Justia International Law Opinion Summaries

Gujarat Fluorochemicals Ltd., an Indian manufacturer, was subject to a countervailing duty investigation initiated by the U.S. Department of Commerce after Daikin America, Inc., a U.S. producer, filed petitions regarding imports of granular polytetrafluoroethylene (PTFE) resin from India and Russia. During the period of investigation, Gujarat purchased wind energy from Inox Wind Limited, a cross-owned Indian company that had received a subsidized land lease from the Indian government. Inox sold all its wind energy to Gujarat, which was used at Gujarat’s production facility to manufacture PTFE resin and other products. The wind energy from Inox represented a small fraction of the total energy consumed at the facility.Commerce determined that the subsidy received by Inox should be attributed to Gujarat under the cross-ownership regulation at 19 C.F.R. § 351.525(b)(6)(iv), resulting in a significant portion of the countervailing duty rate assessed against Gujarat. Commerce reasoned that because all of Inox’s wind energy was supplied to Gujarat, the input was “primarily dedicated” to Gujarat’s downstream production. Gujarat challenged this determination before the United States Court of International Trade, arguing that Commerce misapplied the “primarily dedicated” standard. The Trade Court agreed, finding that the regulation required more than mere consumption of the input by the downstream producer and that the facts did not support attributing the subsidy under the cross-ownership provision. The Trade Court ordered Commerce to remove the portion of the duty rate based on this attribution, and Commerce complied under protest.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the Trade Court’s judgment. The Federal Circuit held that the cross-ownership regulation does not apply solely because the downstream producer is the sole consumer of the input. Instead, the regulation requires a fact-specific inquiry into whether the input’s production is primarily dedicated to the downstream product, as reflected in the regulatory history and examples. The court affirmed the removal of the subsidy attribution and the adjusted duty rate. View "GUJARAT FLUOROCHEMICALS LTD. v. US " on Justia Law

The case concerns an antidumping duty investigation by the U.S. Department of Commerce into certain carbon and alloy steel cut-to-length plate from Germany. The Department selected a German steel producer as a mandatory respondent and required it to provide detailed information about its products and production costs. The producer requested that Commerce modify its model-match methodology to recognize certain steel products—specifically, “sour service” steel used for petroleum transport and pressure vessels—as distinct categories due to their unique properties and higher production costs. Commerce rejected these requests, finding one untimely and the other unsupported. Additionally, the producer was unable to provide product-specific cost data for non-prime steel plate, which is sold as “odds and ends,” and instead reported average costs. Commerce, however, used the likely selling price of non-prime plate as a proxy for its cost of production.The U.S. Court of International Trade reviewed Commerce’s determinations multiple times. It affirmed Commerce’s rejection of the proposed new product category for sour pressure vessel plate as untimely, but required Commerce to reconsider its approach to the cost of production for non-prime plate, citing precedent that actual cost data, not likely selling price, should be used. On remand, Commerce maintained its use of likely selling price as facts otherwise available, and the Trade Court ultimately sustained this approach, while also instructing Commerce to accept the new category for sour transport plate in light of analogous precedent.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the Trade Court’s decision to uphold Commerce’s rejection of the untimely model-match proposal for sour pressure vessel plate. However, the Federal Circuit held that it was unreasonable for Commerce to use likely selling price as facts otherwise available for cost of production, as this methodology does not reasonably reflect actual production costs. The court vacated the Trade Court’s decision on this issue and remanded for further proceedings consistent with its opinion. View "AG DER DILLINGER HUTTENWERKE v. US " on Justia Law

