American Inst. for Int'l Steel v. United States

Court of Appeals for the Federal Circuit·Decided February 28, 2020·No. 19-1727·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

AMERICAN INSTITUTE FOR INTERNATIONAL STEEL, INC., SIM-TEX, LP, KURT ORBAN PARTNERS, LLC, Plaintiffs-Appellants

v.

UNITED STATES, MARK A. MORGAN, ACTING COMMISSIONER OF U.S. CUSTOMS AND BORDER PROTECTION, Defendants-Appellees

2019-1727

Appeal from the United States Court of International Trade in No. 1:18-cv-00152-CRK-JCG-GSK, Judge Claire R. Kelly, Judge Gary S. Katzmann, Judge Jennifer Choe- Groves.

Decided: February 28, 2020

ALAN MORRISON, George Washington University Law School, Washington, DC, argued for plaintiffs-appellants. Also represented by STEVE CHARNOVITZ; DONALD CAMERON, JR., JULIE MENDOZA, BRADY MILLS, R. WILL PLANERT, Morris, Manning & Martin, LLP, Washington, 2 AMERICAN INST. FOR INT'L STEEL v. UNITED STATES

DC; GARY N. HORLICK, Law Offices of Gary N. Horlick, Washington, DC; TIMOTHY MEYER, Vanderbilt Law School, Nashville, TN.

TARA K. HOGAN, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington , DC, argued for defendants-appellees. Also represented by JOSEPH H. HUNT, JEANNE DAVIDSON, STEPHEN CARL TOSINI, JOSHUA E. KURLAND.

ILYA SHAPIRO, Cato Institute, Washington, DC, for amicus curiae Cato Institute.

JEFFREY S. GRIMSON, Mowry & Grimson, PLLC, Washington , DC, for amicus curiae Basrai Farms. Also represented by BRYAN CENKO, JILL CRAMER, KRISTIN HEIM MOWRY; PEGGY CLARKE, Law Offices of Peggy A. Clarke, Washington, DC.

CHARLES ALAN ROTHFELD, Mayer Brown LLP, Washington , DC, for amicus curiae United States Steel Corporation . Also represented by MATTHEW MCCONKEY.

ALAN H. PRICE, Wiley Rein, LLP, Washington, DC, for amici curiae American Iron and Steel Institute, Steel Manufacturers Association. Also represented by MAUREEN E. THORSON, JOSHUA S. TURNER, CHRISTOPHER B. WELD.

Before TARANTO, SCHALL, and STOLL, Circuit Judges.

TARANTO, Circuit Judge.

On March 8, 2018, the President of the United States imposed a 25-percent tariff on certain imported steel products , exercising authority granted to the President by section 232 of the Trade Expansion Act of 1962, as amended, 19 U.S.C. § 1862, a provision that traces its lineage to 1955. See Fed. Energy Admin. v. Algonquin SNG, Inc., 426 U.S.

AMERICAN INST. FOR INT'L STEEL v. UNITED STATES 3

548, 552 (1976). The American Institute for International Steel, Inc.; Sim-Tex, LP; and Kurt Orban Partners, LLC (collectively, AIIS) sued the United States in the United States Court of International Trade, arguing that the statute is unconstitutional on its face because the authority it confers is so unconstrained as to constitute legislative power that is Congress’s alone under Article I of the Constitution and so cannot be delegated. The Court of International Trade rejected the challenge, concluding that the issue is controlled by the portion of the Supreme Court’s Algonquin decision that declares section 232 not to violate the nondelegation doctrine. American Inst. for Int’l Steel, Inc. v. United States, 376 F. Supp. 3d 1335, 1339–45 (Ct. Int’l Trade 2019). We agree, and we therefore affirm.

