Shinyei Corp. of America v. United States

Slip Op. 03-19
UNITED STATES COURT OF INTERNATIONAL TRADE
BEFORE: HONORABLE NICHOLAS TSOUCALAS
___________________________________
:
SHINYEI CORPORATION OF AMERICA, :
:
Plaintiff, :
:
v. : Court No. 01-00759
:
UNITED STATES, et. al., :
:
Defendant. :
___________________________________:
Defendant, the United States (“Defendant”), moves to dismiss
this action pursuant to USCIT R. 12(b)(1) for lack of subject
matter jurisdiction and USCIT R. 12(b)(5) for failure to state a
claim on which relief can be granted. For the reasons stated
herein, Defendant’s motion to dismiss is granted under USCIT R.
12(b)(1) for lack of subject matter jurisdiction.
Held: Defendant’s motion to dismiss pursuant to USCIT R.
12(b)(1) is granted. This case is dismissed.
Dated: February 14, 2003
Charles H. Bayar, Esq. for Shinyei Corporation of America,
plaintiff.
Robert D. McCallum, Jr., Assistant Attorney General; John J.
Mahon, Acting Attorney in Charge, International Trade Field Office,
Commercial Litigation Branch, Civil Division, United States
Department of Justice (James A. Curley); of counsel: Edward N.
Maurer, Office of Assistant Chief Counsel, United States Customs
Service, for the United States, defendant.
Court No. 01-00759 Page 2
OPINION
TSOUCALAS, Senior Judge: Defendant, the United States
(“Defendant”), moves to dismiss this action pursuant to USCIT R.
12(b)(1) for lack of subject matter jurisdiction and USCIT R.
12(b)(5) for failure to state a claim on which relief can be
granted. For the reasons stated herein, Defendant’s motion to
dismiss is granted under USCIT R. 12(b)(1) for lack of subject
matter jurisdiction.
DISCUSSION
I. Background
A. Procedural Background
Plaintiff Shinyei Corporation of America (“Shinyei”), a New
York corporation wholly owned by Shinyei USA Corp., a Delaware
corporation which in turn is wholly owned by Shinyei Kaisha Company
(“Kaisha”), a Japanese company, filed a complaint on August 24,
2001.1 On September 25, 2002, this Court granted Shinyei’s motion
1
In its original complaint, Shinyei sought: (a) a writ of
mandamus directing the United States Customs Service (“Customs”) to
liquidate Shinyei’s entries of certain bearings, see Pl.’s Compl.
¶¶ 3(a), 10-14; or (b) to declare certain instructions issued by
the United States Department of Commerce, International Trade
Administration (“Commerce”), in violation of 19 U.S.C. § 1675(a)(2)
(1988 & Supp. 1993) and remand this case to Commerce for the
purpose of issuing an appropriate set of instructions to Customs
with regard to liquidation of the merchandise at issue. See id. ¶¶
3(b), 15-20; accord Pl.’s Resp. Def.’s Mot. Dismiss (“Pl.’s Resp.”)
at 3.
Court No. 01-00759 Page 3
for leave of the Court to amend its complaint filed on August 24,
2001, in which Shinyei seeks to declare certain instructions issued
by the United States Department of Commerce, International Trade
Administration (“Commerce”), in violation of 19 U.S.C. § 1675(a)(2)
(1988 & Supp. 1993) and remand this case to Commerce for the
purpose of issuing corrected instructions with regard to
liquidation of the Shinyei entries2 of certain bearings. See Pl.’s
First Am. Compl. ¶¶ 3-4, 8-13; accord Pl.’s Resp. Def.’s Mot.
Dismiss (“Pl.’s Resp.”) at 2-3, 5-6. Subsequently, Defendant on
October 8, 2002, moved to dismiss this case pursuant to USCIT R.
12(b)(1) for lack of subject matter jurisdiction3 and USCIT R.
12(b)(5) for failure to state a claim on which relief can be
granted.4 See Def.’s Mot. Dismiss (“Def.’s Mot.”).
2
The entries at issue in this case are listed in Pl.’s First
Am. Compl. App. A.
3
On a motion to dismiss pursuant to USCIT R. 12(b)(1) for
lack of subject matter jurisdiction,
the Court considers whether the moving party challenges
the sufficiency of the pleadings or the factual basis
underlying the pleadings. In the first instance, the
Court must accept as true all facts alleged in the non-
moving party’s pleadings. In the second instance, the
Court accepts as true only those facts which are
uncontroverted. All other facts are subject to fact
finding by the Court.
