Skyview Cabinet USA, Inc. v. United States

745 F. Supp. 3d 1326, 2024 CIT 132
CourtUnited States Court of International Trade
DecidedNovember 27, 2024
Docket22-00080
StatusPublished

This text of 745 F. Supp. 3d 1326 (Skyview Cabinet USA, Inc. 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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Skyview Cabinet USA, Inc. v. United States, 745 F. Supp. 3d 1326, 2024 CIT 132 (cit 2024).

Opinion

Slip Op. No. 24-132

UNITED STATES COURT OF INTERNATIONAL TRADE

SKYVIEW CABINET USA, INC.,

Plaintiff,

v. Before: Stephen Alexander Vaden, UNITED STATES, Judge Defendant, Court No. 1:22-cv-00080 (SAV) and

MASTERBRAND CABINETS, INC.,

Defendant-Intervenor.

OPINION

[Sustaining Customs’ Remand Determination.]

Dated: November 27, 2024

Kyl J. Kirby, Kyl J. Kirby, Attorney and Counselor at Law, P.C., of Fort Worth, TX, for Plaintiff Skyview Cabinet USA, Inc.

Ioana C. Meyer, Trial Attorney, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Washington, DC, for Defendant United States. With her on the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General; Patricia M. McCarthy, Director; and Tara K. Hogan, Assistant Director, Commercial Litigation Branch; Chelsea A. Reyes and John M. Flanagan, Attorneys, Enforcement and Operations Office of the Chief Counsel, U.S. Customs and Border Protection.

Timothy C. Brightbill, Wiley Rein LLP, of Washington, DC, for Defendant-Intervenor MasterBrand Cabinets, Inc. With him on the brief were Elizabeth S. Lee and Laura El-Sabaawi. Court No. 1:22-cv-00080 (SAV) Page 2

Vaden, Judge: Plaintiff Skyview Cabinet USA, Inc. (Skyview) comes before

the Court once again to challenge U.S. Customs and Border Protection’s (Customs)

Remand Determination that Skyview evaded tariffs on its wooden cabinets. Like its

prior case before this Court, Skyview argues that Customs did not support its findings

with substantial evidence. For the reasons set forth below, Customs’ Remand

Determination is SUSTAINED.

BACKGROUND

The Court presumes familiarity with the facts of this case as set out in its

previous opinion and now recounts those facts relevant to the review of the Remand

Determination. See Skyview Cabinet USA, Inc. v. United States, No. 1:22-cv-00080,

47 CIT __, 2023 Ct. Intl. Trade LEXIS 95 (June 20, 2023) (Skyview I).

I. Procedural Background Prior to Remand

This case arises from the Department of Commerce’s (Commerce) antidumping

and countervailing duty orders on wooden cabinets and vanities from China. Wooden

Cabinets and Vanities and Components Thereof from the People’s Republic of China:

Antidumping Duty Order, 85 Fed. Reg. 22,126 (Dep’t of Com. Apr. 21, 2020); Wooden

Cabinets and Vanities and Components Thereof from the People’s Republic of China:

Countervailing Duty Order, 85 Fed. Reg. 22,134 (Dep’t of Com. Apr. 21, 2020)

(collectively, the Orders). MasterBrand alleged that Skyview attempted to evade the

Orders by transshipping Chinese cabinets through Malaysia via Rowenda Kitchen

Sdn Bhd (Rowenda), a Malaysian company. MasterBrand Allegation at 9, J.A. at

80,166, ECF No. 33. In its allegation, MasterBrand presented photographs taken by Court No. 1:22-cv-00080 (SAV) Page 3

a third-party market researcher who visited Rowenda’s facility in Malaysia. Id. at

80,239–243. Customs redacted these photographs as business confidential

information and provided a narrative description of what those photographs depicted.

Oral Arg. Tr. at 37:7–14, ECF No. 40; Resp. to Mot. for J. on the Agency R. at 10, ECF

No. 25. Although Customs used these photographs in its determination, Customs

only gave Skyview access to the public version of the record with the narrative

description. Pl.’s Reply at 10, ECF No. 31; Oral Arg. Tr. at 37:8–14, ECF No. 40;

Remand Determination at 2, ECF No. 53.

