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

In this case, the central issue arose during a countervailing duty investigation into phosphate fertilizers imported from Morocco and Russia. The International Trade Commission (Commission) collected information through questionnaires sent to various parties, including domestic and foreign producers. The Commission’s longstanding practice was to automatically designate all questionnaire responses as confidential, regardless of whether the submitting party requested confidentiality or whether the information would qualify for such treatment under the relevant statute. This led to heavy redactions in the administrative record when the investigation was challenged in court.A Moroccan producer, OCP S.A., sought review of the Commission’s injury determination in the United States Court of International Trade (CIT). The CIT initially remanded the injury determination due to insufficient evidentiary support. When the remand record again included substantial redactions, the CIT held a hearing to scrutinize the Commission’s confidentiality designations. After reviewing arguments from the Commission and affected parties, the CIT concluded that the Commission’s practice of automatically treating all questionnaire responses as confidential was unauthorized by law. The CIT found that much of the redacted information was either publicly available, generalized, or outdated, and thus not entitled to confidential treatment, with only a small portion warranting protection.The United States Court of Appeals for the Federal Circuit reviewed the CIT’s Confidentiality Opinion and Order. The Federal Circuit held that the governing statute does not abrogate the common law right of public access to judicial records and that the Commission’s blanket confidentiality rule conflicts with statutory requirements, which demand public disclosure of non-confidential information and proper justification for confidentiality. The Federal Circuit affirmed the CIT’s order that required the Commission to comply with statutory standards for confidentiality and to cease automatic confidential designation of questionnaire responses. View "In re United States" on Justia Law

In a dispute concerning antidumping and countervailing duties on mattresses imported from several countries, the U.S. International Trade Commission determined that domestic industry suffered material injury from imports sold at less than fair value and from subsidized imports. The Commission treated certain information submitted in response to its questionnaires as confidential. After the Court of International Trade issued a public opinion sustaining the Commission’s injury determination, it did not redact information the Commission had deemed confidential. The Commission requested retraction of the public opinion and sought redactions for specific company names and numerical data, arguing these deserved confidential treatment.The parties jointly moved for redaction, relying on the Commission’s practice of treating questionnaire data as confidential and citing statutory provisions. The Court of International Trade denied the motion, reasoning that the information was either publicly available or not linked to specific entities, and that some claims of confidentiality had been waived due to procedural oversight. The court also emphasized the common law right of access and transparency, but did not specifically address the statutory authority for disclosure.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the denial of the joint motion. The court found the case moot because the allegedly confidential information had already been publicly disclosed more than two years earlier, rendering any relief unavailable. The Federal Circuit held that the “capable of repetition, yet evading review” exception to mootness did not apply, as the companion case decided that day resolved the same confidentiality issues. Therefore, the appeal was dismissed, and no costs were awarded. View "In re United States" on Justia Law

The case centers on Midwest-CBK, LLC, a Minnesota-based retailer of Christmas ornaments. Midwest operated its corporate office in Minnesota and managed inventory and warehousing in Ontario, Canada. Merchandise was purchased from foreign suppliers for export to Canada, stored in Ontario, and sold to U.S. customers by Midwest’s U.S.-based sales staff. Orders were processed in Canada and shipped from Ontario to the United States, with purchase orders stating “FOB Buffalo, NY.” Between 2013 and 2016, Midwest entered merchandise with U.S. Customs and Border Protection using “deductive value.” Customs extended the liquidation deadline and conducted a regulatory audit to determine the correct valuation method, ultimately concluding that “transaction value” should apply, resulting in a recalculated duty assessment.The United States Court of International Trade reviewed Midwest’s challenge to Customs’ appraisement and its extensions of liquidation. Midwest argued that Customs lacked authority to extend liquidation beyond June 14, 2014, when all requested information had been provided, and asserted that the sales were domestic, not “for exportation to the United States.” The CIT found that Customs had a reasonable basis for the extension, given the ongoing audit and internal review, and determined that the transactions qualified as sales for exportation under the relevant statute. The CIT denied Midwest’s motion for partial summary judgment and granted summary judgment to the government.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the CIT’s decision. The court held that Customs properly extended the liquidation period and did not abuse its discretion. It further held that Midwest’s sales were “for exportation to the United States” under 19 U.S.C. § 1401a(b)(1), making transaction value the appropriate basis for appraisement. The judgment of the Court of International Trade was affirmed. View "MIDWEST-CBK, LLC v. US " on Justia Law

