Autoalliance International, Inc. v. United States

398 F. Supp. 2d 1326, 29 Ct. Int'l Trade 1082, 29 C.I.T. 1082, 27 I.T.R.D. (BNA) 2234, 2005 Ct. Intl. Trade LEXIS 123
CourtUnited States Court of International Trade
DecidedAugust 30, 2005
DocketSlip Op. 05-115; Court 01-01070
StatusPublished
Cited by15 cases

This text of 398 F. Supp. 2d 1326 (Autoalliance International, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Autoalliance International, Inc. v. United States, 398 F. Supp. 2d 1326, 29 Ct. Int'l Trade 1082, 29 C.I.T. 1082, 27 I.T.R.D. (BNA) 2234, 2005 Ct. Intl. Trade LEXIS 123 (cit 2005).

Opinion

Opinion

CARMAN, Judge:

Pursuant to United States Court of International Trade (“CIT”) Rule 12(b), 1 Defendant, the United States, moves to sever and dismiss Count II of Plaintiffs Amended Complaint for lack of subject matter jurisdiction. (Def.’s Mot. to Sever and Dismiss Count II of Pl.’s Compl. (“Def.’s Mot.”) at 1.) Plaintiff asserts that this Court has jurisdiction over Count II of its Amended Complaint pursuant to 28 U.S.C. § 1581(i). Defendant claims the Court lacks jurisdiction over Plaintiffs claim because, among other reasons, 1) Plaintiff had adequate remedy under 28 U.S.C. § 1581(a), but Plaintiff failed to timely file its claim and 2) Plaintiff failed to follow procedural prerequisites of 28 U.S.C. § 1581(i). This Court finds that it does not have jurisdiction over Plaintiffs Amended Complaint and severs and dismisses Count II of Plaintiffs Amended Complaint.

Background

The case before this Court already has a long procedural history and the Court has yet to reach the substance of the matter. The facts of this case were discussed in AutoAlliance Int’l, Inc. v. United States (“AAI1”), 26 CIT 1316, 240 F.Supp.2d 1315 (2002). In 1991, Plaintiff, AutoAlliance International, Inc. (“Plaintiff’ or “AAI”), imported several shipments of welding machines and related equipment. Id. at 1316. The United States Customs Service (“Customs”) 2 liquidated the entries in August *1328 1995, classifying each imported item separately and applying a value advance for “design and development” costs. Id. at 1316-17.

AAI protested Customs’ liquidation of its importations of welding machines and related equipment on two separate grounds: classification and valuation, specifically the imposition of the value advance. 3 Id. at 1317. Customs issued its decision on AAI’s protest in a Headquarters ruling. [¶] 960755 (Aug. 15, 2000). In the ruling, Customs partially granted AAI’s protest with regard to classification and denied it in full with regard to valuation. AA I1, 26 CIT at 1317, 240 F.Supp.2d 1315. Customs reliquidated AAI’s entries in October 2000. Id. at 1318. The reliquidation affected the classification of some imported items but left their valuation unchanged, including the imposition of the value advance that AAI challenged in its protest. Id. In January 2001, AAI protested the reliquidation of the entries, again challenging the classification and valuation of the imported items. Id. Although filed within the requisite ninety-day (90) period after reliquidation, in June 2001, Customs denied — as untimely filed— the protest concerning the reliquidated entries. Id. On December 6, 2001, AAI filed a summons and complaint in this Court to dispute the denial of the protest concerning the reliquidated entries. Id. The summons was filed within one hundred eighty (180) days of the denial of the protest concerning the reliquidated entries but nearly fourteen (14) months after Customs denied the protest of the original entries, in which Customs denied AAI’s protest concerning the value advance. Id.

Plaintiffs Complaint asserted two causes of action: one related to the value advance and the other related to the tariff classification of AAI’s imported items. In AAIl, this Court severed and dismissed the value advance claim for lack of subject matter jurisdiction but held subject matter jurisdiction for part of the classification claim. AAI1, 26 CIT at 1329, 240 F.Supp.2d 1315. This Court severed and dismissed AAI’s value advance claim because Plaintiff did not file a summons with this Court concerning the value advance within the statutorily-established period of one hundred eighty (180) days following the mailing of notice denying its protest. Id. at 1325, 240 F.Supp.2d 1315; 28 U.S.C. § 2636(a)(1) (2000) 4 The case was stayed pending Plaintiffs appeal of this Court’s decision concerning its subject matter jurisdiction over the value advance claim. The Court of Appeals for the Federal Circuit (“Federal Circuit”) upheld this Court’s severance and dismissal of the valuation claim from Plaintiffs case. Autoalliance Int’l, Inc. v. United States, 357 F.3d 1290 (Fed.Cir.2004) (“AAI2”). 5

On May 28, 2004, Plaintiff filed its Amended Complaint, which again contained two counts. Count I of Plaintiffs Amended Complaint in substance remains unchanged and relates to the classification *1329 of certain imported equipment used in the assembly of automobiles. (Pl.’s Am. Compl. at 14.) Count I is not currently at issue. Count II of Plaintiffs Amended Complaint relates to the value advance imposed by Customs and the agency’s procedural and administrative handling thereof. AAI claims that this Court has jurisdiction over Count II based upon 28 U.S.C. § 1581(i)(“ § 1581(i)”). 6

When Defendant failed to timely answer or otherwise plead to Plaintiffs Amended Complaint, Plaintiff moved for and was granted by this Court’s Clerk of Court entry of default against Defendant. This Court set aside the entry of default. AutoAlliance Int’l, Inc. v. United States, 28 CIT —, 350 F.Supp.2d 1244 (CIT 2004). Defendant then filed its Motion to Sever and Dismiss Count II of Plaintiffs [Amended] Complaint, which motion is currently before this Court.

The specific contentions of the parties in support of their positions are discussed below.

Parties’ Contentions

I. Plaintiffs Contentions

Plaintiff argues that it has standing and has adequately pleaded a timely cause of action in Count II of its Amended Complaint pursuant to the Administrative Procedure Act (“APA”). (Pl.’s Opp’n to Def.’s Mot. to Sever & Dismiss Count II of Pl.’s Compl. (“PL’s Opp’n”) at 2-5.) In support thereof, Plaintiff notes that Customs failed to produce documents requested pursuant to the Freedom of Information Act (“FOIA”), never had a rational basis for applying the value advance, and failed to conduct further administrative review of the denied 2001 protest as required by Customs regulation. (PL’s Opp’n at 3-4.) Plaintiff submits that Customs’ actions were “arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with the law” and are the type of wrongs the APA is designed to redress.

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Bluebook (online)
398 F. Supp. 2d 1326, 29 Ct. Int'l Trade 1082, 29 C.I.T. 1082, 27 I.T.R.D. (BNA) 2234, 2005 Ct. Intl. Trade LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autoalliance-international-inc-v-united-states-cit-2005.