Justia International Trade Opinion Summaries

In this case, the central issue arose during a countervailing duty investigation into phosphate fertilizers imported from Morocco and Russia. The International Trade Commission (Commission) collected information through questionnaires sent to various parties, including domestic and foreign producers. The Commission’s longstanding practice was to automatically designate all questionnaire responses as confidential, regardless of whether the submitting party requested confidentiality or whether the information would qualify for such treatment under the relevant statute. This led to heavy redactions in the administrative record when the investigation was challenged in court.A Moroccan producer, OCP S.A., sought review of the Commission’s injury determination in the United States Court of International Trade (CIT). The CIT initially remanded the injury determination due to insufficient evidentiary support. When the remand record again included substantial redactions, the CIT held a hearing to scrutinize the Commission’s confidentiality designations. After reviewing arguments from the Commission and affected parties, the CIT concluded that the Commission’s practice of automatically treating all questionnaire responses as confidential was unauthorized by law. The CIT found that much of the redacted information was either publicly available, generalized, or outdated, and thus not entitled to confidential treatment, with only a small portion warranting protection.The United States Court of Appeals for the Federal Circuit reviewed the CIT’s Confidentiality Opinion and Order. The Federal Circuit held that the governing statute does not abrogate the common law right of public access to judicial records and that the Commission’s blanket confidentiality rule conflicts with statutory requirements, which demand public disclosure of non-confidential information and proper justification for confidentiality. The Federal Circuit affirmed the CIT’s order that required the Commission to comply with statutory standards for confidentiality and to cease automatic confidential designation of questionnaire responses. View "In re United States" on Justia Law

In a dispute concerning antidumping and countervailing duties on mattresses imported from several countries, the U.S. International Trade Commission determined that domestic industry suffered material injury from imports sold at less than fair value and from subsidized imports. The Commission treated certain information submitted in response to its questionnaires as confidential. After the Court of International Trade issued a public opinion sustaining the Commission’s injury determination, it did not redact information the Commission had deemed confidential. The Commission requested retraction of the public opinion and sought redactions for specific company names and numerical data, arguing these deserved confidential treatment.The parties jointly moved for redaction, relying on the Commission’s practice of treating questionnaire data as confidential and citing statutory provisions. The Court of International Trade denied the motion, reasoning that the information was either publicly available or not linked to specific entities, and that some claims of confidentiality had been waived due to procedural oversight. The court also emphasized the common law right of access and transparency, but did not specifically address the statutory authority for disclosure.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the denial of the joint motion. The court found the case moot because the allegedly confidential information had already been publicly disclosed more than two years earlier, rendering any relief unavailable. The Federal Circuit held that the “capable of repetition, yet evading review” exception to mootness did not apply, as the companion case decided that day resolved the same confidentiality issues. Therefore, the appeal was dismissed, and no costs were awarded. View "In re United States" on Justia Law

The case centers on Midwest-CBK, LLC, a Minnesota-based retailer of Christmas ornaments. Midwest operated its corporate office in Minnesota and managed inventory and warehousing in Ontario, Canada. Merchandise was purchased from foreign suppliers for export to Canada, stored in Ontario, and sold to U.S. customers by Midwest’s U.S.-based sales staff. Orders were processed in Canada and shipped from Ontario to the United States, with purchase orders stating “FOB Buffalo, NY.” Between 2013 and 2016, Midwest entered merchandise with U.S. Customs and Border Protection using “deductive value.” Customs extended the liquidation deadline and conducted a regulatory audit to determine the correct valuation method, ultimately concluding that “transaction value” should apply, resulting in a recalculated duty assessment.The United States Court of International Trade reviewed Midwest’s challenge to Customs’ appraisement and its extensions of liquidation. Midwest argued that Customs lacked authority to extend liquidation beyond June 14, 2014, when all requested information had been provided, and asserted that the sales were domestic, not “for exportation to the United States.” The CIT found that Customs had a reasonable basis for the extension, given the ongoing audit and internal review, and determined that the transactions qualified as sales for exportation under the relevant statute. The CIT denied Midwest’s motion for partial summary judgment and granted summary judgment to the government.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the CIT’s decision. The court held that Customs properly extended the liquidation period and did not abuse its discretion. It further held that Midwest’s sales were “for exportation to the United States” under 19 U.S.C. § 1401a(b)(1), making transaction value the appropriate basis for appraisement. The judgment of the Court of International Trade was affirmed. View "MIDWEST-CBK, LLC v. US " on Justia Law

