Justia International Trade Opinion Summaries

Petitioners, including various agricultural and trade organizations, challenged the Environmental Protection Agency (EPA) over a rule that set an equation for calculating vehicle fuel economy, specifically the "Ra factor." They argued that the Ra factor was set arbitrarily low, which effectively increased federal fuel economy standards and decreased demand for gasoline, harming their businesses.The case was reviewed by the United States Court of Appeals for the Fifth Circuit. The petitioners contended that the EPA's rule violated the Administrative Procedure Act (APA) by ignoring significant comments and data that flagged flaws in the determination of the Ra factor. They pointed out that the EPA's test program used too few and outdated vehicles, included data from a malfunctioning vehicle, and excluded data from a properly functioning one. Additionally, they argued that the EPA failed to consider alternative data sources, such as manufacturer certification data, which showed a higher Ra factor.The Fifth Circuit found that the EPA's rule was arbitrary and capricious. The court noted that the EPA did not adequately respond to significant comments that raised substantial issues with the test program's sample size, the representativeness of the vehicles tested, and the inclusion and exclusion of certain test data. The court also found that the EPA failed to justify its rejection of alternative data sources. As a result, the court held that the EPA did not demonstrate that its decision was the product of reasoned decision-making.The court granted the petition for review and vacated the portion of the EPA's rule that set and implemented the Ra factor of 0.81. The court concluded that there was no serious possibility that the EPA could substantiate its decision on remand, and thus, vacatur was the appropriate remedy. View "Texas Corn Producers v. EPA" on Justia Law

In this case, the appellants, a group of German steel companies, challenged the U.S. Department of Commerce's determination of a 22.9 percent antidumping duty on their steel plate products. Commerce applied an adverse inference based on the appellants' failure to provide complete manufacturer information for certain sales by their affiliated reseller, which Commerce deemed necessary for calculating the dumping margin.The U.S. Court of International Trade (Trade Court) sustained Commerce's decision, finding that the appellants did not cooperate to the best of their ability. The Trade Court noted that the appellants failed to provide reasonable alternative forms of the missing information, which could have mitigated the burden of manually retrieving the data. The court suggested that a statistical analysis or randomized sampling could have been a reasonable alternative.The United States Court of Appeals for the Federal Circuit reviewed the case and held that Commerce's request for the missing manufacturer information imposed an unreasonable burden on the appellants. However, the court also found that the appellants did not propose reasonable alternative forms of the missing data as required by statute. Consequently, Commerce's application of adverse facts available was deemed permissible.The Federal Circuit affirmed Commerce's use of the highest non-aberrational net price among the disputed sales to fill the information gap, concluding that this approach was reasonable given the size of the information gap and the need to deter non-cooperation. The court found that Commerce's choice of adverse inference was supported by substantial evidence and in accordance with the law. View "AG DER DILLINGER HUTTENWERKE v. US " on Justia Law

Two Italian pasta manufacturers, La Molisana S.p.A. and Valdigrano Di Flavio Pagani S.r.L., challenged the United States Department of Commerce's final results from the twenty-third administrative review of an antidumping order on certain pasta from Italy. The dispute centered on Commerce's methodology for determining the protein content of pasta, which affects the classification of pasta as either standard or premium quality. Commerce used the protein content listed on product labels, which is subject to U.S. FDA rounding rules and different nitrogen-to-protein conversion factors in the U.S. and Italy. La Molisana argued that this methodology caused inaccuracies in comparing pasta products.The United States Court of International Trade sustained Commerce's final results, concluding that La Molisana had not demonstrated that the alleged flaws in Commerce's methodology were commercially significant. The court found that Commerce's reliance on packaging labels for protein content fostered transparency and consistency, and that La Molisana's evidence, including a market report and a new definition from the Bologna Grain Exchange, was insufficient to compel a change in the protein breakpoint from 12.5% to 13.5%.The United States Court of Appeals for the Federal Circuit reviewed the case and found that Commerce's methodology failed to compare products based on identical physical characteristics, as required by statute. The court held that the FDA rounding rules and different nitrogen conversion factors introduced inaccuracies that Commerce could not dismiss as commercially insignificant. However, the court agreed with Commerce and the Trade Court that La Molisana's evidence did not provide a compelling reason to change the protein breakpoint. The Federal Circuit vacated the Trade Court's judgment regarding the rounding rules and nitrogen conversion factors, affirmed the judgment on the protein breakpoint, and remanded for further proceedings. View "La Molisana S.p.A. v. United States" on Justia Law

