Justia International Trade Opinion Summaries

Articles Posted in US Court of Appeals for the Federal Circuit
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The case involves RKW Klerks Inc. (RKW), an importer of net wraps used to wrap round bales of harvested crops, who contested the classification of its products by the United States Customs and Border Protection (Customs) under the Harmonized Tariff Schedule of the United States (HTSUS). Customs had classified the net wraps under HTSUS Chapter 60 under subheading 6005.39.00 as “warp knit fabric,” dutiable at the rate of 10% ad valorem. RKW argued that the net wraps should be classified under Chapter 84, subheading 8433.90.50 as “parts” of harvesting machinery or alternatively subheading 8436.99.00 as “parts” of other agricultural machinery.The United States Court of Appeals for the Federal Circuit upheld the decision of the United States Court of International Trade (CIT) that the net wraps were not a part of harvesting or other agricultural machinery. The court reasoned that the net wraps were not dedicated solely for use with baling machines, nor were they integral to the function of the machines. The court further noted that the net wraps performed a function outside of the machine, maintaining the shape of the bale after it had been compressed and released, and thus could not be classified as a part of the machine.The court therefore affirmed the CIT’s decision that the net wraps were correctly classified under HTSUS Chapter 60 under subheading 6005.39.00 as “warp knit fabric,” rather than as parts of harvesting or other agricultural machinery. View "RKW KLERKS INC. v. US " on Justia Law

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The case involves the classification of certain knit gloves with partial plastic coating under the Harmonized Tariff Schedule of the United States. The United States Court of Appeals for the Federal Circuit affirmed the decision of the United States Court of International Trade that the gloves are properly classified under heading 6116. The plaintiff, Magid Glove & Safety Manufacturing Co. LLC, imported the gloves from China and South Korea and argued that the gloves should have been classified under subheading 3926.20.10, a duty-free provision. However, the Court of International Trade and the Court of Appeals disagreed, stating that the gloves are not "of plastics" as required by heading 3926, but are "knitted" as described by heading 6116. The Court of Appeals also rejected the plaintiff's argument that Section XI Note 1(h) and the "completely embedded" test applied in a previous case excluded the gloves from classification under heading 6116. The court concluded that the term "completely embedded" does not appear in Section XI Note 1(h) or the two competing headings in this case and is not applicable to the classification of the gloves. View "MAGID GLOVE & SAFETY MANUFACTURING CO. LLC v. US" on Justia Law

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In this case, the United States Court of Appeals for the Federal Circuit was asked to review a decision by the United States Court of International Trade. The dispute arose from an anti-dumping investigation conducted by the Department of Commerce into the sale of certain welded carbon steel pipes from Thailand, specifically those sold by Saha Thai Steel Pipe Public Company Limited and Thai Premium Pipe Company Ltd.The Department of Commerce initially found that the costs of producing these pipes were distorted by a "particular market situation" (PMS) in Thailand that affected the cost of hot rolled steel coil, a crucial component in the production of these pipes. As a result, the Department made upward adjustments to the production costs of these companies when calculating the anti-dumping margins, which impacted the duty rates assigned to each company. This decision was challenged in the Court of International Trade, which found that the Department had overstepped its statutory authority.The Court of International Trade ruled, based on the precedent set in Hyundai Steel Co. v. United States, that the Department of Commerce was not allowed to make a PMS adjustment to the cost of production when determining anti-dumping margins. The court remanded the case to the Department to recalculate the dumping margins without the PMS adjustment.The case was subsequently appealed to the United States Court of Appeals for the Federal Circuit. The appellant, Wheatland Tube Company, argued that this case could be distinguished from Hyundai Steel because the Department had relied on a subsection of the statute to adjust the cost of production upward to account for a PMS by framing it as a constructed value calculation. The Court of Appeals disagreed, affirming the lower court's decision and holding that the statute does not authorize PMS adjustments to cost of production calculations, regardless of how the Department attempted to frame it. View "SAHA THAI STEEL PIPE PUBLIC COMPANY LIMITED v. US " on Justia Law