I

A

Section 232 begins with mention of two other statutory provisions, codified at 19 U.S.C. §§ 1821, 1351, that grant the President certain discretionary authority regarding tariffs on goods from foreign nations with which the President might enter into executive agreements. See American Ins. Ass’n v. Garamendi, 539 U.S. 396, 414–15 (2003) (noting longstanding use and approval of such agreements). Section 1821 states that the President “may,” for any of the broad trade-related purposes identified in 19 U.S.C. § 1801, enter into trade agreements and, among other things, raise or lower duties (within limits) to carry out such agreements. 19 U.S.C. § 1821. Section 1351, which dates to 1934, see Tariff Act of 1934, ch. 474, 48 Stat. 943, confers similar authority. 19 U.S.C. § 1351. This court’s predecessor, the Court of Customs and Patent Appeals, upheld section 1351 against a delegation-doctrine challenge 4 AMERICAN INST. FOR INT'L STEEL v. UNITED STATES

in Ernest E. Marks Co. v. United States, 117 F.2d 542 (CCPA 1941). 1 The statute at issue in the present case, section 232, both restricts and adds to the authority granted in 19 U.S.C. §§ 1821 and 1351. It bars any reduction or elimination of duties under those provisions “if the President determines that such reduction or elimination would threaten to impair the national security.” 19 U.S.C. § 1862(a). And, in subsections (b) through (d), section 232 provides the President with authority to “adjust the imports ” of an article if the Secretary of Commerce, after a process of consultation and information-seeking, “finds that [the] article is being imported into the United States in such quantities or under such circumstances as to

1 Congress also conferred discretionary tariff authority on the President in 19 U.S.C. §§ 2251–2254, providing for action based on a wide range of considerations, including national security, id., § 2253(a)(2)(I). See Silfab Solar, Inc. v. United States, 892 F.3d 1340 (Fed. Cir. 2018) (holding that certain presidential determinations under that authority , the so-called “escape clause,” are not judicially reviewable). The Supreme Court has pointed to other grants of authority to the President (some of it discretionary ), from the earliest Congresses, involving import or other measures involving foreign commerce or exactions. See, e.g., United States v. Curtiss-Wright Export Corp., 299 U.S. 304, 322–24 (1936) (historical recitation); Panama Refining Co. v. Ryan, 293 U.S. 388, 422 (1935); J.W. Hampton , Jr., & Co. v. United States, 276 U.S. 394, 402 (1928); B. Altman & Co. v. United States, 224 U.S. 583 (1912) (applying Tariff Act of 1897, § 3, 30 Stat. 151, 203); Marshall Field & Co. v. Clark, 143 U.S. 649, 683–92 (1892). We do not rule on what legal significance those grants, and Supreme Court rulings about them, would have in the absence of Algonquin.

AMERICAN INST. FOR INT'L STEEL v. UNITED STATES 5

threaten to impair the national security.” 19 U.S.C. § 1862(c)(1)(A).

The statutory process for an adjustment based on national security begins with the Secretary of Commerce performing an “appropriate investigation to determine the effects on the national security of imports of the article.” Id., § 1862(b)(1)(A). The statute requires consultation with the Secretary of Defense and other appropriate officers of the United States and, if appropriate, public hearings or receipt of comments from interested persons. Id., § 1862(b)(2)(A). When the investigation is completed, the Secretary of Commerce must provide the President with findings and recommendations for action or inaction. Id., § 1862(b)(3)(A). If the Secretary finds that importation of the article threatens to impair the national security, the President then must determine whether he concurs with the Secretary’s findings and, if so, what action to adjust imports , in nature and duration, is necessary to avoid the threat to the national security. Id., § 1862(c)(1)(A).

One possible action is “the negotiation of an agreement which limits or restricts the importation into, or the exportation to, the United States of the article that threatens to impair national security.” Id., § 1862(c)(3)(A). If an agreement is not negotiated within 180 days, however, or if an agreement that is reached is not being carried or is ineffective in eliminating the threat, the President “shall” take other actions he deems necessary. Id. The statute thus provides leverage, in the form of tariff adjustments, for the President to use in negotiating international executive agreements, much as do 19 U.S.C. §§ 1821 and 1351, though with a specific focus on national security.

Subsection (d) sets forth a number of “relevant factors”

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