Importer Opposes US Bid to Withdraw Admission in Customs Suit on GPUs

Importer Atlas Power opposed the government's motion to withdraw one of its admissions of fact in a customs case on the assessment of Section 301 tariffs on graphics processing units. The U.S. moved the Court of International Trade to withdraw its admission that the subject merchandise is made "of parts of or accessories to ADP machines classified under subheading 8473.30.1180 of the HTSUS." Atlas said that its goods entered under subheading 8473.30.1180 and CBP didn't "object to the classification during the administrative proceedings leading to this litigation" (Atlas Power v. United States, CIT # 23-00084).

The U.S. also didn't assert a counterclaim or otherwise say it would object to the classification of these goods in the present case.

Nevertheless, the government said a "possible alternative classification has come to light as a result of the documents produced in discovery." Atlas argued that the U.S. has yet to disclose this theory to the importer or the court, despite this theory being the basis of the government's motion to withdraw its admission regarding the ADP machines.

Atlas said the U.S. either "has no alternative classification theory" or is "deliberately delaying disclosure of its alternative classification theory until some later time when Plaintiff will not have an adequate opportunity to conduct discovery related to the mystery theory or seek expert advice in evaluating" the theory. This "litigation by tactical surprise" is at odds with court rules, the brief said.