Justia International Trade Opinion Summaries

Royal imported five entries of pencils to the United States in 2017-2018 and was accused of evasion of antidumping duties under the Enforce and Protect Act of 2015, 130 Stat. 155, and related regulations, 19 C.F.R. 165. A competitor alleged that Royal was transshipping pencils from China through the Philippines, falsely claiming the pencils to be of Philippine origin and not subject to the antidumping duties assessed on certain pencils from ChinaCustoms conducted a site visit to the Philippines manufacturer. The resulting Verification Report concluded that the manufacturer did not have the capability to produce sufficient quantities of pencils to account for the number of pencils imported to the U.S. in 2018. Customs provided Royal with only a redacted version of the report, including neither the numbers used to calculate production capacity nor the final production capacity determinations. The redacted version also omitted other confidential business information, such as photographs and information about certain invoices and purchase orders. Royal sought to file a rebuttal. Customs determined that the report did not contain new factual information and denied the request.The Federal Circuit first held that it had jurisdiction, although the entries had been liquidated, then remanded. The failure to provide access to the redacted information violated due process. Under the Customs regulation, Royal must be given an opportunity to rebut the information with its own evidence. View "Royal Brush Manufacturing Inc. v. United States" on Justia Law

Plaintiff Wudi Industrial (Shanghai) Co., Ltd. Challenged two adverse rulings made by the district court in favor of defendant Wai L. Wong and his business entity, GT Omega Racing, Ltd. (collectively “GTOR”). Wudi and GTOR are Asian-centered business entities that compete in the marketing of video gaming chairs and other products. In March 2017, Wudi obtained from the United States Patent and Trademark Office (“USPTO”) a registration for the stylized word mark “GTRACING.” For its part, GTOR claimed that it already owned an earlier use of a similar word mark — that is, “GT OMEGA RACING” — and challenged Wudi’s registration of the “GTRACING” word mark in cancellation proceedings before a USPTO component called the Trademark Trial and Appeals Board (the “Board”). In June 2020, the Board ruled in favor of GTOR, concluding that Wudi’s use of the “GTRACING” word mark encroached on GTOR’s earlier use of its own “GT OMEGA RACING” word mark.   The Fourth Circuit vacated the challenged rulings and remanded. The court agreed with Wudi’s primary contention that the district court’s challenged rulings constitute awards of injunctive relief in favor of GTOR and against Wudi. Secondly, the court also agreed that the challenged rulings failed to comport with the applicable Rules of Civil Procedure and controlling precedent. The court emphasized that the First Order possesses all of the necessary attributes and thus qualifies as an injunction order. That is, the First Order contains “clear, enforceable directives” and threatens Wudi with contempt for noncompliance. View "Wudi Industrial (Shanghai) Co., Ltd. v. Wai Wong" on Justia Law

A 2012 antidumping duty order (19 U.S.C. 1673) for solar cells from China and two subsequent reviews assigned Qixin a separate rate lower than the country-wide rate. For the third administrative review, for 2014-2015 Qixin requested review and filed a separate rate application with a Customs Entry Summary for a single sale. Commerce repeatedly asserted that Qixin had not provided an entry number that corresponded to subject merchandise. Commerce issued preliminary results without mentioning Qixin’s eligibility for a separate rate. Qixin argued that Commerce had erroneously omitted Qixin, or, if Commerce concluded that there had been no entries during the review period, it should rescind the review with respect to Qixin. Commerce rejected both arguments. On remand, Commerce issued a third supplemental questionnaire. Qixin responded that it was unable to obtain the requested information. Commerce noted that the burden rested on Qixin to show it was entitled to a separate rate and reaffirmed.Before the Trade Court, Qixin unsuccessfully sought to file new information. no longer contesting that the previously identified sale was not a sale of subject merchandise and identifying five additional entries. The Trade Court and Federal Circuit sustained Commerce’s denial of a separate rate. The Trade Court did not abuse its discretion in denying Qixin’s motion to file new material out of time. Commerce did not make a conclusive finding that Qixin had no entries in the review period as required to rescind a review. View "Canadian Solar International Ltd. v. United States" on Justia Law

