Columbia Aluminum Prods., LLC v. United States

701 F. Supp. 3d 1363, 2024 CIT 51

Opinion

SlipȱOp.ȱ24Ȭśŗȱ

UNITEDȱSTATESȱCOURTȱOFȱINTERNATIONALȱTRADEȱ

COLUMBIAȱALUMINUMȱPRODUCTS,ȱ LLC,ȱ

Plaintiff,ȱ

ȱȱBefore:ȱȱTimothyȱC.ȱStanceu,ȱJudgeȱ v.ȱ

ȱȱCourtȱNo.ȱ19Ȭ00185ȱ

UNITEDȱSTATES,ȱ

Defendant.ȱ

OPINIONȱ

[Sustainingȱremandȱredeterminationȱinȱlitigationȱcontestingȱanȱagencyȱ determinationȱofȱ“evasion”ȱofȱantidumpingȱdutyȱandȱcountervailingȱdutyȱorders]ȱ

Dated:ȱAprilȱŘŚ,ȱ2024ȱ

JeremyȱW.ȱDutra,ȱSquireȱPattonȱBoggsȱ(US)ȱLLP,ȱofȱWashington,ȱD.C.,ȱforȱ plaintiff.ȱȱWithȱhimȱonȱtheȱsubmissionȱwasȱPeterȱJ.ȱKoenig.ȱ

AlexanderȱJ.ȱVanderweide,ȱSeniorȱTrialȱCounsel,ȱCommercialȱLitigationȱBranch,ȱ CivilȱDivision,ȱU.S.ȱDepartmentȱofȱJustice,ȱofȱNewȱYork,ȱN.Y.,ȱforȱdefendant.ȱȱWithȱhimȱ onȱtheȱsubmissionȱwereȱJustinȱR.ȱMiller,ȱAttorneyȬinȬCharge,ȱandȱAimeeȱLee,ȱAssistantȱ Director,ȱInternationalȱTradeȱFieldȱOffice.ȱȱAlsoȱonȱtheȱsubmissionȱwereȱBrianȱM.ȱ Boynton,ȱPrincipalȱDeputyȱAttorneyȱGeneral,ȱPatriciaȱM.ȱMcCarthy,ȱDirector,ȱ CommercialȱLitigationȱBranch,ȱCivilȱDivision,ȱU.S.ȱDepartmentȱofȱJustice,ȱofȱ Washington,ȱD.C.ȱȱOfȱcounselȱonȱtheȱsubmissionȱwasȱTamariȱJ.ȱLagvilava,ȱAttorney,ȱ OfficeȱofȱChiefȱCounsel,ȱU.S.ȱCustomsȱandȱBorderȱProtection,ȱofȱWashington,ȱD.C.ȱ

Stanceu,ȱJudge:ȱȱPlaintiffȱColumbiaȱAluminumȱProducts,ȱLLCȱ(“Columbia”)ȱ contestedȱtwoȱrelatedȱdecisionsȱthatȱU.S.ȱCustomsȱandȱBorderȱProtectionȱ(“Customs”ȱorȱ “CBP”)ȱissuedȱunderȱtheȱEnforceȱandȱProtectȱAct,ȱ19ȱU.S.C.ȱ§ȱ1517ȱ(2018)ȱ(theȱ“EAPA”).ȱȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ2ȱ Inȱbothȱdecisions,ȱCustomsȱdeterminedȱthatȱdoorȱthresholdsȱColumbiaȱimportedȱfromȱ Vietnamȱwereȱ“coveredȱmerchandise”ȱthatȱevadedȱanȱantidumpingȱdutyȱ(“AD”)ȱorderȱ andȱaȱcountervailingȱdutyȱ(“CVD”)ȱorderȱ(theȱ“Orders”)ȱonȱaluminumȱextrusionsȱfromȱ theȱPeople’sȱRepublicȱofȱChina.ȱ Inȱaȱredeterminationȱissuedȱearlierȱthisȱyearȱinȱresponseȱtoȱanȱorderȱofȱtheȱcourt,ȱ CustomsȱconcludedȱthatȱColumbia’sȱimportedȱdoorȱthresholdsȱdidȱnotȱevadeȱtheȱ Ordersȱandȱinformedȱtheȱcourtȱofȱitsȱintentionȱtoȱdiscontinueȱtheȱ“interimȱmeasures”ȱitȱ earlierȱimposedȱonȱColumbia’sȱimportsȱofȱdoorȱthresholdsȱfromȱVietnam.ȱȱPlaintiffȱ advocatesȱthatȱtheȱcourtȱsustainȱCBP’sȱdecisionȱthatȱColumbia’sȱimportsȱdidȱnotȱevadeȱ theȱOrdersȱbutȱobjectsȱtoȱtheȱredeterminationȱtoȱtheȱextentȱthatȱitȱwouldȱnotȱresultȱinȱ liquidationȱofȱtheȱaffectedȱimportȱentriesȱpriorȱtoȱaȱfinalȱandȱconclusiveȱcourtȱdecisionȱinȱ thisȱaction.ȱȱTheȱcourtȱsustainsȱCBP’sȱredetermination.ȱ I. BACKGROUND

