Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

Alcan imported Flexalcon, an aluminum-plastic laminate foil for food packaging with stringent shelf-life requirements, such as for the military’s Meals Ready to Eat. Flexalcon is a four-layer material for the base of a package and a three-layer material for the lid. Each configuration has a thin layer of aluminum foil between layers of plastic. Aluminum prevents penetration of light, water vapor, oxygen, and other contaminants that would degrade food contents. The plastic gives the packaging tensile strength and increases heat resistance to withstand sterilization and sealing; it prevents cracking and piercing. Alcan listed the material as classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 7607.20.50, which carries no duty rate and covers “[a]luminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: Backed: Other.” Customs reclassified the Flexalcon under subheading 3921.90.40, with a 4.2% duty rate, covering “[o]ther plates, sheets, film, foil and strip, of plastics: Other: Flexible.” Alcan unsuccessfully protested under 19 U.S.C. 1514–1515. The Court of International Trade upheld the classification. The Federal Circuit affirmed, reasoning that the competing aluminum-foil heading defers to the applicable plastics heading. View "Alcan Food Packaging v. United States" on Justia Law

Dependable imports packing, janitorial, floral, office supplies, and some glass items. In 2010, Dependable imported, from China, items invoiced as “Generic Bud Vases” valued at $0.30 or less and larger “Generic Trumpet Vases,” valued at no more than $3.00. Dependable sells the vases to flower-packing houses that fill them with flowers for shipment to supermarkets or similar retailers, where the vase and flower combinations are sold as a single unit. Dependable classified the vases under the Harmonized Tariff Schedule 7018.90.50. At liquidation, U.S. Customs and Border Protection applied Heading 7013, which provides for “Glassware of a kind used for . . . indoor decoration.” Dependable protested but after a deemed denial and paying assessed duties, argued to the Court of International Trade that both vases should be classified under Heading 7010, which includes “containers, of glass, of a kind used for the conveyance or packing of goods ... Carboys, bottles, flasks, jars, pots, vials, ampules and other containers, of glass ... for the conveyance or packing of goods; preserving jars of glass; stoppers, lids and other closures, of glass." The court stated that “a reasonable jury could only conclude that the vases here are commercially fungible with other inexpensive clear glass vases whose principal use is decorative, rather than with glass packing containers” and granted summary judgment in favor of the government. The Federal Circuit affirmed.View "Dependable Packaging Solutions, Inc. v. United States" on Justia Law

Between October 2007 and August 2008, R.T. foods made 24 entries of “Tempura Vegetables” and “Vegetable Bird’s Nests” (frozen tempura-battered vegetable mixtures) from Thailand, 10 through the port of Boston and 14 through the port of Long Beach. United States Customs and Border Protection classified the 10 Boston entries and three of the Long Beach entries under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 2004.90.85, which carries a duty rate of 11.2%. The remaining 11 entries into Long Beach were liquidated under R.T.’s proposed subheading, HTSUS 2106.90.99, which carries a duty-free preference for products from Thailand. HTSUS 2004.90.85 covers “Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006: Other vegetables and mixtures of vegetables: Other: Other, including mixtures.” HTSUS 2106.90.99 provides for “Food preparations not elsewhere specified or included: Other: Other: Other: Frozen.” R.T. timely filed and Customs denied protests. The Court of International Trade held it only had jurisdiction over three of the entries, then entered summary judgment in favor of the government. The Federal Circuit affirmed.View "R.T. Foods, Inc. v. United States" on Justia Law

