American Drew v. United States

2020 CIT 185

Procedural entryThis page is a short order in American Drew v. United States. Read the opinion of the Court — 450 F. Supp. 3d 1378 →

United States Court of International Trade·Decided December 21, 2020·No. 17-00086·Published

Opinion

SlipȱOp.ȱNo.ȱ20Ȭ185ȱ ȱ UNITEDȱSTATESȱCOURTȱOFȱINTERNATIONALȱTRADEȱ ȱ ȱ AMERICANȱDREW,ȱetȱal.,ȱ ȱ ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱPlaintiffs,ȱ ȱ ȱȱȱȱȱȱBefore:ȱTimothyȱC.ȱStanceu,ȱChiefȱJudgeȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱv.ȱ ȱ ȱ ȱȱȱȱȱȱCourtȱNo.ȱ17Ȭ00086ȱ UNITEDȱSTATES,ȱetȱal.,ȱ ȱ ȱ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱDefendants.ȱ ȱ

OPINIONȱANDȱORDERȱ

[Grantingȱplaintiffs’ȱmotionȱtoȱcorrect,ȱsupplementȱand/orȱstrikeȱtheȱ administrativeȱrecordȱbyȱorderingȱdefendantsȱtoȱsupplementȱthatȱrecordȱwithȱmaterialsȱ relevantȱtoȱaȱdecisionȱreachedȱuponȱtheȱ2001ȱpromulgationȱofȱanȱagencyȱregulation]ȱ ȱ Dated:ȱȱDecemberȱ21,ȱ2020ȱ

J.ȱMichaelȱTaylor,ȱJeffreyȱM.ȱTelep,ȱandȱNealȱJ.ȱReynolds,ȱKingȱ&ȱSpaldingȱLLP,ȱofȱ Washington,ȱD.C.,ȱforȱplaintiffs.ȱ ȱ JustinȱR.ȱMiller,ȱAttorneyȬinȬCharge,ȱInternationalȱTradeȱFieldȱOffice,ȱandȱBeverlyȱ A.ȱFarrell,ȱTrialȱAttorney,ȱofȱNewȱYork,ȱNY,ȱforȱdefendants.ȱȱWithȱthemȱonȱtheȱbriefȱ wereȱJeffreyȱBossertȱClark,ȱActingȱAssistantȱAttorneyȱGeneral,ȱandȱJeanneȱE.ȱDavidson,ȱ Director,ȱCommercialȱLitigationȱBranch,ȱCivilȱDivision,ȱofȱWashington,ȱD.C.,ȱU.S.ȱ DepartmentȱofȱJustice.ȱ ȱ Stanceu,ȱChiefȱJudge:ȱPlaintiffs,ȱwhoȱqualifiedȱasȱ“affectedȱdomesticȱproducers”ȱ

underȱtheȱControlledȱDumpingȱandȱSubsidyȱOffsetȱActȱofȱ2000,ȱ19ȱU.S.C.ȱ§ȱ1675cȱ

(“CDSOA”),ȱcontestedȱaȱdecisionȱofȱU.S.ȱCustomsȱandȱBorderȱProtectionȱ(“Customs”ȱorȱ

“CBP”)ȱnotȱtoȱincludeȱ“delinquency”ȱinterest,ȱi.e.,ȱpostȬliquidationȱinterestȱpaidȱonȱ Court No. 17-00086 Page 2

antidumpingȱandȱcountervailingȱdutiesȱaccordingȱtoȱ19ȱU.S.C.ȱ§ȱ1505(b),ȱinȱtheȱ

distributionsȱthatȱplaintiffsȱreceivedȱfromȱCustomsȱunderȱtheȱCDSOA.ȱȱAȱpriorȱOpinionȱ

andȱOrderȱofȱthisȱCourt,ȱAmericanȱDrewȱv.ȱUnitedȱStates,ȱ44ȱCITȱ__,ȱ450ȱF.ȱSupp.ȱ3dȱ1378ȱ