Backgroundȱonȱthisȱlitigationȱisȱsetȱforthȱinȱtheȱcourt’sȱpreviousȱopinionȱandȱ orderȱandȱisȱsupplementedȱherein.ȱȱColumbiaȱAluminumȱProducts,ȱLLCȱv.ȱUnitedȱStates,ȱ 2024ȱWLȱ257026ȱ(Jan.ȱ16,ȱ2024)ȱ(“ColumbiaȱI”).ȱȱInȱColumbiaȱI,ȱtheȱcourtȱorderedȱCustomsȱ toȱ“submitȱtoȱtheȱcourtȱaȱRedeterminationȱuponȱRemandȱthatȱisȱconsistentȱwithȱthisȱ OpinionȱandȱOrderȱandȱaddressesȱtheȱactionsȱitȱwillȱtakeȱwithȱrespectȱtoȱtheȱInterimȱ Measuresȱitȱpreviouslyȱimposed.”ȱȱId.,ȱ2024ȱWLȱatȱ*13.ȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ3ȱ BeforeȱtheȱcourtȱisȱCBP’sȱFinalȱ“RemandȱRedetermination”ȱ(Feb.ȱ15,ȱ2024),ȱECFȱ No.ȱ86ȱ(“RemandȱRedetermination”).ȱȱPlaintiffȱfiledȱcommentsȱonȱtheȱRemandȱ Redetermination.ȱȱColumbiaȱAluminumȱProducts,ȱLLC’sȱCommentsȱonȱRemandȱ Redeterminationȱ(Feb.ȱ24,ȱ2024),ȱECFȱNo.ȱ87ȱ(“Columbia’sȱComments”).ȱȱDefendantȱ respondedȱtoȱthoseȱcomments.ȱȱDef.’sȱResponseȱtoȱPl.’sȱCommentsȱonȱRemandȱ Redeterminationȱ(Mar.ȱ5,ȱ2024),ȱECFȱNo.ȱ88ȱ(“Def.’sȱResponse”).ȱ II. DISCUSSION

InȱtheȱRemandȱRedetermination,ȱCustomsȱconcludedȱ“thatȱColumbiaȱcorrectlyȱ enteredȱmerchandiseȱasȱentryȱtypeȱ“01”ȱconsumptionȱentries,ȱinsteadȱofȱasȱentryȱtypeȱ “03”ȱAD/CVDȱentriesȱand,ȱaccordingly,ȱnoȱAD/CVDȱdutiesȱareȱapplicable.”ȱȱRemandȱ Redeterminationȱatȱ6.ȱȱCustomsȱconcluded,ȱfurther,ȱthatȱ“[t]hus,ȱColumbiaȱdidȱnotȱenterȱ coveredȱmerchandiseȱintoȱtheȱUnitedȱStatesȱthroughȱmaterialȱfalseȱstatementsȱorȱ omissions.”ȱȱCustomsȱstatedȱthatȱ“[g]ivenȱthisȱreversalȱofȱtheȱMarchȱ2019ȱDeterminationȱ andȱAdministrativeȱReviewȱ[theȱagencyȱdecisionsȱcontestedȱinȱthisȱlitigation1],ȱCBPȱ intendsȱtoȱterminateȱtheȱinterimȱmeasuresȱimposedȱonȱMayȱ17,ȱ2018ȱandȱprocessȱ refundsȱofȱanyȱcashȱdeposits,ȱasȱappropriate,ȱonceȱjudgmentȱisȱenteredȱinȱthisȱmatter.”ȱȱ

