Florsheim Shoe Company, Div. Of Interco, Inc. v. The United States

744 F.2d 787, 5 I.T.R.D. (BNA) 2385, 1984 U.S. App. LEXIS 15063
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 12, 1984
DocketAppeal 83-1371
StatusPublished
Cited by109 cases

This text of 744 F.2d 787 (Florsheim Shoe Company, Div. Of Interco, Inc. v. The United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florsheim Shoe Company, Div. Of Interco, Inc. v. The United States, 744 F.2d 787, 5 I.T.R.D. (BNA) 2385, 1984 U.S. App. LEXIS 15063 (Fed. Cir. 1984).

Opinion

DAVIS, Circuit Judge.

This is an appeal from a decision of the Court of International Trade (CIT) dismissing, on the defendant’s motion, plaintiff Florsheim Shoe Company’s (Florsheim’s) complaint against the United States (the Government). In that complaint, Florsheim challenged the United States Customs Service’s denial of Florsheim’s protests against the agency’s classification of imported Indian buffalo leather and goat and kid leather, not fancy, as dutiable merchandise. The CIT properly decided that-Florsheim was attacking the basis for Cus *788 toms’ denial of the protests — certain Executive Orders in which the President withdrew duty-free treatment (under the Generalized System of Preferences) from those Indian leather products 1 — and held that Florsheim had stated no claim upon which relief could be granted because, to the extent the President’s action may be subject to severely limited judicial review, there was no ground for disputing it here. The CIT’s opinion is reported at 570 F.Supp. 734 (CIT 1983). Florsheim also challenges an earlier CIT decision, suspending discovery pending disposition of the Government’s motion to dismiss. Florsheim Shoe Company v. United States, No. 83-2 (CIT Jan. 7, 1983). We hold that the CIT did not abuse its discretion in ordering suspension of discovery, and we also affirm its dismissal of Florsheim’s complaint.

I

Background

Florsheim is an American shoe manufacturer. It imports buffalo leather and goat and kid leather, not fancy, from India for use in its manufacturers.

India has been designated by the President as a “beneficiary developing country” pursuant to the Generalized System of Preferences (GSP). The GSP is a trade program, established by Title Y of the Trade Act of 1974, 2 which authorizes the President to provide duty-free treatment for eligible articles imported from qualifying developing nations for the purpose of promoting their economic development. In January 1977, the President placed buffalo leather on the list of articles eligible for duty-free treatment under the GSP. Executive Order No. 11960, 42 Fed.Reg. 4317. In February 1977, however, the President excluded buffalo leather imports from India from this preferential treatment. Executive Order No. 11974, 42 Fed.Reg. 11230A. Similarly, in March 1980, goat and kid leather, not fancy, were added to the list of GSP eligible articles, but Indian imports of these articles were denied duty-free entry. Executive Order No. 12204, 45 Fed.Reg. 20740. Executive Order No. 12204 also continued the denial of duty-free treatment for imports of buffalo leather from India. Executive Order No. 12302 (46 Fed.Reg. 19901), issued in April 1981, then continued the denial of duty-free treatment for imports of buffalo leather and goat and kid leather, not fancy, from India.

In 1979, Florsheim filed a petition with the United States Trade Representative (USTR) requesting the subdivision of item 121.55 of the Tariff Schedules of the United States (TSUS) to create a separate category for water buffalo leather. Florsheim also asked for duty-free treatment of Indian water buffalo leather pursuant to the GSP because “no like or directly competitive article” was produced in the United States as of January 3, 1975, the effective date of the Trade Act of 1974. See 15 C.F.R. § 2007. In July 1980, the USTR denied Florsheim’s petition on the basis of its determination that an article directly competitive with water buffalo leather was produced in the United States as of January 3, 1975.

In 1980, Florsheim filed another petition with the USTR requesting duty-free treatment for water buffalo leather and goat and kid leather, not fancy, alleging that no like or directly competitive article was produced in the United States in January 1975. The USTR denied this second petition on June 11, 1981 on its finding that there was domestic production of goat and kid leather as well as production of calf leather, a product directly competitive with water buffalo leather.

*789 Between September and December 1981, Florsheim filed several protests with the Customs Service disputing the classification of these Indian leather products as dutiable merchandise. The Customs Service denied those protests between October 1981 and February 1982. In April 1982, Florsheim filed its complaint with the CIT, seeking review of Customs’ denial of the protests. In that suit, in October 1982, Florsheim served the Government with interrogatories and a request for production. Before responding to those discovery requests, the Government, in November 1982, moved to dismiss the action for failure to state a claim upon which relief could be granted. A short time later, the Government filed an additional motion, asking that the court suspend discovery pending decision on the motion to dismiss. The CIT granted such suspension in January 1983.

The CIT granted the Government’s motion to dismiss and entered judgment dismissing the action in July 1983. From an analysis of Florsheim’s complaint, the court identified the root of Florsheim’s grievance as the President’s Executive Orders denying the leather products duty-free treatment under the GSP. It addressed each of the three alleged grounds for the Government’s motion:

(1) Florsheim lacks standing to seek review of the Presidential action challenged by the complaint;
(2) The President acted within his delegated authority under Section 504 (19 U.S.C. § 2464) in denying duty-free treatment to the leather merchandise; and
(3) The President’s action was not subject to judicial review, except to insure conformity with the President’s delegated authority and compliance with the procedural prerequisites to taking action.

On the issue of standing, the court held that Florsheim had statutory standing under 28 U.S.C. § 2631(a) to contest the denial of its protests against the customs duty assessments on the goods it imported. The court also decided, however, that the President’s action in limiting the application of duty-free treatment was within his delegated authority under Section 504 and that the court could not review the factual foundation for the President’s action.

II

Standing

We agree with the CIT that Florsheim has standing under 28 U.S.C. § 2631(a) to challenge the Customs Service’s denial of its protests. That section confers standing on a person who files a protest pursuant to Section 514 of the Tariff Act of 1930 to bring a civil action (in the Court of International Trade) contesting the denial of the protest. 3 It provides:

§ 2631. Persons entitled to commence a civil action

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744 F.2d 787, 5 I.T.R.D. (BNA) 2385, 1984 U.S. App. LEXIS 15063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florsheim-shoe-company-div-of-interco-inc-v-the-united-states-cafc-1984.