Justia International Trade Opinion Summaries

Standard markets kinesiotherapy devices, including models that practice claims of its 605 Patent. In 2009, Standard formed a subsidiary to distribute products in the U.S. Neither Standard nor Standard U.S. manufactures in the U.S.; Standard sources components from suppliers in the U.S. and other countries. It contracts Chinese manufacturers to assemble devices from those components for export to more than 50 countries, including the U.S. The U.S. International Trade Commission (ITC) addressed four components in its domestic industry analysis: a backbone material, a rubber, microcontrollers, and a pigment. The backbone material, rubber, pigment, and wafers used in the microcontrollers are manufactured in the U.S. Lelo, a California corporation with a Swedish majority shareholder, imports kinesiotherapy devices. Standard filed a 19 U.S.C. 1337 complaint alleging that Lelo imported kinesiotherapy devices and components that infringed its 605 Patent. The ITC concluded that statutory domestic industry requirements were satisfied upon a showing of a “significant investment in plant or equipment” and a “significant employment of labor or capital.” The Eighth Circuit reversed, holding that qualitative factors alone are insufficient. The purchase of so-called “crucial” components from third-party U.S. suppliers was insufficient to satisfy the “significant investment” or “significant employment of labor or capital” criteria absent evidence that connects the cost of the components to an increase of U.S. investment or employment. View "LELO Inc. v. Int'l Trade Comm'n" on Justia Law

The Continued Dumping and Subsidy Offset Act of 2000, 19 U.S.C. 1675c(a) (2000), (Byrd Amendment) provided for the distribution of antidumping duties collected by the United States to “affected domestic producers” of goods that are subject to an antidumping duty order and defined an “affected domestic producer” as a party that either petitioned for an antidumping duty order or was an “interested party in support of the petition.. The Byrd Amendment was repealed in 2006, but the repealing statute provided that any duties paid on goods that entered the United States before the date of repeal would continue to be distributed in accordance with the pre-repeal statutory scheme. Several ineligible domestic producers challenged the constitutionality of the Byrd Amendment, which was upheld against challenges based on the First Amendment and the equal protection component of the Fifth Amendment. The Court of International Trade rejected a challenge asserting that the retroactive application of the Byrd Amendment violates due process. The Federal Circuit affirmed, reasoning that the prior holding that the statute promoted a substantial governmental interest in a rational manner, in the context of First Amendment and equal protection analysis, applied. The constitutionality of the statute turns on the same standard. View "Pat Huval Rest. & Oyster Bar, Inc. v. Int'l Trade Comm'n" on Justia Law

In 1998, the Coalition filed a petition alleging that domestic producers of preserved mushrooms were injured by imports of preserved mushrooms from Chile, China, Indonesia, and India being sold in the U.S. at less than fair value. Giorgio accounted for approximately one half of total U.S. production, but was neither a Coalition member nor a petitioner. The International Trade Commission issued questionnaires to domestic producers, including Giorgio. Giorgio responded: “We take no position on Chile, China and Indonesia[.] We oppose the petition against India.” The Department of Commerce initiated an antidumping investigation, “on behalf of the domestic industry,” 19 U.S.C. 1673a(c)(4)(A)(i), noting that supporters of the petition accounted for over 50 percent of production of the domestic producers who expressed an opinion even if Giorgio’s position was not disregarded. Commerce found that dumping had occurred. The ITC determined that the domestic industry was materially injured; Commerce issued corresponding antidumping orders. Customs collected antidumping duties for distribution to “affected domestic producers.” Under the Byrd Amendment, an affected domestic producer “was a petitioner or interested party in support of the petition.” ITC rejected Giorgio’s request to be listed because Giorgio’s responses did not indicate support for the petition. Customs denied Giorgio’s claims for distributions. After the Federal Circuit upheld the Byrd Amendment against a facial First Amendment challenge, the Trade Court dismissed Giorgio’s suit, finding the support requirement constitutional under the standards governing commercial speech because it directly advanced the government’s substantial interest in preventing dumping. The Federal Circuit affirmed. View "Giorgio Foods, Inc. v. United States" on Justia Law

