International trade is the exchange of goods, services and capital across borders and international territories, which can involve the activities of an individual or government. Throughout the years, there have been a number of international trade disputes in the United States. This led to the establishment of the Board of General Appraisers, which was provided by the Congress in 1890. In 1956, Congress decided to form the Custom's Court, which was incorporated in the United States Constitution. In the late 1960s, amendments were made to the Custom's Court which outlined the procedures, powers and jurisdiction the court was empowered with.The Custom Act of 1980 later became the United States Court of International Trade.
The court is composed of nine judges who are appointed by the President under the advice of the Senate; the court is located in New York. The choice of nine judges is to ensure that there is no tie when making a ruling, as this is an odd number. The judges have power to grant relief and any remedy they feel fit such as writs of mandamus and injunctions. In matters of jurisdiction the court has an exception in that cases involving countervailing duties and antidumping imposed to the Canadian or Mexican goods, an interested party can be filed to be heard before a special panel.
The court hears disputes that have been filed by the United States Customs and Border Protection, the Labour,Commerce and Agricultural Department. Most cases are heard by a single judge except when a matter challenges the United States Constitution and has implications on the interpretation of custom laws.One can appeal and be heard by the United States Court of Appeals for the Federal Circuit which is located in Washington DC. Further appeals are allowed to the Supreme Court of United States, which is considered the highest court of the country.
The existence of trade disputes in international commerce is inevitable, as the parties involved come from different jurisdictions that have varying sets of legal regulation of operations. Consequently, there is a need for arbitration and mediation methods to be stipulated in each international agreement, as this provide a dispute resolution mechanism before going to the Court of International Trade. In a majority of cases, the judges in this court are keen to establish whether other mechanisms have failed before opting for a lawsuit; this is in acknowledgment of the uberrimae fidei doctrine that outlines business contracts are entered into in good faith. Additionally, the court aims at maintaining good business relations even after the case is closed, which helps in fostering international trade.
Ford Company v. United States
Facts
Ford imported automotive goods into the United States and paid duties on them; it later claimed the North American Free Trade Agreement (NAFTA), preference of those imports and filed for refund of the duties. Custom duty is a tax imposed on goods when transported across international borders; its aim is to protect each country’s economy by controlling flow of goods and restricting prohibited goods (Krugman, Marc and Maurice 130). Ford was required to file the certificate of origin within a year of importation unfortunately it filed past the deadline. Additionally, they could not obtain the port director's written waiver for the certificates.Custom, went ahead to deny Ford the claims and Ford filed a protest that Custom's had an affirmative obligation to accept his claim.
Issue
Whether to treat Ford Company duty refund claims under NAFTA differently depending on whether the claims were filed traditionally or electronically.
Conclusion
Custom failed to explain reasons for its inconsistency; therefore, Ford's excess duty payment and claims should be calculated and awarded to them.The trial court held that the Custom’s had a right to deny Ford the claim for they had not filed withina year of importation.Ford went ahead to appeal and Customs had to explain why they treated Ford’s matter differently depending on the matter how on how they filed the claim.It justified it had to grant a blanket certificate of origin according to regulations and could only grant remedies if it later found out that goods were not entitled to NAFTA.
In matters of international trade dispute, most of the times there are conflict of laws because different countries have different trade laws.When a trade body is formed there form goals and objectives inorder to improve trade in their countries.For example,the World Trade Organization has a dispute settling body that handles disputes among members. When a member results to taking a matter to the United States Federal International Trade Court it brings a lot of confusion and the party that is not a United States citizen feels aggrieved that the United States member is likely to be favoured or its more familiarized with the federal courts law. One court in each continent that handles trade disputes will be better suited when all members participate in drafting the laws.
Works Cited
Krugman, Paul, Melitz Marc, Obstfeld Maurice. International Trade 10th Edition. New Jersey: Wiley, 2014. Print