The United States seized oil cargo it claims belongs to the Islamic Republic of Iran. Appellants attached the oil in order to satisfy money judgments they hold against Iran. The district court upheld the United States' claim of sovereign immunity and quashed the attachments.
The DC Circuit affirmed the district court’s judgment. The court held (1) federal sovereign immunity prevents the attachment and garnishment of oil proceeds in a bank account of the United States and (2) the Terrorism Risk Insurance Act of 2002 (TRIA) does not waive that immunity. The court explained that the TRIA does not expressly mention the United States, its sovereign immunity, or its susceptibility to suit under the statute. Because the TRIA has nothing express to say about federal sovereign immunity, the notwithstanding clause cannot aid Appellants. Because sovereign immunity prevents Appellants from taking further steps to seize the proceeds from the United States’ sale of the contested oil, the court wrote it has no occasion to reach the alternative grounds for affirmance raised by the Government. View "Steven Greenbaum v. Islamic Republic of Iran" on Justia Law

The Department of Commerce initiated a countervailing duty investigation concerning imports of softwood lumber products from Canada and individually investigated five groups of companies that produced and/or exported covered products. Commerce issued a final determination, imposing duties on the products of those companies at company-specific rates ranging from 3.34% to 18.19%, with an “all-others” rate, 14.19%. Within days of publication of the countervailing duty (CVD) order in January 2018, about 36 Canadian companies that alleged they were subject to the all-others rate requested “expedited review” to give them individually determined rates. Commerce initiated that review and ultimately awarded the individual requesters reduced or de minimis CVD rates.A domestic trade group filed suit, arguing that Commerce lacked statutory authority to create the expedited-review process. Canadian parties intervened and, with the United States, asserted that Commerce had the authority to adopt the expedited-review procedures of 19 C.F.R. 351.214(k) to give exporters a chance to secure individual rates shortly after the publication of a CVD order, arguing for the existence of such authority chiefly in provisions of the Uruguay Round Agreements Act, 108 Stat. 4809 (1994). The Trade Court ruled against Commerce. The Federal Circuit reversed, concluding that the Secretary had statutory authority to adopt the expedited-review process as a procedure for implementing statutory provisions that authorize individualized determinations in CVD proceedings, 19 U.S.C. 1667f1(e), 1677m, 3513(a)(2). View "Committee Overseeing Action for Lumber International Trade Investigations or Negotiations v. United States" on Justia Law

Corning filed a complaint with the International Trade Commission alleging FS violated 19 U.S.C. 1337 by importing high-density fiber optic equipment that infringed four patents that generally relate to fiber optic technology commonly used in data centers. After investigating, the ALJ found that FS’ importation of high-density fiber optic equipment violated section 337; that FS induced infringement of two claims of the 320 patent, multiple claims of the 456 patent, and four claims of the 153 patent; and that FS’ accused modules directly infringed claims of the 206 patent. The ALJ adopted the Office of Unfair Import Investigations’ construction of “a front opening” as recited in the claims. The ALJ rejected invalidity challenges, including arguments that certain claims of the 320 and 456 patents were not enabled.The Federal Circuit affirmed the Commission’s determination that FS violated section 337, and issuance a general exclusion order prohibiting the importation of infringing high-density fiber optic equipment and components thereof and a cease-and-desist order directed to FS. The court upheld the enablement determination and the claim construction of “a front opening.” View "FS.com Inc. v. International Trade Commission" on Justia Law

