Prysmian Cables & Sys. USA, LLC v. United States

756 F. Supp. 3d 1337, 2025 CIT 09
CourtUnited States Court of International Trade
DecidedJanuary 22, 2025
Docket24-00101
StatusPublished

This text of 756 F. Supp. 3d 1337 (Prysmian Cables & Sys. USA, LLC 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.

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Prysmian Cables & Sys. USA, LLC v. United States, 756 F. Supp. 3d 1337, 2025 CIT 09 (cit 2025).

Opinion

Slip Op. No. 25-9

UNITED STATES COURT OF INTERNATIONAL TRADE

PRYSMIAN CABLES AND SYSTEMS USA, LLC,

Plaintiff, Before: Stephen Alexander Vaden, Judge v. Court No. 1:24-cv-00101 UNITED STATES, et al.,

Defendants.

OPINION

[Granting Defendant’s Amended Motion to Partially Dismiss Case.]

Dated: January 22, 2025

Brad S. Keeton, Frost Brown Todd LLP, of Lexington, KY, for Plaintiff Prysmian Cables and Systems USA, LLC.

Kyle S. Beckrich, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for Defendant United States. With him on the brief were Brain M. Boynton, Principal Deputy Assistant Attorney General; Patricia M. McCarthy, Director; and Tara K. Hogan, Assistant Director.

Vaden, Judge: The United States moves to partially dismiss the Amended

Complaint filed by Plaintiff Prysmian Cables and Systems USA, LLC (Prysmian).

Prysmian claims that the Department of Commerce (Commerce) violated 5 U.S.C. §

706(1) and 5 U.S.C. § 706(2) — both sections of the Administrative Procedure Act —

when it denied Prysmian’s Section 232 exclusion requests for aluminum imports into

the United States. The Government seeks to dismiss all Prysmian’s 5 U.S.C. § 706(1) Court No. 1:24-cv-00101 Page 2

claims and fifteen of Prysmian’s seventeen 5 U.S.C. § 706(2) claims. For the reasons

set forth below, this Court GRANTS the Government’s Motion.

BACKGROUND

Section 232 of the Trade Expansion Act of 1962 empowers the President of the

United States to impose trade measures when the President determines action “must

be taken to adjust the imports of [an] article and its derivatives so that such imports

will not threaten to impair the national security.” 19 U.S.C. § 1862(c)(1)(A)(ii). On

March 8, 2018, President Donald J. Trump invoked Section 232 and imposed a ten

percent tariff on aluminum imports, finding that those imports threatened to impair

national security. See Adjusting Imports of Aluminum into the United States, Pres.

Proc. No. 9,704, 83 Fed. Reg. 11,619 (Mar. 8, 2018). In his Proclamation, the

President directed the Secretary of Commerce to allow exclusions from the tariff for

aluminum products not immediately available in the United States in sufficient

quality or quantity. Id. at 11,619.

Prysmian is a domestic company that imports aluminum to produce conductive

cable for electrical power generation, transmission, and distribution. Am. Compl. ¶

3, ECF No. 16. To continue manufacturing products at its current pace, Prysmian

sought exclusions on certain aluminum rods procured from companies in Canada,

Bahrain, Russia, the United Arab Emirates, and Argentina. Id. ¶¶ 38–45. Between

2018 to 2021, Prysmian submitted seventeen separate exclusion requests. Id. ¶ 46.

Commerce denied all Prysmian’s requests, starting in 2019. Id. Court No. 1:24-cv-00101 Page 3

On June 7, 2024, Prysmian filed suit in this Court. Compl., ECF No. 2.

Prysmian filed its Amended Complaint on September 10, 2024. Am. Compl., ECF

No. 16. It alleges that Commerce violated 5 U.S.C. § 706(1) because Commerce

unlawfully withheld or unreasonably delayed its decisions on Prysmian’s exclusion

requests. Id. ¶¶ 82–121 (Counts I–VIII). The Amended Complaint further claims

Commerce’s ultimate denials violated 5 U.S.C. § 706(2) because its actions were

arbitrary, capricious, and not in accordance with law. Id. ¶¶ 122–69 (Counts IX–

XVI).

On October 25, 2024, the Government filed its Amended Motion to Partially

Dismiss. Corrected Am. Mot. to Dismiss Case (Def.’s Mot.), ECF No. 21. In its

Motion, the Government argues that this Court should partially dismiss Prysmian’s

Complaint for two reasons. It asserts that 5 U.S.C. § 706(1) does not apply to agency

denials. Def.’s Mot. at 4–6, ECF No. 21. The Government argues that the statute

describes an agency’s failure to act, not its decision to deny a request. Id. at 4.

According to Commerce, a denial is the “agency’s act of saying no to a request,”

whereas a “failure to act ‘is simply the omission of an action without formally

rejecting a request.’” Id. at 4 (quoting Norton v. S. Utah Wilderness All., 542 U.S. 55,

63 (2004)). Because Commerce denied Prysmian’s exclusion requests, Commerce did

not fail to act; and Prysmian’s claims should be dismissed for failure to state a claim.

Id. at 6. Court No. 1:24-cv-00101 Page 4

Prysmian disagrees. Pl.’s Resp. to Mot. to Partially Dismiss Case (Pl.’s Resp.),

ECF No. 23. Plaintiff argues that Commerce failed to act because it did not perform

three required actions for each denial. First, Prysmian alleges that Commerce failed

to apply mandatory criteria to the facts presented in Prysmian’s exclusion requests

such as “an assessment of whether domestically produced substitute products … are

immediately available in sufficient quantities to meet the requester’s needs ….” Id.

at 6; see 15 C.F.R. § 705, Supp. 1(c)(6). Second, Commerce failed to prepare a specific

decision memorandum and only provided a form response. Pl.’s Resp. at 7; see 15

C.F.R. § 705, Supp. 1(h)(2)(i). Third, Commerce failed to notify Customs of

Prysmian’s entitlement to an exclusion under both the Presidential Proclamation’s

requirements and 15 C.F.R. § 705, Supp. 1(h)(3)(ii). Pl.’s Resp. at 7. Because

Commerce did not follow these required steps, Prysmian alleges that Commerce

failed to act within the meaning of 5 U.S.C. § 706(1). Id. at 7–8.

Next, the Government argues that fifteen of Prysmian’s seventeen 5 U.S.C. §

706(2) claims should be dismissed as untimely. Def.’s Mot. at 6–7, ECF No. 21.

Defendant notes any claim brought under 28 U.S.C. § 1581(i) is subject to a two-year

statute of limitations. Id. at 6 (citing 28 U.S.C. § 2636(i)). Because the filing date of

the original complaint was June 7, 2024, the claims that accrued between May 4,

2019, to April 6, 2022, are untimely under 28 U.S.C. § 2636(i). Id. at 7.

Prysmian believes all seventeen of its exclusion requests are timely. Prysmian

agrees it filed its Complaint on June 7, but it argues that Commerce’s denial of its Court No. 1:24-cv-00101 Page 5

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