SSK Indus., Inc. v. United States, 24 CIT ___, ___, 101 F. Supp. 2d
825, 829 n.8 (2000) (citing Power-One Inc. v. United States, 23 CIT
959, 962 n.9, 83 F. Supp. 2d 1300, 1303 n.9 (1999)).
4
On a motion to dismiss pursuant to USCIT R. 12(b)(5) for
(continued...)
Court No. 01-00759 Page 4
B. Factual Background
During the period from May 1, 1992, to April 30, 1993, Shinyei
imported certain merchandise into the United States. See Pl.’s
Resp. at 1. The merchandise at issue was purchased by Shinyei from
Kaisha which, in turn, purchased the merchandise from certain
Japanese manufacturers, one of which was Nankai Seiko Co., Ltd.
(“Nankai”). See id. (citing Pl.’s First Am. Compl. ¶ 4); see also
Pl.’s First Am. Compl. App. A.
The merchandise at issue was subject to an antidumping
investigation. See Initiation of Antidumping Duty Investigation;
Antifriction Bearings (Other Than Tapered Roller Bearings) and
Parts Thereof From Japan, 53 Fed. Reg. 15,076 (Apr. 27, 1988). On
November 9, 1988, Commerce published its preliminary determination
with regards to this investigation instructing the United States
Customs Service (“Customs”) that: (a) liquidations of the subject
merchandise should be suspended; and (b) deposits or bonds should
be required at a certain rate for future entries from all non-
4
(...continued)
failure to state a claim on which relief can be granted, “the court
must assume all well-pled factual allegations to be true, and must
make any inferences in favor of the non-moving party.” United
States v. Ferro Union Inc., 2000 Ct. Intl. Trade LEXIS 100, *2,
Slip. Op. 00-100 (Aug. 16, 2000) (citing Kemet Elecs. Corp. v.
Barshefsky, 21 CIT 912, 929, 976 F. Supp. 1012, 1027 (1997)
(quoting in turn Gould, Inc. v. United States, 935 F.2d 1271, 1274
(Fed. Cir. 1991)).
Court No. 01-00759 Page 5
investigated manufacturers, producers and exporters, including
Nankai. See Preliminary Determinations of Sales at Less Than Fair
Value: Antifriction Bearings (Other Than Tapered Roller Bearings)
and Parts Thereof From Japan, 53 Fed. Reg. 45,343; see also Pl.’s
First Am. Compl. ¶ 5. This deposit and bond rate was corrected by
Commerce in the final determination. See Final Determinations of
Sales at Less Than Fair Value; Antifriction Bearings (Other Than
Tapered Roller Bearings) and Parts Thereof From Japan
(“Determination”), 54 Fed. Reg. 19,101 (May 3, 1989); see also
Pl.’s First Am. Compl. ¶ 5. On the basis of this Determination,
Commerce published an antidumping duty order. See Antidumping Duty
Orders: Ball Bearings, Cylindrical Roller Bearings, and Spherical
Plain Bearings, and Parts Thereof From Japan, 54 Fed. Reg. 20,904(May 15, 1989); see also Pl.’s First Am. Compl. ¶ 5.
During the fourth review (“POR”)5, Shinyei deposited estimated
antidumping duties on the entries at issue at certain specified
rates. See Pl.’s First Am. Compl. ¶ 6; see also Pl.’s Resp. at 2.
On February 28, 1995, Commerce published the final results of the
fourth review in which Commerce established inter alia a specific
5
The period of review covers May 1, 1992, through April 30,
1993. See Final Results of Antidumping Duty Administrative
Reviews, Partial Termination of Administrative Reviews, and
Revocation in Part of Antidumping Duty Orders of Antifriction
Bearings (Other Than Tapered Roller Bearings) and Parts Thereof
From France, et. al. (“Final Results”), 60 Fed. Reg. 10,900 (Feb.
28, 1995).
Court No. 01-00759 Page 6
antidumping duty deposit rate for the merchandise manufactured by
Nankai. Final Results of Antidumping Duty Administrative Reviews,
Partial Termination of Administrative Reviews, and Revocation in
Part of Antidumping Duty Orders of Antifriction Bearings (Other
Than Tapered Roller Bearings) and Parts Thereof From France, et.
al. (“Final Results”), 60 Fed. Reg. 10,900; see also Pl.’s First
Am. Compl. ¶ 7. Consequently, on August 26, 1999, Commerce issued
Message No. 9238114 (“Nankai Instructions”) instructing Customs to
liquidate the merchandise manufactured by Nankai entered during the
POR at specified per-unit assessment rates. See Pl.’s First Am.
