Desert Glory, Ltd. v. United States

368 F. Supp. 2d 1334, 29 Ct. Int'l Trade 462, 29 C.I.T. 462, 27 I.T.R.D. (BNA) 1684, 2005 Ct. Intl. Trade LEXIS 54
CourtUnited States Court of International Trade
DecidedApril 27, 2005
DocketSlip Op. 05-52; Court 03-00044
StatusPublished
Cited by2 cases

This text of 368 F. Supp. 2d 1334 (Desert Glory, Ltd. 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
Desert Glory, Ltd. v. United States, 368 F. Supp. 2d 1334, 29 Ct. Int'l Trade 462, 29 C.I.T. 462, 27 I.T.R.D. (BNA) 1684, 2005 Ct. Intl. Trade LEXIS 54 (cit 2005).

Opinion

OPINION

RIDGWAY, Judge.

In this action, plaintiff Desert Glory, Ltd. — a Mexican producer and exporter, and a U.S. importer, of cocktail tomatoes-seeks to contest a December 2002 “scope determination” by the U.S. Department of Commerce, in which Commerce ruled that cocktail tomatoes are covered by the pending antidumping investigation of fresh tomatoes from Mexico initiated in 1996.

The Government has moved to dismiss the case, 1 asserting that the court lacks subject matter jurisdiction because Desert Glory failed to give the timely notice of intent to commence judicial review required under the North American Free Trade Agreement (“NAFTA”) and the NAFTA Implementation Act. See generally Defendant’s Memorandum in Support of Its Motion to Dismiss (“Def.’s Brief’); Defendant’s Reply to Plaintiffs Opposition to [Defendant’s] Motion to Dismiss (“Def.’s Reply Brief’); 19 U.S.C. § 1516a (2000). 2

For the reasons discussed below, the Government’s motion is granted, and this action is dismissed.

I. Standard of Review

As the party seeking to invoke the jurisdiction of the Court of International Trade, Desert Glory bears the burden of pleading and proving the requisite bases. See Former Employees of Sonoco Prods. Co. v. United States Sec’y of Labor, 27 CIT -, -, 273 F.Supp.2d 1336, 1338 (2003) (citing McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936)), aff'd sub nom. Former Employees of Sonoco Prods. Co. v. Chao, 372 F.3d 1291 (Fed.Cir.2004). Where — as here — a waiver of sovereign immunity is at issue, the language of the statute must be strictly construed, and any ambiguities must be resolved in favor of immunity. See United States v. Williams, 514 U.S. 527, 531, 115 S.Ct. 1611, 131 L.Ed.2d 608 (1995); RHI Holdings, Inc. v. United States, 142 F.3d 1459, 1461 (Fed.Cir.1998) (“Any statute which creates a waiver of sovereign immunity must be strictly construed in favor of the Government.”).

II. Summary of the Facts of the Case

This case has its roots in the antidump-ing investigation concerning fresh tomatoes from Mexico, initiated by Commerce more than eight years ago, in April 1996. Initially, cocktail tomatoes were specifically and expressly excluded from the scope of that investigation. Before a final determination was reached in the investigation, *1336 it was halted by a 1996 suspension agreement between Commerce and certain Mexican tomato producers and exporters. 3 Six years later, after Mexican producers and exporters accounting for a large percentage of U.S. imports withdrew from the 1996 suspension agreement, Commerce was forced to terminate it, and the investigation was reopened. But, before reaching a final determination in the reopened investigation, Commerce “clarified” the scope of the investigation, to include cocktail tomatoes. The investigation was then halted once again, by a 2002 suspension agreement, which Commerce signed on the same day it issued the Scope Determination (and which remains in force today). See Notice of Suspension of Antidumping Investigation on Fresh Tomatoes from Mexico, 67 Fed.Reg. 77,044 (Dep’t Commerce Dec. 16, 2002) (“2002 Suspension Agreement”) (incorporating by reference Memorandum to Faryar Shirzad re: “An-tidumping Duty Investigation on Fresh Tomatoes from Mexico: Scope Clarification” (Dec. 4, 2002) (“Scope Determination”)); Notice of Termination of Suspension Agreement, Termination of Sunset Review, and Resumption of Antidumping Investigation: Fresh Tomatoes from Mexico, 67 Fed.Reg. 50,858 (Dep’t Commerce Aug. 6, 2002).

This action ensued, seeking to contest— in the words of Desert Glory — Commerce’s “determination ... to include cocktail tomatoes in the scope of [the] 2002 agreement suspending the antidumping investigation on tomatoes from Mexico, notwithstanding the Department’s six-year practice of excluding cocktail tomatoes from the scope of that investigation.” Plaintiffs Brief in Opposition to the Defendant’s Motion to Dismiss (“PL’s Response Brief’) at 1 (footnote omitted). 4

*1337 Invoking jurisdiction under 28 U.S.C. § 1581(c), Desert Glory filed its Summons and Complaint with the court on January 28, 2003 — 55 days after Commerce issued its Scope Determination, and 43 days after Federal Register publication of notice of the 2002 Suspension Agreement (which notice incorporated by reference the Scope Determination). There was no prior notice of Desert Glory’s intent to commence these proceedings.

III. Summary of the Applicable Law

Both the United States and Mexico are parties to the North American Free Trade Agreement (“NAFTA”). Under NAFTA and the NAFTA implementing legislation, in cases involving antidumping determinations such as the Scope Determination here at issue, interested parties have a period of 30 days following receipt of the determination by the country whose imports are subject to the investigation in which to decide whether to seek review before a NAFTA binational panel. 5 During that 30-day period, parties are prohibited from seeking judicial review, and the statutory time limits for seeking judicial review are tolled. 6 If a binational panel is not requested within the 30-day period, a plaintiff may seek judicial review — provided that timely notice of its intent to do so has been given to all parties concerned, as required under the “special rule” set forth in 19 U.S.C. § 1516a(g)(3)(B). 7 Such notice of intent is timely if given within 20 days of a specific date described in 19 U.S.C. § 1516a(a)(5). See also NAFTA Art.l904:15(c)(ii) (requiring delivery of notice of intent to commence judicial review at least 10 days before deadline for requesting binational panel).

IY. Analysis

The Government here contends that Desert Glory was required to give notice of its intent to commence judicial review no later than 20 days after Mexico’s receipt of notice of the Scope Determination. See, e.g.,

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368 F. Supp. 2d 1334, 29 Ct. Int'l Trade 462, 29 C.I.T. 462, 27 I.T.R.D. (BNA) 1684, 2005 Ct. Intl. Trade LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/desert-glory-ltd-v-united-states-cit-2005.