(2020)ȱ(“AmericanȱDrewȱI”),ȱdismissedȱtheȱmajorityȱofȱplaintiffs’ȱclaimsȱasȱuntimely,ȱ

allowingȱtoȱproceedȱonlyȱtheȱclaimsȱpertainingȱtoȱCDSOAȱdistributionsȱthatȱoccurredȱ

withinȱtheȱtwoȬyearȱstatuteȱofȱlimitationsȱperiod.ȱȱFollowingȱtheȱissuanceȱofȱAmericanȱ

DrewȱI,ȱdefendantsȱsubmittedȱasȱtheȱadministrativeȱrecordȱpursuantȱtoȱUSCITȱRuleȱ73.3ȱ

certainȱinformationȱfromȱCDP’sȱrevenueȱdepartmentȱpertainingȱtoȱthoseȱdistributionsȱ

forȱwhichȱthisȱCourtȱheldȱplaintiffsȱtoȱhaveȱmadeȱtimelyȱclaims.ȱ

Plaintiffsȱmoveȱtoȱcorrect,ȱsupplementȱand/orȱstrikeȱtheȱadministrativeȱrecordȱ

filedȱbyȱdefendants.ȱȱForȱtheȱreasonsȱdiscussedȱbelow,ȱtheȱcourtȱdeclinesȱtoȱorderȱtheȱ

strikingȱofȱtheȱadministrativeȱrecordȱasȱpreviouslyȱfiledȱbutȱordersȱdefendantsȱtoȱ

supplementȱthatȱrecord.ȱ

I.ȱȱBACKGROUNDȱ

BackgroundȱisȱsetȱforthȱinȱAmericanȱDrewȱI,ȱwithȱwhichȱtheȱcourtȱpresumesȱ

familiarity.ȱȱAmericanȱDrewȱI,ȱ450ȱF.ȱSupp.ȱ3dȱatȱ1380–82.ȱȱPlaintiffsȱfiledȱtheirȱmotionȱtoȱ

“correct,ȱsupplement,ȱand/orȱstrike”ȱtheȱadministrativeȱrecord,ȱandȱtoȱstayȱbriefing,ȱonȱ

Septemberȱ22,ȱ2020.ȱȱMot.ȱtoȱCorrect,ȱSuppl.,ȱand/orȱStrikeȱtheȱAdmin.ȱR.ȱandȱMot.ȱtoȱ

StayȱBriefingȱ(Sept.ȱ22,ȱ2020),ȱECFȱNo.ȱ67ȱ(“MotionȱtoȱCorrect”ȱorȱ“Pls.’ȱMot.”).ȱȱ

DefendantsȱopposedȱtheȱmotionȱonȱOctoberȱ16,ȱ2020.ȱȱDefs.’ȱResp.ȱtoȱPls.’ȱMotȱtoȱ Court No. 17-00086 Page 3

Correct,ȱSuppl.,ȱand/orȱStrikeȱtheȱAdmin.ȱR.ȱandȱMot.ȱtoȱStayȱBriefingȱ(Oct.ȱ16,ȱ2020),ȱ

ECFȱNo.ȱ70ȱ(“Defs.’ȱResp.”).ȱ

II.ȱȱDISCUSSIONȱ

A.ȱTheȱContentsȱofȱaȱCompleteȱAdministrativeȱRecordȱ

ThisȱcauseȱofȱactionȱaroseȱunderȱtheȱAdministrativeȱProcedureȱActȱ(“APA”),ȱ

5ȱU.S.C.ȱ§ȱ701ȱetȱseq.ȱȱInȱcasesȱarisingȱunderȱtheȱAPA,ȱtheȱcourtȱisȱtoȱreviewȱanȱ“agencyȱ

action”ȱonȱtheȱbasisȱofȱ“theȱwholeȱrecordȱorȱthoseȱpartsȱofȱitȱcitedȱbyȱaȱparty.”ȱȱId.ȱ§ȱ706.ȱȱ

Asȱaȱgeneralȱmatter,ȱtheȱrecordȱisȱtoȱconsistȱofȱ“(A)ȱaȱcopyȱofȱtheȱcontestedȱ

determinationȱandȱtheȱfindingsȱorȱreportȱuponȱwhichȱsuchȱdeterminationȱwasȱbased;ȱ