Turkish steel producers, including Kaptan Demir Celik Endustrisi ve Ticaret A.S., were subject to a countervailing duty (CVD) order after the U.S. Department of Commerce determined that the Turkish government subsidized steel rebar exports. During an administrative review, Commerce found that Kaptan sourced steel scrap, a key input for rebar, from several affiliates, including Nur, a shipbuilder. Commerce initially determined that Nur’s steel scrap was primarily dedicated to Kaptan’s rebar production, making Nur a cross-owned input supplier whose subsidies should be attributed to Kaptan, thereby increasing Kaptan’s CVD rate.The United States Court of International Trade (CIT) reviewed Commerce’s decision after Kaptan challenged the cross-attribution of Nur’s subsidies. The CIT found that Commerce had not adequately explained whether steel scrap was merely a link in the rebar production chain or addressed prior cases treating steel scrap as a byproduct. The CIT remanded the case for further explanation. On remand, Commerce developed a multi-factor analysis and ultimately reversed its position, finding that Nur’s steel scrap was a common, unprocessed input used in various products and industries, and that Nur’s primary business activity—shipbuilding—was not dedicated almost exclusively to producing rebar. As a result, Commerce concluded that Nur was not a cross-owned input supplier, and Kaptan’s CVD rate was reduced to a de minimis level. The CIT sustained Commerce’s remand decision.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the CIT’s decision for abuse of discretion and Commerce’s remand findings for substantial evidence. The Federal Circuit affirmed, holding that Commerce’s determination that Nur’s steel scrap was not primarily dedicated to Kaptan’s rebar production was adequately explained, supported by substantial evidence, and consistent with the applicable regulation. View "KAPTAN DEMIR CELIK ENDUSTRISI VE TICARET A.S. v. US " on Justia Law

Nutricia North America, Inc. imported five products from the United Kingdom that the Food and Drug Administration (FDA) classified as “medical foods” under the Federal Food, Drug, and Cosmetics Act. These products are specially formulated for individuals with specific metabolic or medical conditions, such as phenylketonuria, intractable epilepsy, and other disorders that require nutritional therapy not achievable through ordinary diet modification. The products are administered enterally, contain no active pharmacological ingredients, and are intended for use under medical supervision.Upon importation in 2014, U.S. Customs and Border Protection classified these products under subheading 2106.90.99 of the Harmonized Tariff Schedule of the United States (HTSUS), which covers “food preparations not elsewhere specified” and imposes a duty. Nutricia protested, arguing that the products should be classified as “medicaments” under heading 3004 of chapter 30, which would allow duty-free entry, or alternatively under a duty-free provision for articles for handicapped persons in chapter 98. Customs denied the protests, and Nutricia filed suit in the United States Court of International Trade (CIT). The CIT granted summary judgment for the government, holding that the products were excluded from chapter 30 by note 1(a) and thus properly classified under chapter 21.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the CIT’s decision de novo. The Federal Circuit held that Nutricia’s medical foods are properly classified under heading 3004 as “medicaments” because they are specially formulated for therapeutic or prophylactic uses under medical supervision. The court found that chapter 30 note 1(a) does not exclude these medical foods from heading 3004. Accordingly, the Federal Circuit reversed the CIT’s judgment and remanded for determination of the appropriate subheading under heading 3004. View "NUTRICIA NORTH AMERICA, INC. v. US " on Justia Law

