DOJ to CIT: Toss Case Seeking to Compel CBP to Respond to Requests Over Section 232 Evasion

The Court of International Trade should throw out Wheatland Tube's case intended to compel CBP to respond to the company's requests for information and a tariff classification ruling because Wheatland has received all the relief to which it is legally entitled, the Department of Justice said in a Feb. 2 motion to dismiss the case. CBP has already responded to this RFI and the petition for a tariff classification ruling over the company's electrical conduits from Mexico, DOJ said. CBP also told Wheatland it agrees with the company's stance on the correct classification of its steel conduit pipe and was defending this position in separate litigation (Wheatland Tube Co. v. United States, CIT #22-00004).

Wheatland filed its case Jan. 12, seeking a writ of mandamus compelling CBP's response and alleging that certain importers, namely Shamrock Building Materials, are mislabeling their imports to qualify for an exception to Section 232 steel and aluminum duties (see 2201120064). At issue are two Harmonized Tariff Schedule subheadings. The Section 232 duties apply to HTS subheading 7306.30.5028 but not to subheading 8547.90.0020.

Wheatland said Shamrock in 2018 began importing electrical conduit from Mexico that it allegedly misclassified under the 8547.90.0020 subheading to avoid paying the duties. In 2019 the U.S. and Mexico struck an agreement eliminating the Section 232 duties. However, in 2020, the U.S. and Mexico held consultations to address recent surges in Mexican imports of three steel products. As a result, Mexico agreed to use a strict export licensing system for certain products, among them goods brought in under subheading 7306.30.5028.

Wheatland alleged that Shamrock began misclassifying its goods as being under HTS subheading 8547.90 two months after this regime came into effect. Wheatland then went to CBP, filing an RFI and petition for a tariff classification ruling. CBP didn't answer, leading Wheatland file suit at CIT. DOJ now wants the case tossed since CBP responded to both of Wheatland's requests. "Because Wheatland has already received all the relief to which it is legally entitled, there is no further relief that this Court can grant, and this action should be dismissed," the motion said. Wheatland also sought a preliminary injunction -- a move DOJ also contested in its brief, arguing that the company has failed to show it will suffer irreparable harm if CBP is not enjoined or that it's likely to succeed on the merits of the case.