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CIT Forms Three-Judge Panel to Hear Challenges of Section 232 Tariffs on 'Derivatives'

The Court of International Trade will hear the recent series of lawsuits challenging Section 232 tariffs on steel and aluminum derivatives as a three-judge panel, according to multiple people familiar with the cases. Though the court’s case management system was down as of press time for an IT upgrade, the panel will apparently decide the similar cases filed in recent weeks by PrimeSource, Oman Fasteners, Huttig, Astrotech, Trinity, New Supplies, Aslanbas, J. Conrad, Metropolitan Staple, and 10 companies including SouthernCarlson (see 2003030048).

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The series of orders issued March 12 point to the court’s likely intention to take a global approach in the cases, which challenge the tariffs on the grounds that they violated procedures and deadlines set in Section 232 and are unconstitutional. “It certainly does appear that the Court is headed toward a consolidation of the cases or at least some means of achieving a single decision encompassing all of the cases,” said a lawyer involved in one of the cases. “Even PrimeSource, which had been assigned only to the chief judge, is now assigned to the panel.”

CIT Rule 77 provides for three-judge panels in cases that involve the constitutionality of an act of Congress, a Presidential Proclamation, or an Executive Order, or otherwise have broad and significant implications, the lawyer said. “These cases certainly fit the criteria. The parties didn’t ask for this, but the issues raised by Proclamation 9980 are extremely important and setting a three judge panel from the outset contributes to the efficiency of the process.” Chief Judge Timothy Stanceu will be joined by Judges Jennifer Choe-Groves and Miller Baker on the panel.