International Trade Today is providing readers with some of the top stories for Dec. 16-20 in case they were missed.
Court of International Trade
The United States Court of International Trade is a federal court which has national jurisdiction over civil actions regarding the customs and international trade laws of the United States. The Court was established under Article III of the Constitution by the Customs Courts Act of 1980. The Court consists of nine judges appointed by the President and confirmed by the Senate and is located in New York City. The Court has jurisdiction throughout the United States and has exclusive jurisdictional authority to decide civil action pertaining to international trade against the United States or entities representing the United States.
The Court of International Trade weighed in on the classification of combination digital cameras and camcorders, finding on Dec. 23 that they are classifiable under the Harmonized Tariff Schedule’s provision for “digital still image video cameras.” CBP had said classification of digital cameras should be determined by whether the product’s principal function is for capturing still or moving images. But CIT found that CBP had misinterpreted the tariff schedule, and that digital cameras for either still or moving images, or combinations of both, belonged in the same subheading and enter duty free.
The antidumping duty order on polyvinyl alcohol from Taiwan (A-583-841) is set to be revoked, after the Court of International Trade on Dec. 18 sustained a zero rate for the original investigation’s sole respondent. The court had in April ordered Commerce to rethink its 3.08% AD rate for Chang Chun Petrochemical (CCPC) because of quarrels over the agency’s application of targeted dumping regulations (see 13041127). Commerce’s recalculation resulted in CCPC’s AD rate falling to zero. Because CCPC was the only respondent in the original investigations, Commerce’s final determination would now become negative (no dumping), and AD duties on polyvinyl alcohol from Taiwan would end.
Rack Room Shoes on Dec. 4 petitioned the Supreme Court to hear its case on gender discrimination by duty rates in the Harmonized Tariff Schedule. The challenge to gender-specific duty rates on footwear and apparel was dismissed by the Court of International Trade and Court of Appeals for the Federal Circuit on its way to the Supreme Court, because they found Rack Room didn't prove the Congress intended to discriminate. Rack Room argues those courts set so high a bar in equal protection cases that discrimination challenges to laws would become nearly impossible.
Importers must have skin in the game to get retroactive benefits from court-mandated antidumping and countervailing duty rate revisions, said the Court of International Trade Dec. 16 as it dismissed a challenge from Snap-on, an importer of aluminum extrusions from China (A-570-867/C-570-868). Although all importers are subject to revised rates after the court affirms the new rate on remand, only importers that have had liquidation suspended because they either participated in the court challenge or in administrative reviews will have the new rate applied to past entries, said CIT.
International Trade Today is providing readers with some of the top stories for Dec. 9-13 in case they were missed.
The Court of International Trade on Dec. 13 affirmed the termination of an antidumping duty new shipper review of fresh garlic from China for Qingdao Maycarrier Import & Export Co., in a decision that will result in Maycarrier remaining subject to the $4.71/kg AD rate for companies that aren't independent from state control. Commerce had rescinded the review because it found evidence that Maycarrier was the same entity as another Chinese exporter that had previous exports to the United States. New shipper reviews can only be requested within one year of the date of its first entry of subject merchandise, and Maycarrier’s request came beyond that date. Maycarrier tried to persuade the court that Commerce relied upon faulty evidence, but the court said Commerce’s findings were reasonable and let the rescission stand.
The Court of Appeals for the Federal Circuit on Dec. 13 affirmed a lower court ruling against the Commerce Department’s retroactive suspension of liquidation on entries of laminated woven sacks from China by U.S. importer AMS Associates, also known as Shapiro Packaging. Commerce’s direction that CBP “continue” to suspend liquidation on entries going back two years was in effect a retroactive suspension of liquidation during a scope ruling, which is impermissible under Commerce’s regulations, said CAFC.
Correction: The Court of International Trade on Dec. 13 dismissed Best Key's lawsuit on yarn classification (see 13121317)..
Best Key’s challenge to CBP’s reclassification of its metallic yarn ended on a technicality, as the Court of International Trade on Dec. 13 dismissed the case because if found the Chinese yarn company has no basis to challenge CBP’s ruling. Best Key claimed the ruling would harm its business interests because reclassification as polyester instead of metallic yarn would allow CBP to collect higher duties on garments made from the yarn. But Best Key is a yarn manufacturer, and CIT found that legally Best Key is only able to challenge a ruling based on a product it would import -- the yarn itself, and not the garments made from it. The court found Best Key had no basis to challenge the reclassification, because it actually resulted in a lower duty rate for the yarn.