Court of International Trade
The U.S. Court of International Trade (CIT) was created under Article III of the
U.S. Constitution to provide judicial review of civil actions from import transactions and certain federal statutes affecting international trade. The CIT replaced the Board of General Appraisers, a unit of the Treasury Department, and the U.S. Customs Court, which together reviewed
U.S. CUSTOMS SERVICE decisions concerning the amount of duties to be paid on
IMPORTS. The president, with the approval of the U.S. Senate, appoints the nine CIT judges, with no more than five of the nine judges belonging to one political party. The CIT has exclusive jurisdiction over civil actions taken against the United States, its agencies, or officers concerning any laws related to revenue from imports, duties,
EMBARGOes,
TARIFFs, or enforcement of customs regulations. Disputes regarding trade embargoes, quotas, customs classifications, and country of origin determinations are all heard by the Court of International Trade. Customs classifications and country of origin decisions affect the tariff rate importing businesses must pay. Information regarding country of origin can be obtained from (for example) reading stickers on automobiles sold in the country. Customs classifications are also important. For example, a small Michigan company, Heartland By-Products, imported molasses from Canada after U.S. Customs agreed molasses was not sugar. The company then reprocessed the molasses into sugar, selling it to candy and soft-drink manufacturers. The U.S. sugar lobby protested and brought legal action before the CIT, but the court affirmed products should be classified according to the way they are imported, not their ultimate use. The CIT has authority to review agency decisions concerning antidumping and countervailing duty matters as well as
TRADE-ADJUSTMENT ASSISTANCE. For example, the United States, under the
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) Worker Safety Act, provides assistance for U.S. workers who have lost their jobs due to import
COMPETITION. Workers can seek assistance if a significant number of company employees have been or are threatened with losing their jobs due to NAFTA imports or shifting of jobs to Mexico or Canada. The CIT reviews disputes regarding whether workers in a company are eligible for benefits. In 2000 Save Domestic Oil, a U.S. politicalaction group went before the CIT with charges against oilrich countries for
DUMPING. In the same year, the CIT affirmed a dumping determination against heavy hand tools being imported from China. CIT decisions can be appealed to the Court of Appeals for the Federal Circuit and ultimately to the U.S. Supreme Court.