1ȱNoticeȱofȱFinalȱDeterminationȱasȱtoȱEvasionȱ(Mar.ȱ20,ȱ2019),ȱP.R.ȱDoc.ȱ61;ȱEnforceȱ andȱProtectȱActȱ(“EAPA”)ȱCaseȱNumberȱ7232ȱ(Aug.ȱ26,ȱ2019),ȱP.R.ȱDoc.ȱ67.ȱȱCitationsȱ hereinȱtoȱdocumentsȱfromȱtheȱJointȱAppendixȱ(Apr.ȱ28,ȱ2023),ȱECFȱNos.ȱ83ȱ(conf.),ȱ82ȱ (public)ȱareȱreferencedȱhereinȱasȱ“P.R.ȱDoc.ȱ__”ȱforȱpublicȱversions.ȱȱAllȱinformationȱ disclosedȱinȱthisȱOpinionȱandȱOrderȱisȱpublicȱinformation.ȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ4ȱ Id.ȱatȱ6—7.ȱȱCustomsȱaddedȱthatȱ“[a]nyȱunliquidatedȱentriesȱwillȱbeȱliquidatedȱ consistentȱwithȱtheȱfinalȱandȱconclusiveȱcourtȱdecisionȱinȱthisȱcase,ȱincludingȱallȱ remandsȱandȱappeals.”ȱȱId.ȱatȱ7.ȱȱTheȱ“interimȱmeasures”ȱtoȱwhichȱCustomsȱreferredȱ “includedȱ‘rateȬadjusting’ȱtheȱentriesȱ.ȱ.ȱ.ȱforȱtheȱcollectionȱofȱcashȱdeposits,ȱrequiringȱ ‘liveȱentry’ȱforȱ‘allȱfutureȱimportsȱofȱproductsȱbelievedȱtoȱbeȱaluminumȱthresholdsȱbyȱ Columbia’ȱ.ȱ.ȱ.ȱandȱextendingȱandȱsuspendingȱliquidationȱofȱentries.”ȱȱColumbiaȱI,ȱ2024ȱ WLȱ257026ȱatȱ*2ȱ(quotingȱNoticeȱofȱInitiationȱofȱInvestigationȱandȱInterimȱMeasuresȱatȱ6—7ȱ (Mayȱ17,ȱ2018),ȱP.R.ȱDoc.ȱ18).ȱ Columbiaȱagreesȱinȱpart,ȱandȱdisagreesȱinȱpart,ȱwithȱtheȱRemandȱ Redetermination.ȱȱColumbiaȱstatesȱthatȱitȱagreesȱwithȱtheȱagency’sȱdecidingȱ“thatȱ ColumbiaȱdidȱnotȱenterȱcoveredȱmerchandiseȱintoȱtheȱUnitedȱStatesȱbyȱmeansȱofȱ evasion”ȱandȱ“requestsȱthatȱtheȱCourtȱsustainȱtheȱRemandȱRedeterminationȱofȱnoȱ evasionȱandȱenterȱjudgmentȱinȱColumbia’sȱfavor.”ȱȱColumbia’sȱCommentsȱ1.ȱȱAtȱtheȱ sameȱtime,ȱColumbiaȱobjectsȱthatȱ“[h]avingȱmadeȱaȱnegativeȱdetermination,ȱCBPȱstatesȱ thatȱitȱintendsȱtoȱterminateȱinterimȱmeasuresȱimplementedȱonȱMayȱ17,ȱ2018.”ȱȱId.ȱȱ“Thisȱ suggestsȱthatȱinterimȱmeasuresȱagainstȱColumbiaȱremainȱinȱplaceȱ.ȱ.ȱ.ȱcontraryȱtoȱCBPȱ regulations,ȱwhichȱrequireȱimmediateȱterminationȱofȱinterimȱmeasuresȱuponȱaȱnegativeȱ findingȱofȱevasion.”ȱȱId.ȱatȱ1Ȭ2ȱ(citingȱ19ȱC.F.R.ȱ§ȱ165.27(c)).ȱȱFurther,ȱColumbiaȱobjectsȱtoȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ5ȱ anyȱdelayȱinȱtheȱliquidationȱofȱunliquidatedȱentriesȱthatȱareȱaffectedȱbyȱthisȱlitigation,ȱ arguingȱasȱfollows:ȱ