In 2009, Chemsol made six entries of citric acid, purportedly from the Dominican Republic, and in 2009-2010, MCI made 13 entries of citric acid, purportedly from India; both claimed duty-free status for the entries and did not deposit any duties. U.S. Immigration and Customs Enforcement and Customs and Border Protection initiated an investigation to determine whether Chinese citric acid was being transshipped through other countries to evade antidumping and countervailing duties applicable to citric acid imported from China. Customs extended the deadline for liquidation of the entries under 19 U.S.C. 1504(b) and notified Chemsol and MCI of the extensions. In response, the companies sought a declaration that the extensions were unlawful and that the entries were deemed liquidated. They asserted that the Court of International Trade had jurisdiction under 28 U.S.C. 1581(i). The government argued that they were first required to challenge the extensions before Customs by post-liquidation protest, after which they could seek judicial review of any protest denial under 19 U.S.C. 1515, the Tariff Act’s “review of protests” provision. The court agreed, stating that “since the commencement of this action, ICE has completed its investigation and, but for .. suit, Customs could complete its administrative process and liquidate … remaining entries.” The Federal Circuit affirmed dismissal.View "Chemsol, LLC v. United States" on Justia Law

Resco filed a petition with the Department of Commerce requesting initiation of antidumping and countervailing duty investigations on imports of certain magnesia carbon bricks (MCBs) from China and Mexico. MCBs are a type of refractory brick used to line ladles and furnaces used in steelmaking and steel handling processes. Resco’s petition proposed that the scope of the investigations be limited to certain types of MCBs, distinguishing MCBs from other types of refractory bricks and stating that the different types of bricks are not generally substitutable, due to varying chemical and physical properties and wear characteristics. Commerce studied the proposed scope of the investigation and published notices of initiation of antidumping and countervailing duty investigations and its final determinations, using almost all of the language proposed by Resco to define the scope of the investigations: Fedmet is a domestic importer of refractory bricks and other products used in the steelmaking industry. Fedmet was not a party to the antidumping and countervailing duty investigations Fedmet requested a scope ruling that its Bastion® line of magnesia carbon alumina bricks was outside the scope of the outstanding antidumping and countervailing duty orders on MCBs from China and Mexico. Commerce and the Trade Court rejected Fedmet’s arguments. The Federal Circuit reversed, finding Fedmet’s bricks outside the scope of the order.View "Fedmet Res. Corp. v. United States" on Justia Law

Jerseys, pants, and girdles imported by Riddell are all designed to be worn, in conjunction with protective pads (having both hard and soft components), while playing football. As imported none of the merchandise contains such protective items. U.S. Customs and Border Protection classified all of the merchandise as articles of apparel under either chapter 61 or chapter 62 of the Harmonized Tariff Schedule of the United States (HTSUS0. Riddell filed two protests under 19 U.S.C. 1514, arguing that the merchandise should have been classified as football equipment under HTSUS chapter 95. Customs denied Riddell’s protests. Riddell then filed civil actions in the Court of International Trade upheld the classification. The Federal Circuit affirmed the classifications as apparel, rather than sports equipment. View "Riddell, Inc. v. United States" on Justia Law

Essar manufactures steel in Chhattisgarh, India and imports hot-rolled carbon steel flat products into the U.S. In 2008, Commerce initiated an investigation of whether Essar received countervailable subsidies for its iron ore products in India for a 2007 review period. Commerce investigated Essar’s receipt of benefits from nine subsidies provided under “CIP,” a program administered by the government of Chhattisgarh. Essar repeatedly denied receiving CIP subsidies based on a claim that Essar did not have any manufacturing facilities in Chhattisgarh. The Department of Commerce found that Essar’s claims were contradicted by other information that Essar had supplied. During the fifth administrative review, the governments of India and Chhattisgarh failed to respond. Commerce therefore applied adverse facts available (AFA) in its final results and concluded that Essar did benefit from CIP. The Trade Court remanded to Commerce with instructions to explain how it corroborated the AFA rate for participation in the CIP or why corroboration was not practicable. Commerce explained that it applied a hierarchical methodology in selecting an AFA rate. The Trade Court found that Commerce had corroborated Essar’s AFA rate to the extent practicable under 19 U.S.C. 1677e(c) by utilizing calculated benefits from similar subsidy programs identified in the underlying countervailing duty investigation of hot-rolled carbon steel flat products from India. The Federal Circuit affirmed.View "Essar Steel Ltd. v. United States" on Justia Law

