The Court of International Trade on July 29 signed off on importer Briggs & Stratton's dismissal of its case on CBP's assessment of excess duties, taxes and fees on its engine parts and components (see 2301250071). The importer filed its notice of dismissal last month (see 2506270029). Briggs & Stratton brought the suit to argue that the duties were added due to clerical and technical errors. The case was previously dismissed for lack of prosecution, though the trade court re-added it to the court's docket after the company asked for relief (see 2502040015) Counsel for Briggs & Stratton didn't respond to a request for comment on the reason for dismissal (Briggs & Stratton Corp. v. United States, CIT # 23-00014).
All active judges at the U.S. Court of Appeals for the Federal Circuit on July 31 heard oral argument in the lead case on the legality of tariffs imposed under the International Emergency Economic Powers Act. The 11 judges peppered counsel for the government and the parties challenging the tariffs, which include five importers and 12 U.S. states, with questions about whether the statute authorizes tariffs at all; whether there are limits to that tariff authority, should it exist; and whether the major questions or non-delegation doctrines strip IEEPA of its ability to convey tariff authority (V.O.S. Selections v. Trump, Fed. Cir. # 25-1812).
The U.S. filed its reply briefs in a pair of appeals before the U.S. Court of Appeals for the 9th Circuit on whether challenges to the legality of tariffs imposed under the International Emergency Economic Powers Act belong in the Court of International Trade. Responding to arguments from the State of California and various members of the Blackfeet Nation indigenous tribe, the government said the case "arises out of" President Donald Trump's executive orders implementing the tariffs and the Harmonized Tariff Schedule, giving CIT exclusive jurisdiction under Section 1581(i) (State of California v. Trump, 9th Cir. # 25-3493) (Susan Webber v. U.S. Department of Homeland Security, 9th Cir. # 25-2717).
The Court of International Trade's ruling that a product is "imported" for duty drawback purposes when it's admitted into a foreign-trade zone and not when entered for domestic consumption impermissibly repealed part of the Foreign Trade Zone Act, imported King Maker Marketing argued in its opening brief at the U.S. Court of Appeals for the Federal Circuit. The importer added that it's "both absurd and anomalous" to impose a time limit on the recovery of duties and taxes under the drawback scheme as "beginning to run before those duties and taxes are paid" (King Maker Marketing v. United States, Fed. Cir. # 25-1819).
President Donald Trump, invoking the International Emergency Economic Powers Act, is imposing an additional 40% duty on some imports from Brazil, bringing the total tariff rate to 50%.
The following lawsuits were filed at the Court of International Trade during the weeks of July 14-20 and 21-27:
The following lawsuits were filed recently at the Court of International Trade:
The U.S. asked the U.S. District Court for the Western District of Texas to transfer the latest International Emergency Economic Powers Act tariff lawsuit to the Court of International Trade and to stay briefing on the companies' challenging the tariffs' motion for summary judgment pending resolution of the transfer motion. The government said four courts have found that CIT has exclusive jurisdiction over cases challenging the legality of tariffs imposed under IEEPA, while just one has "declined to transfer the case to the CIT or dismiss for lack of subject-matter jurisdiction" (FIREDISC, Inc. v. Donald J. Trump, W.D. Tex. # 25-01134).
The Commerce Department cannot investigate "transnational" subsidies, countervailing duty respondent Kukdo Chemical argued in a July 25 complaint at the Court of International Trade. Challenging the countervailing duty investigation on epoxy resins from South Korea, Kukdo said it's challenging "any and all substantive aspects of Commerce's" finding that the company received a countervailable subsidy via the provision of Epichlorohydrin (ECH) for less than adequate remuneration from China (Kukdo Chemical v. United States, CIT # 25-00146).
The Court of International Trade on July 28 denied importer Detroit Axle's motion for a preliminary injunction against President Donald Trump's decision to end the de minimis threshold on goods from China, which was made under the International Emergency Economic Powers Act. Judges Gary Katzmann, Timothy Reif and Jane Restani said they already have granted all the relief the importer is seeking, though the U.S. Court of Appeals for the Federal Circuit stayed that relief.