Gordon Auto Body Parts, a Taiwanese company, was one of several early entrants into the U.S. market for replacement truck hoods. PBSI eventually entered the market for certain replacement hoods but found that it could not match the prices of Gordon and other Taiwanese firms, with which Gordon had participated in joint ventures. Believing that Gordon and the other firms were conspiring to drive it out of business with predatory prices, PBSI brought antitrust claims against Gordon. The district court granted Gordon summary judgment. The Sixth Circuit affirmed, finding that PBSI failed to make any showing that Gordon’s prices were below an appropriate measure of cost. View "Superior Prod. P'shp v. Gordon Auto Body Parts Co." on Justia Law

From 1987 to 2001, Bengis and Noll engaged in a scheme to harvest large quantities of South Coast and West Coast rock lobsters from South African waters for export to the United States in violation of both South African and U.S. law. Defendants, through their company, Hout Bay, harvested rock lobsters in amounts that exceeded the South African Department of Marine and Coastal Management’s quotas. In 2001, South Africa seized a container of unlawfully harvested lobsters, declined to prosecute the individuals, but charged Hout Bay with overfishing. Bengis pleaded guilty on behalf of Hout Bay. South Africa cooperated with a parallel investigation conducted by the United States. The two pleaded guilty to conspiracy to commit smuggling and violate the Lacey Act, which prohibits trade in illegally taken fish and wildlife, and to substantive violations of the Lacey Act. Bengis pleaded guilty to conspiracy to violate the Lacey Act. The district court entered a restitution order requiring the defendants to pay $22,446,720 to South Africa. The Second Circuit affirmed, except with respect to the extent of Bengis’s liability, rejecting an argument the restitution order violated their Sixth Amendment rights. View "United States v. Bengis" on Justia Law

The Department of Commerce imposed both antidumping and countervailing duties on pneumatic tires from China under a 2012 law, 19 U.S.C. 1671, 1677f-1, that overruled the Federal Circuit’s 2011decision with respect to the same goods and permitted Commerce to impose countervailing duties with respect to non-market economy (NME) countries retroactively to proceedings initiated on or after November 20, 2006. When antidumping and countervailing duties imposed on the same goods double count for the same unfair trade advantage, the new law adjusts for double counting prospectively to proceedings initiated after March 13, 2012, but not retrospectively. The Court of International Trade upheld the decision. The Federal Circuit affirmed the Trade Court’s rejection of challenges to the new law on rehearing. The new law does not violate the Ex Post Facto Clause or the Due Process Clause. View "GPX Int'l Tire Corp. v. United States" on Justia Law

Licensees entered into a licensing agreement with Safeblood Tech for the exclusive rights to market patented technology overseas. After learning that they could not register the patents in other countries, Licensees sued Safeblood for breach of contract and sued Safeblood, its officers, and patent inventor for fraud, constructive fraud, and violations of the Arkansas Deceptive Trade Practices Act (ADTPA), Ark. Code 4-88-101 to -115. The district court dismissed the fraud claims at summary judgment. The remaining claims proceeded to trial and a jury found for Licensees, awarding them $786,000 in contract damages and no damages for violations of the ADTPA. The district court awarded Licensees $144,150.40 in prejudgment interest. The Eighth Circuit reversed as to the common-law fraud claim and the award of prejudgment interest, but otherwise affirmed. Licensees produced sufficient evidence that the inventor made a false statement of fact; the district court did not abuse its discretion when it gave the jury a diminution-in-product-value instruction; and Licensees waived their inconsistent-verdict argument. View "Yazdianpour v. Safeblood Techs., Inc." on Justia Law