Compl. ¶ 8
Shinyei commenced this case by filing a complaint on August
24, 2001. Shinyei “did not seek, and the Court did not issue, any
injunction to suspend liquidation of the [e]ntries [at issue]
pending its final decision.” Pl.’s Resp. at 4. On April 26, 2002,
Commerce issued “a ‘clean-up’ instruction to Customs to liquidate
‘as entered’ all [fourth] [r]eview [p]eriod entries of [the
merchandise at issue] from Japan that had not been liquidated under
previously-issued instructions[.]” Id. at 5. The entries at issue
were liquidated as follows: (1) “[t]he New York/JFK [e]ntries were
liquidated on April 26, 2002”; (2) “[t]he [e]ntries made through
the port of Boston . . . were liquidated on June 21, 2002”; and (3)
“those made through the port of New York/Newark . . . were
liquidated on June 28, 2002.” Id. (citing Pl.’s First Am. Compl.
Court No. 01-00759 Page 7
¶ 9); see also Pl.’s First Am. Compl. App. A.
On September 25, 2002, this Court granted Shinyei’s motion for
leave of the Court to amend its complaint filed on August 24, 2001,
in which Shinyei limited its claim to Commerce error6 stating in
pertinent part:
In this civil action, [Shinyei] alleges that Commerce has
formulated the [Nankai Instructions] which, unlawfully,
do not reflect the relevant antidumping duty
determinations that Commerce made in the [fourth review].
As a consequence of unlawful instructions, Customs has
[liquidated the entries at issue] with incorrect
assessments of antidumping duty.7
6
In its response brief, Shinyei points out that “[a]fter
Customs posted bulletin notices of the [liquidations of the entries
at issue], [Shinyei] filed protests against them on the ground that
they reflected a different form of Customs Error, i.e., Customs’
failure to liquidate the [e]ntries [at issue] under the [Nankai]
Instructions.” Pl.’s Resp. at 5. Shinyei states that “[Shinyei]
is pursuing these protests strictly to preserve its rights in case
it should ultimately be decided that the . . . liquidations [at
issue] reflect Customs Error rather than Commerce Error.” Id. at
5 n.8.
7
In its civil action, Shinyei contests the Nankai
Instructions and argues that
[o]n August 26, 1999, . . . Commerce [issued the Nankai
Instructions] instruct[ing] . . . Customs . . . to
liquidate all [fourth] [r]eview entries of ball bearings
from Japan produced by [Nankai] and ‘exported by,
imported by, or sold to’ certain parties, including the
[United States] [c]ustomers, with assessments of
antidumping duty at specified per-unit rates, and with
interest as provided by law. . . . The [Nankai]
Instructions did not direct[ly] mention [Kaisha] as an
exporter or purchaser or [Shinyei] as an importer or
purchaser, nor did they inform Customs that [Shinyei] was
the importer of record in sales to the [United States]
[c]ustomers. . . . On information and belief, the
(continued...)
Court No. 01-00759 Page 8
Pl.’s Resp. at 5-6 (quoting Pl.’s First Am. Compl. ¶ 3).
Subsequently, Defendant on October 8, 2002, moved to dismiss
this case pursuant to USCIT R. 12(b)(1) for lack of subject matter
jurisdiction and USCIT R. 12(b)(5) for failure to state a claim on
which relief can be granted. See Def.’s Mot. On November 6, 2002,
this Court granted Defendant’s motion to stay discovery and extend
the time to respond to Shinyei’s discovery request and motion for
a protective order. On November 20, 2002, a conference was held in
Chambers. A hearing on Defendant’s motion to dismiss was held
before this Court on January 6, 2003.
II. Contentions of the Parties
A. Defendant’s Contentions
Defendant contends, pursuant to USCIT R. 12(b)(1), that this
Court lacks jurisdiction under 28 U.S.C. § 1581(i) (2000) over this
case because Shinyei’s claim and the relief requested became moot
as a result of Customs’ liquidation of the entries at issue.8
7
(...continued)
[Nankai] Instructions stated that they constituted the
immediate lifting of suspension of liquidation of entries
of the merchandise described therein, and that they were
not to be disclosed to the public.
Pl.’s Resp. at 2-3 (citing Pl.’s First Am. Compl. ¶¶ 8, 10).
8
Defendant points out that when Shinyei commenced this case
by filing a complaint on August 24, 2001, “Shinyei did not request,
(continued...)
Court No. 01-00759 Page 9
See Def.’s Mot. at 3-4; see also Def.’s Reply Br. Supp. Mot.
