Another Lawsuit Filed on Section 232 Tariffs Says Commerce Report Violated Law
Another group of steel importers filed a broad legal challenge to Section 232 tariffs on iron and steel products on Dec. 3, this time alleging that the measures are based on a faulty Commerce Department report and should be terminated by court order and refunded.
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The lawsuit was filed at the Court of International Trade by Universal Steel Products, PSK Steel Corporation, the Jordan International Company and Dayton Parts. They say the report sent by the Commerce secretary to the president with the findings of the underlying investigation, which is required before imposing duties under Section 232 of the Trade Expansion Act of 1962, did not follow the requirements of that law. As a result, the proclamations and duties that were based on that report were invalid, said the complaint.
Among the report’s faults was that it failed to show how steel imports threaten national security. The word threaten is an indication of something impending (i.e., that will occur in the future), but the report merely cites historical events that led to increased demand for steel, the complaint said. It also failed to consider the tariffs’ impact on downstream manufacturers that are also critical to national security, it said.
The steel importers also said the resulting proclamation that imposed tariffs under Section 232 on steel products did not specify a duration for the measures. A provision in Section 232 requires that the president “determine the nature and duration of the action that, in the judgment of the President, must be taken to adjust the imports of the article,” the complaint said.
“The President lacks the authority to proclaim import restrictions under Section 232 absent a valid report by the Secretary of Commerce; because the Report’s key findings were not supported by substantial evidence, and the conclusions were arbitrary and capricious, the Report cannot lawfully support the President’s proclamations under Section 232 and the import restrictions must be set aside,” the complaint said.
Universal and the other steel importers seek a permanent injunction against enforcement of any quota or tariff imposed pursuant to the report and the proclamations setting Section 232 duties on steel. They also seek an order requiring refunds of “any tariffs found by this Court to have been imposed contrary to law.” CIT recently faulted the administration’s failure to follow procedural requirements for increased Section 232 tariffs on Turkey, though based on timing rather than the report’s substance (see 1911180013).
Email ITTNews@warren-news.com for a copy of the complaint.