The U.S. District Court for the District of Columbia on Oct. 17 rejected both the government’s and law firm Husch Blackwell’s motions for judgment in a Freedom of Information Act dispute involving the Entity List. It gave the Commerce Department time to provide adequate justifications for its decisions to withhold certain information but said the ones it already provided weren’t enough (Husch Blackwell v. Department of Commerce, D.D.C. # 24-2733.
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Exporter Camel Group filed its motion for judgment against the Forced Labor Enforcement Task Force's decision not to remove the company from the Uyghur Forced Labor Prevention Act Entity List, arguing that the decision wasn't backed by substantial evidence or supported by a reasoned explanation. Camel said FLETF used the wrong standard of review in assessing its petition for removal from the UFLPA Entity List, arguing that the task force should have used a "preponderance of the evidence" standard instead of a "reasonable cause to believe" standard" (Camel Group v. United States, CIT # 25-00022).
CBP failed to explain its finding that Dominican exporter Kingtom Aluminio made its aluminum extrusions with forced labor, the Court of International Trade held on Sept. 23. Vacating and remanding the forced labor finding, Judge Timothy Reif said the agency failed to "articulate a satisfactory explanation for its action” based on a “rational connection between the facts found and the choice made" in violation of the Administrative Procedure Act's arbitrary and capricious standard.
Chinese semiconductor company Yangtze Memory Technologies Corp. accused the Bureau of Industry and Security of illegally withholding documents related to its placement on the Entity List, adding that the government acted on "inaccurate" information from YMTC competitors when it imposed stringent export license requirements on the company in 2022. The firm also questioned whether the End-User Review Committee, the interagency group that makes decisions on adding or removing companies from the Entity List, followed proper protocol when it voted to put YMTC on the list.
The Court of International Trade on Sept. 23 remanded CBP's finding that Dominican exporter Kingtom Aluminio made its aluminum extrusions using forced labor. Judge Timothy Reif held that CBP failed to "articulate a satisfactory explanation for its action" based on a "rational connection between the facts found and the choice made" in violation of the Administrative Procedure Act. Reif likened the case to the court's previous consideration of a company's challenge to its placement on the Uyghur Forced Labor Prevention Act Entity List. The judge said CBP's "conclusory, unsupported allegations" of forced labor made with regards to Kingtom are "readily distinguishable" from the "substantive statements" made in defense of the UFLPA Entity List addition.
The U.S. said on Sept. 17 it doesn't oppose Chinese exporter Ninestar's motion to amend its complaint in its case against its placement on the Uyghur Forced Labor Prevention Act Entity List, though the government said it "reserves its right to move to dismiss one or both additional counts" in the amended complaint (Ninestar Corp. v. United States, CIT # 23-00182).
An Estonian national was extradited to the U.S. on Aug. 28 to face charges of conspiracy to violate U.S. export controls by sourcing U.S.-made electronics for use by the Russian government and military, the U.S. Attorney's Office for the Eastern District of New York announced. Andrey Shevlyakov faces 18 total counts related to the international procurement scheme.
California-based electronic design automation firm Cadence will pay more than $140 million in combined civil fines, criminal penalties and forfeitures after the U.S. said it violated export controls against China. The company pleaded guilty to illegally exporting EDA hardware, software and semiconductor design intellectual property technology to Chinese entities, including a university and company on the Entity List.
Exporter Camel Group defended its motion to unredact and re-designate part of the administrative record in its case against its placement on the Uyghur Forced Labor Prevention Act Entity List, arguing on July 18 that the government won't suffer harm if Camel Group's lawyers can share the documents with the company. The exporter claimed that the government's interest in shielding the documents is "tarnished by continued inconsistencies in its designation" (Camel Group Co. v. United States, CIT # 25-00022).