Dismiss (“Def.’s Reply”) at 1-8. In particular, Defendant points
out that the Court in Chr. Bjelland Seafoods A/S v. United States,
19 CIT 35 (1995), held that “‘if liquidation occurs prior to
completion of judicial review[,] . . . any outstanding challenges
to the . . . determination are rendered moot as to the liquidated
entries.’” Def.’s Mot. at 3-4 (quoting Chr. Bjelland, 19 CIT at
51); see Def.’s Reply at 3. Defendant maintains that although Chr.
Bjelland, 19 CIT 35, was a case in which judicial review was sought
under 28 U.S.C. § 1581(c) (2000), “liquidation of the entries
prevents the Court from assuming jurisdiction, or maintaining
jurisdiction, under [28 U.S.C.] § 1581(c) or (i).” Def.’s Reply at
3.
Moreover, Defendant points out in Mitsubishi Elec. Am., Inc.
v. United States, 18 CIT 167, 180, 848 F. Supp. 193, 203 (1994),
aff’d on other grounds, 44 F.3d 973 (Fed. Cir. 1994), the Court
8
(...continued)
and the Court did not grant, an injunction that would have
continued suspension of liquidation by directing Customs not to
liquidate the entries in issue.” Def.’s Reply at 3; see also
Def.’s Reply at 2 (quoting 19 U.S.C. § 1516a(c)(1) (1988 & Supp.
1993) (“‘Unless such liquidation is enjoined by the court . . .
entries of merchandise of the character covered by a determination
of the . . . administering authority . . . shall be liquidated in
accordance with the determination . . . .’”). Defendant further
states that “[a]ccordingly, Commerce instructed Customs to
liquidate the entries in issue with assessment of antidumping
duties, and Customs in turn, liquidated the entries.” Def.’s Reply
at 2.
Court No. 01-00759 Page 10
held:
Plaintiff’s failure to seek injunctive relief
against liquidation before commencing this action also
precludes this Court from exercising jurisdiction under
28 U.S.C. § 1581(i). . . . [B]ecause an injunction would
prevent Customs from liquidating plaintiff’s entries and
thereby ensure a party would be able to benefit from
judicial review of its challenge to the regulation, such
relief would seem appropriate. Cf. Zenith [Radio Corp.
v. United States], . . . 710 F.2d [806,] 810 [Fed. Cir.
1983] (A party who wishes to challenge a [19 U.S.C. §
1675] determination will suffer irreparable harm if
Customs liquidates their entries before the party obtains
judicial review because “[t]he statutory scheme has no
provision permitting re-liquidation” and, therefore,
renders the court “powerless to grant the only effective
remedy response” to the party's challenge.). Yet, as the
Zenith court noted with respect to liquidations following
administrative reviews, “[t]he statutory scheme has no
provision permitting re-liquidation” and “once
liquidation occurs, a subsequent decision by the trial
court on the merits . . . can have no effect on the
dumping duties assessed on [subject] entries.” Id. . .
. 710 F.2d at 810. In this case, Customs liquidation
precludes the Court from granting plaintiff the relief it
now seeks. Accordingly, the Court concludes it is unable
to exercise jurisdiction over this action under [28
U.S.C.] § 1581(i).
Id. at 5-6 (quoting Mitsubishi, 18 CIT at 180, 848 F. Supp. at 203)
(emphasis omitted). Defendant maintains that Shinyei is analogous
to the plaintiff in Mitsubishi, 18 CIT at 180, 848 F. Supp. at 203,
in that this Court lacks jurisdiction under 28 U.S.C. § 1581(i) to
grant Shinyei’s relief (that is, “‘reliquidation of the [e]ntries
[at issue] in accordance with corrected [Nankai] instructions’”)
Def.’s Reply at 7 (quoting Pl.’s Resp. at 16). Defendant,
therefore, asserts that because this case is moot, the Court lacks
subject matter jurisdiction since there “no longer exists a case or
Court No. 01-00759 Page 11
controversy.” Def.’s Mot. at 4.
In the alternative, Defendant argues that pursuant to 19
U.S.C. § 1504(d) (1994) (sic),9 Shinyei’s entries at issue were
deemed liquidated and as a result, Shinyei’s “claim and relief
requested are moot, and Shinyei . . ., moreover, has failed to
state a claim on which relief can be granted.” Def.’s Mot. at 4;
see also Def.’s Reply at 8-13. In particular, Defendant asserts:
Commerce sent Customs liquidation instructions on August
26, 1999 (see [Pl.’s First] Am. Compl. ¶ 8), which
informed Customs that suspension of liquidation was
lifted. The subject entries listed in [Pl.’s First Am.
