Gov't Expected to Appeal Ruling That 100% Beef Hormone Duties Expired in 2007
On June 16, 2009, the Court of International Trade ruled in Gilda Industries, Inc. vs. U.S., that the authority for the collection of the 100% beef hormone duties imposed on certain products from the European Union expired on July 29, 2007, when the domestic beef industry failed to timely file a request with the government to continue the duties.
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If the CIT's Gilda ruling stands, or is upheld on appeal, the 100% beef hormone duties would terminate. In addition, those that have taken certain actions (see below) could be refunded these duties retroactive to July 29, 2007.
(See ITT's Online Archives or 06/22/09 news, 09062225, for BP summary of CIT's decision.)
Government Considering its Options, Appeal Expected
The U.S. government states that it is considering its options regarding an appeal; however, legal sources expect an appeal to be filed.
Refunds Retroactive to July 2007 Could be Available if Final Ruling Favorable
One attorney states that the filing of protests should be done immediately, in order to protect the right for a refund (plus interest) retroactive to July 29, 2007.
Another law firm notes that an importer seeking to take advantage of this court decision must file an action in the CIT under 28 USC 1581(i) by July 29, 2009 in order to be eligible for refunds retroactive to July 29, 2007, should the CIT's Gilda decision ultimately be favorable.
(Background. The 100% duties were originally authorized in retaliation for the EC's failure to implement a WTO Dispute Settlement Body finding that the EC hormone ban was not based on scientific evidence, and hence was contrary to the EC's WTO obligations.
In May 2009, the U.S. and EU signed an MOU on a provisional agreement as a "way forward" to resolving this beef hormone dispute. The products that were removed from the retaliation list on March 23, 2009, as part of a U.S. decision to rotate the products that were subject to 100% duties, including Gilda's toast imports, remain free of the 100% duties under the provisional agreement. (See ITT's Online Archives or 05/14/09 news, 09051405, for BP summary of MOU.)