Recent CIT Ruling Finding US Can't File Counterclaim in Customs Case 'Persuasive,' Importer Says

A recent Court of International Trade opinion finding that the U.S. cannot assert a counterclaim in customs classification litigation "is persuasive" in importer Second Nature Designs' case, the plaintiff argued in a July 20 notice of supplemental authority at the trade court. In Second Nature's case, the importer is seeking a different classification for its dried botanical entries. The U.S. has argued it can file counterclaims seeking its own preferred classification of the dried botanicals (see 2203230024). In the recent CIT opinion, Judge Claire Kelly held that the U.S. cannot make counterclaims in customs cases because there is no statutory authority to do so, redenominating the counterclaim as a defense (see 2207200052). Second Nature said in its notice that while the opinion is not binding, it's persuasive over the U.S.'s ability to assert a counterclaim (Second Nature Designs v. U.S., CIT #21-00271).