Compl. App. A] were liquidated between April and June
2002. [See id.] ¶ 9. None of the entries, therefore, was
liquidated within six months after the instruction was
sent on August 26, 1999, i.e., by February 26, 2000. The
subject entries, therefore, were deemed liquidated under
[19 U.S.C.] § 1504(d) . . . at the cash deposit rate.
Because the subject entries have been liquidated,
Shinyei’s . . . claims that the liquidation instructions
were unlawful, and that the matter should be remanded to
9
The corrected version of 19 U.S.C. § 1504(d) that Defendant
relies on is 19 U.S.C. § 1504(d) (1988 & Supp. 1993). See Def.’s
Mot. Correct Error Mot. Dismiss.
Section 1504(d) provides:
When a suspension required by statute or court order
is removed, [Customs] shall liquidate the entry within 6
months after receiving notice of the removal from
[Commerce] . . . or a court with jurisdiction over the
entry. Any entry not liquidated by [Customs] within 6
months after receiving such notice shall be treated as
having been liquidated at the rate of duty, value,
quantity, and amount of duty asserted at the time of
entry by the importer of record.
19 U.S.C. § 1504(d).
Court No. 01-00759 Page 12
Commerce to cure the violation, are moot, nonjusticiable,
and should be dismissed.
Def.’s Mot. at 5-6.
B. Shinyei’s Contentions
Shinyei responds that this Court possesses jurisdiction over
this case pursuant to 28 U.S.C. § 1581(i)(4) because Customs’
liquidation of the entries at issue “do not preclude reliquidations
of the entries in accordance with corrected [Nankai] Instructions.”
Pl.’s Resp. at 13. In particular, Shinyei argues that: (1) the
case at bar is distinct from Chr. Bjelland, 19 CIT 35, because
“[Chr.] Bjelland, [19 CIT 35] [was] a [19 U.S.C. §] 1516a/[28
U.S.C. §] 1581(c) case contesting a Commerce antidumping review
determination and other antidumping and countervailing duty
determinations[,]” Pl.’s Resp. at 14, whereas, in this case,
Shinyei “has brought an [Administrative Procedure Act] APA10/
10
The Court notes that
[t]he Supreme Court has held that “the APA does not
afford an implied grant of subject matter jurisdiction
permitting federal judicial review of an agency action.”
Califano v. Sanders, 430 U.S. 99, 107 . . . (1977). More
specifically, in Califano the Supreme Court observed that
while 5 U.S.C. § 702 sets forth that affected persons
have a right to review of agency action, “[5 U.S.C.] §
703 suggest that this language was not intended as an
independent jurisdictional foundation, since such
judicial review is to proceed ‘in a court specified by
statute’ or ‘in a court of competent jurisdiction.’” Id.
at 106, n.6. . . . See also American Air Parcel
(continued...)
Court No. 01-00759 Page 13
1581(i) case to enforce [the fourth] review results by contesting
a subsequent Commerce decision, i.e., the [Nankai] Instructions[,]”
id. at 15 (emphasis omitted); and (2) Ҥ 1516a injunction
provisions apply only in a 1516a/1581(c) case, and cannot be
engrafted by implication onto a[] . . . 1581(i) case.”11 Id. at 16.
Shinyei also argues that “deemed liquidations do not preclude
reliquidations of the entries [at issue] in accordance with
corrected [Nankai] Instructions.”12 Id. Specifically, Shinyei
10
(...continued)
Forwarding Co., Ltd. v. United States, . . . 718 F.2d
1546, 1552 ([Fed. Cir.] 1983) (“[c]lear precedent exists
that the APA is not a jurisdictional statute and does not
confer jurisdiction on a court not already possessing
it.”).
United States v. Shabahang Persian Carpets, Ltd., 22 CIT 1028,
1032-33, 27 F. Supp. 2d 229, 233-34 (1998).
11
In its response brief, Shinyei relies inter alia on Krupp
Stahl AG v. United States, 4 CIT 244, 553 F. Supp. 394 (1982), to
support its proposition that “‘the Court is empowered to offer
complete relief in all actions within its jurisdiction[.]’” Pl.’s
Resp. at 16 (quoting Krupp Stahl, 4 CIT at 247, 553 F. Supp. at
396). Moreover, Shinyei asserts that “[t]he Court may wish to take
this occasion to crystallize the principle that judicial review of
agency action . . . brought before this Court under 28 U.S.C. §
1581(i), is not to be encumbered by the requirements and procedures
of inapplicable special statutory review proceedings.” Pl.’s Resp.
at 16 (citing United States Cane Sugar Refiners’ Ass’n v. Block, 3
CIT 196, 200-01, 544 F. Supp. 883, 886 (1982)).
