Lda Incorporado\ v. United States

978 F. Supp. 2d 1359, 2014 CIT 54, 36 I.T.R.D. (BNA) 383, 2014 Ct. Intl. Trade LEXIS 55, 2014 WL 1887672
CourtUnited States Court of International Trade
DecidedMay 13, 2014
DocketSlip Op. 14-54; Court 12-00349
StatusPublished
Cited by2 cases

This text of 978 F. Supp. 2d 1359 (Lda Incorporado\ 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
Lda Incorporado\ v. United States, 978 F. Supp. 2d 1359, 2014 CIT 54, 36 I.T.R.D. (BNA) 383, 2014 Ct. Intl. Trade LEXIS 55, 2014 WL 1887672 (cit 2014).

Opinion

OPINION AND ORDER

KELLY, Judge:

Plaintiff LDA Incorporado (“Plaintiff”) challenges Defendant United States Customs and Border Protection’s (“Defendant” or “Customs”) denial of its protest regarding Plaintiffs entry of merchandise. Plaintiff asserts Customs erroneously determined that Plaintiffs merchandise was not excluded from the scope of the antidumping and countervailing duty orders on Circular Welded Carbon Quality Steel Pipe from the People’s Republic of China, 73 Fed.Reg. 42,547 (Dep’t Commerce July 22, 2008) (notice of antidumping duty order) {“ADD Order”) and Circular Welded Carbon Quality Steel Pipe from the People’s Republic of China, 73 Fed.Reg. 42,545 (Dep’t Commerce July 22, 2008) (notice of amended final affirmative countervailing duty determination and notice of countervailing duty order) {“CVD Order ”) (collectively the “Orders”). Plaintiff claims Customs’ mistake in not determining the proper amount of duties chargeable to Plaintiffs entry is a protestable decision under Section 514(a)(2) of the Tariff Act of 1930, as amended, 19 U.S.C. § 1514(a)(2) (2006), 1 and the denial of its protest gives rise to the court’s jurisdiction under 28 U.S.C. § 1581(a) (2006). 2

Defendant moves to dismiss Plaintiffs complaint for lack of jurisdiction pursuant to USCIT Rule 12(b)(1), claiming Customs’ determination that Plaintiffs merchandise was within the scope of the Orders was not a protestable decision under 19 U.S.C. § 1514(a)(2). Instead, Defendant argues *1362 Plaintiff was required to seek a timely scope ruling from the Department of Commerce (“Commerce”), and that its failure to do so deprives this Court of jurisdiction. The court concludes that Customs’ determination that Plaintiffs merchandise was not excluded from the scope of the Orders is a protestable decision of the type specified in § 1514(a)(2). Therefore, the court denies Defendant’s motion to dismiss.

Background

On July 22, 2010, Plaintiff imported a single entry of merchandise, which it described as electrical rigid metal conduit steel, a type of rigid steel conduit product. Plaintiff classified the merchandise under Harmonized Tariff Schedule of the United States (“HTSUS”) 7306.30.50.25, 3 as duty free, without reference to the Orders.

Plaintiff believed the merchandise was specifically excluded from the scope of the Orders as “finished electrical conduit.” See Pl.’s Response 4, Dec. 24, 2013, EOF No. 17. Plaintiffs merchandise is both internálly and externally coated with zinc, a conductive material, ie., galvanized, but is not internally coated with a non-conducting liner (such as rubber or plastic). Therefore, the interior of Plaintiffs electrical conduits would conduct electricity. 4 The Orders define the scope of the subject merchandise as

welded carbon quality steel pipes and tubes, ... regardless of wall thickness, surface finish (e.g., black, galvanized, or painted), end finish (e.g., plain end, beveled end, grooved, threaded, or threaded and coupled), or industry specification (e.g., ASTM, proprietary, or other), generally known as standard pipe and structural pipe (they may also be referred to as circular, structural, or mechanical tubing) ... Standard pipe is made primarily to American Society for Testing and Materials (ASTM) specifications, but can be made to other specifications. Standard pipe is made primarily to ASTM specifications A-53, A-135, and A-795. Structural pipe is made primarily to ASTM specifications A-252 and A-500. Standard and structural pipe may also be produced to proprietary specifications rather than to industry specifications. 5

*1363 ADD Order at 42,547; CVD Order at 42,-545. However, “finished electrical conduit” is explicitly excluded from the scope. Specifically the Orders state:

The scope of this investigation does not include: (a) pipe suitable for use in boilers, superheaters, heat exchangers, condensers, refining furnaces and feedwater heaters, whether or not cold drawn; (b) mechanical tubing, whether or not cold-drawn; (c) finished electrical conduit; (d) finished scaffolding; (e) tube and pipe hollows for redrawing; (f) oil country tubular goods produced to API specifications; and (g) line pipe produced to only API specifications.

ADD Order at 42,548; CVD Order at 42,-546.

At the time of entry, Customs performed laboratory inspections on the merchandise and subsequently sent Plaintiff a Notice of Action on January 10, 2011, stating that the merchandise was subject to the Orders without re-classifying the goods or providing any further explanation. 6 See Pl.’s Response Ex. 1 at 19, Dec. 24, 2013, ECF No. 17-1. Plaintiff claims that it attempted to convince Customs that its merchandise was “finished electrical conduit” to no avail. PL’s Response 7-9. In April of 2011, Customs forwarded the matter to Customs Headquarters, which advised Plaintiff to obtain a scope ruling from Commerce. On January 27, 2012, Customs liquidated Plaintiffs entry. Id. at 10. On February 22, 2012, Plaintiff filed a scope inquiry with Commerce. Id.

On April 26, 2012, Plaintiff filed a timely protest with Customs, which Customs denied on May 12, 2012. See. PL’s Response Ex. 6, Dec. 24, 2013, ECF No. 17-6. On July 2, 2012, Commerce issued its scope ruling, finding that Plaintiffs merchandise was finished electrical conduit and therefore excluded from the scope of the Orders.

Discussion

Standard of Review

The party seeking the court’s jurisdiction has the burden of establishing that jurisdiction exists. See Norsk Hydro Can., Inc. v. United States, 472 F.3d 1347, 1355 (Fed.Cir.2006). “If a Rule 12(b)(1) motion simply challenges the court’s subject matter jurisdiction based on the sufficiency of the pleading’s allegations — that is, the movant presents a ‘facial’ attack on the pleading — then those allegations are taken as true and construed in a light most favorable to the complainant.” Cedars-Sinai Med. Ctr. v. Watkins, 11 F.3d 1573, 1583 (Fed.Cir.1993) (citations omitted). Where

the Rule 12(b)(1) motion denies or controverts the pleader’s allegations of jurisdiction, however, the movant is deemed to be challenging the factual basis for the court’s subject matter jurisdiction.

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Related

Sunpreme Inc. v. United States
145 F. Supp. 3d 1271 (Court of International Trade, 2016)
LDA Incorporado v. United States
79 F. Supp. 3d 1331 (Court of International Trade, 2015)

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978 F. Supp. 2d 1359, 2014 CIT 54, 36 I.T.R.D. (BNA) 383, 2014 Ct. Intl. Trade LEXIS 55, 2014 WL 1887672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lda-incorporado-v-united-states-cit-2014.