Brita LP held a patent for a gravity-fed water filter system designed to remove contaminants, particularly lead, from water using filter media that included activated carbon and a lead scavenger. The patent claimed that the filter would achieve a specific performance metric, the Filter Rate and Performance (FRAP) factor, of about 350 or less. Although the patent described various types of filter media, such as carbon blocks and mixed media, it only provided working examples and detailed formulations for carbon-block filters that met the claimed FRAP factor. The patent also included test results showing that only carbon-block filters achieved the required performance, while mixed media filters did not.Brita filed a complaint with the United States International Trade Commission (ITC) under section 337, alleging that several companies imported and sold water filters infringing its patent. After a Markman hearing, the administrative law judge (ALJ) found that the asserted claims met the written description and enablement requirements and determined there was a violation of section 337. Upon review, the ITC reversed the ALJ’s findings, concluding that the claims were invalid for lack of written description and enablement as to any filter media other than carbon blocks, and that the term “filter usage lifetime claimed by a manufacturer or seller of the filter” was indefinite.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the ITC’s decision. The court held that the patent’s specification did not adequately describe or enable the full scope of the claimed invention, specifically for non-carbon-block filter media, and that substantial evidence supported the ITC’s findings. The court did not reach the issue of indefiniteness, as the claims were already found invalid. The disposition was affirmed. View "BRITA LP v. ITC " on Justia Law

Petitioners representing domestic honey producers requested that the U.S. Department of Commerce and the International Trade Commission investigate whether raw honey imported from Vietnam and other countries was being sold in the United States at less than fair value, causing material injury to the domestic industry. During the investigation, both agencies made affirmative preliminary and final determinations supporting the imposition of antidumping duties. The agencies also found “critical circumstances,” meaning there was a surge of imports after the petition was filed but before the preliminary determination, which could undermine the effectiveness of any eventual duties. As a result, the suspension of liquidation and the imposition of duties were backdated by 90 days to cover these imports.The importers of Vietnamese honey and their trade association challenged the Commission’s final determination of critical circumstances in the United States Court of International Trade. They argued that the Commission improperly focused on the period before the antidumping duty order was issued, rather than considering whether the import surge would undermine the remedial effect of the order after its issuance. The Trade Court rejected this argument, upholding the Commission’s determination as both lawful and supported by substantial evidence.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the Trade Court’s decision de novo, applying the same standard. The Federal Circuit held that the statute does not require the Commission to focus solely on the period after the antidumping duty order is issued. Instead, the relevant inquiry is whether the surge of imports before the preliminary determination is likely to undermine the remedial effect of the order, starting from the suspension date. The court also found that the Commission’s findings were supported by substantial evidence. Accordingly, the Federal Circuit affirmed the decision of the Court of International Trade. View "SWEET HARVEST FOODS v. US " on Justia Law

The case concerns an antidumping duty investigation by the U.S. Department of Commerce into certain carbon and alloy steel cut-to-length plate from Germany. The Department selected a German steel producer as a mandatory respondent and required it to provide detailed information about its products and production costs. The producer requested that Commerce modify its model-match methodology to recognize certain steel products—specifically, “sour service” steel used for petroleum transport and pressure vessels—as distinct categories due to their unique properties and higher production costs. Commerce rejected these requests, finding one untimely and the other unsupported. Additionally, the producer was unable to provide product-specific cost data for non-prime steel plate, which is sold as “odds and ends,” and instead reported average costs. Commerce, however, used the likely selling price of non-prime plate as a proxy for its cost of production.The U.S. Court of International Trade reviewed Commerce’s determinations multiple times. It affirmed Commerce’s rejection of the proposed new product category for sour pressure vessel plate as untimely, but required Commerce to reconsider its approach to the cost of production for non-prime plate, citing precedent that actual cost data, not likely selling price, should be used. On remand, Commerce maintained its use of likely selling price as facts otherwise available, and the Trade Court ultimately sustained this approach, while also instructing Commerce to accept the new category for sour transport plate in light of analogous precedent.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the Trade Court’s decision to uphold Commerce’s rejection of the untimely model-match proposal for sour pressure vessel plate. However, the Federal Circuit held that it was unreasonable for Commerce to use likely selling price as facts otherwise available for cost of production, as this methodology does not reasonably reflect actual production costs. The court vacated the Trade Court’s decision on this issue and remanded for further proceedings consistent with its opinion. View "AG DER DILLINGER HUTTENWERKE v. US " on Justia Law

