Tesla filed a lawsuit challenging the imposition of lists 3 and 4A Section 301 tariffs on China, becoming the latest company to join the litigation involving more than 3,700 other cases. In an April 30 complaint filed with the Court of International Trade, Tesla, as an importer of goods subject to the Section 301 tariffs, launched its lawsuit, which will be subject to an automatic stay pursuant to a recent administrative order from the court (see 2104290048). The order pauses all filings challenging the tariffs that are not placed under the HMTX and Jasco Products test case.
Court of International Trade activity
The Court of International Trade ruled that the Commerce Department improperly applied adverse facts available to Chinese ribbon exporter Yama Ribbons and Bows Co. in a countervailing duty administrative review. In an April 30 opinion, Judge Timothy Stanceu found that Commerce did not consider record evidence fairly when determining whether Yama received a subsidy from the Export Buyer's Credit Program from the Export-Import Bank of China. Remanding the case, Stanceu also held that Commerce failed again to consider all relevant record evidence in its decision to include subsidy rates to inputs of synthetic yarn and caustic soda in the CVD review.
The Court of International Trade on May 3 granted the Commerce Department’s request to reopen its 2016-17 antidumping duty administrative review on circular welded non-alloy steel pipe from South Korea. Commerce had requested remand of the final results because a CIT decision issued in a separate case in December 2020 ruled against the agency’s application of a particular market situation finding under similar circumstances.
The Court of International Trade in recent days issued two decisions involving antidumping and countervailing duty administrative reviews. On May 3, CIT granted the Commerce Department’s request to reopen its 2016-17 antidumping duty administrative review on circular welded non-alloy steel pipe from South Korea. Commerce had requested remand of the final results because a CIT decision issued in a separate case in December 2020 ruled against the agency’s application of a particular market situation finding under similar circumstances.
A company must be able to prove that prices weren't distorted for transactions involving non-market economies (NMEs) when claiming first sale treatment, the Department of Justice said in an April 29 Court of International Trade filing (Imperia Trading, Inc. v. U.S., CIT # 15-00142). DOJ's argument relies on a recent CIT decision involving imported Meyer cookware that said the involvement of Chinese companies made it difficult to determine whether a transaction is affected by non-market influence (see 2104200075). DOJ made the filing as part of a dispute over whether Imperia Trading, an importer of apparel made in China, can use the sale from a Hong Kong middleman company for appraisement.
Aluminum extrusion importer Hialeah Aluminum Supply on April 29 filed a Court of International Trade complaint challenging an Enforce and Protect Act final affirmative determination. Hialeah argues that CBP's process in the investigation violated its Fifth Amendment due process rights and violated the agency's own regulations (Hialeah Aluminum Supply, Inc. v. United States, #21-00207).
The following lawsuits were recently filed at the Court of International Trade:
The Court of International Trade on April 29 sustained the Commerce Department's second remand results in a countervailing duty administrative review on corrosion-resistant steel products from India. Upholding the agency's application of adverse facts available to Indian steel producer Uttam Galva Steels in Commerce's 2016 review, Judge Leo Gordon found that Commerce adequately explained its decision to apply full AFA to Uttam Galva and not to the other mandatory respondent in the case, JSW, because Uttam Galva failed to provide information about its affiliation with Lloyds Steel Industry Ltd. (LSIL).
The Court of International Trade granted the Justice Department's request for a voluntary remand in the antidumping duty investigation on polyethylene terephthalate sheet from Oman, in an April 30 order. OCTAL says it was not given the chance to comment during the investigation on a Commerce determination that the exporter was affiliated with one of its customers. OCTAL also said the trade court should give Commerce greater than 90 days for the remand in order to reopen the record in the investigation to account for new information. DOJ agreed that the case should be remanded, but not to an extension of the 90-day deadline to reopen the record. CIT's order says the remand must be filed within 90 days.
The Court of International Trade remanded an antidumping case to the Commerce Department, finding that the agency's determination that wood flooring importer Jilin Forest Industry Jinqiao Flooring Group Co. was de facto controlled by the Chinese government lacked substantial evidence. Judge Richard Eaton, in the April 29 opinion, also found that Commerce's application of its non-market economy policy to Jilin did not clear the proper evidentiary standard, launching into an elongated discussion of the policy's original intent.