2023 CIT 169
Ct. Int'l Trade2023Background
- Plaintiffs Ninestar Corporation and several Chinese corporate affiliates were added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List in June 2023; the Listing presumes imports by listed entities are prohibited under 19 U.S.C. § 1307 (section 307).
- UFLPA directs the interagency Forced Labor Enforcement Task Force (FLETF) to maintain the Entity List and requires U.S. Customs and Border Protection (CBP) to apply a rebuttable presumption that goods from listed entities are not entitled to entry.
- Plaintiffs sued in the U.S. Court of International Trade (CIT) and moved for a preliminary injunction to stay the Listing and bar enforcement actions premised on it, alleging arbitrary and capricious agency action under the APA.
- Defendants argued the CIT lacks subject-matter jurisdiction under 28 U.S.C. § 1581(i) because the Listing does not create an "embargo" or quantitative restriction—CBP enforcement decisions occur later and are rebuttable.
- The court limited its review to jurisdiction and held Plaintiffs are likely to establish that the UFLPA is a law "providing for . . . embargoes" within § 1581(i), so challenges to agency action implementing the UFLPA fall within the CIT’s exclusive jurisdiction; the court made no merits findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the UFLPA Listing Decision falls within CIT exclusive jurisdiction under 28 U.S.C. § 1581(i) (embargoes) | UFLPA creates a congressionally mandated prohibition on importation for listed entities (a zero-quantity restriction), so the CIT has exclusive jurisdiction. | The Listing is only a rebuttable presumption and does not itself impose a quantitative embargo; any exclusion would be a later CBP decision. | Court: UFLPA’s statutory presumption operates as an embargo under K Mart’s definition; Plaintiffs likely can establish § 1581(i) jurisdiction. |
| Whether the CIT’s § 1581(i)(1)(D) jurisdiction over "administration and enforcement" covers UFLPA challenges | UFLPA is enacted to strengthen enforcement of section 307 and therefore falls within administration/enforcement jurisdiction. | (Implicit) If Listing is not an embargo, § 1581(i)(D) may not apply. | Court: Even if one insisted the Listing is merely a presumption, § 1581(i)(D) covers administration and enforcement tied to section 307, so CIT jurisdiction is proper. |
Key Cases Cited
- Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7 (U.S. 2008) (preliminary injunction standard)
- K Mart Corp. v. Cartier, Inc., 485 U.S. 176 (U.S. 1988) (defines an embargo as a government-imposed zero quantitative restriction)
- U.S. Ass'n of Imps. of Textiles & Apparel v. U.S. Dep't of Com., 413 F.3d 1344 (Fed. Cir. 2005) (court should consider jurisdiction before merits on preliminary relief)
- Conoco, Inc. v. U.S. Foreign-Trade Zones Bd., 18 F.3d 1581 (Fed. Cir. 1994) (CIT expertise and consolidation rationale for exclusive jurisdiction)
- Int'l Lab. Rts. Fund v. United States, 391 F. Supp. 2d 1370 (D.D.C. 2005) (forced-labor/import prohibition cases within embargo/jurisdictional framework)
- McKinney v. U.S. Dep't of Treasury, 799 F.2d 1544 (Fed. Cir. 1986) (forced-labor enforcement and CIT jurisdictional precedent)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (U.S. 1994) (federal courts are courts of limited jurisdiction)