In 2010, the Venezuelan government expropriated assets belonging to a Venezuelan subsidiary of a U.S.-based energy company. The subsidiary had provided drilling services to a state-owned Venezuelan energy company, but after a breakdown in their business relationship and significant unpaid invoices, Venezuelan authorities blockaded the subsidiary’s operations, issued public statements about nationalization, and ultimately transferred the subsidiary’s assets to the state-owned company, which began operating them. The U.S. parent company claimed that this expropriation rendered its ownership interest in the subsidiary worthless and deprived it of its rights to control the subsidiary’s assets.The U.S. parent company and its Venezuelan subsidiary filed suit in the United States District Court for the District of Columbia against Venezuela and its state-owned energy company, alleging unlawful expropriation. The district court denied the defendants’ motion to dismiss, and the U.S. Court of Appeals for the District of Columbia Circuit initially affirmed. However, the Supreme Court vacated that decision, clarifying the standard for the Foreign Sovereign Immunities Act (FSIA) expropriation exception. On remand, the D.C. Circuit found that only the U.S. parent company had a valid claim under international law, as the domestic-takings rule barred the subsidiary’s claim. The district court later dismissed Venezuela as a defendant, leaving the state-owned company as the sole defendant.On appeal, the United States Court of Appeals for the District of Columbia Circuit affirmed the district court’s denial of the state-owned company’s motion to dismiss. The court held that the FSIA’s expropriation exception applied because Venezuela indirectly expropriated the U.S. company’s property, the state-owned company owns and operates the expropriated assets, and it engages in commercial activity in the United States. The court also held that personal jurisdiction was proper and that the act-of-state doctrine, as limited by the Second Hickenlooper Amendment, did not bar the claim. View "Helmerich & Payne International Drilling Co. v. Petroleos De Venezuela, S.A." on Justia Law

A German telecommunications company invested nearly $100 million in an Indian company through a Singaporean subsidiary, acquiring a significant minority stake. The Indian government, through its wholly owned space company, later terminated a contract with the Indian company, prompting the German investor to initiate arbitration in Switzerland under a bilateral investment treaty (BIT) between Germany and India. The arbitral tribunal ruled in favor of the German company, awarding it over $93 million, and courts in Switzerland, Germany, and Singapore confirmed the award.The United States District Court for the District of Columbia was then asked to confirm the arbitral award. India moved to dismiss, arguing sovereign immunity under the Foreign Sovereign Immunities Act (FSIA), forum non conveniens, and that the dispute did not fall within the scope of the BIT’s arbitration clause. The district court denied the motion to dismiss, holding that the FSIA’s arbitration exception applied, that forum non conveniens was unavailable in such proceedings, and that the parties had delegated questions of arbitrability to the arbitrators, thus precluding judicial review of those issues. The court also found that India had forfeited other merits defenses by not raising them earlier.The United States Court of Appeals for the District of Columbia Circuit affirmed the denial of dismissal on immunity and forum non conveniens grounds, but held that the district court erred in refusing to consider India’s substantive defenses to enforcement of the award. The appellate court found that the BIT did not clearly and unmistakably delegate exclusive authority over arbitrability to the arbitrators, so the district court must consider India’s merits defenses under the New York Convention. The judgment confirming the award was vacated and the case remanded for further proceedings. View "Deutsche Telekom, A.G. v. Republic of India" on Justia Law

An instrumentality of Iran attempted to wire nearly $10 million through an American bank, but the funds were blocked by the U.S. government under the International Emergency Economic Powers Act (IEEPA) due to Iran’s designation as a state sponsor of terrorism. Two groups of plaintiffs, each holding substantial judgments against Iran for its support of terrorist acts, sought to attach these blocked funds to satisfy their judgments. The funds had been frozen by the Office of Foreign Assets Control (OFAC) and were the subject of a pending civil-forfeiture action initiated by the United States.The United States District Court for the District of Columbia initially quashed the plaintiffs’ writs of attachment. The court reasoned, first, that the funds were not “blocked assets” as defined by the Terrorism Risk Insurance Act (TRIA) and thus were immune from attachment. Second, it held that the government’s earlier-filed civil-forfeiture action invoked the prior exclusive jurisdiction doctrine, barring any subsequent in rem proceedings against the same property. The district court also noted that the existence of the Victims of State Sponsored Terrorism Fund suggested Congress did not intend to encourage individual attachment actions.On appeal, the United States Court of Appeals for the District of Columbia Circuit reversed. The court held that the funds in question are “blocked assets” under TRIA, as they remain frozen by OFAC and are not subject to a license required by a statute other than IEEPA. The court further held that the prior exclusive jurisdiction doctrine does not bar multiple in rem proceedings filed in the same court. Accordingly, the court concluded that neither sovereign immunity nor the prior exclusive jurisdiction doctrine prevented the plaintiffs from seeking attachment of the funds and reversed the district court’s order quashing the writs of attachment. View "Estate of Levin v. Wells Fargo Bank, N.A." on Justia Law

