Techsnabexport, Ltd. v. United StatesTechsnabexport, Ltd. v. United States
OPINION
Pursuant to Rule 65(a) of the rules of this court, Ukraine, the Republic of Tajikistan, Techsnabexport Ltd. (“TENEX”), 1 NUEXCO Trading Corporation (“NUEX-CO”) and Globe Nuclear Services and Supply GNSS (“GNSS”) (collectively “plaintiffs”), 2 request the court to grant a preliminary injunction enjoining the Department of Commerce, International Trade Administration (“Commerce”), from continuing its less than fair value (“LTFV”) investigation initiated in Initiation of Antidumping Duty Investigation: Uranium from the Union of Soviet Socialist Republics, 56 Fed.Reg. 63,711 (Dep’t Comm. Dec. 5, 1991), until the court renders final judgment on plaintiffs’ request for permanent injunctive relief and declaratory judgment. 3
Plaintiffs allege that Commerce’s March 24, 1992 decision to continue the investigation violates the antidumping law and is
Background
On November 8, 1991, the Ad Hoc Committee of Domestic Uranium Producers and the Oil, Chemical and Atomic Workers International Union (“petitioners”) filed a petition with Commerce and the International Trade Commission (“ITC”) requesting initiation of an antidumping duty investigation for imports of uranium products from the USSR and “each and every Republic which is ... a member” of the USSR. 4 On December 5,1991, Commerce published notice in the Federal Register that it was initiating an antidumping duty investigation of uranium imports from the USSR. 56 Fed. Reg. 63,711. The period of investigation covered imports of uranium from June 1991 through November 1991.
On November 19, 1991, ITC published notice that it was initiating its preliminary investigation. Uranium from the USSR, 56 Fed.Reg. 58,397 (Int’l Trade Comm. Nov. 19, 1991). On December 23, 1991, ITC made a preliminary affirmative injury determination. Uranium from the USSR, USITC Pub. 2471, Inv. No. 731-TA-539 (Dec.1991).
During the last several months of 1991, the USSR rapidly moved toward dissolution. Tajikistan declared its independence on September 9, and the Ukraine voted in favor of independence on December 1. The USSR ceased to exist on December 25, 1991. In view of the dissolution of the USSR, counsel for TENEX, NUEXCO and GNSS (“company respondents” or “company plaintiffs”) requested on January 10, 1992, that Commerce terminate the investigation. While this matter was pending, Commerce issued questionnaires to the company respondents on January 16 and received the responses on February 21 and 28, and March 13.
During the last weeks of January, Commerce also issued questionnaires to the twelve newly-created republics. These questionnaires were sent to the Deputy Trade Representative, of the Russian Federation in Washington, D.C. 5 Commerce stated that it expected that the Deputy Trade Representative would transmit the copies to each of the new republics. Upon the refusal of the Russian Deputy Trade Representative to assume responsibility for proper delivery of the questionnaires to the republics, Commerce sent a copy of the questionnaire to the United Nations Mission of Ukraine. 6 For the other countries, including Tajikistan, it sent copies to the U.S. Embassy in Moscow, to be delivered to the countries’ permanent representatives to the Russian Federation. 7
On March 24, 1992, Commerce issued an internal memorandum that stated its intent to continue the investigation against the independent republics. In this memorandum, Commerce stated that the antidump-ing law does not require rescission of an invéstigation when the country named in the petition ceases to exist. Commerce
On April 1, 1992, Commerce published notice that it was extending the deadline for the preliminary determination in this matter until May 18, 1992 because the investigation was “extraordinarily complicated.” Postponement of Preliminary Antidumping Duty Determination: Uranium from the Former Union of Soviet Socialist Republics (USSR), 57 Fed.Reg. 11,064, 11,065 (Dep’t Comm. Apr. 1, 1992). Commerce explained that it had been very difficult to communicate with the new republics. Commerce also restated its intention to continue the investigation.
On March 30,1992, Commerce mailed the petition, initiation notice, questionnaire, and other memoranda to the governments of the independent republics. The permanent representatives of the independent states in Moscow were also served by hand with most of these documents. The deadline for submitting information was extended to April 15. The sovereign plaintiffs in this action have not responded to the questionnaires.
Discussion
1. This court’s jurisdiction under 28 U.S.C. § 1581(i).
Plaintiffs carry the burden of demonstrating that jurisdiction exists.
McNutt v. General Motors Acceptance Corp.,
Section 1581(i)(4) may be invoked as a basis for subject matter jurisdiction when another subsection of § 1581 is unavailable or the remedy provided by the other subsection is “manifestly inadequate.”
See National Corn Growers Ass’n v. Baker,
The United States does not seriously dispute that
Asociacion Colombiana de Exportadores de Flores (Asocoflores) v. United States,
The United States likens this case to challenges for failure to exclude a party from an investigation.
