The Court of International Trade on March 18 held that CBP is not entitled to Customs Passenger Processing Fees paid by individual passengers who cancel their tickets and who never receive a refund or fail to use a travel credit. Judge Gary Katzmann sided with Southwest Airlines on the issue, first finding that CBP isn't entitled to the fee under the statute, 19 U.S.C. § 58c(a), where no passenger arrives in the U.S. and where the agency didn't provide any customs services. The judge also held that CBP's Guidance Letters on the topic can't usurp the statute and that Southwest doesn't hold the fees in a "constructive trust" for CBP, since the agency has "no equitable interest in a fee where no passenger travels."
Jane Dempsey, former attorney in the Office of the General Counsel at the International Trade Commission, has joined Polsinelli as counsel in the trade remedies practice, the firm said. At the ITC, Dempsey served as lead counsel in trade remedies litigation before the Court of International Trade and U.S. Court of Appeals for the Federal Circuit.
The Court of International Trade on March 13 severed exporter Fontaine's case against the expedited countervailing duty investigation on softwood lumber products from Canada from the consolidated action on the review. Judge Mark Barnett sustained the review "with respect to Fontaine," ordering that the relevant entries be liquidated in line with the court's decision. In January, Barnett sustained the Commerce Department's use of Fontaine's FY 2015 tax returns to calculate the amount of the tax benefits received by the company (see 2501290040). The remaining issues in the case are unrelated to Fontaine (Committee Overseeing Action for Lumber International Trade Investigations or Negotiations v. United States, CIT # 19-00122).
Exporter Kaptan Demir Celik Endustrisi ve Ticaret will appeal a recent decision at the Court of International Trade, which held that the Commerce Department reasonably used Kaptan's invoice date as the date of sale in the 2021-22 administrative review of the antidumping duty order on steel concrete rebar from Turkey (see 2501150021). In the decision, the court also upheld Commerce's differences-in-merchandise adjustment, finding that the adjustment wasn't distortive in the way that it controlled for inflation (Kaptan Demir Celik Endustrisi ve Ticaret v. United States, CIT # 24-00018).
A State Department notice declaring that all agency efforts to control international trade now constitute a "foreign affairs function" of the U.S. under the Administrative Procedure Act will ultimately be subject to the discretion of the courts, trade lawyers told us.
Importer Houston Shutters defended its Section 1581(i) case at the Court of International Trade against the Commerce Department's failure to open a changed circumstances review of antidumping and countervailing duty determinations on wood moldings and millwork products from China. Filing a reply brief on March 12, Houston Shutters said jurisdiction doesn't require it to challenge Commerce's investigations, adding that Commerce itself uses the reviews to consider information that wasn't present during the investigation (Houston Shutters v. U.S., CIT # 24-00193).
The Commerce Department excluded seven types of bricks imported by Fedmet Resources Corp. from the scope of the antidumping and countervailing duty orders on magnesia carbon bricks from China on remand at the Court of International Trade. The agency said, under protest, that the seven brick types had an "above-zero quantity of alumina and were based on testing procedures which properly determined the alumina content at the time of importation" (Fedmet Resources Corp. v. United States, CIT # 23-00117).
A panel of attorneys for importers, domestic petitioners and the government discussed March 13 topics that included the consequences -- or lack thereof -- Loper Bright might have on scope ruling litigation.
The U.S. agreed to apply Section 232 steel tariff exclusions to 13 of importer California Steel Industries' entries. Filing a stipulated judgment at the Court of International Trade on March 11, California Steel and the government said they settled all issues in the case, additionally noting that Section 232 duties applied to one of the importer's entries will be "final and non-protestable" (California Steel Industries v. United States, CIT # 21-00015).
Importer JBF Bahrain and the U.S. are progressing toward a settlement of the importer's customs case on CBP's denial of duty-free treatment under the U.S.-Bahrain Free Trade Agreement for the company's polyethylene terephthalate (PET) film imports. Filing a joint status report on March 12 at the Court of International Trade, JBF said it has "resolved technical issues and provided document production to the defendant," while the U.S., through CBP, continues to examine "representative samples of the raw materials, intermediate product, and imported product" (JBF Bahrain v. United States, CIT # 23-00067).