The Government of Argentina, along with LDC Argentina, will appeal a September Court of International Trade decision that found that the Commerce Department had sufficient evidence in its changed circumstances review to support its finding that the situation had not changed regarding countervailable subsidies for Argentina's biodiesel industry. In two notices of appeal, both plaintiffs said they will now take the case to the U.S. Court of Appeals for the Federal Circuit. In the case, the court also upheld Commerce's decision to originally find changed circumstances but later switch back to a finding of no changed circumstances, leading to a higher CVD rate (see 2109210046) (Government of Argentina v. United States, CIT Consol. # 20-00119).
Country of origin cases
The Commerce Department requested a voluntary remand in a Court of International Trade case over steel exporter Mirror Metals' denied Section 232 exclusion requests, finding that it is appropriate to reconsider the exclusion denials. The case concerns 45 exclusion requests for flat-rolled stainless steel products that are supposedly used in large-scale architectural projects. The requests saw objections from three domestic manufacturers, leading to Commerce denying all 45 exclusion bids. The leading reason for the denials given by Commerce was the availability of the domestic capacity to make the products in question (Mirror Metals, Inc. v. United States, CIT #21-00144).
The Court of International Trade sustained Nov. 18 the Commerce Department's remand results in a case involving a scope revision in an antidumping and countervailing duty investigation on steel trailer wheels from China. After previously sustaining the scope revision itself but remanding the retroactive imposition of the duties on subject merchandise, Judge Gary Katzmann then sustained Commerce's redetermination after it dropped the retroactive duties.
The Customs Rulings Online Search System (CROSS) was updated Nov. 18 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
The Commerce Department has the authority to modify the scope of an antidumping duty investigation in response to evidence of evasion to ensure that the ultimate order "provides an effective remedy," the Department of Justice argued in a Nov. 12 brief at the U.S. Court of Appeals for the Federal Circuit. DOJ also backed the actual scope decision at issue in the case itself, asserting it was based on substantial evidence that showed Chinese companies were planning to use the original crushed glass exclusion to evade Commerce's AD/CVD orders on quartz-glass product (M S International, Inc., et al. v. United States, Fed. Cir. #21-1679).
The Court of International Trade again struck down the Trump administration's withdrawal of an exclusion from the Section 201 solar safeguard measures for bifacial solar panels, in its second opinion rejecting Trump administration's elimination of the exclusion as many days. Judge Gary Katzmann found that the Office of the U.S. Trade Representative's exclusion withdrawal was an "arbitrary and capricious agency decision" and represented a move with no statutory authority. Just a day earlier, Katzmann ruled against a presidential proclamation attempting to withdraw the bifacial panel exclusion, which came as a direct response to the CIT's preliminary injunction in the case over the USTR's move.
The U.S. Court of Appeals for the Federal Circuit issued a notice of noncompliance Nov. 15 to counsel for the U.S. government in a case involving Section 232 duties. The notice said only one attorney may serve as principal counsel for each party. Two Department of Justice attorneys, Stephen Tosini and Kyle Beckrich, currently are listed in the docket as counsel for the U.S., with both marked to receive notice. Tosini is listed as the lead counsel and Beckrich as the counsel of record. The Federal Circuit said that "a party's failure to timely file a corrected document curing all defects identified on this notice may result in this document being stricken (PrimeSource Building Products, Inc. v. U.S., Fed. Cir. , #21-2066).
The Commerce Department improperly rejected a first-in-first-out (FIFO) methodology used by an Indonesian mattress exporter to determine which of the exporter’s U.S. inventory to examine in an antidumping duty investigation on mattresses from Indonesia, the exporter said in a brief filed with the Court of International Trade Nov. 9.
The Supreme Court of the U.S. may hear an appeal of the key Transpacific Steel LLC v. United States decision, seeing it as an opportunity to discuss the question of the extent to which Congress delegated tariff powers to the president, Julie Mendoza of Morris Manning, counsel to plaintiff-appellee Borusan Mannesmann, told Trade Law Daily. Having recently petitioned the Supreme Court to take up the case, Mendoza said that having the case sit in front of the nation's highest court will also give her and her team a chance to argue that the most recent decision in the case runs afoul of the intelligible principle standard for delegation of powers to the president as it relates to Section 232.
The 1974 Trade Act “does not authorize” the Office of the U.S. Trade Representative to increase the “original” Section 301 lists 1 and 2 tariffs on Chinese goods under the “circumstances present” in the lists 3 and 4A duties, argued Akin Gump lawyers for sample case plaintiffs HMTX Industries and Jasco Products, in their final written brief Nov. 15 at the Court of International Trade before the litigation moves to oral argument Feb. 1, 2022. HMTX and Jasco, plus the thousands of complaints their September 2020 lawsuit sparked, seek to get the lists 3 and 4A tariffs thrown out and the paid duties refunded with interest.