B-West Imports, Inc. v. United States

19 Ct. Int'l Trade 303, 880 F. Supp. 853, 19 C.I.T. 303, 17 I.T.R.D. (BNA) 1293, 1995 Ct. Intl. Trade LEXIS 38
CourtUnited States Court of International Trade
DecidedFebruary 24, 1995
DocketCourt No. 94-06-00371
StatusPublished
Cited by21 cases

This text of 19 Ct. Int'l Trade 303 (B-West Imports, 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
B-West Imports, Inc. v. United States, 19 Ct. Int'l Trade 303, 880 F. Supp. 853, 19 C.I.T. 303, 17 I.T.R.D. (BNA) 1293, 1995 Ct. Intl. Trade LEXIS 38 (cit 1995).

Opinion

Opinion

Restani, Judge:

This action is before the court on cross-motions for summary judgment made pursuant to USCIT Rule 56 by defendants United States, et al., and plaintiffs B-West Imports, Inc., Hing Long Trading Co., K-Sports Imports, Inc., Eagle Exim, Inc., Briklee Trading Co., Century Arms, Inc., Intrac Corporation, Northwest Imports, J’s Pacific Enterprise, Inc. and Sportsarms of Florida. Plaintiffs, importers of munitions, challenge the decision of the Bureau of Alcohol, Tobacco & Firearms (“ATF”) of the United States Department of the Treasury banning the importation of defense articles1 from the People’s Republic of China (“China”) instituted under section 2778 of the Arms Export Control Act (“AECA”). 22 U.S.C § 2778 (1988).

Facts

On May 26, 1994, President Clinton announced the renewal by the United States of Most Favored N ation trading status to China. In light of “continuing human rights abuses,” however, the President declared a ban on the “import of munitions, principally guns and ammunition from China.” Following the President’s announcement, Secretary of State Warren Christopher issued a letter to Secretary of Treasury Lloyd [304]*304M. Bentsen, advising him of the termination of China’s exemption from the list of proscribed countries from which defense articles may not be imported. The letter further advised the Treasury Department to “take all necessary steps to prohibit the import of all defense articles enumerated in the U.S. Munitions List.” As authority for this action, Secretary Christopher cited section 38 of the AECA, codified at 22 U.S.C § 2778, and Executive Order No. 11,958, 42 Fed. Reg. 4311 (1977), reprinted as amended in 22 U.S.C. § 2751 note (1988) (Ex. Ord. No. 11,958. Administration of Chapter).

The United States Customs Service (“Customs”) responded with an administrative notice dated May 27,1994, ordering all “tariff commodities from China” to be detained until further notice. On May 31, 1994, Customs limited the detention to all shipments of “Chapter 93 tariff commodities2 exported from China regardless of the country of origin.” This was followed by a more detailed administrative notice on June 7, 1994, indicating that, as of May 28, 1994, 12:01 a.m. EDT, all articles from China on the U.S. Munitions List were prohibited from importation. Additionally, any current permits to import such articles from China were declared null and void. Defense articles imported into the United States prior to the embargo were also banned from importation if no entry had been filed with Customs, or if the articles were imported into a bonded warehouse or foreign trade zone. These articles, however, were permitted exportation back to China or the country of origin without State Department approval if returned prior to June 30,1994. The following day, Customs issued a revised notice adding that exceptions to the embargo could be made on a case-by-case basis if a request was submitted to Customs Headquarters.3

On June 27,1994, the ATF issued notices to affected importers advising them of the import ban and the revocation of their existing import permits. The notice informed importers that requests may be made within 30 days of receipt of the letter “for an opportunity to present additional information and to have a full review of [their] case by the [ATF]. ” Further, importers seeking an exception to the import ban were required to file new permit applications along with “an explanation of why the importation [was] in accordance with the security and foreign policy of the United States. ” These applications would be referred to the State Department for consideration.

Customs issued a notice dated August 5, 1994, clarifying which defense articles were subject to import restrictions under the embargo. The notice provided that those articles entered into the geographical [305]*305territory of the United States4 on or after May 28,1994 were subject to the import ban. Thus, defense articles within United States territory prior to that date, whether in foreign trade zones, a Customs bonded warehouse, or on a dock unentered, were not subject to import restrictions. These articles would be permitted entry, provided the importers obtained new import permits from the ATF.