The Commerce Department determined that shrimp imported from India were being sold in the U.S. at less than fair market value. During administrative review of that antidumping order, shrimp exporters Apex and Falcon were selected as individual respondents. Commerce assessed 2.31% and 1.36% dumping margins by calculating the export price, starting with the packed price of shrimp charged to the first unaffiliated U.S. purchaser, then deducted expenses (19 U.S.C. 1677a(c)(2)(A)), including: foreign inland freight expenses, export inspection agency fees, foreign brokerage and handling expenses, foreign miscellaneous shipment charges, international freight expenses, terminal handling charges, marine insurance expenses, U.S. customs duties (including harbor maintenance fees and merchandise processing fees), U.S. brokerage and handling expenses, and U.S. inland freight expenses. Neither importer made sufficient sales in India during the review period for proper comparison with U.S. sales. Commerce compared the United Kingdom for Apex, and Japan, for Falcon. The companies ship to those countries, only covering costs necessary to deliver merchandise to the named destination port. For shipments to the U.S., they pay costs associated with importation, including duties and complying with customs formalities. Domestic shrimp producers challenged the dumping margins, arguing that the export price of the merchandise should be recalculated by deduction of the amount of antidumping duties assessed and paid on their exports, to increase the dumping margins. The Court of International Trade and the Federal Circuit affirmed. View "Apex Exports v. United States" on Justia Law

Best, a Hong Kong manufacturer, produces Metalized Yarn from polyester chips melted with metal nanopowders to form monofilament yarns. Best sought a pre-importation ruling concerning proper tariff classification in the Harmonized Tariff Schedule (HTSUS), attaching a laboratory report describing the yarn as having a fiber content of 100% polyester, with 0.7%- 0.74% metal by weight. Customs classified the yarn as metalized yarn, HTSUS 5605.00.90, dutiable at 13.2%, stating “yarn combined with metal in the form of powder is considered a metalized yarn.” Best then sought a ruing regarding a “Johnny Collar” garment made of its yarn, asserting the garment was classifiable under HTSUS 6105.90.8030 as a shirt of other textile materials (duty rate 5.6%), not HTSUS 6110.30.3053 for polyester shirts (duty rate 32%). Based on trace amounts of metal and a label that stated “100% polyester,” Customs classified the sample as man-made non-metalized fibers under HTSUS 6110.30.3053. Customs subsequently revoked the Yarn Ruling, reclassifying the yarn as a polyester yarn under HTSUS 5402.47.90 (duty rate 8%). Customs also revoked the Johnny Collar Ruling as conflicting with the Yarn Ruling, but continued to classify the garment under 6110.30.30. Best challenged the Yarn Ruling Revocation, but not the Johnny Collar revocation. The Trade Court sustained the Revocation. The Federal Circuit vacated with instructions to dismiss for lack of jurisdiction. Best sought reversal of a Revocation, the effect of which would be to increase Best ’s own duty rate while benefiting manufacturers of products made from its yarn. The statute does not provide jurisdiction over such requests View "Best Key Textiles Co., Ltd. v. United States" on Justia Law

In 2001, the Department of Commerce imposed an antidumping duty order on honey imported from China. Dongtai was named a respondent in the 2012 tenth review of the Order. Commerce issued it non-market economy questionnaire, including Section A (General Information), and Sections C (U.S. Sales) and D (Production Factors). Dongtai timely responded to Section A, but responded to Sections C and D after receiving a one-day extension. Because the extension request was received less than six minutes before the deadline, Commerce warned Dongtai to file any future extension requests “as soon as it suspects additional time may be necessary.” Commerce issued a Supplemental Section A to address deficiencies in Dongtai’s original response. After the deadline, Dongtai requested an extension. Commerce found that “good cause [did] not exist . . . to extend retroactively” and removed the requests and Supplemental Response from the official record. Commerce determined that without the Supplemental Response, the record lacked sufficient information to calculate a separate rate for Dongtai; that Dongtai would be considered part of the China-wide entity; and that the China-wide entity did not cooperate to the best of its ability. Commerce and relied on adverse facts available to determine the dumping margin. The Court of International Trade and the Federal Circuit affirmed. View "Dongtai Peak Honey Indus. Co. Ltd. v. United States" on Justia Law