen's d test in its differential pricing analysis when seeking to assign a dumping margin for goods having undergone "masked dumping."
The Commerce Department will only partially apply adverse facts available for sales a diamond sawblade exporter made to its U.S. affiliate, which used a first-in-first-out methodology to keep track of its country of origin data when calculating the exporter's antidumping rate, it said in remand results filed by the agency July 13. The filing comes to the Court of International Trade after the U.S. Court of Appeals for the Federal Circuit left it up to the trade court to determine if a further remand was needed. The Federal Circuit held that a remand was appropriate for Commerce to determine if it could disregard the exporter's U.S. sales using the FIFO methodology (Diamond Sawblades Manufacturers' Coalition v. United States, CIT #17-00167).
The Commerce Department submitted its remand results to the Court of International Trade on July 12 in an antidumping administrative review on multilayered wood flooring, dropping one of the mandatory respondents from the review in response to a ruling in a separate case from the U.S. Court of Appeals for the Federal Circuit (Fine Furniture (Shanghai) Limited, et al. v. United States, CIT # 14-00135). Following multiple court decisions and remand results, proceedings in Fine Furniture's case were stayed pending the results of the Federal Circuit appeal in Changzhou Hawd Flooring Co., Ltd. v. United States. The eventual decision found that Fine Furniture is not subject to the antidumping order since the mandatory respondents in the underlying AD order received de minimis duty rates in Commerce's final determination (see 2106020069). CIT lifted the stay and remanded the case to exclude Fine Furniture from the review and recalculate the rate for the separate respondents. As a result of Fine Furniture's departure from the review, and the other two mandatory respondents in the review having zero percent antidumping duty margins, the AD rate for all separate rate respondents would fall to zero percent, should the rate be sustained.
The Court of International Trade on July 12 upheld the Commerce Department's pick of Romania over Malaysia as a surrogate country in an antidumping case, but sent back to the agency the resulting financial ratio calculation of a Romanian company. Since Commerce failed to address the concerns of mandatory respondent Ancientree Cabinets, Judge Gary Katzmann directed Commerce to reconsider Ancientree's objections. Other aspects of the investigation under contention, namely the selection of Romania over Malaysia and Commerce's picks for product input surrogate values, were upheld by Katzmann.