The notice further provided that imported articles subject to the embargo could either be (1) returned to China or the country of origin by August 31,1994 without State Department approval, (2) retained in a bonded warehouse until an export license was obtained if not exported prior to August 31,1994, or (3) destroyed under Customs’ supervision. The ATF issued a subsequent letter dated August 10,1994 informing affected importers of Customs’ notice and specifying the documentation to be submitted with new permit applications by importers seeking a foreign policy exception from the State Department.

Congress incorporated the terms of the embargo into the Act of Aug. 26,1994, Pub. L. No. 103-317, § 609,108 Stat. 1724,1774 (1994) (“Craig Amendment”), creating an additional exception. The Craig Amendment provided relief from the import ban to those importers who possessed valid import permits before May 26, 1994, and whose products had either been “in a bonded warehouse or foreign trade zone, in port, or, as determined by the United States on a case-by-case basis, in transit. ”5 In letters issued September 6,1994, the ATF specified the application procedures for those importers seeking relief under this additional exception.

Plaintiffs allege that (1) the AECA does not authorize the President and the administering agencies to impose an import embargo, (2) the acts by Customs and the ATF invalidating and revoking existing import licenses were ultra vires, and (3) the implementation of the embargo, with respect to “in transit” goods was arbitrary, capricious and contrary to the stated objectives of the embargo. Plaintiffs also raise constitutional claims contending the embargo violated the Due Process Clause and Takings Clause of the Fifth Amendment. Defendants oppose these contentions, additionally alleging that plaintiffs have failed to exhaust their administrative remedies.

Standard of Review

Summary judgment is appropriately granted where the pleadings and affidavits show no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. USCIT Rule 56(d); e.g., Pfaff Am. Sales Corp. v. United States, 16 CIT 1073, 1075 (1992).

[306]*306Discussion

I. Exhaustion of Administrative Remedies:

Defendants have submitted documents indicating that some or all of the plaintiffs have filed applications seeking relief from the import ban. According to defendants, the avenues of relief available to affected importers were (1) an exception granted under the Craig Amendment, (2) a foreign policy exception granted by the State Department, and (3) full review of their case by the ATF. To date, all of the plaintiffs6

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

Related

Wilmina Shipping as v. United States Department of Homeland Security
934 F. Supp. 2d 1 (District of Columbia, 2013)
Conservation Force v. Salazar
811 F. Supp. 2d 18 (District of Columbia, 2011)
Sioux Honey Ass'n v. Hartford Fire Insurance
700 F. Supp. 2d 1330 (Court of International Trade, 2010)
International Custom Products, Inc. v. United States
32 Ct. Int'l Trade 465 (Court of International Trade, 2008)
Former Employees of BMC Software, Inc. v. United States Secretary of Labor
454 F. Supp. 2d 1306 (Court of International Trade, 2006)
Elk v. United States
70 Fed. Cl. 405 (Federal Claims, 2006)
U.S. Ass'n of Importers of Textiles & Apparel v. United States
366 F. Supp. 2d 1280 (Court of International Trade, 2005)
Luoyang Bearing Corp. v. United States
347 F. Supp. 2d 1326 (Court of International Trade, 2004)
Crawfish Processors Alliance v. United States
343 F. Supp. 2d 1242 (Court of International Trade, 2004)
Luoyang Bearing Factory v. United States
240 F. Supp. 2d 1268 (Court of International Trade, 2002)
NSK Ltd. v. United States
217 F. Supp. 2d 1291 (Court of International Trade, 2002)
Timken Co. v. United States
166 F. Supp. 2d 608 (Court of International Trade, 2001)
Fabrique De Fer De Charleroi S.A. v. United States
155 F. Supp. 2d 801 (Court of International Trade, 2001)
NEC Corp. v. U.S. Department of Commerce
21 Ct. Int'l Trade 933 (Court of International Trade, 1997)
B-West Imports, Inc. v. United States
75 F.3d 633 (Federal Circuit, 1996)
United States Shoe Corp. v. United States
907 F. Supp. 408 (Court of International Trade, 1995)
Fieldston Clothes, Inc. v. United States
19 Ct. Int'l Trade 1181 (Court of International Trade, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
19 Ct. Int'l Trade 303, 880 F. Supp. 853, 19 C.I.T. 303, 17 I.T.R.D. (BNA) 1293, 1995 Ct. Intl. Trade LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-west-imports-inc-v-united-states-cit-1995.