US Moves for Voluntary Remand in CIT Suit on Section 232 Exclusion Denials

The U.S. moved for a voluntary remand at the Court of International Trade to reconsider its decision to reject importer LE Commodities' requests for exclusions from Section 232 steel and aluminum tariffs. The government said it will "ensure that it appropriately addresses the record evidence" on remand. LE Commodities assented to the remand bid (LE Commodities v. United States, CIT # 23-00220).

LE Commodities filed suit last year to contest the rejection of its Section 232 exclusion bids, claiming that the "only reasonable conclusion" from the evidence was that the importer cannot obtain its imports in the U.S. market in a "sufficient quantity or quality, on a timely basis to replace the steel it currently imports" (see 2310170041).

The company added a Fifth Amendment claim, arguing that its due process rights were violated "when it was denied the requested tariff exclusion to which it is entitled." LE Commodities cited a U.S. Court of Appeals for the Federal Circuit decision recognizing property interests for importers facing a "deprivation of their property by the federal government" in Fifth Amendment cases.

The importer makes stainless, tool and high-speed steel semi-finished products, which include imports of alloy type 416 stainless steel round bar that conform to ASTM standards A582 and A484. On import, the goods were hit with 25% Section 232 duties. LE Commodities requested an exclusion from Commerce, and U.S. companies Electralloy and North American Stainless objected. Commerce sided with the domestic players and rejected the exclusions.