National Customs Brokers & Forwarders Ass'n of America v. United States

723 F. Supp. 1511, 13 Ct. Int'l Trade 803, 13 C.I.T. 803, 1989 Ct. Intl. Trade LEXIS 315
CourtUnited States Court of International Trade
DecidedOctober 10, 1989
DocketCourt 89-07-00400
StatusPublished
Cited by7 cases

This text of 723 F. Supp. 1511 (National Customs Brokers & Forwarders Ass'n of America 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
National Customs Brokers & Forwarders Ass'n of America v. United States, 723 F. Supp. 1511, 13 Ct. Int'l Trade 803, 13 C.I.T. 803, 1989 Ct. Intl. Trade LEXIS 315 (cit 1989).

Opinion

OPINION

RESTANI, Judge:

Plaintiff, National Customs Brokers and Forwarders Association, Inc. (NCBFA, Association), brings this action seeking a preliminary injunction, a writ of mandamus, and a declaratory judgment to compel defendants, the Secretary of the Department of Treasury and the Commissioner of Customs (Customs), to promulgate regulations affecting the hierarchy of brokers entitled to enter goods in accordance with 19 U.S.C. § 1484(a)(2)(C) (1983). In its complaint plaintiff admits that this Court does not possess jurisdiction under 19 U.S.C. §§ 1581(a)-(h) and, therefore, it invokes this court’s general jurisdictional grant under 28 U.S.C. § 1581(i) (1982). 1 That section provides this court with exclusive jurisdiction over “any civil action commenced against the United States, its agencies, or its officers, that arises out of any law of the United States providing for ... administration and enforcement with respect to [various tariff and trade laws].” 28 U.S.C. § 1581®(4).

Defendants opposed the motion for a preliminary injunction on several grounds including: (1) lack of subject matter jurisdiction over the issue in dispute; (2) lack of standing; and (3) failure to satisfy the standard four factor test for ascertaining whether preliminary injunctive relief should be granted. See Matsushita Elec. Indus. Co. v. United States, 823 F.2d 505, 509 (Fed.Cir.1987); S.J. Stile Assoc., Ltd. v. Snyder, 68 CCPA 27, 29-32, 646 F.2d 522, 525-27 (1981). This court will discuss each of these issues seriatim.

I. BACKGROUND

Soon after the expansion of private international courier services in the late 1970s Customs issued rulings under former section 1483 of the Tariff Act of 1930, ch. 497, 46 Stat. 590, 721, 19 U.S.C. § 1483 (1930), amended, Pub.L. 95-410, 92 Stat. 901 (1978), repealed, Pub.L, 97-446, 96 Stat. 2349 (1983), acknowledging that courier *1513 services could enter consolidated shipments into the country without resort to the assistance of properly licensed customs brokers. See 15 Cust. Bull. 273, Treas. Dec. 81-108 (1981) & 15 Cust. Bull. 1065, Cust. Serv. Dec. 81-169 (1981). In response to the perceived inadequacy of this procedure, Congress, in 1983, amended section 1484, inter alia, to require courier services to employ properly licensed brokers when entering consolidated shipments through customs. Pub.L. 97-446, 96 Stat. 2329, 2350 (1983) (codified as amended at 19 U.S.C. § 1484(a)(2)(C) (1982)). 2 In an attempt to comply, courier services employed their own brokers, who expedited entry of bulk consolidated shipments without referring individual pieces of merchandise to those brokers or ports designated on the individual bills of lading. Customs generally permitted expedited entry by simple reference to a master bill of lading on which all individual entries were logged. This practice continues to the present time.

According to plaintiff NCBFA, this procedure is not a proper implementation of the statute as amended. NCBFA maintains that the “appropriately designated” broker specified in section 1484(a)(2)(C) is the broker originally chosen by the owner, purchaser, or consignor of each individual shipment consolidated under the master bill of lading. Hence, argues the Association, if a single set of merchandise in a consolidated shipment has attached to it a bill of lading designating a port of entry other than that used by the courier service (or specifying a broker other than the one employed by the courier service), Customs should honor the original request of the consignor of that piece of merchandise by requiring the courier service to deconsolidate the entire shipment and by directing the courier service to proceed with entry of the merchandise according to the specific instructions on the individual bill of lading.

Indeed, this latter approach to entry of consolidated shipments was considered seriously by Customs and, for the most part, was reflected in a series of proposed rules which were withdrawn finally on February 1, 1989. See Withdrawal of Proposed Customs Regulations, 54 Fed.Reg. 5091 (1989). Customs withdrew the proposed regulations because “many of the commentators [considered the regulations] unnecessary and commercially burdensome.” Id. In addition, Customs “determined that [it] should not be involved in refereeing contractual agreements between parties regarding the selection of a customs broker to make entry.” Id. Dissatisfied with this result, NCBFA filed the present action.

II. JURISDICTION

As noted above, NCBFA claims that jurisdiction over this action is found in section 1581(i)(4). Section 1581(i)(4) contains Congress’ residual grant of jurisdiction over various conflicts and disputes arising out of United States tariff and international trade laws. Di Jub Leasing Corp. v. United States, 1 CIT 42, 43-44, 505 F.Supp. 1113, 1115-16 (1980) (citing House Judiciary Committee Report, H.R.Rep. No. 96-1235 at 27-28, reprinted in 1980 U.S. CODE CONG. & ADMIN. NEWS 3729, 3739-3740). In interpreting the language of sections 1581(i)(l) & (4) and their accompanying legislative history, this court held in Di Jub Leasing that it had jurisdiction to consider the Commissioner of Customs’ revocation of a customshouse cartman’s license even though such jurisdiction was not explicitly provided for in section 1581. Id. at 44-49, 505 F.Supp. 1116-19. The court reasoned that the revocation of a cartman’s license under Customs’ regulations was intertwined with and directly re *1514 lated to the administration and enforcement of the laws providing for revenue from imports. Id. at 46, 505 F.Supp. at 1117. In addition, in Nat’l Bonded Warehouse Ass’n, Inc. v. United States, 13 CIT -, 706 F.Supp. 904, 908 (1989) the court recently cited Di Jub Leasing in support of the proposition that it has jurisdiction under 28 U.S.C. § 1581(i)(4) to hear challenges to assessments of annual bonded warehouse fees. Nat’l Bonded at 905-08. See also 19 U.S.C. § 1555 (1982).

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Bluebook (online)
723 F. Supp. 1511, 13 Ct. Int'l Trade 803, 13 C.I.T. 803, 1989 Ct. Intl. Trade LEXIS 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-customs-brokers-forwarders-assn-of-america-v-united-states-cit-1989.