The U.S. Court of Appeals for the Federal Circuit on Jan. 13 upheld a lower court decision that found Commerce cannot suspend liquidation retroactively prior to the beginning of a scope inquiry, even when no formal scope inquiry is conducted. The agency had in 2013 found washers imported by United Steel and Fasteners were subject to, and had always been covered by, the antidumping duty order on helical spring lock washers from China. It directed CBP to suspend liquidation for unliquidated entries all the way back to 1993, when the AD duty order was originally issued (see 13071529). CIT sustained the scope ruling, but said Commerce’s regulations prevent it from ordering retroactive suspension of liquidation prior to the date of a scope inquiry’s initiation, unless CBP had already suspended liquidation (see 1701120034). CAFC agreed, noting that Commerce itself, when issued the relevant regulations, said importers have the right to rely on CBP liquidation decisions until Commerce rules otherwise.

Xing Wei received $170,000 for her role as a whistleblower in a customs duty evasion case settled between the Justice Department and a garment wholesaler in 2017 (see 1710030048), Wei's lawyer Timothy McInnis said in a news release. Notations, the wholesaler, admitted to failing to prevent the obvious customs fraud committed by importer, Yingshun Garments (see 1609280038), as part of the settlement. McInnis said the settlement is significant for two reasons. “First, the government pursued duties fraud claims against a US-based 'downstream' commercial purchaser and re-seller, not just the foreign manufacturer and importers,” he said. “And, second, the whistleblower received an award for opening the door to the investigation and later helping uncover Notations' role even though her qui tam complaint did not name Notations specifically.” Asked why it took so long after the 2017 settlement for Wei to receive her portion, McInnis said by email that “there is no specific reason for the delay” and that some things “just take time.”

The following lawsuits were filed at the Court of International Trade during the week of Dec. 30 - Jan. 5:

The following lawsuits were filed at the Court of International Trade during the week of Dec. 23-29:

A Chinese national living in the Los Angeles area faces up to 50 years in prison for selling counterfeit laptop batteries and other electronics from China on eBay and Amazon, the Justice Department said in a press release. Zoulin “Allen” Cai, an employee of Shenzhen Theseus Technology Co., Ltd., allegedly falsely advertised counterfeit batteries as new, genuine, original or OEM products from Apple, Dell, HP and Toshiba, and also used counterfeit UL marks. Cai and his co-conspirators then sold and shipped the counterfeit batteries to unsuspecting buyers, DOJ said. “Counterfeit lithium-ion laptop batteries pose significant safety risks -- including the risk of extreme heat, fire, and explosions -- and the batteries that Cai and his co-conspirators allegedly shipped frequently lacked required essential internal safeguards,” it said. Cai is charged with conspiracy to traffic in counterfeit goods and labels, conspiracy to commit wire fraud and mail fraud, and conspiracy to engage in money laundering.

The following lawsuits were filed at the Court of International Trade during the week of Dec. 16-22:

A U.S. Department of Agriculture political appointee who has been nominated to the Court of International Trade (see 1911150010) is drawing fire from the Leadership Conference on Civil and Human Rights, which says he has supported voter suppression policies. Although the CIT does not address civil rights issues, the organizations that sent a letter opposing Stephen Vaden's nomination note that CIT judges can be detailed to circuit or district courts. But even beside their concerns about his political history, they argued that since the 37-year-old has only practiced law for 10 years, and has never handled a trial, he's not qualified to be a federal judge. “Mr. Vaden acknowledged that he has never litigated any matters in the CIT, he is not admitted to practice before the CIT, he has never litigated any matters involving international trade,” they said.

A Miami-based customs broker was sentenced to 72 months in prison for his part in a scheme to obtain steep discounts by telling medical device manufacturers they were shipping devices to Afghanistan as aid and military supplies, then diverting the devices to U.S. customers, the Justice Department said in a Dec. 16 press release. Luis Soto had been convicted by a jury after evidence was presented that he was a knowing participant in the scheme (see 1909050023). He will also forfeit $100,000 in proceeds, DOJ said. Byramji Javat, the purported ringleader, had already pleaded guilty and was sentenced to 120 months in prison.

The following lawsuits were filed at the Court of International Trade during the week of Dec. 2-8:

The following lawsuits were filed at the Court of International Trade during the week of Nov. 25 - Dec. 1: