Tembec, Inc. v. United States

475 F. Supp. 2d 1393, 31 Ct. Int'l Trade 241, 31 C.I.T. 241, 29 I.T.R.D. (BNA) 1458, 2007 Ct. Intl. Trade LEXIS 27
United States Court of International Trade·Decided February 28, 2007·No. Consol 05-00028·Published·Cited by 13 cases

Opinion

OPINION AND ORDER

PER CURIAM.

On October 12, 2006, Defendant the United States filed a motion pursuant to USCIT Rule 12(b)(1) seeking dismissal of the case that resulted in the issuance of Tembec, Inc. v. United States, 30 CIT -, 461 F.Supp.2d 1355 (2006) (“Tembec II”). See Def.’s Mot. Dismiss. By its motion, Defendant maintained that the matter had been rendered moot by the action of the United States Department of Commerce (“Commerce”) on October 12, 2006, revoking the contested antidumping and countervailing duty orders covering imports of Canadian softwood lumber into the United States. See Def.’s Mot. Dismiss 2-3; see also Certain Softwood Lumber Products from Canada, 71 Fed.Reg. 61,714 (ITA Oct. 19, 2006) (notice) (revok *1396 ing the underlying antidumping duty order) (“AD Order Revocation”); Certain Softwood Lumber Products from Canada, 71 Fed.Reg. 61,714 (ITA Oct. 19, 2006) (notice) (revoking the underlying countervailing duty order) (“CVD Order Revoca tion”); Certain Softwood Lumber Products from Canada, 67 Fed.Reg. 36,068 (ITA May 22, 2002) CAD Order”); Certain Softwood Lumber Products from Canada, 67 Fed.Reg. 36,070 (ITA May 22, 2002) (“CVD Order”) (collectively, the “Orders ”).

The following day, October 13, 2006, we issued Tembec II, which directed that “all of Plaintiffs’ unliquidated entries, including those entered before, on, and after November 4, 2004, must be liquidated in accordance with the final negative decision of the NAFTA panel,” Tembec II, 30 CIT at -, 461 F.Supp.2d at 1367, and further ordered Commerce to instruct the Bureau of Customs and Border Protection (“Customs”) to “refund, with interest, all [anti-dumping duty] and [countervailing duty] cash deposits on all unliquidated entries of softwood lumber from Canada made on or after May 22, 2002.” See J. Tembec II, at 1357.

On November 13, 2006, in a post-judgment motion styled as one seeking reconsideration and vacatur of Tembec II, Defendant renewed the substance of its October 12, 2006, motion to dismiss. See Def.’s Mot. Recons. & Vacate Ternbec II 1 (“Def.’s Mot. Recons. & Vacate”) (asking the court pursuant to USCIT R. 59 to “reconsider its decision in [Tembec II], and vacate that decision and judgment as moot”). By its motion, Defendant raised the additional claim that the court committed an error of law by not addressing in Ternbec II “the Court’s jurisdiction to order relief that had already been provided.” Def.’s Mot. Recons. & Vacate 7.

Jurisdiction lies pursuant to 28 U.S.C. § 1581(i) (2000). See Tembec, Inc. v. United States, 30 CIT -, -, 441 F.Supp.2d 1302, 1315-27 (2006) (“Tembec I”). 1 Based on our conclusion that the matter was not moot on October 13, 2006, we deny both Defendant’s motion to dismiss and its motion to reconsider and vacate the court’s decision in Ternbec II. Because we find that the liquidation instructions of October 31, 2006, which resulted from a prejudgment agreement entered into by the Governments of the United States and Canada, provided Plaintiffs with the relief they sought, the Tembec II judgment is vacated. 2

*1397 I. Background

On July 12, 2006, the court issued Tem-bec I, its first decision in this case, which found invalid the actions of the United States Trade Representative (“USTR”) ordering the implementation of a United States International Trade Commission affirmative threat of material injury determination with respect to imports of Canadian softwood lumber into the United States. In Tembec I, the court reserved decision on the remedy to be imposed. See Tembec I, 30 CIT at -, 441 F.Supp.2d at 1343.

On September 12, 2006, the Governments of Canada and the United States signed an agreement designed to settle the softwood lumber dispute, albeit at an undetermined “Effective Date.” See Softwood Lumber Agreement Between the Government of Canada and the Government of the United States of America (Sept. 12, 2006), Art. III, as amended by Agreement Between the Government of the United States of America and the Government of Canada Amending the Softwood Lumber Agreement Between the Government of the United States of America and the Government of Canada Done at Ottawa on 12 September 2006 (Oct. 12, 2006) (“Agreement”). By its terms, the Agreement was to enter into effect after the parties exchanged letters certifying that the conditions set out in Article II thereof were met. See Agreement, Art. II (stating, among other things, that the Agreement would not have legal effect unless and until “the CIT has modified the injunctions against liquidation issued in [West Fraser Mills Ltd. v. United States, Consol. Ct. No. 05-00079] to permit the United States to fulfill its obligations under Article III”). The certifying letters were exchanged on October 12, 2006. 3 Thus, the Governments of Canada and the United States attested to each other that the Article II conditions had been satisfied, even though the injunctions on liquidation present in West Fraser Mills remained in place. See W. Fraser Mills, Consol. Ct. No. 05-00079 (CIT Mar. 7, 2005) (order granting preliminary injunction) at 2 (enjoining Defendant, during the pendency of the action, from liquidating entries of Canadian softwood lumber that “were entered, or withdrawn from warehouse, for consumption during the period May 22, 2002, through April 30, 2003”); W. Fraser Mills, Consol. Ct. No. 05-00079 (CIT Apr. 1, 2005) (order granting preliminary injunction) at 2 (same); W. Fraser Mills, Consol. Ct. No. 05-00079 (CIT May 20, 2005) (order granting preliminary injunction) at 3 (same).

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Tembec, Inc. v. United States, 475 F. Supp. 2d 1393, 31 Ct. Int'l Trade 241, 31 C.I.T. 241, 29 I.T.R.D. (BNA) 1458, 2007 Ct. Intl. Trade LEXIS 27 (cit 2007).

475 F. Supp. 2d 1393 (Tembec, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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