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

119 F.4th 48
Court of Appeals for the Federal Circuit·Decided October 10, 2024·No. 23-1652·Published

Opinion

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, Washington , DC, argued for plaintiff-appellant. Also represented by WALTER SPAK.

ERIC LAUFGRABEN, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington , DC, argued for defendants-appellees. Also represented by BRIAN M. BOYNTON, CLAUDIA BURKE, PATRICIA M. MCCARTHY; ELIO GONZALEZ, Office of the Chief Counsel for Trade Enforcement and Compliance, United States Department of Commerce, Washington, DC.

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

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 Canadian producer, exporter, and importer of merchandise subject to a January 2018 antidumping duty order on certain softwood lumber products from Canada, appeals the CIT’s dismissal of its case for lack of subject matter jurisdiction . 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 challenge to the Final Results of a second administrative review , 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 jurisdiction under § 1581(i).

1 Honorable Claire C. Cecchi, District Judge, United States District Court for the District of New Jersey, sitting by designation.

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 antidumping 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 entries subject to an antidumping duty order may occur years after importation. Id. “Before final liquidation, any interested 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 basis for the assessment of . . . antidumping duties on entries of merchandise covered by the determination and for deposits 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 liquidates 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)).

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Section 1581(c) of Title 28 provides the CIT with exclusive jurisdiction over civil actions commenced under 19 U.S.C. § 1516a, which governs judicial review of Commerce ’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 order 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 Antidumping 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/agreements /FTA/USMCA/Text/10_Trade_Remedies.pdf [hereinafter USMCA]. In pertinent part, USMCA Article 10.12 provides:

1. . . . [E]ach Party [i.e., the United States of America , 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 review , based on the administrative record, a final antidumping . . . duty determination of a competent investigating authority of an importing Party to determine whether such determination was in accordance with the antidumping . . . duty law of

J.D. IRVING, LTD. v. US 5

the importing Party. For this purpose, the antidumping . . . duty law consists of the relevant statutes , legislative history, regulations, administrative practice, and judicial precedents to the extent that a court of the importing Party would rely on such materials in reviewing a final determination of the competent investigating authority . ... 4. A request for a panel shall be made in writing to the other involved Party within 30 days following the date of publication of the final determination in question in the official journal of the importing Party. . . . ... 8. The panel may uphold a final determination, or remand it for action not inconsistent with the panel’s decision. . . . 9. The decision of a panel under this Article shall be binding on the involved Parties with respect to the particular matter between the Parties that is before the panel. ... 15. . . . [E]ach Party shall:

(a) maintain or amend its statutes or regulations to ensure that existing procedures concerning the refund, with interest, of antidumping . . . duties operate to give effect to a final panel decision that a refund is due; ... (c) maintain or amend its statutes or regulations to ensure that:

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(i) domestic procedures for judicial review of a final determination may not be commenced until the time for requesting a panel under paragraph 4 has expired . . . .

USMCA art. 10.12 ¶¶ 1, 2, 4, 8, 9, 15.

Section 1516a(g) of Title 19 codifies the binational panel review process set forth in USMCA Article 10.12. Section 1516a(g)(2) provides:

(g) Review of . . . antidumping duty determinations involving free trade area country merchandise

...

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

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