Royal Business MacHines, Inc. v. United States

507 F. Supp. 1007, 1 Ct. Int'l Trade 80, 1 C.I.T. 80, 1980 Ct. Intl. Trade LEXIS 241
United States Court of International Trade·Decided December 29, 1980·No. Court 80-11-00056·Published·Cited by 68 cases

Opinion

WATSON, Judge:

Plaintiff, the importer of a typewriter known as the Royal Administrator, brought this action on November 18, 1980, pursuant to 5 U.S.C. § 702 1 and 28 U.S.C. § 1581(i) 2 asking the Court to exercise its power under 28 U.S.C. §§ 1585 3 and 2643(c)(1) 4 to enjoin defendants from “retroactively” modifying the antidumping duty order of *1009 May 9,1980, 5 to include the Royal Administrator typewriter and further asking the Court to direct the appropriate officials to liquidate entries of the typewriter and cancel the antidumping bonds which had been required on entries of that typewriter. A *1010 temporary restraining order was issued and was extended until the hearing on the preliminary injunction on December 16, 1980, at which time an extension until December 30, 1980 was consented to.

Defendants have moved to dismiss for lack of jurisdiction and for summary judgment. The Smith-Corona Group, Consumer Products Division, SCM Corporation (hereinafter, SCM) was allowed to intervene and filed a motion to dismiss. SCM, a domestic manufacturer of typewriters, was the petitioner in the administrative proceeding of which the May 9th final order was an outgrowth.

At the hearing on plaintiff’s motion for a preliminary injunction, responses to all pending motions were filed, following which some additional filings, mandatory and voluntary, were made. 6 Based upon all these papers and proceedings the Court summarizes the history of this dispute as follows:

On April 9, 1979, SCM filed a petition with the Commissioner of Customs for the initiation of an antidumping proceeding under 19 U.S.C. § 160(c) (1979) (Current version at 19 U.S.C. § 1673a(b)(l)). The Royal Administrator typewriter was included, among others, as the object of the petition. On May 18, 1979, the Treasury Department published a notice of the initiation of an investigation of whether the typewriters were being sold at less than their fair value (44 Fed.Reg. 29191). On November 15, 1979, it published notice of an extension of the investigation (44 Fed.Reg. 65853). On December 28,1979, it then issued a notice of the withholding of the appraisement of the typewriters based on its tentative determination that they were being sold at less than their fair value. (45 Fed.Reg. 1220).

Thereafter, on January 1, 1980, the new antidumping law (contained in the Trade Agreements Act of 1979, Pub.L. 96-39) became effective; on January 2, 1980, the Treasury Department’s responsibility for the administration of that law was transferred to the Commerce Department by the President’s Reorganization Plan No. 3 of 1979 (44 Fed.Reg. 69275 and 45 Fed.Reg. 9931) and on January 4, 1980, the Commerce Department referred the proceeding to The International Trade Commission for determination under 19 U.S.C. § 1673d (Section 735 of the Tariff Act of 1930, as added by Title I of the Trade Agreements Act of 1979) of whether a United States industry was being materially injured. Notice of the injury investigation was published by the ITC on January 17,1980 (45 Fed.Reg. 3401.)

On March 21, 1980, the Department of Commerce published a final determination under 19 U.S.C. § 1673d(a) that the typewriters involved were being sold at less than fair value (45 Fed.Reg. 28416) and the ITC followed on May 7,1980 with the publication of its final determination under 19 U.S.C. § 1673d(b), that the sales were causing material injury to an industry in the United States. (45 Fed.Reg. 30186).

The final determination of sales at less than fair value was directed to portable electric typewriters and made plain from its statement of reasons that the product of Silver Seiko, the manufacturer of the typewriter at issue, was included.

The final injury determination by the ITC specifically concluded that “[T]he Royal Administrator .... is appropriately considered a portable electric typewriter for the purposes of this investigation.”

On May 9, 1980, the Department of Commerce published a Final Antidumping Duty Order (45 Fed.Reg. 30613) under the authority of 19 U.S.C. § 1673e. 7 It directed Customs officers to assess antidumping duty against the merchandise subject to the previous withholding of appraisement and all future entries and to require the deposit of estimated antidumping duties on all the affected entries. The order was directed to *1011 portable electric typewriters and defined the term by reference to item 676.0510 of the Tariff Schedules of the United States, a statistical extension (for portable typewriters) of the TSUS item 676.05, covering all typewriters. 8 The description in the final order used the general language by which the subject of the administrative proceeding had been identified from the inception of the investigation.

Plaintiff had steadfastly argued before the Commerce Department and the ITC that the Royal Administrator was not a portable typewriter. During the pendency of the investigations it assertedly received some encouragement on that point from the National Import Advisory specialist of the Customs Service and had been permitted by the Customs Service to make a few of its entries under a non-portable statistical number.

Following the publication of the anti-dumping duty order, plaintiff continued to press its cause before the Department of Commerce in a 27 page letter of May 30, 1980. 9 The Department of Commerce forwarded that letter with a request for the advice of the Customs Service as to the proper classification, inter alia, of the Royal Administrator, and stated that “[i]f the models in question are classified under item 676.0540, TSUSA, [non-portable] they would not be within the scope of our Anti-dumping Duty Order and would not be subject to antidumping duties.” 10

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Royal Business MacHines, Inc. v. United States, 507 F. Supp. 1007, 1 Ct. Int'l Trade 80, 1 C.I.T. 80, 1980 Ct. Intl. Trade LEXIS 241 (cit 1980).

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