Despite objections from importer Shah Brothers, the Court of International Trade on Dec. 27 dismissed a challenge to CBP’s tariff classification of the company’s tobacco product after the government conceded defeat. The decision to reliquidate the “gutkha” as chewing tobacco instead of snuff will result in a refund of excess excise taxes paid on the entries to Shah Bros. The importer wanted to continue its lawsuit on the grounds that CBP would continue to classify the Indian smokeless tobacco as snuff unless the court mandated a change to agency procedure. But the court said no controversy remained to litigate, and told Shah Bros. it could file another lawsuit if it found fault with CBP’s treatment of a future entry.

Best Key Textiles asked the Court of International Trade on Dec. 23 to reconsider its dismissal of the company’s challenge to CBP’s revocation of a ruling on the company’s metallized yarn. As a challenge under the Administrative Procedure Act to CBP’s alleged misconduct during the revocation proceeding, CIT can hear the case if it chooses, said Best Key. But if not, the interests of justice would best be served by transferring the case to a federal district court so Best Key can get a fair hearing, it said.

The Court of International Trade on Dec. 20 ordered the Commerce Department to rethink several aspects of the 2009-10 antidumping duty administrative review on preserved mushrooms from China (A-570-851). The court took issue with surrogate values Commerce used to calculate AD rates for Xiamen International Trade & Industrial. It also told Commerce to reconsider the AD rates assigned to non-individual respondents Iceman Group and Golden Banyan, finding fault with the use of Jinfeng’s aberrant 266.13% AD rate to calculate the review average rate.

The antidumping duty order on polyvinyl alcohol from Taiwan (A-583-841) is set to be revoked, after the Court of International Trade on Dec. 18 sustained a zero rate for the original investigation’s sole respondent. The court had in April ordered Commerce to rethink its 3.08% AD rate for Chang Chun Petrochemical (CCPC) because of quarrels over the agency’s application of targeted dumping regulations (see 13041127). Commerce’s recalculation resulted in CCPC’s AD rate falling to zero. Because CCPC was the only respondent in the original investigations, Commerce’s final determination would now become negative (no dumping), and AD duties on polyvinyl alcohol from Taiwan would end.

The Court of Appeals for the Federal Circuit on Dec. 16 upheld the International Trade Commission’s determination that some Motorola smartphones are infringing patents held by Microsoft, in violation of Section 337 of the Tariff Act. The ITC findings had resulted in imposition of a limited exclusion order in June 2012 banning imports of certain Motorola smartphones (see 12061304). CBP ruled in April that a design-around by Motorola allowed entry of products formerly subject to the exclusion order, which provoked an ongoing lawsuit from Microsoft at the District of Columbia U.S. District Court (see 13072301).

Nine defendants charged with smuggling counterfeit goods from China into the U.S. pleaded guilty in U.S. District Court for New Jersey, said ICE in a press release. The defendants "ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the U.S. Department of Justice," said ICE. From 2009 to 2012, they "and others conspired to import hundreds of containers of counterfeit goods -- primarily handbags, footwear and perfume -- from China into the United States as part of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million."

Correction: The Court of International Trade on Dec. 13 dismissed Best Key's lawsuit on yarn classification (see 13121317)..

The Court of Appeals for the Federal Circuit on Dec. 13 found fault with a partial import ban on fingerprint scanners, ordering the International Trade Commission to reconsider its limited exclusion orders against Suprema and Mentalix. Because of the ITC wrongly found some products infringed patents in violation of Section 337, the exclusion orders only appear to be valid for Suprema’s RealScan 10 and RealScan 10F scanners, CAFC said. The appeals court remanded for the International Trade Commission to revise the exclusion orders accordingly.

The Court of International Trade on Dec. 13 affirmed the termination of an antidumping duty new shipper review of fresh garlic from China for Qingdao Maycarrier Import & Export Co., in a decision that will result in Maycarrier remaining subject to the $4.71/kg AD rate for companies that aren't independent from state control. Commerce had rescinded the review because it found evidence that Maycarrier was the same entity as another Chinese exporter that had previous exports to the United States. New shipper reviews can only be requested within one year of the date of its first entry of subject merchandise, and Maycarrier’s request came beyond that date. Maycarrier tried to persuade the court that Commerce relied upon faulty evidence, but the court said Commerce’s findings were reasonable and let the rescission stand.

The Court of Appeals for the Federal Circuit on Dec. 13 affirmed a lower court ruling against the Commerce Department’s retroactive suspension of liquidation on entries of laminated woven sacks from China by U.S. importer AMS Associates, also known as Shapiro Packaging. Commerce’s direction that CBP “continue” to suspend liquidation on entries going back two years was in effect a retroactive suspension of liquidation during a scope ruling, which is impermissible under Commerce’s regulations, said CAFC.