West Coast Industries, Inc. v. United States

3 Ct. Int'l Trade 73
CourtUnited States Court of International Trade
DecidedMarch 18, 1982
DocketCourt No. 81-5-00599
StatusPublished

This text of 3 Ct. Int'l Trade 73 (West Coast Industries, 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.

Bluebook
West Coast Industries, Inc. v. United States, 3 Ct. Int'l Trade 73 (cit 1982).

Opinion

Richardson, Judge:

In this action brought by plaintiffs (importer and exporter respectively) pursuant to 19 U.S.C. § 1581(c) for a limited review of an affirmative countervailing duty order made by the International Trade Administration of the Department of Commerce [“Commerce”] to the extent that the order failed to exclude plaintiff Manufacturas Industriales de Nogales, S.A. [“M.I.N.S.A.”] from its operation, the defendant has moved for a protective order barring disclosure to plaintiffs of all or part of some 17 documents comprising part of the administrative record and identified as documents numbered 1, 25, 35A, 57, 58A, 64, 70, 76, 77, 79-81, 83, 85, 88, 90, and 99. And plaintiffs have cross-moved for a protective order granting access to plaintiffs to the same documents or parts thereof as are the subject of defendant’s motion, with the exception of document numbered 58A which they concede to be nondiscoverable.

It is admitted in the pleadings that the Mexican tax rebate certificate program [“CEDI”] was found by Commerce to constitute a subsidy within the meaning of 19 U.S.C. § 1303, and that the ámount of the subsidy on exports of leather wearing apparel from Mexico to the United States was 5.2 per centum ad valorem. Plaintiff West Coast Industries, Inc. is an importer and plaintiff M.I.N.S.A. an exporter of leather wearing apparel of Mexican manufacture. And the disputed documents consist of internal communications prepared by Department of Commerce or Department of State staff members more or less contemporaneously with the countervailing duty investigation conducted by Commerce in connection with the exportation of leather wearing apparel from Mexico to the United States, and covering a period between 1979 and 1981.

In its moving papers defendant contends that the disputed documents are privileged documents, were treated as such in the administrative proceedings, and urge that the same status be accorded these documents before the court, citing 19 U.S.C. § 1516a(b)(2)(B) and 28 U.S.C. § 2635(b)(2). Defendant further contends that disclosure of the contents of these documents would not aid plaintiffs in the prosecution of this action, the object of which action defendant perceives to be addressed to the insufficiency of the responses of the Mexican government to Commerce’s request for information as to how the Mexican subsidy program functioned [noting the fact of the Mexican government’s opposition to the re[74]*74lease of the identity of exporters not receiving CEDIs as only fueling the mystery of its subsidy program.]

However, in the complaint plaintiffs espouse an even narrower object of the instant action, namely, a judicial determination exempting the exporter M.I.N.S.A. from Commerce’s countervailing duty order as well as granting plaintiffs auxiliary relief flowing from such a judicial determination, by reason of what plaintiffs perceive to be Commerce’s error in not excluding M.I.N.S.A. from the countervailing duty order. And, in furtherance of this objective, plaintiff, in its cross-moving papers, seeks disclosure of these privileged documents to ascertain if Commerce’s alleged failure to exclude M.I.N.S.A. from this order was based upon the attainment of some policy objective rather than upon administrative interpretation of United States countervailing duty law and regulations— calling attention to M.I.N.S.A.’s application to Commerce for exclusionary treatment, and also to the fact that even the defendant acknowleged the fact that an exporter of leather wearing apparel from Mexico must take such a step in order to be exculpated from operation of Commerce’s order. [Answer, ¶[15]

Even as to documents accorded a privileged or confidential status in the administrative proceeding, it is to be noted that 19 U.S.C. § 1516a(b)(2)(B) and 28 U.S.C. § 2635(b)(2) also authorize the court to examine the documents in camera, and where appropriate, to provide for their disclosure under protective order. Indeed, the rule could not be otherwise, if judicial review on the administrative record is to be viewed as the meaningful substitute for de novo consideration that the Congress intended. See: H. Rept. No. 96-317 to accompany H.R. 4537, page 181, 96th Cong. 1st Sess. (July 3, 1979). In this case a balancing of the needs of the plaintiffs in ascertaining the existence of information pertinent to the case against the defendant’s desire to preserve the documents inviolate compels just such an in camera examination of the disputed documents which the court forthwith undertakes to do.

Aside from the difficulty encountered by the court in attempting to reconcile plaintiffs’ complaint for plenary remedial relief to the constraints of a section 1516a review proceeding, the court’s more immediate concern, for purposes of the instant motions, is as to the relevancy of the disputed documents toward attainment of the principal object of the action, as the court perceives the action, namely, a judicial determination as to whether Commerce had any obligation to exclude plaintiff M.I.N.S.A. from the operation of its final affirmative countervailing duty order.

Commerce, acting under authority given it in 5 U.S.C. § 301, and the Trade Agreements Act of 1979, Pub. L. 96-39, section 3(b), 93 Stat. 148, adopted numerous regulations to deal with its newly acquired jurisdiction in countervailing duty proceedings, among which is 19 CFR § 355.38. Section 355.38 reads:

[75]*75Any firm which does not benefit from a subsidy alleged or found to have been granted to other firms producing or exporting the merchandise subject to the investigation shall, on timely application therefor, be excluded from a Countervailing Duty Order. An application shall be considered timely if made within 30 days after publication of a “Notice of Initiation of Countervailing Duty Investigation.” The name of any such firm which is determined to have satisfied the requirements for exclusion will be published in the Federal Register.

In the pleading before the court plaintiffs have alleged [Complaint, ¶[3], and defendant has admitted [Answer, ¶3], that notice of initiation of the subject countervailing duty investigation was published in the Federal Register on November 12, 1980 [45 FR 74743]. Moreover, plaintiffs have alleged [Complaint, ¶5], and defendant has called attention to the administrative record [Answer, [[5 — Document No. 73, dated March 9, 1981, of the INDEX FOR ADMINISTRATIVE RECORD] wherein it is indicated that plaintiffs made application to Commerce on March 9, 1981 (considerably beyond the 30 days from November 12, 1980, the date within which plaintiff was permitted to file), for exclusion of M.I.N.S.A. from Commerce’s final affirmative countervailing duty order.

After careful examination in camera

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Related

§ 1303
19 U.S.C. § 1303
Boarding vessels
19 U.S.C. § 1581(c)
Filing of official documents
28 U.S.C. § 2635(b)(2)

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Bluebook (online)
3 Ct. Int'l Trade 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/west-coast-industries-inc-v-united-states-cit-1982.