Court of International Trade

The Court of International Trade remanded the results of an anticircumvention inquiry on steel wire rod from Mexico that found Deacero’s product to be subject to antidumping duties. Commerce had found Deacero’s wire rod, with a diameter of 4.75mm, only constituted a “minor alteration” from merchandise otherwise subject to AD duties under the order. The scope of the order on carbon and steel wire rod from Mexico says it covers steel wire rod measuring between 5mm and 19mm in diameter. The court found that existence of 4.75mm wire was so widely known before the scope was written by domestic industry that the petitioners could have covered it under the order, but chose not to.

The Court of International Trade remanded on Oct. 11 the final determination from the antidumping duty investigation on diamond sawblades from South Korea, in a move that could result in reinstatement of AD duties. The diamond sawblades order was revoked in 2011, after the Commerce Department implemented a World Trade Organization ruling by eliminating zeroing methodology from its calculations and AD rates for all reviewed companies fell to zero (see 11102822). Zero rates in an investigation mean an order can’t be issued. CIT’s remand raises the possibility that AD rates for South Korea diamond sawblade exporters could rise above zero, even without the use of zeroing methodology, which the court says would upset Commerce’s 2011 decision to revoke.

The Court of International Trade again ruled against the Commerce Department’s 15-day period to issue liquidation instructions to CBP after publication of the final results of an administrative review, in a challenge to the 2008-09 antidumping duty review on ball bearings from France, Germany, Italy, Japan, and the United Kingdom. The judgment was only declaratory, however, because the plaintiffs were able to file their lawsuit and get an injunction within that period, suffering no harm from the Commerce policy.

The Court of International Trade blocked liquidation on entries of shrimp from China made from Feb. 1, 2011, through Jan. 31, 2012, after the domestic Ad Hoc Shrimp Trade Action Committee filed a lawsuit challenging a Commerce Department antidumping duty administrative review. CIT Judge Claire Kelly on Oct. 16 issued a preliminary injunction and temporary restraining order barring liquidation of entries of merchandise subject to the AD duty order on frozen warmwater shrimp from China for certain companies. She confirmed the orders enjoining liquidation on Oct. 21. The Ad Hoc Shrimp Trade Action Committee is challenging Commerce’s selection of mandatory respondents, use of Indian surrogate data, and partial revocation for Regal. The preliminary injunction and temporary restraining order cover entries exported by the following companies:

The Court of International Trade sustained the Commerce Department’s decision to assign Jiangsu Jianghai Chemical an “above de minimis” antidumping duty rate -- but not calculate exactly what that rate may be -- in the original AD duty investigation of 1-Hydroxyethylidene-1, 1-Diphosphonic Acid (HEDP) from China. The Commerce determination came on Court of Appeals for the Federal Circuit remand, after the appeals court had ruled against the agency’s adverse facts available (AFA) rate for Jiangsu Jianghai despite the company’s cooperation.

Best Key will file a challenge with the Court of International Trade over a CBP ruling that the textile company says the agency is using to revise its definition of "metalized" yarns, said John Peterson, a lawyer with Neville Peterson that is representing Best Key. CBP published two notices of revocation of rulings and treatment regarding "Johnny Collar" pullovers and polyester monofilament yarn in the Oct. 2 issue of the CustomsBulletin (Vol. 47, No. 41). CBP made the rulings despite claims from Best Key that agency laboratory personnel inappropriately disregarded previous ruling precedent (see 13061418).

The federal judiciary will remain open at least until Oct. 17 despite the ongoing government shutdown, according to notices posted on court websites. The website for the Federal Judiciary said federal courts will remain open for business at least until Oct. 17 due to severe spending restrictions that have meant for some "limited additional funding" (here). "Spending rates and fund balances will continue to be monitored closely in hope that adequate funds may be available to allow courts to operate through the end of the work week -- October 18," it said. The Court of Appeals for the D.C. Circuit put out a similar notice that said it will remain open for business and will reassess its situation on or around Oct. 17 (here).

Gang Yan could once again be subject to antidumping duties on diamond sawblades from China (A-570-900), after the Court of International Trade on Oct. 11 sustained the Commerce Department’s decision to treat parent company Advanced Technology & Materials as a state-controlled entity not eligible for its own rate. Commerce had in a March Section 129 determination revoked the order for AT&M and its subsidiaries, Gang Yan and Yichang HXF, because the elimination of zeroing methodology dropped the companies' original investigation rate to zero (see 13032716]). CIT's decision may now subject the companies to the China-wide 164.09 percent rate, and may also make them ineligible for the separate, company-specific zero rate calculated in the Section 129 determination.

The Court of International Trade on Oct. 9 dismissed a challenge from a domestic industry coalition to the Commerce Department’s new policy of interpreting the scope of the antidumping and countervailing duty orders on aluminum extrusions from China to exclude subassemblies from AD/CVD coverage. An October 2012 scope ruling had found that subassemblies can meet the scope’s exclusion for “finished goods kits,” even though they are components meant for incorporation in a larger finished good. The court dismissed the challenge for failure to exhaust administrative remedies, because the plaintiff, the Aluminum Extrusions Fair Trade Committee (AEFTC), didn’t comment on Commerce’s new policy after it was announced in the preliminary results of the scope ruling.

The trade industry was still assessing the short- and long-term effects of the government shutdown Oct. 1. CBP had already said its core functions would not be immediately affected (see 13093028). And the U.S. National Airspace System was operating normally Oct. 1, with no reports of any impact to operations due to the government shutdown, said The International Air Cargo Association.