NTN Bearing Corp. of America v. United States

701 F. Supp. 226, 12 Ct. Int'l Trade 1117, 12 C.I.T. 1117, 1988 Ct. Intl. Trade LEXIS 341
United States Court of International Trade·Decided November 23, 1988·No. Court 87-11-01066·Published·Cited by 4 cases

Opinion

OPINION

TSOUCALAS, Judge:

This matter is before the Court on plaintiffs’ motion for a preliminary injunction to restrain defendants from liquidating certain entries subject to an antidumping duty order which is pending review before this Court. In accordance with a decision orally delivered at the conclusion of a hearing on this motion on November 15, 1988, plaintiffs’ motion for a preliminary injunction is denied.

Background

On August 17, 1987, the Department of Commerce, International Trade Administration (ITA), determined that certain tapered roller bearings and parts thereof, finished and unfinished, from Japan were being sold at less than fair value. Final Determination of Sales at Less Than Fair Value; Tapered Roller Bearings and Parts Thereof, Finished and Unfinished, From Japan, 52 Fed.Reg. 30,700 (Aug. 17, 1987). 1 Plaintiffs (NTN) thereafter commenced an action challenging ITA’s dumping findings and the rate of duties to be assessed against the subject merchandise.

The cash deposit rate accompanying an affirmative dumping determination serves as an estimated dutiable amount with respect to subsequent entries. The actual *227 rate is determined at the conclusion of an administrative review conducted pursuant to 19 U.S.C. § 1675(a) (1982 & Supp. IV 1986).

The statutory framework was refashioned in 1984 so that ITA’s performance of a review of the original dumping findings is triggered only when an interested party makes a request. See Trade and Tariff Act of 1984, Pub.L. 98-573, § 611(a)(2), 98 Stat. 3031 (1984). Pursuant to this new mandate, ITA promulgated a regulation prescribing that absent a petition for an administrative review, the estimated duty rate announced in the original duty order will govern all ensuing entries. 19 C.F.R. § 353.53a(d) (1988).

On September 30, 1988, the ITA gave proper notice that request for an administrative review covering entries from March 27, 1987 to September 30, 1988 must be made by October 31, 1988. 53 Fed.Reg. 38,314 (Sept. 30, 1988). In the event of ITA’s receipt of a timely request, liquidation of these entries would have been suspended automatically during the pend-ency of such a review. Instead of requesting a review, however, NTN seeks to prevent liquidation of the subject entries via the extraordinary means of preliminary injunction.

The Court granted a Temporary Restraining Order on November 10, 1988 to preserve the status quo pending a hearing on NTN’s motion for injunctive relief.

Discussion

The question raised, whether a preliminary injunction should issue pending judicial scrutiny of the underlying affirmative dumping findings, is identical to the one raised in Fundicao Tupy, S.A. v. United States, 11 CIT -, 669 F.Supp. 437 (1987). 2 The unanimous three-judge panel denied such a remedy, concluding that plaintiffs failed to meet the immediate and irreparable harm prong of the criteria governing authorization of injunctive relief. 3 In thus holding, three judges of this Court found significant the fact that plaintiffs deliberately chose not to avail itself of the existing administrative remedy. Since NTN recapitulates arguments rejected in Fundicao Tupy as lacking legal support, this Court denies the present motion on the reasoning articulated therein.

NTN relies exclusively on several decisions of this Court published subsequent to Fundicao Tupy. See OKI Elec. Indust. Co. v. United States, 11 CIT -, 669 F.Supp. 480 (1987); Ipsco Inc. v. United States, 12 CIT -, 692 F.Supp. 1368 (1988); Sonco Steel Tube Div. v. United States, 12 CIT -, 698 F.Supp. 927 (1988). In these cases, two judges of the Court provided injunctive relief under similar factual circumstances. They expressed the view that the regulation prescribing automatic assessment of duties is inapplicable in situations where the original dumping order is being challenged. That regulation reads in pertinent part;

(d) Automatic assessment of duties.
(1) For orders or findings, if the Secretary does not receive a timely request under paragraph (a)(1), (a)(2), (a)(3), or (a)(5) of this section, the Secretary, without additional notice, will instruct the Customs Service to assess antidumping *228 duties on the merchandise described in paragraphs (b)(1) through (b)(3) of this section at rates equal to the cash deposit of (or bond for) estimated antidumping duties required on that merchandise at the time of entry, or withdrawal from warehouse, for consumption and to continue to collect the cash deposit previously ordered.

19 C.F.R. § 353.53a(d).

OKI, Ipsco, and Sonco accord outstanding weight to the congressional goal of alleviating administrative backlogs through institution of elective review proceedings. In addition, the two judges stressed the inequitable impact that denial of injunctive remedy would have if the entries subject to a review were to be liquidated prior to a judicial examination, of the underlying dumping findings.

While this Court is cognizant of these equity considerations, it finds, on the basis of Fundicao Tupy’s interpretation of the prevailing statutory framework, that an injunction cannot properly be issued. The statutory introduction of optional initiation of an administrative review by an interested party also empowered ITA to adopt reasonable rules to administer the new congressional mandate. Section 353.53a(d), which requires the claimant to request review in order to avoid automatic liquidation during the pendency of judicial action, was promulgated in conformity with ITA’s authority. As the court in Fundicao Tupy stated:

Plaintiffs do not contest the validity of the regulation nor do they dispute that they were properly notified of the necessity of requesting a review. Instead, plaintiffs contend that they will suffer irreparable harm by virtue of the loss of judicial review as to entries which are liquidated pursuant to the above-cited regulation. In other words, the benefits of a judgment on the merits which is favorable to plaintiffs’ position will not be applicable to those entries liquidated pursuant to § 353.53a(d). See also 19 U.S.C. § 1516a(c)(1) (1982) (providing that, unless enjoined by court order, entries be liquidated in accordance with the administrative determination until notice of a contrary judicial decision is published).

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NTN Bearing Corp. of America v. United States, 701 F. Supp. 226, 12 Ct. Int'l Trade 1117, 12 C.I.T. 1117, 1988 Ct. Intl. Trade LEXIS 341 (cit 1988).

701 F. Supp. 226 (NTN Bearing Corp. of America v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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