12
Shinyei maintains that “[t]he linchpin of [Shinyei’s] claim
is that the [Nankai] Instructions unlawfully did not describe the
[e]ntries [at issue], and thereby did not inform Customs that
suspension of their liquidation was lifted under Commerce’s and
Customs’ view of the law at the time.” Pl.’s Resp. at 17 n.28
(emphasis omitted).
Court No. 01-00759 Page 14
asserts that: (1) “an ‘as entered’ deemed liquidation favorable to
the importer is immediately and substantively final and conclusive
against the Government[,]” id. at 19, whereas, “an ‘as entered’
deemed liquidation adverse to the importer is not immediately and
substantively final and conclusive against the importer, but may be
contested on the merits[,]”13 id. (citing Detroit Zoological Soc’y
v. United States, 10 CIT 133, 630 F. Supp. 1350 (1986)); (2)
Customs has not posted “bulletin notices [of the deemed
liquidations] . . . and so [Shinyei’s] time limit to protest the
[d]eemed [l]iquidations never expired[,]”14 Pl.’s Resp. at 21; (3)
“two relatively recent decisions of the [Court of Appeals for the]
Federal Circuit . . . held that Federal Register publication of a
13
Defendant argues that “[s]ection 1504(d) draws no
distinction between a deemed liquidation that is favorable to the
importer, and one that is adverse to the importer. . . . ‘The
purpose of section 1504 was to bring finality to the duty
assessment process.’” Def.’s Reply at 9-10 (quoting United States
v. Cherry Hill Textiles, Inc., 112 F.3d 1550, 1559 (Fed. Cir.
1997)). Moreover, Defendant maintains that “Shinyei’s argument is
misplaced because Shinyei now is contesting the deemed liquidation
on the merits before this Court.” Def.’s Reply at 10.
14
Defendant responds to Shinyei’s argument regarding Customs’
failure to post a bulletin notice of liquidation by stating:
There is no statutory requirement that this case be
remanded to Customs so that Customs can post a bulletin
notice of liquidation, and Shinyei can protest the deemed
liquidation. While 19 U.S.C. § 1500(e) [(1988 & Supp.
1993)] requires Customs to give notice of liquidation,
[19 U.S.C.] § 1504(a) provides that “notwithstanding
section 1500(e) of this title, notice of liquidation need
not be given of an entry deemed liquidated.”
Def.’s Reply at 10-11.
Court No. 01-00759 Page 15
final Commerce antidumping review result serves both to remove
suspension of liquidation of the subject entries and provide notice
to Customs of such removal, thereby triggering the six-month period
at the end of which the subject entries will be deemed liquidated
under 19 U.S.C. § 1504(d)[,]” id. at 17 n.28 (citing International
Trading Co. v. United States, 281 F.3d 1268 (Fed. Cir. 2002) and
Fujitsu Gen. Am., Inc. v. United States, 283 F.3d 1364 (Fed. Cir.
2002)); and (4) the Court will be faced with a large volume of
litigation if Defendant’s motion to dismiss is granted. See Pl.’s
Resp. at 21-23.
III. Analysis
The pertinent issue before this Court is whether the Court has
subject matter jurisdiction over this case pursuant to 28 U.S.C. §
1581(i).15 Defendant and Shinyei agree that jurisdiction is sought
under 28 U.S.C. § 1581(i), the Court’s residual jurisdiction
15
In pertinent part, 28 U.S.C. § 1581(i) provides:
In addition to the jurisdiction conferred upon the Court
of International Trade by subsections (a)-(h) of [§
1581,] . . . the Court of International Trade shall have
exclusive jurisdiction of any civil action commenced
against the United States, its agencies, or its officers,
that arises out of any law of the United States providing
for--
. . .
(4) administration and enforcement with respect to
the matters referred to in paragraphs (1)-(3) of [§
1581(i)] and subsections (a)-(h) of [§ 1581].
Court No. 01-00759 Page 16
provision. See Pl.’s First Am. Compl. ¶ 3; Pl.’s Resp. at 6;
Def.’s Mot. at 2. However, Defendant argues that this Court lacks
jurisdiction under 28 U.S.C. § 1581(i) over this case because
Shinyei’s claim and the relief requested became moot as a result of
Customs’ liquidation of the entries at issue. See Def.’s Mot. at
3-4; Def.’s Reply at 1-8.
