CAFC Upholds Limits on Retroactive Suspension of Liquidation After Scope Rulings

The U.S. Court of Appeals for the Federal Circuit on Jan. 13 upheld a lower court decision that found Commerce cannot suspend liquidation retroactively prior to the beginning of a scope inquiry, even when no formal scope inquiry is conducted. The agency had in 2013 found washers imported by United Steel and Fasteners were subject to, and had always been covered by, the antidumping duty order on helical spring lock washers from China. It directed CBP to suspend liquidation for unliquidated entries all the way back to 1993, when the AD duty order was originally issued (see 13071529). CIT sustained the scope ruling, but said Commerce’s regulations prevent it from ordering retroactive suspension of liquidation prior to the date of a scope inquiry’s initiation, unless CBP had already suspended liquidation (see 1701120034). CAFC agreed, noting that Commerce itself, when issued the relevant regulations, said importers have the right to rely on CBP liquidation decisions until Commerce rules otherwise.