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Importer Moves CIT to Reinstate Suit on Section 301 Exclusion Claims

Importer Danfoss on Nov. 6 moved the Court of International Trade to reopen its case on whether its scroll compressors and scroll-type compressors are exempt from Section 301 duties on China. The trade court dismissed the case on Nov. 4 for lack of prosecution (see 2511050053) (Danfoss LLC v. United States, CIT # 23-00214).

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Counsel for Danfoss said it overlooked the deadline for the case to extend the time the lawsuit was on the court's customs case management calendar due to a good faith "calendaring mistake." The importer asked the court to reopen the case on the grounds that delay was minimal, no prejudice was done to the government and the company acted in good faith.

Danfoss added that it has always tried to reach an "efficient resolution" of the matter, sending the U.S. a "proposal to stipulate that the products at issue in this case are eligible for exclusion from the Section 301 duties" in July 2024. However, the government told Danfoss that it's "still in the process of reviewing the proposed stipulation."