Several U.S. companies that import products from China challenged the imposition of tariffs on certain Chinese goods, known as List 3 and List 4A tariffs. These tariffs were implemented by the Office of the United States Trade Representative (USTR) after an investigation found that China engaged in unreasonable or discriminatory practices that burdened U.S. commerce. The initial tariffs, covering $50 billion in imports (Lists 1 and 2), were not contested. However, after China retaliated with its own tariffs, USTR expanded the tariffs to cover an additional $200 billion (List 3) and later $120 billion (List 4A) in Chinese imports. The plaintiffs argued that these expanded tariffs exceeded USTR’s statutory authority and violated the Administrative Procedure Act (APA) by failing to properly consider public comments.The United States Court of International Trade reviewed the case first. It found that USTR acted within its authority under Section 307(a)(1)(B) of the Trade Act of 1974, which allows modification of trade actions when the burden on U.S. commerce increases or decreases. However, the court also determined that USTR had not adequately responded to significant public comments as required by the APA. The court ordered a limited remand for USTR to further explain its reasoning and how it considered public input. After USTR provided a more detailed explanation, the trial court sustained the List 3 and List 4A tariffs.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the trial court’s judgment. The appellate court held that Section 307(a)(1)(C) independently authorized USTR’s modifications, allowing escalatory trade actions when the original action was no longer appropriate. The court also found that USTR’s remand redetermination satisfied the APA’s notice-and-comment requirements. Thus, the Federal Circuit affirmed and sustained the challenged tariffs. View "HMTX Industries LLC v. United States" on Justia Law

A Swiss healthcare company entered into a contract with the Republic of Equatorial Guinea to modernize and operate a medical clinic. After the relationship deteriorated, with Equatorial Guinea refusing to allow the company to run the clinic, the company initiated arbitration in Switzerland and was awarded damages. The parties settled the first arbitration, but the company later sought further damages in a second arbitration. Equatorial Guinea challenged the arbitrators’ jurisdiction, arguing that the contract’s dispute-resolution clause required the company to first seek relief in Equatoguinean courts before pursuing international arbitration. The arbitral panel found the clause ambiguous but ultimately concluded that exhaustion of local remedies was not required and awarded the company over $9 million.The United States District Court for the District of Columbia reviewed the company’s petition to confirm the arbitral award. The court found it had subject-matter jurisdiction under the Foreign Sovereign Immunities Act’s arbitration exception. On the merits, the court deferred to the arbitrators’ interpretation of the dispute-resolution clause, relying on the Supreme Court’s decision in BG Group, PLC v. Republic of Argentina, and confirmed the award.On appeal, the United States Court of Appeals for the District of Columbia Circuit agreed that the district court had jurisdiction but disagreed with its deferential approach to the arbitrators’ interpretation of the dispute-resolution clause. The appellate court held that, in this context, the question of whether exhaustion of local remedies was required is a substantive arbitrability issue for courts, not arbitrators, to decide. The court vacated the district court’s judgment and remanded the case for further proceedings to resolve the proper interpretation of the dispute-resolution clause. View "Marseille-Kliniken AG v. Republic of Equatorial Guinea" on Justia Law