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In 2018, Presidential Proclamation 9693 imposed duties on imports of solar panels, starting at 30% and scheduled to decrease each year to 25%, 20%, and in the final year, 15%. Importers of bifacial solar modules, consisting of cells that convert sunlight into electricity on both the front and back of the cells, petitioned the U.S. Trade Representative (USTR), asking that bifacial solar panels not be subjected to the duties. Ultimately, bifacial solar panels were excluded from the duties. In October 2020, Presidential Proclamation 10101, “modified” Proclamation 9693 to withdraw the exclusion of bifacial solar panels from the scheduled duties, and to increase the fourth-year duty rate to 18%. IImporters of bifacial solar panels sued, alleging that the statute authorizing the President to “modify” Proclamation 9693 only allowed him to make previously adopted safeguard measures more trade-liberalizing while eliminating the exclusion of bifacial panels and raising the fourth-year duty were trade-restrictive. They further argued that even if the President had the authority to “modify” safeguards in a trade-restrictive direction, he failed to follow appropriate procedures.The Trade Court agreed that the authority to “modify” a safeguard is limited to trade-liberalizing changes but rejected the procedural challenges under the Trade Act, 19 U.S.C. 2251. The Federal Circuit reversed. The President’s interpretation of the statute, which allows him to “modify” an existing safeguard in a trade-restricting direction, is not unreasonable. In adopting Proclamation 10101, the President committed no significant procedural violation. View "Solar Energy Industries Association v. United States" on Justia Law

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In 2019, AISC, an association of U.S. producers and manufacturers of fabricated structural steel (FSS) products, filed antidumping duty petitions before the International Trade Commission and the United States Department of Commerce, alleging unfair trade practices involving the importation and sales in the United States of FSS from Canada, China, and Mexico. In 2020, the Commission issued a final negative determination that the U.S. (domestic) FSS industry was not materially injured or threatened with material injury by reason of sales in the United States of those imports.The Trade Court upheld the determination, rejecting arguments that that the Commission erred by declining to resolve a purported ambiguity in the scope of the investigation in view of the parties’ dispute; that the Commission legally erred in its determination that the captive production exception in 19 U.S.C. 1673d(b)(1)(A)(i) did not apply in the investigation; and that the Commission erred in its price effects analysis under 19 U.S.C. 1677(7)(C)(ii). The Federal Circuit affirmed, finding the Commission’s determination reasonable, supported by substantial evidence, and in accordance with the law. View "Full Member Subgroup of the American Institute of Steel Construction, LLC v. United States" on Justia Law

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Katana, a California-based distributor of high-end wheels and tires, was the importer of record for 386 entries of passenger vehicle and light truck tires from China in 2009-2012 and supplied Customs and Border Protection with invoices that listed prices lower than what Katana actually paid its Chinese vendors. Due to this error, Katana undercalculated the amount of safeguard duties, regular customs duties, harbor maintenance fees, and merchandise processing fees it owed by $5,742,483.80. Customs issued a demand to Katana for the unpaid duties and fees and later filed suit under 19 U.S.C. 1592(d).Katana sought dismissal for lack of jurisdiction because the government had filed suit after the statute of limitations, 19 U.S.C. 1621, had run. Katana stated that, although it had signed a waiver of the limitations period on October 25, 2016, it had revoked the waiver before the expiration of the limitations period. The Trade Court found that Katana had properly revoked its waiver and that the suit was untimely.The Federal Circuit reversed. The statute of limitations in 19 U.S.C. 1621 is not a jurisdictional time limit; it is subject to waiver and equitable tolling. On remand, Katana can assert an affirmative defense concerning the invalidity of its waiver. View "United States v. Katana Racing, Inc." on Justia Law

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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

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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

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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

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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