(B)ȱaȱcopyȱofȱanyȱreportedȱhearingsȱorȱconferencesȱconductedȱbyȱtheȱagency;ȱandȱ

(C)ȱanyȱdocuments,ȱcomments,ȱorȱotherȱpapersȱfiledȱbyȱtheȱpublic,ȱinterestedȱparties,ȱorȱ

governmentsȱwithȱrespectȱtoȱtheȱagency’sȱaction.”ȱȱ28ȱU.S.C.ȱ§ȱ2635(d)(1);ȱseeȱalsoȱUSCITȱ

R.ȱ73.3(a).ȱ

Inȱtheȱspecificȱinstanceȱinȱwhichȱaȱpartyȱcontestsȱaȱruleȱorȱregulationȱthatȱanȱ

agencyȱpromulgatedȱaccordingȱtoȱnoticeȬandȬcommentȱrulemaking,ȱtheȱrecordȱconsistsȱ

ofȱtheȱinformationȱtheȱagencyȱconsideredȱatȱtheȱtimeȱtheȱcontestedȱdecisionȱwasȱmade.ȱȱ

SeeȱCitizensȱtoȱPreserveȱOvertonȱPark,ȱInc.ȱv.ȱVolpe,ȱ401ȱU.S.ȱ402,ȱ420ȱ(1971)ȱ(orderingȱtheȱ

DistrictȱCourtȱtoȱconsiderȱ“theȱfullȱadministrativeȱrecordȱthatȱwasȱbeforeȱtheȱSecretaryȱ

atȱtheȱtimeȱheȱmadeȱhisȱdecision”),ȱabrogatedȱonȱotherȱgroundsȱbyȱCalifanoȱv.ȱSanders,ȱ430ȱ

U.S.ȱ99,ȱ105ȱ(1977).ȱȱInȱthisȱlitigation,ȱtheȱcontestedȱruleȱ(theȱ“FinalȱRule”)ȱwasȱpublishedȱ Court No. 17-00086 Page 4

inȱ2001.ȱȱDistributionȱofȱContinuedȱDumpingȱandȱSubsidyȱOffsetȱtoȱAffectedȱDomesticȱ

Producers,ȱ66ȱFed.ȱReg.ȱ48,546ȱ(Dept.ȱTreas.ȱCustomsȱServ.ȱSept.ȱ21,ȱ2001)ȱ(codifiedȱatȱ

19ȱC.F.R.ȱ§§ȱ159.61–64,ȱ178ȱ(2002))ȱ(“FinalȱRule”).ȱȱInȱtheȱFinalȱRule,ȱCustomsȱmadeȱaȱ

finalȱdeterminationȱtoȱexcludeȱdelinquencyȱinterestȱfromȱCDSOAȱdistributions.ȱȱSeeȱ

AmericanȱDrewȱI,ȱ450ȱF.ȱSupp.ȱ3dȱatȱ1382.

Asȱwithȱagencyȱactionȱinȱgeneral,ȱaȱpresumptionȱofȱregularityȱappliesȱtoȱtheȱ

compilationȱofȱtheȱadministrativeȱrecordȱasȱfiledȱandȱcertifiedȱbyȱtheȱgovernment.ȱȱSee,ȱ

e.g.,ȱDeukmejianȱv.ȱNuclearȱRegul.ȱComm’n,ȱ751ȱF.2dȱ1287,ȱ1325ȱ(D.C.ȱCir.ȱ1987)ȱ(“Wereȱ

courtsȱcavalierlyȱtoȱsupplementȱtheȱrecordȱ.ȱ.ȱ.ȱ.ȱ[t]heȱacceptedȱdeferenceȱofȱcourtȱtoȱ

agencyȱwouldȱbeȱturnedȱonȱitsȱhead”),ȱvacatedȱinȱpartȱandȱrehearingȱenȱbancȱgrantedȱonȱ

otherȱgrounds,ȱSanȱLuisȱObispoȱMothersȱforȱPeaceȱv.ȱNRC,ȱ760ȱF.2dȱ1320ȱ(D.C.Cir.1985).ȱȱ