The case concerns an administrative review of an antidumping duty order imposed by the United States Department of Commerce on certain large diameter welded pipe imported from Greece. The Greek producer, Corinth Pipeworks Pipe Industry SA, and its U.S. subsidiary, CPW America Co., were the sole exporter and importer of the subject merchandise. During the review period, Commerce required Corinth to submit cost data and a reconciliation of those costs to its financial statements. Corinth submitted responses to Commerce’s initial and two supplemental questionnaires, but Commerce found that the data did not reconcile as required, included double-counted costs, and failed to provide a single, complete reconciliation for the review period.After receiving Corinth’s responses, Commerce initially issued preliminary results finding no dumping. However, after reviewing the final submissions, Commerce determined that Corinth’s cost data were unreliable and incomplete. Commerce concluded that Corinth had withheld necessary information, failed to provide data in the requested form, and significantly impeded the review. As a result, Commerce applied “facts otherwise available” with an adverse inference, assigning Corinth the highest dumping margin alleged in the original petition. Corinth challenged this determination before the United States Court of International Trade, arguing that Commerce’s actions were unreasonable, that it was not given an opportunity to comment on a change in methodology, and that the adverse inference was not justified.The United States Court of International Trade sustained Commerce’s final determination, finding that Commerce’s use of total adverse facts available was reasonable and supported by substantial evidence. On appeal, the United States Court of Appeals for the Federal Circuit affirmed. The Federal Circuit held that Commerce’s determinations were supported by substantial evidence and not contrary to law, that Corinth had failed to cooperate to the best of its ability, and that Commerce was not required to provide an additional opportunity to comment under the circumstances. The judgment of the Trade Court was affirmed. View "CORINTH PIPEWORKS PIPE INDUSTRY SA v. US " on Justia Law

Several small businesses and a coalition of states challenged a series of executive orders issued by the President that imposed new tariffs of unlimited duration on nearly all goods imported from most countries. These tariffs, referred to as the Trafficking Tariffs and Reciprocal Tariffs, were imposed in response to declared national emergencies related to drug trafficking and trade imbalances. The executive orders directed changes to the Harmonized Tariff Schedule of the United States, resulting in significant increases in import duties on products from Canada, Mexico, China, and other major trading partners.The plaintiffs filed suit in the United States Court of International Trade (CIT), arguing that the President exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing these tariffs. The CIT granted summary judgment in favor of the plaintiffs, holding that IEEPA did not authorize the President to impose the challenged tariffs and permanently enjoined their enforcement. The government appealed, and the Federal Circuit consolidated the cases, stayed the injunction pending appeal, and heard the matter en banc.The United States Court of Appeals for the Federal Circuit affirmed in part, holding that IEEPA’s grant of authority to “regulate” importation does not include the power to impose tariffs of the type and scope at issue. The court found that IEEPA does not mention tariffs, duties, or taxes, and contrasted it with other statutes where Congress has explicitly delegated tariff authority to the President with clear limitations. The court also concluded that the government’s interpretation would raise serious constitutional concerns under the major questions and non-delegation doctrines. The Federal Circuit affirmed the CIT’s declaratory judgment that the executive orders were invalid, but vacated the universal injunction and remanded for the CIT to reconsider the scope of injunctive relief in light of recent Supreme Court guidance. View "V.O.S. Selections, Inc. v. Trump" on Justia Law

Valeo North America imported T-series aluminum sheets from China and sought a determination from the U.S. Department of Commerce as to whether these products were subject to existing antidumping and countervailing duty orders on common alloy aluminum sheet from China. The dispute centered on whether Valeo’s T-series sheets, which have a manganese-based core but are not registered with the Aluminum Association, fell within the scope of the orders, which cover certain aluminum sheets “as designated by the Aluminum Association.” Valeo argued that only registered alloys were covered and that its heat-treated T-series sheets should be excluded.The United States Department of Commerce initially ruled that Valeo’s T-series sheets were within the scope of the orders, interpreting the language to include unregistered alloys with the relevant chemical composition. Valeo challenged this determination at the United States Court of International Trade, which found the scope language ambiguous and remanded the case for further explanation, particularly regarding the treatment of unregistered alloys and the impact of heat treatment. On remand, Commerce again found the scope language ambiguous, considered additional regulatory factors, and reaffirmed that Valeo’s products were covered. The Trade Court sustained this remand determination, and Valeo appealed.The United States Court of Appeals for the Federal Circuit reviewed the case de novo. It held that the language “as designated by the Aluminum Association” in the orders was ambiguous and did not unambiguously exclude unregistered alloys. The court found that Commerce’s analysis under the regulatory framework was supported by substantial evidence and that Valeo’s arguments regarding heat treatment and the timing of Customs instructions were unpersuasive. The Federal Circuit affirmed the Trade Court’s decision, upholding Commerce’s determination that Valeo’s T-series sheets are within the scope of the antidumping and countervailing duty orders. View "VALEO NORTH AMERICA, INC. v. US " on Justia Law