Skyview also presented its own photographs and videos to Customs depicting

Rowenda’s Malaysian facility. Skyview Req. for Information Resp., J.A. at 80,551–

554, 80,694–768, ECF No. 33. Skyview represented that Rowenda manufactured the

products at issue. See Compl. ¶ 11, ECF No. 2; Pl.’s Mot. for J. on Agency R. at 7–10,

ECF No. 30 (Pl.’s Br.). To prove Rowenda manufactured its cabinets, Skyview

claimed it sent a “local contact” to verify Rowenda’s production facility. Skyview Req.

for Information Resp., J.A. at 80,996–997, ECF No. 33. The only evidence Skyview

presented regarding the local contact’s efforts, however, was an airline ticket and

accompanying itinerary. Skyview Suppl. Req. for Information Resp., J.A. at 81,409–

413, ECF No. 33. No new photographs, videos, or affidavits emerged from the

contact’s visit.

After submitting its evidence allegedly depicting Rowenda’s manufacturing

process, Skyview changed its story. It now claimed that Rowenda did not

manufacture the cabinets alone; instead, Roxy Heritage Furniture Manufacturer Sdn Court No. 1:22-cv-00080 (SAV) Page 4

Bhd (Roxy Heritage) either manufactured or helped manufacture the wooden

cabinets at issue. Skyview Voluntary Submission, J.A. at 2,515–516, ECF No. 32.

According to Skyview, this switch was because Skyview only recently learned about

Roxy Heritage’s involvement. Id. at 2,507.

Customs finished its investigation and determined there was “substantial

evidence that … [Skyview] … evaded [the Orders].” Final Determination, J.A. at

81,613, ECF No. 33. Relevant to the Remand Determination, Customs found that

Skyview’s photographs and videos allegedly depicting Rowenda’s Malaysian

manufacturing facility were not credible. Id. at 81,618. Conversely, it found

MasterBrand’s photographs and videos to be reliable evidence showing a lack of

manufacturing capability at Rowenda’s factory. Id. at 81,620. Skyview never saw

MasterBrand’s photographs during the entire pendency of the original proceedings

before Customs. Oral Arg. Tr. at 64:20–65:6, ECF No. 40.

Skyview timely filed an action in this Court on March 10, 2022, challenging

Customs’ affirmative Final Determination of Evasion and the administrative review

affirming that determination. See Compl. ¶ 1, ECF No. 2. It alleged multiple claims,

including that Customs failed to support its Final Determination with substantial

evidence and that Customs violated Skyview’s due process rights by withholding the

business confidential information. Pl.’s Br. at 12–20, 30–34, ECF No. 30.

The Court held oral argument on March 30, 2023. ECF No. 39. The resulting

opinion sustained Customs’ Final Determination of Evasion. Skyview I, 47 CIT__,

2023 Ct. Intl. Trade LEXIS 95, at *46. Based on an assessment of both Customs’ Court No. 1:22-cv-00080 (SAV) Page 5

Final Determination of Evasion and its administrative review, this Court determined

that Skyview’s complaints were without merit. Id. at *17. The Court found,

“Although Customs redacted the adverse photos and videos of [Rowenda’s] Malaysia

facility as business confidential information, Skyview was on notice that it needed to

provide evidence that actual manufacturing occurred in Malaysia; and Skyview had

numerous opportunities to present contrary evidence refuting the allegation.” Id. at

*17–18. Skyview appealed to the United States Court of Appeals for the Federal

Circuit. Notice of Appeal, ECF No. 44.

II. Royal Brush Opinion from the Federal Circuit

Soon after Skyview appealed this Court’s decision, the Federal Circuit decided

Royal Brush Manufacturing v. United States. 75 F.4th 1250 (Fed. Cir. 2023). Royal

Brush concerned a pencil importer accused of violating the Enforce and Protect Act

by transshipping pencils from China through the Philippines to avoid antidumping

duties on pencils of Chinese origin.

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