The Court of International Trade on Feb. 20 sustained the Commerce Department’s application of the Transactions Disregarded Rule to calculate mattress exporter Zinus Indonesia’s normal value in an AD investigation. However, it remanded Commerce’s decision, in constructing Zinus Indonesia’s export price, to apply a quarterly financial ratio to the mattresses of Zinus’ U.S. affiliate that were still in transit at the end of the period of review; doing so was using facts otherwise available, the court said, and Commerce should have first asked Zinus Indonesia for the relevant missing information. CIT also granted Commerce a voluntary remand on its decision to exclude Zinus Korea’s selling expenses from Zinus Indonesia’s constructed value so that the department could consider more evidence that the Korean affiliate helped Zinus Indonesia sell its products (PT. Zinus Global Indonesia v. U.S., CIT # 21-00277).
The Court of International Trade on Feb. 20 remanded the Commerce Department's finding that R210-S engines made by Chongqing Rato Technology Co. fall within the scope of the antidumping and countervailing duty orders on vertical shaft engines between 99cc and up to 225cc from China. Exporter Zhejiang Amerisun Technology Co. argued the R210-S engines have a newly designed horizontal shaft engine outside the orders' scope, while the U.S. said the horizontal shaft engine was equivalent to a modified vertical shaft engine, falling within the orders' scope. Judge Jennifer Choe-Groves said Commerce's claim that the orders don't include an exhaustive list of the parts needed for an engine to be covered cuts against "well-established legal precedent regarding scope rulings," and that the agency improperly relied on Wikipedia articles -- an "inherently unreliable source."
The Court of International Trade on Feb. 16 said that importer Trijicon's tritium-powered gun sights are properly classified under CBP's preferred Harmonized Tariff Schedule subheading of 9405.50.40 as lamps "or other lighting fittings," dutiable at 6%, instead in subheading 9022.29.80 as "apparatus based on the use of alpha, beta or gamma radiations," free of duty, as argued by Trijicon. Judge Mark Barnett said the tritium-powered products don't qualify as an "apparatus" under either of the definitions offered by Trijicon and the U.S. because they meet the "common definition of a device," given that they are made for a particular purpose: illumination.
The Court of International Trade on Feb. 15 rejected the U.S. government's opposition to a host of lumber importers and exporters' requests to intervene in an antidumping review challenge, siding with nearly 30 years of litigation practice in which non-individually selected companies participate in judicial review of AD/CVD cases. Judge Jennifer Choe-Groves said that a request for review in an AD/CVD proceeding is sufficient to justify intervention "as a matter of right" at the trade court, rejecting the government's claim that a party must submit factual information or written argument before Commerce to participate at CIT.
The Court of International Trade in a Feb. 8 opinion made public Feb. 13 remanded some aspects of the Commerce Department's antidumping duty investigation on thermal paper from Germany. Judge Gary Katzmann sent back the coding of the static sensitivity product characteristic, classification of Koehler's accrued interest expenses as a cost of production and the use of the Cohen's d test to root out "masked" dumping, staying the case until the U.S. Court of Appeals for the Federal Circuit issues a decision in Stupp Corp. v. U.S. He sustained Commerce's inclusion of exporter Koehler Paper's "Blue4est" paper product within the scope of the investigation, the agency's coding of the dynamic sensitivity product characteristic and application of price adjustments for some home market rebates.
The Court of International Trade on Feb. 12 sustained the Commerce Department's decision to use a simple average of standard deviations in the denominator of Cohens d test for detecting "masked" dumping as part of the antidumping investigation of steel nails from Taiwan. The U.S. Court of Appeals for the Federal Circuit has remanded this decision twice, finding that the academic literature relies on a weighted average. On remand, Commerce said the literature uses a simple average when the sample sizes are equal and that the standard deviation of a full population is "in fact the actual standard deviation." Because the agency used the full population of data in using the Cohen's d test, using a simple average is supported, Judge Claire Kelly said.
The Court of International Trade on Feb. 12 sustained the Commerce Department's final results of the 2019-20 review of the antidumping duty order on retail bags from Malaysia. Judge Stephen Vaden upheld Commerce's use of adverse facts available to set inland freight expense data for U.S. sales the agency found to be unverifiable, as well as the decision not to correct a ministerial error on the grounds that notice of the error was untimely. The court said Commerce gave exporter Euro SME multiple chances to submit verifiable data after the agency found errors in the company's actual weight and inland freight data, making the use of AFA proper due to the resulting gaps in the record.
The Court of International Trade on Feb. 8 sustained the Commerce Department's finding that Chinese wood flooring exporter Fusong Jinlong Group was eligible for a separate rate despite its refusal due to the COVID-19 pandemic to be a mandatory respondent in a 2018-2019 AD review. However, the court allowed Commerce's application of AFA to the exporter, leaving the exporter's AD at the China-wide 85.13% while raising the review's non-individually reviewed respondents' rate from zero to 42.57%. The department made the change under protest after the court found it was treating similarly situated entities differently and hadn’t addressed Jinlong’s separate rate certification on the merits.
The Court of International Trade on Feb. 7 upheld CBP's decision to drop its finding that importer Norca Industries Co. and International Piping & Procurement Group evaded the antidumping duty order on pipe fittings from China. Judge Jennifer Choe-Groves said that CBP's finding, made after the Commerce Department conducted a covered merchandise referral on remand, was backed by substantial evidence. The covered merchandise referral found that the importers' carbon steel butt-weld pipe fittings were outside the order's scope.
The Court of International Trade on Jan. 31 remanded for a third time the Commerce Department's antidumping investigation on refillable stainless steel kegs from China, rejecting the agency's continued use of a Mexican data set to calculate a surrogate labor costs value for respondent Ningbo Master International Trade. Judge M. Miller Baker said Brazilian wage data already provided by petitioner American Keg was "correct as a factual matter," making Commerce's reopening of the record on remand to seek additional Mexican data unjustified.