CBPȱfurtherȱindicatesȱthatȱitȱwillȱliquidateȱanyȱunliquidatedȱentriesȱ followingȱaȱfinalȱandȱconclusiveȱcourtȱdecision,ȱincludingȱallȱremandsȱandȱ appeals.ȱȱRespectfully,ȱthereȱwillȱbeȱnoȱappealȱhere.ȱȱColumbiaȱsucceededȱ inȱitsȱchallengeȱtoȱtheȱoriginalȱevasionȱdetermination.ȱȱTheȱUnitedȱStates,ȱ moreover,ȱdidȱnotȱmakeȱitsȱfindingȱofȱnoȱevasionȱunderȱprotest.ȱȱAndȱ Endura,ȱtheȱinstigatorȱofȱthisȱmatter,ȱabandonedȱanyȱparticipationȱatȱtheȱ CourtȱorȱbeforeȱCBP,ȱthusȱwaivingȱanyȱrightȱtoȱappeal.ȱȱButȱforȱtheȱinterimȱ measures,ȱallȱColumbiaȱentriesȱsuspendedȱbyȱCBPȱwouldȱhaveȱliquidatedȱ overȱfourȱyearsȱago.ȱUnderȱtheȱcircumstances,ȱColumbiaȱrequestsȱthatȱtheȱ CourtȱorderȱCBPȱtoȱterminateȱimmediatelyȱinterimȱmeasuresȱandȱliquidateȱ allȱpreviouslyȱsuspendedȱentriesȱuponȱtheȱCourt’sȱentryȱofȱjudgment.ȱ

Id.ȱ InȱitsȱresponseȱtoȱColumbia’sȱcomments,ȱdefendantȱcontestsȱColumbia’sȱ assertionȱthatȱ“CBPȱhasȱnotȱabidedȱbyȱitsȱregulations,”ȱpointingȱoutȱthatȱtheȱregulationȱ onȱwhichȱColumbiaȱrelies,ȱ19ȱC.F.R.ȱ§ȱ165.27(c)ȱ(2023),ȱprovidesȱasȱfollows:ȱ“IfȱCBPȱ makesȱaȱdeterminationȱunderȱparagraphȱ(a)ȱofȱthisȱsectionȱthatȱcoveredȱmerchandiseȱ wasȱnotȱenteredȱintoȱtheȱcustomsȱterritoryȱofȱtheȱUnitedȱStatesȱthroughȱevasion,ȱthenȱ CBPȱwillȱceaseȱapplyingȱanyȱinterimȱmeasuresȱtakenȱunderȱ§ȱ165.24ȱandȱliquidateȱtheȱ entriesȱinȱtheȱnormalȱcourse.’”ȱȱDef.’sȱResponseȱ5ȱ(quotingȱ19ȱC.F.R.ȱ§ȱ165.27(c)).ȱ Columbia’sȱobjectionȱthatȱ19ȱC.F.R.ȱ§ȱ165.27(c)ȱrequiredȱCustomsȱtoȱterminateȱtheȱ interimȱmeasuresȱimmediatelyȱuponȱaȱnegativeȱfindingȱofȱevasion,ȱi.e.,ȱuponȱCBP’sȱ issuingȱtheȱRemandȱRedetermination,ȱisȱnotȱpersuasive.ȱȱTheȱRemandȱRedetermination,ȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ6ȱ whichȱwasȱsubmittedȱinȱresponseȱtoȱcourtȱorder,ȱisȱsubmittedȱforȱtheȱcourt’sȱreviewȱandȱ isȱnotȱinȱeffectȱpriorȱtoȱtheȱcourt’sȱsustainingȱitȱthroughȱtheȱentryȱofȱjudgment.ȱȱInȱ accordanceȱwithȱtheȱRemandȱRedetermination,ȱtheȱcourtȱwillȱorderȱCustomsȱtoȱ terminateȱimmediatelyȱallȱinterimȱmeasuresȱitȱimposedȱinȱtheȱEAPAȱinvestigation.ȱȱToȱ effectuateȱtheȱRemandȱRedetermination,ȱtheȱcourtȱalsoȱwillȱdirectȱthatȱCustomsȱnotȱ requireȱtheȱfilingȱofȱentryȱtypeȱ“03”ȱentriesȱonȱfutureȱimportsȱofȱdoorȱthresholdsȱfromȱ VietnamȱthatȱareȱofȱaȱclassȱorȱkindȱthatȱwouldȱhaveȱbeenȱsubjectȱtoȱtheȱEAPAȱ investigationȱandȱnotȱrequireȱtheȱdepositȱofȱantidumpingȱorȱcountervailingȱdutiesȱonȱ theseȱfutureȱentries.ȱ Withȱrespectȱtoȱallȱentriesȱaffectedȱbyȱthisȱlitigationȱthatȱwereȱmadeȱpriorȱtoȱtheȱ entryȱofȱjudgment,ȱColumbiaȱisȱentitled,ȱuponȱtheȱentryȱofȱjudgment,ȱtoȱreceiveȱaȱ promptȱrefundȱofȱallȱestimatedȱantidumpingȱorȱcountervailingȱdutiesȱthatȱwereȱ deposited,ȱwithȱinterestȱasȱprovidedȱbyȱlaw.ȱȱButȱColumbiaȱhasȱnotȱmadeȱtheȱcaseȱforȱ theȱcourt’sȱorderingȱimmediateȱliquidationȱofȱtheȱentriesȱaffectedȱbyȱthisȱlitigation.ȱ ColumbiaȱcorrectlyȱpointsȱoutȱthatȱCustomsȱdidȱnotȱreachȱitsȱnegativeȱ determinationȱofȱevasionȱ“underȱprotest.”ȱȱColumbia’sȱCommentsȱ2.ȱȱAlso,ȱdefendantȱ statesȱthatȱ“weȱenvisionȱthatȱnoȱappealȱwillȱbeȱtakenȱhere.”ȱȱDef.’sȱResponseȱ5.ȱȱ Nevertheless,ȱtheȱcourtȱisȱnotȱconvincedȱthatȱitȱshouldȱorderȱimmediateȱliquidationȱofȱ theȱaffectedȱentries,ȱaȱremedyȱprovidedȱforȱneitherȱinȱtheȱEAPAȱnorȱinȱ19ȱC.F.R.ȱ

