J.D. Irving, Ltd. v. United States

119 F.4th 48
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 10, 2024
Docket23-1652
StatusPublished

This text of 119 F.4th 48 (J.D. Irving, Ltd. v. 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
J.D. Irving, Ltd. v. United States, 119 F.4th 48 (Fed. Cir. 2024).

Opinion

Case: 23-1652 Document: 37 Page: 1 Filed: 10/10/2024

United States Court of Appeals for the Federal Circuit ______________________

J.D. IRVING, LTD., Plaintiff-Appellant

v.

UNITED STATES, DEPARTMENT OF COMMERCE, Defendants-Appellees ______________________

2023-1652 ______________________

Appeal from the United States Court of International Trade in No. 1:21-cv-00641-TMR, Judge Timothy M. Reif. ______________________

Decided: October 10, 2024 ______________________

JAY CHARLES CAMPBELL, White & Case LLP, Washing- ton, DC, argued for plaintiff-appellant. Also represented by WALTER SPAK.

ERIC LAUFGRABEN, Commercial Litigation Branch, Civil Division, United States Department of Justice, Wash- ington, DC, argued for defendants-appellees. Also repre- sented by BRIAN M. BOYNTON, CLAUDIA BURKE, PATRICIA M. MCCARTHY; ELIO GONZALEZ, Office of the Chief Counsel for Trade Enforcement and Compliance, United States De- partment of Commerce, Washington, DC. ______________________ Case: 23-1652 Document: 37 Page: 2 Filed: 10/10/2024

Before STOLL and CUNNINGHAM, Circuit Judges, and CECCHI, District Judge. 1 STOLL, Circuit Judge. The sole issue in this appeal is whether the U.S. Court of International Trade (CIT) erred in holding that it lacked subject matter jurisdiction under 28 U.S.C. § 1581(i), the CIT’s residual grant of jurisdiction. J.D. Irving (JDI), a Ca- nadian producer, exporter, and importer of merchandise subject to a January 2018 antidumping duty order on cer- tain softwood lumber products from Canada, appeals the CIT’s dismissal of its case for lack of subject matter juris- diction. Although JDI acknowledged that its action would normally arise under 28 U.S.C. § 1581(c), it asserted that the CIT has subject matter jurisdiction pursuant to § 1581(i). We determine that jurisdiction under § 1581(c) could have been available to JDI absent binational panel review because (1) the true nature of JDI’s suit is a chal- lenge to the Final Results of a second administrative re- view, and (2) JDI has not met its burden to show that administrative review and binational panel review would be manifestly inadequate. Because jurisdiction under § 1581(i) is strictly limited and may not be invoked when jurisdiction under § 1581(c) could have been available, we affirm the CIT’s dismissal for lack of subject matter juris- diction under § 1581(i).

1 Honorable Claire C. Cecchi, District Judge, United States District Court for the District of New Jersey, sitting by designation. Case: 23-1652 Document: 37 Page: 3 Filed: 10/10/2024

J.D. IRVING, LTD. v. US 3

BACKGROUND I Before addressing the relevant facts and procedural history of this action, we begin with a brief overview of the applicable legal framework. The U.S. Department of Commerce may levy anti- dumping duties on goods “sold in the United States at less than . . . fair value.” Guangdong Wireking Housewares & Hardware Co. v. United States, 745 F.3d 1194, 1196 (Fed. Cir. 2014) (quoting 19 U.S.C. § 1673). Upon the entry of merchandise covered by an antidumping duty order, “an importer must make a cash deposit of estimated duties (cash deposit rate).” Consol. Bearings Co. v. United States, 348 F.3d 997, 1000 (Fed. Cir. 2003) (citing 19 U.S.C. § 1673e(a)(3)). Under Commerce’s accounting system, the actual liquidation—i.e., final computation of duties—of en- tries subject to an antidumping duty order may occur years after importation. Id. “Before final liquidation, any inter- ested party may request an administrative review of the antidumping duty order.” Id. (citing 19 U.S.C. § 1675). The statute providing for administrative review is 19 U.S.C. § 1675(a)(1). N.M. Garlic Growers Coal. v. United States, 953 F.3d 1358, 1360 (Fed. Cir. 2020). The Final Results of an administrative review “shall be the ba- sis for the assessment of . . . antidumping duties on entries of merchandise covered by the determination and for de- posits of estimated duties.” Consol. Bearings, 348 F.3d at 1000 (quoting 19 U.S.C. § 1675(a)(2)(C)). Commerce’s implementing regulation, 19 C.F.R. § 351.212, provides for the calculation of assessment rates. Am. Signature, Inc. v. United States, 598 F.3d 816, 820 n.5 (Fed. Cir. 2010). Absent a request for administrative review, “Commerce liq- uidates the merchandise at the cash deposit rates (i.e., the deposit rates at the time of entry).” Consol. Bearings, 348 F.3d at 1000 (citing 19 C.F.R. § 351.212(c)(1)(i)). Case: 23-1652 Document: 37 Page: 4 Filed: 10/10/2024

Section 1581(c) of Title 28 provides the CIT with exclu- sive jurisdiction over civil actions commenced under 19 U.S.C. § 1516a, which governs judicial review of Com- merce’s determinations in antidumping duty proceedings. Rimco Inc. v. United States, 98 F.4th 1046, 1052 (Fed. Cir. 2024). Someone wishing to challenge an antidumping duty order may bring suit before the CIT, or, if the “dumped” goods originated in Mexico or Canada, the antidumping or- der may be challenged before a binational panel. Canadian Wheat Bd. v. United States, 641 F.3d 1344, 1347 (Fed. Cir. 2011). Liquidation of entries may be suspended pending a decision by either the CIT or a binational panel. See id.; 19 U.S.C. § 1516a(g)(5)(C). The United States–Mexico–Canada Agreement (USMCA) went into effect on July 1, 2020, superseding the North American Free Trade Agreement (NAFTA). USMCA Article 10.12, entitled “Review of Final Antidump- ing and Countervailing Duty Determinations,” provides a dispute settlement mechanism for purposes of reviewing antidumping duty determinations issued by the United States, Canada, and Mexico. See United States–Mexico– Canada Agreement, art. 10.12, July 1, 2020, OFF. U.S. TRADE REP., https://ustr.gov/sites/default/files/files/agree- ments/FTA/USMCA/Text/10_Trade_Remedies.pdf [herein- after USMCA]. In pertinent part, USMCA Article 10.12 provides: 1. . . . [E]ach Party [i.e., the United States of Amer- ica, the United Mexican States, and Canada] shall replace judicial review of final antidumping . . . duty determinations with binational panel review. 2. An involved Party may request that a panel re- view, based on the administrative record, a final antidumping . . .

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