U.S. Appeals CIT 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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The U.S. government has filed its brief on December 9, 2009 appealing this CIT decision, arguing that the CIT's reasoning is flawed.
If Gilda Industries, Inc. wins on appeal, these 100% beef hormone duties would be expected to terminate. In addition, they could be refunded retroactive to July 29, 2007.
Background
The 100% duties were originally authorized in retaliation for the EU's failure to implement a WTO Dispute Settlement Body finding that the EU beef hormone ban was not based on scientific evidence, and hence was contrary to the EU's WTO obligations.
In May 2009, the U.S. and EU signed an MOU on a provisional agreement as a "way forward" to resolving their beef hormone dispute. The products and countries 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 08/13/09 news, 09081310, for BP list of products and countries that remain subject to 100% duties under the provisional agreement.)
(See ITT's Online Archives or 06/22/09 news, 09062225, for BP summary of CIT decision. See ITT's Online Archives or 06/23/09 news, 09062305, for BP summary stating the U.S. government was expected to appeal the CIT's decision.)
U.S. brief (filed at Court of Appeals for the Federal Circuit on 12/09/09) available by emailing documents@brokerpower.com