CourtȱNo.ȱ19Ȭ00185ȱ Pageȱ7ȱ § 165.27(c).ȱȱMoreover,ȱwhetherȱtheȱgovernment’sȱissuingȱtheȱnegativeȱEAPA determinationȱabsentȱaȱprotestȱwillȱprecludeȱtheȱgovernment’sȱsuccessfulȱappealȱofȱaȱ judgmentȱinȱthisȱactionȱisȱaȱquestionȱforȱtheȱCourtȱofȱAppealsȱforȱtheȱFederalȱCircuitȱ (“CourtȱofȱAppeals”),ȱnotȱthisȱCourt,ȱtoȱdecide.ȱȱAdditionally,ȱwhetherȱliquidationȱofȱtheȱ entriesȱaffectedȱbyȱthisȱlitigationȱeffectivelyȱwouldȱmootȱanyȱappealȱbyȱtheȱgovernmentȱ ofȱaȱjudgmentȱinȱthisȱactionȱisȱanȱunsettledȱquestion.ȱȱDefendantȱhasȱnotȱruledȱoutȱtheȱ possibilityȱthatȱitȱwillȱappeal,ȱandȱtheȱcourtȱwillȱavoidȱtakingȱanȱactionȱthatȱcouldȱmootȱ anyȱappealȱofȱthisȱCourt’sȱjudgmentȱthatȱtheȱgovernmentȱmightȱpursue.ȱ Finally,ȱColumbiaȱhasȱnotȱshownȱitȱwillȱbeȱprejudicedȱbyȱaȱdelayȱinȱtheȱ liquidationȱofȱtheȱaffectedȱentriesȱpendingȱaȱfinalȱandȱconclusiveȱjudgmentȱinȱthisȱ action.ȱȱColumbiaȱisȱawardedȱallȱtheȱreliefȱonȱitsȱfutureȱentriesȱthatȱthisȱcourtȱmayȱgrantȱ andȱwillȱreceiveȱanȱadequateȱremedyȱasȱtoȱpastȱentriesȱprovidedȱitȱpromptlyȱreceivesȱaȱ refundȱofȱallȱestimatedȱantidumpingȱandȱcountervailingȱdutiesȱthatȱwereȱdepositedȱonȱ theseȱentries,ȱwithȱinterestȱasȱprovidedȱbyȱlaw.ȱ ToȱensureȱthatȱColumbiaȱreceivesȱanȱadequateȱremedyȱevenȱshouldȱliquidationȱ beȱdelayedȱpendingȱappeal,ȱtheȱcourtȱwillȱorderȱthatȱCustomsȱnotȱliquidateȱwithȱtheȱ assessmentȱofȱantidumpingȱorȱcountervailingȱdutiesȱanyȱentriesȱofȱmerchandiseȱthatȱisȱ ofȱtheȱsameȱclassȱorȱkindȱasȱtheȱmerchandiseȱthatȱwasȱtheȱsubjectȱofȱtheȱEAPAȱ investigationȱpriorȱtoȱaȱfinalȱandȱconclusiveȱjudgmentȱinȱthisȱlitigation.ȱȱTheȱcourtȱwillȱ