Marmen Inc., Marmen Énergie Inc., and Marmen Energy Co. (collectively, “Marmen”) appealed the U.S. Court of International Trade’s (CIT) decision that sustained the U.S. Department of Commerce’s (Commerce) final determination of a 4.94% dumping margin for utility-scale wind towers from Canada. Commerce had initiated an antidumping (AD) investigation in July 2019, and in June 2020, issued its final AD determination. Marmen challenged Commerce’s decision on three grounds: the weight-averaging of steel plate costs, the rejection of a USD-to-CAD cost reconciliation, and the use of the average-to-transaction (A-to-T) methodology based on Cohen’s d test.The CIT affirmed Commerce’s weight-averaging of Marmen’s steel plate costs but remanded the case on the other two issues. Commerce again rejected the USD-to-CAD cost reconciliation on remand, arguing it would double count an exchange-rate adjustment. Commerce also maintained its use of Cohen’s d test, despite concerns raised by the Federal Circuit in Stupp Corp. v. United States. The CIT sustained Commerce’s determination on both issues, leading to Marmen’s appeal.The United States Court of Appeals for the Federal Circuit reviewed the case. The court found that Commerce’s rejection of the USD-to-CAD cost reconciliation was not supported by substantial evidence, as the proposed adjustment did not duplicate other adjustments and was reliable. The court also concluded that Commerce’s use of Cohen’s d test was unreasonable because the data did not meet the necessary assumptions of normal distribution, equal variability, and sufficient size. The court vacated Commerce’s calculated dumping margin and remanded for further proceedings consistent with its opinion. View "MARMEN INC. v. US " on Justia Law

Target Corporation (Target) imported goods subject to an antidumping duty order and paid duties at a lower rate than specified in a final judgment. The United States Customs and Border Protection (Customs) later realized the error but did not correct it within the statutory 90-day window. The United States Court of International Trade (CIT) ordered Customs to reliquidate the entries at the correct rate, despite the statutory finality provisions.In the lower court, the CIT granted the government's motion to dismiss Target's challenge to the reliquidation, relying on its previous decision in Home Products International, Inc. v. United States. The CIT held that it had the authority to enforce its judgments and that the principle of finality in 19 U.S.C. § 1514 did not bar correcting Customs' errors in liquidating entries covered by a trade action.The United States Court of Appeals for the Federal Circuit reviewed the case and reversed the CIT's decision. The Federal Circuit held that the case was governed by its precedent in Cemex, S.A. v. United States, which established that Customs' liquidation decisions, even if erroneous, are final and conclusive under 19 U.S.C. § 1514(a) unless specific statutory exceptions apply. The court rejected the CIT's interpretation that it could use its equitable powers to override the statutory finality provisions. The Federal Circuit emphasized that Congress has carefully crafted a statutory scheme for finality and that any remedy for the harshness of the statute should come from Congress, not the courts. View "TARGET CORPORATION v. US " on Justia Law

Realtek Semiconductor Corporation appealed a decision by the United States International Trade Commission (ITC) regarding a motion for sanctions against DivX, LLC. DivX had filed a complaint alleging a violation of 19 U.S.C. § 1337 by Realtek and others, which was later withdrawn. Realtek then sought sanctions against DivX for alleged misconduct occurring months prior. The Administrative Law Judge (ALJ) denied the motion on procedural grounds, and the ITC adopted this decision without comment.Realtek petitioned for the ITC to issue a show cause order sua sponte, which the ITC declined to do. Realtek argued that the ITC's failure to issue the order violated the Administrative Procedure Act (APA). The ITC and DivX contended that the appeal should be dismissed due to lack of standing, jurisdiction, and because the decision was unreviewable.The United States Court of Appeals for the Federal Circuit reviewed the case and determined that the ITC's decision not to issue a show cause order sua sponte was within its discretion and thus unreviewable under the APA. The court noted that such decisions are committed to agency discretion by law and are not subject to judicial review. Consequently, the court dismissed Realtek's appeal. View "REALTEK SEMICONDUCTOR CORPORATION v. ITC " on Justia Law

Appellants, including GL B Energy Corporation and others, were accused of transshipping xanthan gum from China through India to evade antidumping duties imposed by the U.S. Department of Commerce. Customs and Border Protection (CBP) initiated an investigation based on allegations from CP Kelco U.S., a domestic producer, and found substantial evidence that the xanthan gum was of Chinese origin and subject to antidumping duties. Customs applied adverse inferences against the manufacturers for not cooperating with information requests, concluding that the merchandise was transshipped to evade duties.The United States Court of International Trade (CIT) reviewed the case and affirmed Customs' determinations. The CIT dismissed claims related to finally liquidated entries for lack of subject matter jurisdiction, as the importers failed to timely appeal the denial of their protests. The CIT also denied the remaining motions for judgment on the agency record, finding that Customs' determinations were supported by substantial evidence and were not arbitrary or capricious.The United States Court of Appeals for the Federal Circuit reviewed the case. The court agreed with the CIT that Customs' evasion determinations were supported by substantial evidence and were in accordance with the law. The court also found that the CIT had jurisdiction to review the evasion determinations, even for finally liquidated entries, based on the precedent set in Royal Brush Mfg., Inc. v. United States. However, the court affirmed the CIT's decision, noting that the CIT would have denied the motions for judgment on the agency record for the same reasons stated for the other entries. The court concluded that Customs' evasion determinations were lawful and supported by substantial evidence. View "ALL ONE GOD FAITH, INC. v. US " on Justia Law