The case concerns an administrative review of an antidumping duty order imposed by the United States Department of Commerce on certain large diameter welded pipe imported from Greece. The Greek producer, Corinth Pipeworks Pipe Industry SA, and its U.S. subsidiary, CPW America Co., were the sole exporter and importer of the subject merchandise. During the review period, Commerce required Corinth to submit cost data and a reconciliation of those costs to its financial statements. Corinth submitted responses to Commerce’s initial and two supplemental questionnaires, but Commerce found that the data did not reconcile as required, included double-counted costs, and failed to provide a single, complete reconciliation for the review period.After receiving Corinth’s responses, Commerce initially issued preliminary results finding no dumping. However, after reviewing the final submissions, Commerce determined that Corinth’s cost data were unreliable and incomplete. Commerce concluded that Corinth had withheld necessary information, failed to provide data in the requested form, and significantly impeded the review. As a result, Commerce applied “facts otherwise available” with an adverse inference, assigning Corinth the highest dumping margin alleged in the original petition. Corinth challenged this determination before the United States Court of International Trade, arguing that Commerce’s actions were unreasonable, that it was not given an opportunity to comment on a change in methodology, and that the adverse inference was not justified.The United States Court of International Trade sustained Commerce’s final determination, finding that Commerce’s use of total adverse facts available was reasonable and supported by substantial evidence. On appeal, the United States Court of Appeals for the Federal Circuit affirmed. The Federal Circuit held that Commerce’s determinations were supported by substantial evidence and not contrary to law, that Corinth had failed to cooperate to the best of its ability, and that Commerce was not required to provide an additional opportunity to comment under the circumstances. The judgment of the Trade Court was affirmed. View "CORINTH PIPEWORKS PIPE INDUSTRY SA v. US " on Justia Law

Several small businesses and a coalition of states challenged a series of executive orders issued by the President that imposed new tariffs of unlimited duration on nearly all goods imported from most countries. These tariffs, referred to as the Trafficking Tariffs and Reciprocal Tariffs, were imposed in response to declared national emergencies related to drug trafficking and trade imbalances. The executive orders directed changes to the Harmonized Tariff Schedule of the United States, resulting in significant increases in import duties on products from Canada, Mexico, China, and other major trading partners.The plaintiffs filed suit in the United States Court of International Trade (CIT), arguing that the President exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing these tariffs. The CIT granted summary judgment in favor of the plaintiffs, holding that IEEPA did not authorize the President to impose the challenged tariffs and permanently enjoined their enforcement. The government appealed, and the Federal Circuit consolidated the cases, stayed the injunction pending appeal, and heard the matter en banc.The United States Court of Appeals for the Federal Circuit affirmed in part, holding that IEEPA’s grant of authority to “regulate” importation does not include the power to impose tariffs of the type and scope at issue. The court found that IEEPA does not mention tariffs, duties, or taxes, and contrasted it with other statutes where Congress has explicitly delegated tariff authority to the President with clear limitations. The court also concluded that the government’s interpretation would raise serious constitutional concerns under the major questions and non-delegation doctrines. The Federal Circuit affirmed the CIT’s declaratory judgment that the executive orders were invalid, but vacated the universal injunction and remanded for the CIT to reconsider the scope of injunctive relief in light of recent Supreme Court guidance. View "V.O.S. Selections, Inc. v. Trump" on Justia Law