Russian producers of phosphate fertilizers were investigated by the U.S. Department of Commerce after a domestic company alleged that the Russian government was providing subsidies, specifically through the provision of natural gas at prices below market value. Commerce’s investigation focused on whether these subsidies were both “specific” to an industry or enterprise and constituted a financial benefit through the sale of gas at less than adequate remuneration. During the investigation, Commerce requested and reviewed data from Russian authorities and Gazprom, Russia’s state-controlled gas supplier, about the volume and pricing of natural gas provided to various Russian industries. The evidence showed that the agrochemical industry, which includes fertilizer producers, was the largest industrial consumer of natural gas, though some non-industrial sectors consumed more in total.Commerce determined that the subsidy was “de facto specific” because the agrochemical industry was a predominant industrial user of natural gas. It also found that natural gas was provided at less than adequate remuneration, using a third-tier benchmark analysis that relied on international energy price data, after concluding that Russian market prices were distorted by government intervention and not set by market principles. Commerce’s final determination imposed countervailing duties on Russian phosphate fertilizer imports.The United States Court of International Trade reviewed Commerce’s decisions and upheld both the specificity and pricing determinations, remanding only on unrelated issues. Upon remand, Commerce reaffirmed its conclusions, and the Trade Court entered final judgment in support of the agency’s findings.The United States Court of Appeals for the Federal Circuit affirmed the Trade Court’s judgment. The court held that Commerce has reasonable flexibility in determining the appropriate comparator group for the “predominant user” analysis and that its approach in this case was reasonable. The court also upheld Commerce’s less-than-adequate-remuneration analysis and rejected arguments that further adjustments were required by statute. The judgment sustaining the countervailing duties was affirmed. View "MOSAIC COMPANY v. US " on Justia Law

Blue Sky The Color of Imagination, LLC imported a spiral-bound paper product that combines monthly calendars, weekly planning pages, note sections, and additional pages for goals and contacts. Blue Sky labeled this item a “weekly/monthly planning calendar,” while the government referred to it as a “planner.” The product was designed for users to schedule future appointments and events.Initially, Customs and Border Protection classified this product under subheading 4820.10.40.00 of the Harmonized Tariff Schedule of the United States (HTSUS), as “[o]ther” stationery items. Blue Sky protested, seeking classification under heading 4910 as a “calendar,” but Customs denied the protest. Blue Sky then filed suit in the United States Court of International Trade. The Trade Court granted summary judgment, rejecting both parties’ proposed classifications and instead classified the product as a “diary” under subheading 4820.10.20.10. The Trade Court reasoned that “diary” covers both retrospective journals and prospective scheduling devices, and found Blue Sky’s product fit this category.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the Trade Court’s summary judgment de novo. The Federal Circuit found that the Trade Court’s definition of “diary” conflicted with the controlling precedent set in Mead Corp. v. United States, which held that a “diary” is retrospective, not prospective. Because Blue Sky’s product is used to note future appointments, the Federal Circuit concluded that it cannot be classified as a “diary.” The court reversed the Trade Court’s decision and remanded for further proceedings consistent with its opinion, directing the Trade Court to reconsider the proper classification under the HTSUS. View "BLUE SKY THE COLOR OF IMAGINATION, LLC v. US " on Justia Law

