DOJ asked the Court of International Trade in an Aug. 1 motion on behalf of the Office of the U.S. Trade Representative for permission to correct the administrative record in the Section 301 litigation to include 136 pages of documents not previously submitted in the cases. Virtually all the documents previously were in the public domain, and they include mostly news releases and Federal Register notices announcing USTR actions connected with the imposition of the four rounds of Section 301 tariffs on Chinese imports dating to 2018.
The Court of International Trade in a July 22 order consolidated three customs cases concerning the proper classification of electric scooters, known as hoverboards. Two of the cases, including the now-lead case, were brought by 3BTech, while the remaining action was brought by Pro-Com Products. The cases were launched to argue that the hoverboards were classifiable under Harmonized Tariff Schedule subheading 9503.00.0090, which provides for "Tricycles, scooters, pedal cars and similar wheeled toys; dollsʼ carriages; dolls, other toys; reduced-scale ('scale') models and similar recreational models, working or not; puzzles of all kinds; parts and accessories thereof: Other," and allows subject goods to enter duty-free (see 2112100053) (3BTech Inc. v. United States, CIT Consol. #21-00026).
Battery powered flexible electronic eWriter device containing flexible pressure sensitive liquid crystal writing film are properly classified as "optical appliances" under subheading 9013.80.7000 and subject to a product exclusion under Section 301 tariffs, Kent Displays said in a July 18 complaint at the Court of International Trade (Kent Displays, Inc. v. U.S. CIT # 20-00156).
Patented VicFlex sprinkler brackets are properly classified as “parts” of machines for dispersing or spraying liquids under tariff schedule subheading 8424.90.9080 and not subject to Section 301 duties, Victaulic said in a July 15 complaint to the Court of International Trade (Victaulic Company v. United States, CIT #22-00022).
The Supreme Court's key ruling that called into question federal agencies' authority to regulate major sectors of the economy if not explicitly delegated by Congress could positively impact plaintiffs in the massive case against the Section 301 China tariffs, Christopher Kane, partner at Simon Gluck, said in a LinkedIn post. Kane said he thought that the Office of the U.S. Trade Representative overstepped its statutorily delegated authority by not engaging in the mandated deliberations before imposing the tariffs. Since the tariffs rise to the level of affecting a major segment of the U.S. economy, the West Virginia v. EPA decision would reverse the USTR's actions, Kane said.
A World Trade Organization arbitrator determined the methodology Canada can use to set the level of retaliatory measures it can impose on goods imported from the U.S. if the U.S. applies countervailing duties on Canadian goods based on a measure found to be inconsistent with WTO rules. In the July 13 decision, the arbitrator said Canada would set the appropriate level of nullification or impairment in the future "based on the four-variety Armington model," which was recommended by the U.S. and can quantify the trade decline experienced by Canada through a particular use of the U.S.'s adverse facts available measures in CVD proceedings.
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The Office of the U.S. Trade Representative has 32 extra days, until Aug. 1, to file its lists 3 and 4A tariff remand results in the Section 301 litigation, a three-judge panel at the Court of International Trade said in a June 22 order. DOJ, on USTR’s behalf, asked for a 60-day extension to Aug. 30 to fix its Administrative Procedure Act violations, citing the volume of work required to meet the remand order, plus the agency’s limited staff resources and the additional projects compounding its workload (see 2206210042).
The Office of the U.S. Trade Representative can’t demonstrate good cause for a Section 301 remand deadline extension “that would leave uncured its established legal violation for another two months to the continuing detriment of American businesses and consumers,” Akin Gump lawyers for Section 301 litigation test plaintiffs HMTX Industries and Jasco Products said in an opposition brief June 21 at the Court of International Trade in docket 1:21-cv-00052.
Trade ministers meeting at the World Trade Organization in Geneva agreed to a partial solution to harmful subsidies for fishing fleets, an intellectual property waiver for Covid vaccines, and to allow sale of commodities to the World Food Program even if the product is otherwise subject to export restrictions. The countries that attended the ministerial conference also agreed to extend the moratorium on tariffs on electronic transmissions.