Pirelli Tyre Co., Ltd. (Pirelli China), a foreign producer and exporter of certain tires, sought to establish independence from the Chinese government to obtain a separate antidumping duty rate. The United States Department of Commerce conducted an administrative review of merchandise covered by a 2015 antidumping-duty order for tires from China, covering entries between August 1, 2017, and July 31, 2018. Commerce applied a rebuttable presumption that all exporters within China are subject to government control, assigning a PRC-wide antidumping-duty rate unless the exporter demonstrates sufficient independence.The United States Court of International Trade (Trade Court) upheld Commerce’s determination that Pirelli China had not demonstrated its independence from government control. Commerce found that Pirelli China did not show autonomy from the Chinese government in selecting its management, a key criterion for obtaining a separate rate. Pirelli China’s arguments based on Italian law were rejected because the relevant provisions were not included in the record.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Trade Court’s decision. The court held that Commerce’s interpretation of the rebuttable presumption and its requirement for Pirelli China to demonstrate autonomy from government control were reasonable. The court also found that Commerce’s determination was supported by substantial evidence, including the indirect ownership and control by state-owned enterprises and the shared management between Pirelli entities and Chinese government-controlled entities. The court concluded that Commerce acted within its discretion in rejecting Pirelli China’s unsupported interpretations of Italian law and upheld the assignment of the PRC-wide antidumping-duty rate to Pirelli China. View "PIRELLI TYRE CO., LTD. v. US " on Justia Law

Oman Fasteners, LLC, a foreign producer and exporter of steel nails, was subject to a 2015 antidumping-duty order by the U.S. Department of Commerce. During the 2020-2021 administrative review, Oman Fasteners submitted a response to Commerce's detailed questionnaire 16 minutes past the 5:00 PM deadline. Commerce rejected the late submission and applied an adverse inference, resulting in a 154.33% antidumping-duty rate for Oman Fasteners.Oman Fasteners challenged Commerce's decision in the Court of International Trade (Trade Court), seeking a preliminary injunction against the imposition of the 154.33% duty rate. The Trade Court consolidated the preliminary injunction proceeding with a trial on the merits and held that Commerce abused its discretion. The court remanded the case to Commerce for recalculation and issued an injunction limiting cash deposits to the pre-existing 1.65% rate.Mid Continent Steel & Wire, Inc., a domestic steel-nail producer, intervened and filed an interlocutory appeal with the United States Court of Appeals for the Federal Circuit. The Federal Circuit concluded that Mid Continent had standing and that the appeal was not moot. The court affirmed the Trade Court's injunction, agreeing that Commerce's application of the 154.33% rate was unsupported by substantial evidence and constituted an abuse of discretion. The court noted that the slight delay in submission did not justify such a punitive rate and that the balance of hardships favored Oman Fasteners, which faced irreparable harm without the injunction. View "OMAN FASTENERS, LLC v. US " on Justia Law

Risen Energy Co., Ltd. (Risen), a Chinese exporter of solar cells, was subject to an antidumping order by the Department of Commerce (Commerce). In the Sixth Administrative Review, Commerce used surrogate values from Malaysia to calculate normal values for Risen's products. Risen challenged Commerce's surrogate value calculations for its backsheet and ethyl vinyl acetate (EVA) inputs, as well as the overhead ratio calculation.The United States Court of International Trade (Trade Court) initially found Commerce's surrogate value calculations for Risen's backsheet and EVA inputs unsupported by substantial evidence and remanded the matter for further explanation. Commerce then provided additional evidence from ASTM standards to support its choice of HTS categories for these inputs, which the Trade Court sustained. However, the Trade Court upheld Commerce's surrogate financial ratio calculation for overhead despite some reservations about Commerce's rationale.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed Commerce's use of the HTS categories for "sheet" to value Risen's backsheet and EVA inputs, finding the decision supported by substantial evidence. However, the court found Commerce's surrogate overhead ratio calculation unsupported by substantial evidence. The court noted that Commerce's reliance on the Hanwha financial statement and the IFRS standard was unclear and speculative.The Federal Circuit affirmed the Trade Court's decision regarding the surrogate value calculations for backsheet and EVA inputs but vacated the decision on the surrogate overhead ratio calculation. The case was remanded to Commerce for further proceedings to provide substantial evidence for its overhead calculation. View "Risen Energy Co., LTD. v. United States" on Justia Law