In a surprising turn of events, Seneca Foods Corp. has emerged victorious in a recent legal battle, as a U.S. Court of International Trade judge deemed the U.S. Department of Commerce’s refusal to grant the company an exemption from metal import duties for tin cans inadequate. The ruling suggests that the agency unfairly accepted the stance of U.S. Steel Corp., a domestic supplier, while dismissing crucial evidence submitted by Seneca
Questionable Commerce Decision
Judge Gary S. Katzmann, presiding over the case, voiced his concerns on Wednesday, asserting that Commerce’s actions in siding with U.S. Steel Corp. were unjust. The judge argued that the agency’s failure to address Seneca Foods Corp.’s evidence, which indicated U.S. Steel could not meet their metal demands, rendered their denials of tariff exemptions arbitrary and capricious.
“Commerce’s denials in October 2021 and February 2022 left crucial questions unanswered regarding whether [U.S. Steel] could fulfill 100 percent of Seneca’s demands, with a lack of clarity in their reasoning for crediting [U.S. Steel]’s statements,” noted Judge Katzmann.