AD/CVD Assessment Challenge Should Be Tossed Because Importer Didn't Pay Duties, DOJ Argues

A suit at the Court of International Trade challenging CBP's assessment of antidumping and countervailing duties on imported sinks and kits should be dismissed because the plaintiff failed to pay duties before filing the case, DOJ said in a heavily redacted May 5 motion. DOJ asked the court to dismiss the case for lack of subject matter jurisdiction and to dismiss one count of the complaint for failure to state a claim for which relief can be granted (RH Peterson Co. v. U.S., CIT # 20-00099).

The court lacks jurisdiction to hear the complaint because RHP failed to pay “all liquidated duties, charges, or exactions” before it filed its summons, DOJ argued. Because RHP has not paid all liquidated duties, it has not satisfied the payment requirements and CIT lacks jurisdiction, DOJ said. Payments made in connection with pending prior disclosures are not credited toward duties owed on liquidated entries because they are "separate and distinct administrative processes," DOJ said.

Second, DOJ argued RHP already had received part of the relief it requested. Count I of RHP’s complaint alleged that Chinese components of the imported finished sinks and kits were specifically excluded from the scope of the ADD/CVD orders. RHP stated that one protest was denied but did "not acknowledge that protest was allowed in part," DOJ said. In 2019, CBP reliquidated one of the entries and reduced the AD/CVD assessed value for the four non-Chinese components, the agency said. One count of the complaint "improperly challenges an approved protest," DOJ said.

RHP's complaint challenged CBP’s denial of two protests, which contested the agency’s assessment of AD/CVD on sinks and kits imported from Taiwan between November 2016 and June 2017. The sinks incorporate Chinese components, some of which RHP said are expressly excluded from the scope of the AD/CVD orders and should have been excluded from the assessments (see 2211300034).