TheȱCourtȱofȱAppealsȱforȱtheȱFederalȱCircuitȱhasȱcounseledȱthatȱ“supplementationȱofȱ

theȱrecordȱshouldȱbeȱlimitedȱtoȱcasesȱinȱwhichȱtheȱomissionȱofȱextraȬrecordȱevidenceȱ

precludesȱeffectiveȱjudicialȱreview.”ȱȱAgustaWestlandȱN.ȱAm.,ȱInc.ȱv.ȱUnitedȱStates,ȱ880ȱ

F.3dȱ1326,ȱ1331ȱ(Fed.ȱCir.ȱ2018).ȱ

Here,ȱplaintiffsȱobjectȱthatȱtheȱcurrentȱrecordȱisȱinadequateȱinȱthreeȱways:ȱfirst,ȱ

thatȱitȱdoesȱnotȱcontainȱtheȱdocumentsȱbeforeȱCustomsȱwhenȱCustomsȱmadeȱtheȱ

decisionȱinȱ2001ȱtoȱpromulgateȱtheȱFinalȱRule;ȱsecond,ȱthatȱitȱisȱimproperlyȱcertified,ȱasȱ

theȱcertificationȱisȱbyȱanȱofficerȱofȱaȱdivisionȱofȱCustomsȱotherȱthanȱtheȱOfficeȱofȱ

RegulationsȱandȱRulings,ȱwhichȱpromulgatedȱtheȱFinalȱRule;ȱand,ȱthird,ȱthatȱitȱdoesȱnotȱ Court No. 17-00086 Page 5

containȱcorrespondenceȱbetweenȱSenatorsȱCharlesȱGrassleyȱandȱJohnȱThuneȱandȱ

CustomsȱCommissionerȱKerlikowskeȱregardingȱtheȱfailureȱtoȱdistributeȱdelinquencyȱ

interest.ȱȱPls.’ȱMot.ȱ2–3.ȱȱTheȱcourtȱconsidersȱtheȱfirstȱtwoȱobjectionsȱtoȱbeȱvariationsȱofȱ

theȱsameȱargument,ȱwhichȱisȱthatȱtheȱadministrativeȱrecordȱmustȱbeȱthatȱrecord,ȱandȱ

onlyȱthatȱrecord,ȱwhichȱpertainsȱtoȱtheȱdecisionȱbyȱCustomsȱtoȱpromulgateȱtheȱFinalȱ

Rule.ȱȱRegardingȱtheȱthirdȱobjection,ȱtheȱrecordȱisȱrequiredȱtoȱinclude,ȱasȱaȱgeneralȱ

matter,ȱ“anyȱdocuments,ȱcomments,ȱorȱotherȱpapersȱfiledȱbyȱtheȱpublic,ȱinterestedȱ

parties,ȱorȱgovernmentsȱwithȱrespectȱtoȱtheȱagency’sȱaction.”ȱȱ28ȱU.S.C.ȱ§ȱ2635(d)(1)(C);ȱ

USCITȱR.ȱ73.3(a).ȱȱAdditionally,ȱtheȱcourtȱisȱmindfulȱthatȱitȱisȱtheȱagency’sȱresponsibilityȱ

toȱcompileȱandȱcertifyȱtheȱcompleteȱrecordȱinȱtheȱfirstȱinstance.ȱȱSeeȱFl.ȱPowerȱ&ȱLightȱCo.ȱ

v.ȱLorion,ȱ470ȱU.S.ȱ729,ȱ744ȱ(1985)ȱ(“[A]genciesȱtypicallyȱcompileȱrecordsȱinȱtheȱcourseȱofȱ

informalȱagencyȱaction.”).ȱȱTheȱcourtȱconsidersȱitȱprematureȱtoȱorderȱtheȱinclusionȱorȱ

exclusionȱofȱanyȱspecificȱdocumentȱatȱthisȱstageȱofȱtheȱlitigationȱ(butȱalsoȱnotesȱthatȱtheȱ

Free access — add to your briefcase to read the full text and ask questions with AI