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CIT Issues Opinions in Customs, Classification Penalty and AD Cases

The Court of International Trade released a trio of opinions Feb. 27, covering customs, import misclassification penalty and antidumping cases.

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Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

In the customs classification case, brought by Cyber Power Systems (USA), Judge Leo Gordon held that one model of the importer's uninterruptible power supplies was properly marked as "Made in the Philippines," but the remaining four models of the supplies, plus one model of surge voltage protectors, should have been marked as "Made in China."

In the customs penalty case, Judge M. Miller Baker denied importer Crown Cork & Seal USA's bid to dismiss the government's fraud and gross negligence counts. The judge said the fraud claim is sufficiently specific and both claims clear the notice requirements of Rule 8 as set in the Bell Atlantic v. Twombly and Ashcroft v. Iqbal cases.

In the antidumping proceeding, Baker blasted the Commerce Department's use of a total adverse facts available rate of 154.33% for steel nail exporter Oman Fasteners over one 16-minute late submission, characterizing it as "the very definition of abuse of discretion." Lambasting Commerce's "draconian sanction" for which it "made no effort to justify," the judge consolidated Oman Fasteners' motion for a preliminary injunction with trial on the merits and granted judgment on the agency record. Baker enjoined Oman Fasteners from paying the cash deposits pending another order from the court.