Serious Legal Questions in EAPA Challenge Warrant Injunction, Pig Farrowing Crate Importers Say

The Court of International Trade granted a preliminary injunction against the liquidation of two plaintiffs' pig farrowing crate imports after they argued that their case raises serious legal questions over an antidumping and countervailing duty evasion case. In a Dec. 6 brief, the plaintiffs, Ikadan System USA and Weihai Gaosai Metal Product Co., said that since they have made a showing of irreparable harm, the burden in showing its success on the merits is lowered and that the mere questions raised by the case clear this hurdle. The Department of Justice also signed off on the injunction motion (Ikadan System USA, Inc., et al. v. United States, CIT #21-00592).

The two importers are challenging CBP's Enforce and Protect Act investigation results which found that the pair evaded the AD/CVD orders on steel grating from China. CBP found that Ikadan and Gaosai transshipped the grates through South Korea and also misclassified their entries. The plaintiffs argue, however, that the evasion finding cuts against CBP's own analysis as to the scope of the orders and represents an improper attempt to retroactively apply the AD/CV duties (see 2111230085). DOJ consented to the injunction motion without consenting to any points made as to the plaintiffs' likelihood to succeed on the merits of the case.