Detroit Zoological Society v. United States

630 F. Supp. 1350, 10 Ct. Int'l Trade 133, 10 C.I.T. 133, 1986 Ct. Intl. Trade LEXIS 1259
CourtUnited States Court of International Trade
DecidedFebruary 28, 1986
Docket85-2-00275
StatusPublished
Cited by24 cases

This text of 630 F. Supp. 1350 (Detroit Zoological Society 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
Detroit Zoological Society v. United States, 630 F. Supp. 1350, 10 Ct. Int'l Trade 133, 10 C.I.T. 133, 1986 Ct. Intl. Trade LEXIS 1259 (cit 1986).

Opinion

OPINION AND ORDER

RESTANI, Judge:

Plaintiff, the Detroit Zoological Society, is the consignee of five entries made between November 21, 1983, and March 12, 1984. 1 Plaintiff sought to have the imported merchandise classified under a duty free item, TSUS 862.10: “Articles imported for exhibition by any institution or society established for the encouragement of ... education or science____” The United States Customs Service (Customs), however, classified the entries under TSUS items 690.05, 690.15 and 806.20 and required the deposit of duties in accordance with the rates applicable to those items. See 19 U.S.C. § 1505(a) (1982 & West Supp.1985) (requiring deposit of estimated duties at the time of entry). Plaintiff filed a protest concerning classification of the first entry on February 18, 1985, 2 and filed another protest on February 25, 1985, covering the second through fourth entries. 3 The following day, plaintiff filed a complaint with this court, asserting jurisdiction under 28 U.S.C. §§ 1581(i), 1585 and 2202, seeking to have all five entries deemed liquidated by operation of law under 19 U.S.C. § 1504(a). 4 Subsequently, plaintiff filed a protest, dated May 14, 1985, covering the last of the five entries. 5 Plaintiff now seeks to amend its complaint to include an assertion of jurisdiction under 28 U.S.C. § 1581(a) (1982). This matter is before the court on plaintiffs motion to amend its complaint and on defendant’s motion to dismiss for lack of subject matter jurisdiction. 6

Section 1581(a) provides the Court of International Trade with “exclusive jurisdiction of any civil action commenced to *1354 contest the denial of a protest, in whole or in part, under section 515 of the Tariff Act of 1930. [19 U.S.C. § 1515].” 28 U.S.C. § 1581(a) (1982). The prerequisites of section 1581(a) jurisdiction are that a protest has been filed as to protestable subject matter; that the protest has been denied; and that the protest was timely filed. The court will examine each of these requirements in turn to determine whether section 1581(a) jurisdiction is appropriate in the case at bar. A protest may be filed to contest, among other things, “the classification and rate and amount of duties chargeable,” 19 U.S.C. § 1514(a)(2) (1982), or “the liquidation ... of an entry____” 19 U.S.C. § 1514(a)(5) (1982). Thus, it is evident that plaintiff’s dispute as to the alleged deemed liquidation, classification and duties to be paid on its entries is protestable subject matter under section 1514(a).

The parties agree that plaintiff’s first protest was denied on May 15, 1985, and there has been no allegation that either of plaintiff’s other two protests were denied earlier than that date. Plaintiff, however, filed its complaint on February 26, 1985. Thus, plaintiff’s complaint preceded the denial of any of its protests. This failure to exhaust the requisite administrative review process of protest and denial of protest before filing the complaint would have prevented this court from invoking section 1581(a) jurisdiction when the complaint was filed. See Wear Me Apparel Corp. v. United States, 1 CIT 194, 195, 511 F.Supp. 814, 816 (1981) (denial of protest as prerequisite to invoking section 1581(a) jurisdiction) (citing United States v. Reliable Chemical Co., 66 CCPA 123, C.A.D. 1232, 605 F.2d 1179 (1979) (denial of protest as jurisdictional prerequisite under predecessor to section 1581(a)); H.R.Rep. No. 96-1235, 96th Cong., 2d Sess. 44, reprinted in 1980 U.S.Code Cong. & Ad.News 3729, 3755 (indicating intent in enacting the Customs Courts Act of 1980 to preserve requirement of protest and denial as prerequisites to jurisdiction under section 1581(a))). Plaintiff claims in its motion for leave to file an amended complaint, however, that its protests covering each of the entries have been denied or will be denied during the course of this litigation, thus conferring section 1581(a) jurisdiction on this court.

A party may file a supplemental complaint to cure a jurisdictional defect of failure to exhaust administrative remedies if the requisite actions are taken after filing a complaint. See Mathews v. Diaz, 426 U.S. 67, 75, 96 S.Ct. 1883, 1889, 48 L.Ed.2d 478 (1976) (jurisdictional prerequisite under Social Security Act of filing application for enrollment was satisfied by supplemental pleadings establishing that application was filed after plaintiff was joined in action); Wear Me Apparel, 1 CIT at 197, 511 F.Supp. at 817 (leave to file an amended complaint under section 1581(a) granted where protest denied after complaint was filed). Although plaintiff did file an amended complaint after two of the three protests were denied, leave to amend is appropriate here only if the amended complaint cures the jurisdictional defect. Thus, the court must determine whether the final jurisdictional requirement of section 1581(a), that the protests themselves be timely filed, has been satisfied.

The time frame for filing a protest under 19 U.S.C. § 1514(a) is specifically provided for by statute:

(2) A protest of a decision, order, or finding described in subsection (a) of this section shall be filed with such customs officer within ninety days after but not before—
(A) notice of liquidation Or reliquidation, or
(B) in circumstances where subparagraph (A) is inapplicable, the date of the decision as to which protest is made.

19 U.S.C. § 1514(c)(2) (1982) (emphasis added).

Although 19 U.S.C. § 1504

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Bluebook (online)
630 F. Supp. 1350, 10 Ct. Int'l Trade 133, 10 C.I.T. 133, 1986 Ct. Intl. Trade LEXIS 1259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-zoological-society-v-united-states-cit-1986.