Cubatabaco, a Cuban entity, and General, a Delaware company, manufacture and distribute cigars using the COHIBA mark. General owns trademark registrations issued in 1981 and 1995. Cubatabaco owns the mark in Cuba and uses it worldwide. Cuban Assets Control Regulations (CACR), prohibit Cubatabaco from selling cigars in the U.S.; 31 C.F.R. 515.201(b) prohibits “transfer of property rights . . . to a Cuban entity,” but a general or specific license allows Cuban entities to engage in otherwise prohibited transactions. General licenses are available for transactions “related to the registration and renewal” of U.S. trademark. Specific licenses issue from the Office of Foreign Assets Control. Cubatabaco used a general license to attempt to register the COHIBA mark in 1997, relying on 15 U.S.C. 1126(e), which allows reliance on a foreign registration if the applicant has a bona fide intent to use the mark in commerce. Cubatabaco also sought to cancel General’s registrations, which the PTO cited as a basis for likelihood of confusion. Cubatabaco obtained a special license to sue General. The district court held that General had abandoned its registration by non-use and enjoined General’s use of the COHIBA mark, finding that Cubatabaco had acquired ownership under the famous marks doctrine. The Second Circuit reversed, holding that injunctive relief would involve a prohibited transfer under CACR because Cubatabaco would acquire ownership of the mark and later affirmed denial of General’s motion concerning cancellation of its registrations. The Board then dismissed Cubatabaco’s petition, stating that it need not address preclusion because Cubatabaco lacked standing. The Federal Circuit vacated, finding that Cubatabaco has a statutory cause of action to petition to cancel the registrations and that issue and claim preclusion do not bar that petitionView "Empresa Cubana del Tabaco v. General Cigar Co., Inc." on Justia Law

When the Department of Commerce conducts a countervailing duty investigation of merchandise in a market involving many exporters and producers, it may select a sample of exporters and producers for individual investigation (mandatory respondents), 19 U.S.C. 1677f-1, who can cooperate and obtain individual duty rates. Otherwise they are given rates determined under section 1677e(b) using adverse facts available. Exporters or producers who are not initially selected, but who wish to participate (voluntary respondents), may supply information for calculation of individual duty rates. “ The general rule for calculation of the “all-others rate” refers to “an amount equal to the weighted average countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 1677e.” An exception applies “[i]f the countervailable subsidy rates established for all exporters and producers individually investigated are zero or de minimis rates, or are determined entirely under section 1677e.” When the exception applies, Commerce may “use any reasonable method to establish an all-others rate for exporters and producers not individually investigated.” Following investigation of aluminum extrusions from China, the Court of International Trade sustained the all-others duty rate set by Commerce. The Federal Circuit reversed and remanded for determination of that rate under the general rule, interpreting “exporters and producers individually investigated” to encompass voluntary respondents. The precondition for invoking the exception provision was not met. View "MacLean-Fogg Co. v. United States" on Justia Law

In 2005, the Department of Commerce imposed antidumping duties on wooden bedroom furniture from China. In 2008, acting under 19 U.S.C. 1675(a), Commerce initiated its third administrative review of the duties, covering 2007 imports. Commerce published its preliminary results in 2009. As authorized by statute in the case of China, Commerce sought to estimate production costs by using surrogate values from a comparable market economy. In its preliminary results, Commerce determined the value for wood inputs into the furniture, including lumber, by using data from the Philippines National Statistics Office. Commerce relied on financial statements from five Philippine companies to determine values for overhead, for selling, general, and administrative expenses, and for profit. Yihua, a Chinese company that manufactures wooden furniture imported into the U.S., challenged Commerce’s reliance on the NSO’s volume-based data and on certain financial statements. In its Final Results, Commerce agreed with Yihua on one issue but not the other. Interested parties brought six separate challenges in the Court of International Trade, which sustained the latest results. The Federal Circuit reversed the Trade Court’s decision to require the use of volume-based data in valuing the lumber inputs, affirmed the exclusion of certain financial statements, and remanded.View "Lifestyle Enter, Inc. v. United States" on Justia Law