Turkish steel producers, including Kaptan Demir Celik Endustrisi ve Ticaret A.S., were subject to a countervailing duty (CVD) order after the U.S. Department of Commerce determined that the Turkish government subsidized steel rebar exports. During an administrative review, Commerce found that Kaptan sourced steel scrap, a key input for rebar, from several affiliates, including Nur, a shipbuilder. Commerce initially determined that Nur’s steel scrap was primarily dedicated to Kaptan’s rebar production, making Nur a cross-owned input supplier whose subsidies should be attributed to Kaptan, thereby increasing Kaptan’s CVD rate.The United States Court of International Trade (CIT) reviewed Commerce’s decision after Kaptan challenged the cross-attribution of Nur’s subsidies. The CIT found that Commerce had not adequately explained whether steel scrap was merely a link in the rebar production chain or addressed prior cases treating steel scrap as a byproduct. The CIT remanded the case for further explanation. On remand, Commerce developed a multi-factor analysis and ultimately reversed its position, finding that Nur’s steel scrap was a common, unprocessed input used in various products and industries, and that Nur’s primary business activity—shipbuilding—was not dedicated almost exclusively to producing rebar. As a result, Commerce concluded that Nur was not a cross-owned input supplier, and Kaptan’s CVD rate was reduced to a de minimis level. The CIT sustained Commerce’s remand decision.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the CIT’s decision for abuse of discretion and Commerce’s remand findings for substantial evidence. The Federal Circuit affirmed, holding that Commerce’s determination that Nur’s steel scrap was not primarily dedicated to Kaptan’s rebar production was adequately explained, supported by substantial evidence, and consistent with the applicable regulation. View "KAPTAN DEMIR CELIK ENDUSTRISI VE TICARET A.S. v. US " on Justia Law

Nutricia North America, Inc. imported five products from the United Kingdom that the Food and Drug Administration (FDA) classified as “medical foods” under the Federal Food, Drug, and Cosmetics Act. These products are specially formulated for individuals with specific metabolic or medical conditions, such as phenylketonuria, intractable epilepsy, and other disorders that require nutritional therapy not achievable through ordinary diet modification. The products are administered enterally, contain no active pharmacological ingredients, and are intended for use under medical supervision.Upon importation in 2014, U.S. Customs and Border Protection classified these products under subheading 2106.90.99 of the Harmonized Tariff Schedule of the United States (HTSUS), which covers “food preparations not elsewhere specified” and imposes a duty. Nutricia protested, arguing that the products should be classified as “medicaments” under heading 3004 of chapter 30, which would allow duty-free entry, or alternatively under a duty-free provision for articles for handicapped persons in chapter 98. Customs denied the protests, and Nutricia filed suit in the United States Court of International Trade (CIT). The CIT granted summary judgment for the government, holding that the products were excluded from chapter 30 by note 1(a) and thus properly classified under chapter 21.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the CIT’s decision de novo. The Federal Circuit held that Nutricia’s medical foods are properly classified under heading 3004 as “medicaments” because they are specially formulated for therapeutic or prophylactic uses under medical supervision. The court found that chapter 30 note 1(a) does not exclude these medical foods from heading 3004. Accordingly, the Federal Circuit reversed the CIT’s judgment and remanded for determination of the appropriate subheading under heading 3004. View "NUTRICIA NORTH AMERICA, INC. v. US " on Justia Law