As a preliminary matter, it is incumbent upon the Court to
independently assess the jurisdictional basis for a case, see Ad
Hoc Comm. of Fla. Producers of Gray Portland Cement v. United
States, 22 CIT 902, 906, 25 F. Supp. 2d 352, 357 (1998), a
principal that is especially true where a party seeks to invoke the
court’s residual jurisdiction authority. And, “[i]t is well
established that the residual jurisdiction of the court under
subsection 1581(i) ‘may not be invoked when jurisdiction under
another subsection of § 1581 is or could have been available,
unless the relief provided under that other subsection would be
manifestly inadequate.’” Id. (citing Norcal/Crosetti Foods, Inc.
v. United States, 963 F.2d 356, 359 (Fed. Cir. 1992) (emphasis in
original)).
Although jurisdiction over this case is properly sought under
28 U.S.C. § 1581(i), the Court finds that Shinyei’s claim and the
relief requested became moot as a result of Customs’ liquidation of
the entries at issue. See Warner-Lambert Co. v. United States,
Court No. 01-00759 Page 17
2000 Ct. Intl. Trade LEXIS 35, *9, Slip. Op. 00-34 (April 4, 2000)
(citation omitted) (“matters that are moot do not entail any live
case or controversy within the meaning of Article III of the
[United States] Constitution, leaving federal courts organized
thereunder with no authority to act in regard thereto); 3V, Inc. v.
United States, 23 CIT 1047, 1049, 83 F. Supp. 2d 1351, 1353 (1999)
(citations omitted) (“[i]f a claim fails the Article III criteria,
the Court must dismiss the claim as non-justiciable regardless of
a statutory grant of jurisdiction”).
Shinyei commenced this case by filing a complaint on August
24, 2001. Shinyei “did not seek, and the Court did not issue, any
injunction to suspend liquidation of the [e]ntries [at issue]
pending its final decision.” Pl.’s Resp. at 4. Subsequently, on
April 26, 2002, Commerce issued “a ‘clean-up’ instruction to
Customs to liquidate ‘as entered’ all [fourth] [r]eview [p]eriod
entries of [the merchandise at issue] from Japan that had not been
liquidated under previously-issued instructions[.]” Id. at 5. The
entries at issue were liquidated as follows: (1) “[t]he New
York/JFK [e]ntries were liquidated on April 26, 2002”; (2) “[t]he
[e]ntries made through the port of Boston . . . were liquidated on
June 21, 2002”; and (3) “those made through the port of New
York/Newark . . . were liquidated on June 28, 2002.” Id. (citing
Pl.’s First Am. Compl. ¶ 9); see also Pl.’s First Am. Compl. App.
A. On September 25, 2002, this Court granted Shinyei’s motion for
Court No. 01-00759 Page 18
leave of the Court to amend its complaint filed on August 24, 2001,
in which Shinyei limited its claim to Commerce error stating in
pertinent part:
In this civil action, [Shinyei] alleges that Commerce has
formulated the [Nankai Instructions] which, unlawfully,
do not reflect the relevant antidumping duty
determinations that Commerce made in the [fourth review].
As a consequence of unlawful instructions, Customs has
[liquidated the entries at issue] with incorrect
assessments of antidumping duty.
Pl.’s Resp. at 5-6 (quoting Pl.’s First Am. Compl. ¶ 3).
In Chr. Bjelland, the Court determined that:
liquidation renders moot any pending court challenge to
the underlying agency determinations regarding those
entries, for the statutory scheme does not authorize this
court to order a reliquidation of entries once they are
liquidated in accordance with either an outstanding AD or
CVD order, or the final results of an administrative
review of such order. [See] Zenith Radio Corp., . . . 710
F.2d at 810; Ceramica Regiomontana, S.A. v. United
States, 7 CIT 390, 396, 590 F. Supp. 1260, 1265 (1984).
Consequently, if liquidation occurs prior to the
completion of judicial review of an AD or CVD
determination, and duties are assessed pursuant to either
the original order or the final results of an
administrative review of such order, any outstanding
challenges to the AD or CVD determination are rendered
moot as to the liquidated entries because such entries
are no longer amenable to the reach of this court.
Furthermore, if the final results of an administrative
review of an AD or CVD order are published, any
outstanding challenges to Commerce's underlying AD or CVD
determination are similarly rendered moot as to
subsequent entries of the subject merchandise, because
estimated duties are to be assessed on such entries in
accordance with the final results of the administrative
review and not Commerce's original AD or CVD order. See,
e.g., PPG Indus., Inc. v. United States, 11 CIT 303, 309,
660 F. Supp. 965, 970 (1987); Silver Reed Am., Inc. v.
Court No. 01-00759 Page 19
United States, 9 CIT 221, 224 (1985).
