The Commerce Department's use of adverse facts available on countervailing duty respondent Risen Energy Co. for the Chinese government's failure to cooperate regarding the Export Buyer's Credit Program "fails to properly understand the Court precedent on this matter," Risen argued. Submitting a reply brief on July 26 at the Court of International Trade, the exporter said that while the U.S. "may be correct" that using AFA on a cooperative respondent due to the Chinese government's failure to cooperate may be legal, the court has cautioned Commerce "to mitigate the impact on the cooperating party" (Risen Energy Co. v. U.S. CIT # 22-00231).
The U.S. Court of Appeals for the 9th Circuit, in a July opinion, reversed a California district court's decision acquitting Yi-Chi Shih, an employee at China-based firm Chengdu RML, of conspiracy to violate export control laws via his export of semiconductors to China. Judges Andrew Hurwitz and Ryan Nelson said "a rational factfinder could find that the exported [monolithic microwave integrated circuits] were not exempt from the [Export Administration Regulations] as fundamental research."
The Commerce Department improperly refused to accept relevant factual information submitted by importer Shelter Forest International Acquisition showing that its hardwood plywood was actually made in Vietnam and not China, Shelter Forest said in a complaint at the Court of International Trade. The importer said that its submissions show that its products imported from Vietnamese producer Lechenwood were made of hardwood plywood with a core made in Vietnam, thus excluding the goods from the antidumping and countervailing duty orders on hardwood plywood from China per Commerce's own definition (Shelter Forest International Acquisition v. United States, CIT # 23-00144).
President Joe Biden's two nominees to fill vacancies at the Court of International Trade, Schagrin Associates' Joseph Laroski and the Commerce Department's Lisa Wang (see 2307120021), went before the Senate Judiciary Committee during a hearing on July 26. The two nominees faced questioning from the senators, including inquiries into their backgrounds and how their past experiences will shape their decision-making on the bench.
Importer PrimeSource Building Products on July 26 asked the Supreme Court to take up its case contesting President Donald Trump's expansion of Section 232 steel and aluminum duties onto "derivative" products, urging the High Court to settle ambiguity in statutes delegating "vast legislative power to the Executive in favor of restraining the delegation" (PrimeSource Building Products v. U.S., Sup. Ct. # 23-69).
CBP violated importer Royal Brush Manufacturing's due process rights by failing to provide it access to business confidential information (BCI) in an antidumping and countervailing duty evasion proceeding, the U.S. Court of Appeals for the Federal Circuit said in a highly anticipated opinion on July 27.
The U.K. High Court of Justice Administrative Court recently dismissed an application from Russian businessman Sergei Naumenko and companies Dalston Projects and Prism Maritime, legal owners of the Phi superyacht, seeking to regain control of the vessel. The British secretary of state for transport in March 2022 seized the yacht under its Russia sanctions regime.
New Hampshire-based furniture seller Yogibo will pay $217,832 to settle charges it violated the False Claims Act by "failing to pay customs duties on imports from China," the U.S. Attorney's Office for the District of Massachusetts announced July 26. The case was brought by David Kohlenberger, a whistleblower and former senior logistics and warehouse manager for Yogibo from 2017 to 2021, who will receive 20% of the settlement.
The following lawsuits were recently filed at the Court of International Trade:
The Court of International Trade in a July 26 order granted a stay in two cases challenging the expansion of the Section 232 steel and aluminum duties on derivative products until 30 days after importer PrimeSource Building Products' appeal to the Supreme Court of the U.S. is resolved. PrimeSource indicated it was appealing the U.S. Court of Appeals for the Federal Circuit's ruling upholding the tariff expansion to the Supreme Court earlier this month (see 2307240022). The two cases newly stayed by the trade court were brought by importers J. Conrad and Metropolitan Staple Corp. Judges Jennifer Choe-Groves, M. Miller Baker and Timothy Stanceu said their proceedings will be stayed until PrimeSource's suit "becomes final, including all appeals and remand proceedings" (J. Conrad Ltd v. United States, CIT # 20-00052) (Metropolitan Staple Corp. v. United States, CIT # 20-00053).