US Moves to Toss Customs Suit, Says Importer Misrepresented Injunction on Liquidation

The U.S. filed a motion to dismiss a customs suit from importer Acquisition 362, doing business as Strategic Supply, claiming that for the 33 entries at issue, the lawsuit challenging the denied protests was untimely, the importer lacked standing to sue or that the company failed to state a claim for which relief can be granted (Acquisition 362 v. United States, CIT # 24-00011).

The suit concerns 33 entries of passenger vehicle and light truck tires from China subject to a 64.57% antidumping duty rate. Strategic Supply said CBP prematurely liquidated the entries and that they should have remained suspended at the 8.72% cash deposit rate pending the result of a U.S. Court of Appeals for the Federal Circuit decision in YC Rubber Co. v. U.S.

In moving to dismiss the case, the government said that for two of the protests, the lawsuit was untimely filed since it came after the 180-day window to sue following a denied protest. Two of the protests required the importer to sue by Dec. 26, 2023, though the suit came on Jan. 18, 2024.

For four of the entries, the U.S. said Strategic Supply lacked standing since it wasn't the "protestant." One of the protests doesn't relate to an entry of goods entered by Strategic Supply, and for the other three, protests were filed by Great American Insurance Co. but also cover entries included in other protests filed by Strategic Supply.

"Because plaintiff lacks standing with respect to the three protests filed by Great American, they are improperly summonsed in this action and should be dismissed from the case," the brief said.

Regardless of these defects, the U.S. also claimed that the importer failed to state a claim for which relief can be granted since the injunction issued under YC Rubber doesn't extend to Strategic Supply's entries. CBP liquidated the plaintiff's entries under instructions from the Commerce Department, which said that for all passenger vehicle and light truck tire shipments from exporters Shandong Hengyu Science & Technology Co. and Shandong Wanda Boto Tyre Co., CBP should assess a 64.57% AD rate.

Strategic Supply said the YC Rubber injunction barred liquidation of its goods, though the government said the company "fails to mention in its complaint that the referenced statutory injunction only enjoined the liquidation of entries exported by Hengyu and Boto that were imported by Sutong China Tire Resources." Strategic Supply isn't "mentioned anywhere in the statutory injunction" or Commerce's instructions, the brief said.