The Commerce Department cannot rely on adverse facts available in response the Chinese government's failure to provide certain information relating to its Export Buyer's Credit Program in a countervailing duty review, the Court of International Trade said in a Feb. 8 decision. Adding another to a line of decisions striking down the application of AFA in such circumstances, the court said Commerce has not shown why this information is necessary to verify that the CVD respondents, and their U.S. customers, did not use the program.

The Commerce Department switched its position on the countervailability of a South Korean sewerage fees program in Feb. 7 remand results, finding that the program is not countervailable. Commerce asked the Court of International Trade for a chance to reconsider the issue itself, ultimately coming back with the position that no benefit was preferred under the sewerage fees program and that the overall subsidy rate for countervailing duty respondent Hyundai Steel Company should be the de minimis rate of 0.49% (Hyundai Steel Company v. United States, CIT #21-00012).

There is no exception for business confidential information to the requirement that CBP provide a company subject to an antidumping duty and countervailing duty evasion investigation access to the evidence on which the agency relies, importer Royal Brush told the U.S. Court of Appeals for the Federal Circuit in a Feb. 4 opening brief. CBP's denial of Royal Brush's access to the BCI in the Enforce and Protect Act investigation violated its due process rights and created a "flawed process for adjudicating complaints of duty evasion," the brief said (Royal Brush Manufacturing Inc. v. United States, Fed. Cir. #22-1226).

A U.S. Court of Appeals for the Federal Circuit should reconsider its wrongfully decided opinion finding that the Commerce Department cannot make a particular market situation adjustment to the sales-below-cost test in antidumping duty proceedings, three defendant-appellants told the Federal Circuit in a Feb. 2 brief. Seeking a full court hearing, Atlas Tube, Searing Industries and Nucor Tubular Products said that the decision violates D.C. Circuit precedents over the "operation of ordinary canons of statutory construction in the administrative law context," and the Federal Circuit's precedents over deference afforded to Commerce (Dong-A Steel Company v. United States, Fed. Cir. #21-2153).

The U.S. Court of Appeals for the 6th Circuit affirmed a federal district court's decision to dismiss a challenge to the Michigan Department of Agriculture and Rural Development's enforcement of a federal gasoline-volatility regulation on a duty-free gas station on the Canadian border. The regulation applies to Ammex's gas station, even though the gas station sells gas only for export because cars must drive into Canada after filling up, the appeals court said (Ammex v. Gary McDowell, 6th Cir. #20-1250).

The U.S. Chamber of Commerce hopes to be able to support the House China package, since the trade group supported the U.S. Innovation and Competition Act, but said the House bill "continues to include numerous policies that would undermine U.S. competitiveness, and Members are being denied the opportunity to vote on amendments to address these issues." The Chamber said it will push during the conference process to get better bill.

OtterBox filed a complaint with the Court of International Trade on Feb. 1, seeking to reclaim interest on tariffs it paid as part of prior disclosures on entries that have since been reclassified in its favor. Ottberbox argues that CBP has incorrectly withheld interest when returning overpayments after CIT ruled in OtterBox's favor in a tariff classification case on cellphone cases. The complaint accuses CBP of stalling in its obligation to “refund all duties overpaid, plus interest, as provided by law.”

The Commerce Department must either conduct verification in an antidumping case, even if virtually, or more fully explain why it didn't conduct virtual verification in the face of a request to do so, the Court of International Trade said in a Feb. 2 decision. Judge Stephen Vaden expressed doubts over whether Commerce could complete the latter option, given that the agency failed to respond to the request for virtual verification. Commerce said no verification was conducted due to COVID-19-related restrictions. Vaden lambasted Commerce over this rationale given high-level U.S. officials' trips to India, the location of the would-be verification.

The Court of International Trade upheld for the second time the Commerce Department's decision that no benefit was conferred to South Korean steel companies through the provision of electricity. In a decision written on Jan. 21 but made public on Feb. 1, Judge Mark Barnett sustained Commerce's decision after the U.S. Court of Appeals for the Federal Circuit remanded it for unlawfully relying on price discrimination instead of a thorough fair-market principles evaluation. Barnett said Commerce has now addressed the Federal Circuit's concerns.

The Court of International Trade granted the Commerce Department's request to re-review its decision to deny 15 exclusion requests from Section 232 steel and aluminum tariffs, in a Feb. 1 order. Plaintiff NLMK Pennsylvania had consented to the request, even though Commerce's offer only covered 15 of the 54 total exclusion denial challenges made by NLMK. In its order, CIT did shorten the amount of time Commerce has to review the 15 cases from 150 days, as requested by the agency, to 106 days.