Brita LP held a patent for a gravity-fed water filter system designed to remove contaminants, particularly lead, from water using filter media that included activated carbon and a lead scavenger. The patent claimed that the filter would achieve a specific performance metric, the Filter Rate and Performance (FRAP) factor, of about 350 or less. Although the patent described various types of filter media, such as carbon blocks and mixed media, it only provided working examples and detailed formulations for carbon-block filters that met the claimed FRAP factor. The patent also included test results showing that only carbon-block filters achieved the required performance, while mixed media filters did not.Brita filed a complaint with the United States International Trade Commission (ITC) under section 337, alleging that several companies imported and sold water filters infringing its patent. After a Markman hearing, the administrative law judge (ALJ) found that the asserted claims met the written description and enablement requirements and determined there was a violation of section 337. Upon review, the ITC reversed the ALJ’s findings, concluding that the claims were invalid for lack of written description and enablement as to any filter media other than carbon blocks, and that the term “filter usage lifetime claimed by a manufacturer or seller of the filter” was indefinite.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the ITC’s decision. The court held that the patent’s specification did not adequately describe or enable the full scope of the claimed invention, specifically for non-carbon-block filter media, and that substantial evidence supported the ITC’s findings. The court did not reach the issue of indefiniteness, as the claims were already found invalid. The disposition was affirmed. View "BRITA LP v. ITC " on Justia Law

Causam Enterprises, Inc. owns several patents related to “demand response” technology, which allows electrical utilities to reduce power demand in response to certain conditions. Causam filed a complaint with the United States International Trade Commission (ITC), alleging that Resideo Smart Homes Technology (Tianjin) and its affiliate Ademco, Inc. were importing and selling internet-connected smart thermostats that infringed method claim 1 of U.S. Patent No. 10,394,268, which Causam claimed to own. Causam sought to exclude these products from importation. During the ITC investigation, respondents argued that Causam did not own the patent and that Resideo’s products did not infringe the asserted claims.The assigned administrative law judge (ALJ) at the ITC found that Causam did not own the ’268 patent and that Resideo’s products did not infringe the claims. The full Commission, upon review, adopted only the noninfringement finding and did not address the ownership issue. Causam appealed to the United States Court of Appeals for the Federal Circuit, challenging the noninfringement determination and seeking a ruling on ownership. Meanwhile, the Patent Trial and Appeal Board (PTAB) held, in a separate inter partes review, that claim 1 of the ’268 patent was unpatentable, and the Federal Circuit affirmed that decision in a companion case.The United States Court of Appeals for the Federal Circuit held that Causam owns the ’268 patent, interpreting the relevant assignment agreements to exclude continuations-in-part from a prior assignment, thus leaving ownership with Causam. However, the court did not reach the noninfringement issue because its affirmance of the PTAB’s finding that claim 1 is unpatentable rendered the appeal moot. The court therefore dismissed the appeal as moot. View "CAUSAM ENTERPRISES, INC. v. ITC " on Justia Law

Petitioners representing domestic honey producers requested that the U.S. Department of Commerce and the International Trade Commission investigate whether raw honey imported from Vietnam and other countries was being sold in the United States at less than fair value, causing material injury to the domestic industry. During the investigation, both agencies made affirmative preliminary and final determinations supporting the imposition of antidumping duties. The agencies also found “critical circumstances,” meaning there was a surge of imports after the petition was filed but before the preliminary determination, which could undermine the effectiveness of any eventual duties. As a result, the suspension of liquidation and the imposition of duties were backdated by 90 days to cover these imports.The importers of Vietnamese honey and their trade association challenged the Commission’s final determination of critical circumstances in the United States Court of International Trade. They argued that the Commission improperly focused on the period before the antidumping duty order was issued, rather than considering whether the import surge would undermine the remedial effect of the order after its issuance. The Trade Court rejected this argument, upholding the Commission’s determination as both lawful and supported by substantial evidence.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the Trade Court’s decision de novo, applying the same standard. The Federal Circuit held that the statute does not require the Commission to focus solely on the period after the antidumping duty order is issued. Instead, the relevant inquiry is whether the surge of imports before the preliminary determination is likely to undermine the remedial effect of the order, starting from the suspension date. The court also found that the Commission’s findings were supported by substantial evidence. Accordingly, the Federal Circuit affirmed the decision of the Court of International Trade. View "SWEET HARVEST FOODS v. US " on Justia Law