19 CIT at 51-52. Although the Court agrees with Shinyei’s
assertion that the Chr. Bjelland case was a 19 U.S.C. § 1516a16/28
U.S.C. § 1581(c)17 case, the Court finds that once entries are
liquidated, this Court lacks subject matter jurisdiction regardless
of whether jurisdiction is sought under 28 U.S.C. § 1581(c) or 28
U.S.C. § 1581(i). See Mitsubishi Elec. Am., 18 CIT at 180, 848 F.
Supp. at 203.18
16
Section 1516a(c)(1) of Title 19 states:
Unless such liquidation is enjoined by the court
under [19 U.S.C. § 1516a(c)] (2) . . . , entries of
merchandise of the character covered by a determination
of the . . . administering authority . . . shall be
liquidated in accordance with the determination . . . .
Section 1516a(c)(2) of Title 19 provides:
In the case of a determination described in [19
U.S.C. § 1516a(a)] (2) . . . , the United States Court of
International Trade may enjoin the liquidation of some or
all entries of merchandise covered by a determination of
the . . . administering authority . . . upon a request by
an interested party for such relief and a proper showing
that the requested relief should be granted under the
circumstances.
17
Section 1581(c) provides that “[t]he Court of International
Trade shall have exclusive jurisdiction of any civil action
commenced under section 516A of the Tariff Act of 1930.”
18
In Mitsubishi Elec. Am., the Court stated in pertinent
part:
Plaintiff’s failure to seek injunctive relief
against liquidation before commencing this action also
precludes this Court from exercising jurisdiction under
28 U.S.C. § 1581(i). . . . [B]ecause an injunction would
(continued...)
Court No. 01-00759 Page 20
Moreover, the Court disagrees with Shinyei’s assertion that 19
U.S.C. § 1516a injunction provisions apply only in a 19 U.S.C. §
1516a/28 U.S.C. § 1581(c) case, and cannot be engrafted by
implication onto a 28 U.S.C. § 1581(i) case. See Wear Me Apparel
Corp. v. United States, 1 CIT 194, 196, 511 F. Supp. 814 (1981).19
18
(...continued)
prevent Customs from liquidating plaintiff’s entries and
thereby ensure a party would be able to benefit from
judicial review of its challenge to the regulation, such
relief would seem appropriate. Cf. Zenith, . . . 710
F.2d at 810 (A party who wishes to challenge a [19 U.S.C.
§ 1675] determination will suffer irreparable harm if
Customs liquidates their entries before the party obtains
judicial review because “[t]he statutory scheme has no
provision permitting re-liquidation” and, therefore,
renders the court “powerless to grant the only effective
remedy response” to the party's challenge.). Yet, as the
Zenith court noted with respect to liquidations following
administrative reviews, “[t]he statutory scheme has no
provision permitting re-liquidation” and “once
liquidation occurs, a subsequent decision by the trial
court on the merits . . . can have no effect on the
dumping duties assessed on [subject] entries.” Id. . .
. 710 F.2d at 810. In this case, Customs liquidation
precludes the Court from granting plaintiff the relief it
now seeks. Accordingly, the Court concludes it is unable
to exercise jurisdiction over this action under §
1581(i).
18 CIT at 180, 848 F. Supp. at 203 (emphasis supplied).
19
In Wear Me Apparel Corp. v. United States, the Court stated
in pertinent part that:
section 1581(i) does not require the filing or denial of
a protest as a prerequisite for the exercise of
jurisdiction by this court. . . .
This does not mean, however, that by invoking the
jurisdiction of the court under section 1581(i) the
mandate of section 1581(a) requiring the exhaustion of
(continued...)
Court No. 01-00759 Page 21
To hold otherwise would create a floodgate of litigation by
allowing parties, such as Shinyei, who sleep on their rights and
permit liquidation to occur, to use 28 U.S.C. § 1581(i)
jurisdiction to subsequently revive claims that are otherwise moot.
Accordingly, Defendant’s motion to dismiss this action
pursuant to USCIT R. 12(b)(1) for lack of subject matter
jurisdiction is granted.20
IV. Conclusion
Based on the foregoing, Defendant’s motion to dismiss is
granted.
______________________________
NICHOLAS TSOUCALAS
SENIOR JUDGE
DATED: February 14, 2003
New York, New York
19
(...continued)
administrative remedies, i.e., the filing and denial of
a protest, may thereby be dispensed with.
1 CIT at 196, 511 F. Supp. at 817.
20
The Court does not reach the issue of “deemed liquidations”
of the entries at issue since both Defendant and Shinyei agree that
the entries at issue were in fact liquidated. Pl.’s Resp. at 5;
Def.’s Mot. at 2, 6 (emphasis supplied).