The U.S. Department of Commerce initiated an antidumping duty investigation on certain tapered roller bearings (TRBs) from China, 19 U.S.C. 1673, and established a country-wide anti-dumping duty for TRBs from China. In 2009, Commerce revised the rate to 92.84%. Since 2017, ZMC had been granted separate rate status. An interested domestic party requested a review of ZMC’s 2016-2017 entries and submitted data indicating de facto control of ZMC by the government. In response to a questionnaire issued by Commerce, ZMC provided details about its corporate structure.After assessing ZMC’s corporate structure, Commerce preliminarily found that ZMC failed to rebut the presumption of de facto government control over its export activities. The Court of International Trade held that Commerce erred in rejecting a revised translation of Articles of Association. On remand, Commerce reviewed the revised translation but maintained its determination that ZMC failed to rebut the presumption of de facto government control. The Trade Court affirmed. The Federal Circuit affirmed. Commerce’s determination that ZMC was not entitled to a separate rate was reasonable and supported by substantial evidence because a labor union is the majority shareholder with significant rights over ZMC and has overlapping membership with the employee stock-ownership committee. View "Zhejiang Machinery Import & Export Corp. v. United States" on Justia Law

In 2015, the Department of Commerce received petitions from domestic producers requesting that Commerce impose antidumping and countervailing duties on corrosion-resistant steel (CORE) exports from China. Commerce initiated investigations and published orders. In 2019, Commerce initiated investigations to determine whether exports of CORE from the UAE were circumventing the China CORE orders. The Court of International Trade judgment affirmed the subsequent circumvention determination. In making its determination, Commerce analyzed the circumvention factors and subfactors provided by 19 U.S.C. 1677j(b).The Federal Circuit affirmed Commerce’s circumvention determination as reasonable and supported by substantial evidence with respect to “pattern of trade,” “level of investment,” “nature of the production process,” and “extent of production facilities.” Commerce’s analysis of the “value-added” subfactor was erroneous because Commerce did not reasonably explain why it rejected financial data that were purported to show a significant value added but the error was harmless because it was limited to a single factual finding within a multi-factor test. View "Al Ghurair Iron & Steel LLC v. United States" on Justia Law

Reynolds filed a complaint at the International Trade Commission alleging that Philip Morris violated Section 337 of the Tariff Act, 19 U.S.C. 1337, through the importation and sale of tobacco products (the IQOS line of electronic nicotine delivery system products) that infringed certain claims of the 123 and 915 patents. The patents are directed to electrically powered “smoking articles” that heat tobacco instead of burning it, providing an inhalable substance in vapor or aerosol form. After an investigation, the Commission barred Philip Morris and its affiliates from importing products infringing the asserted patents.The Federal Circuit affirmed. The Commission satisfied its Section 337 duty to “consult with” the Department of Health and Human Services and asked interested government agencies, including the FDA, to provide written submissions on the public interest factor. The Commission provided a sufficient basis for the issuance of an exclusion order. Philip Morris’s argument that Reynolds’ products that had not received FDA authorization are precluded from consideration by Section 337 for purposes of its domestic industry requirement has no merit. The court also upheld findings of non-obviousness and infringement concerning the patents. View "Philip Morris Products S.A. v. International Trade Commission" on Justia Law

In 2017-2018, Borusan imported circular welded carbon steel pipes and tubes that were subject to decades-old antidumping duties. In 2018, Presidential Proclamation 9705 separately imposed a duty on imported steel articles (including Borusan’s carbon steel pipe) under the Trade Expansion Act of 1962, 19 U.S.C. 1862. In the annual administrative review of the antidumping duties owed on Borusan’s imports for May 2017–April 2018, the Department of Commerce treated the Proclamation 9705 duty as a “United States import dut[y]” under 19 U.S.C. 1677a(c)(2)(A), resulting in higher antidumping duties for Borusan’s imports.The Court of International Trade and Federal Circuit affirmed. Commerce correctly determined that the particular duty imposed by Proclamation 9705 is a “United States import dut[y]” under 19 U.S.C. 1677a(c)(2)(A). Proclamation 9705 makes clear that the newly-imposed duty was to add to, not partly or wholly offset, the antidumping duties that would be due without the new duty The antidumping duty must be calculated as if the Proclamation 9705 duty did not exist. This treatment is not inconsistent with Commerce’s long-recognized categorical exclusion of antidumping duties themselves from classification as “United States import duties.” Antidumping duties cannot be subtracted in the calculation of dumping margins (and hence antidumping duties), because doing so would produce a spiraling circularity. View "Borusan Mannesmann Boru Sanayi ve Ticaret A.S. v. United States" on Justia Law