See e.g., Macmillan Bloedel,
16 CIT-, Slip Op. 92-67. A decision to exclude a particular party was one of the ordinary discretionary decisions based on particular fact patterns envisioned by Congress when it enacted 28 U.S.C. § 1581(c). Such decisions ordinarily do not call into question the underlying validity of the entire investigation, as does the case at hand. Section 1581(i)(4) was enacted to ensure judicial review in the Court of International Trade for various situations involving import laws for which Congress expected judicial review, but which were too unique or varied for specific definition.
See American Ass’n of Exporters & Importers v. United States,
As the parties apparently recognize, this action is similar to
Carnation
and
Asocof-lores
in that plaintiffs challenge the legality of the proceedings, rather than particular determinations within the proceedings, and demand to be relieved of the obligation to participate in proceedings they find statutorily and constitutionally infirm. Furthermore, there is no guarantee that an adverse appealable decision will result from these proceedings. Stare decisis counsels adherence to prior determinations of this court which hold that jurisdiction exists to hear challenges to the validity of antidumping proceedings prior to their completion if the opportunity for full relief may be lost by awaiting the final determination.
10
See American Lamb Co. v. United States,
Defendants have also raised the argument that there has not been an exhaustion of administrative remedies. The court has found that under the facts at hand further exhaustion is not required as a statutory prerequisite to § 1581(i) jurisdiction. The remaining question is whether further exhaustion is required as a discretionary matter. Under the exhaustion of remedies doctrine, “judicial review of administrative action is inappropriate unless and until the person seeking to challenge that action has utilized the prescribed administrative procedures for raising the point.”
Sharp Corp. v. United States,
The statutory provision governing exhaustion in actions commenced under § 1581(i) is 28 U.S.C. § 2637(d), which provides that the court shall require exhaustion of administrative remedies “where appropriate.” 28 U.S.C. § 2637(d) (1988).
11
Plaintiffs in this case have established that they fall within an exception to the doctrine. It is well settled that a plaintiff need not exhaust administrative remedies where invoking such remedies would be futile.
Asociacion Colombiana de Exportadores de Flores v. United States,
In short, the issue of statutory authority to proceed has been resolved by the administrative agency as definitively as is possible. These are not procedural and methodological issues which are yet to be decided in a final form by the agency. No further exhaustion of administrative remedies is required.
2. Injunctive relief.
In order to grant plaintiffs’ request for preliminary relief, the court must balance the following four factors: 1) likelihood of success on the merits; 2) the threat of immediate irreparable harm if the requested relief is denied; 3) the balance of the hardships on the parties; and 4) the public interest in issuing the requested relief.
Matsushita Elec. Industrial Co. v. United States,
The plaintiffs allege irreparable harm based on deprivation of constitutional due process rights. Deprivation of constitutional rights has been found to constitute irreparable harm sufficient to require immediate relief.
See e.g., Bowman v. Township of Pennsauken,
The Court of Appeals for the Federal Circuit has noted that for an interest to be protected by the Constitution, it must be “some interest worthy of protecting.”
American Ass’n of Exporters,
In
American Ass’n of Exporters,
the appellate court found that a trade association representing domestic importers and retailers of textile and apparel products had no right to challenge on due process grounds certain actions taken by the government pursuant to international agreements. The court noted that “[tjhose seeking constitutional protection under the due process clause must point to a ‘legitimate claim of entitlement’ prior to any consideration of the Government’s constitutional obligations.”
Likewise, the “interested party” provision of the antidumping law does not create any interest in or right to access the United States market. See 19 U.S.C. §§ 1677(9)(A); 1677(9)(B) (1988). Rather, it defines who may participate in an anti-dumping investigation, and establishes statutory procedural requirements for the conduct of an antidumping proceeding. It is far from clear that a constitutional property right may be derived from this provision of the antidumping laws.
Several cases in this court, however, have recognized, without detailed explanation of the property interest involved, that due process rights stem from statutes involving imports.
See e.g., Koyo Seiko Co. v. United States,
16 CIT-,-,
Even assuming that plaintiffs could establish the existence of some constitutionally protected property right based upon present business interests or statutory rights, plaintiffs failed to prove the existence of constitutional harm. Procedural due process is not an inflexible, absolute standard.
See Board of Curators of the Univ. of Mo. v. Horowitz,
First, if a property right exists, it is not the type of interest which is so vital that the most stringent type of process must be provided.
See Mathews v. Eldridge,
The sovereign plaintiffs argue further that by continuing this investigation Commerce has placed them in an inferior position which could permanently damage their credibility in the world trading community. This contention is nothing more than a general allegation of harm, lacking even the support of an affidavit. The court may not grant preliminary relief based upon unsupported allegations.
As proof of irreparable injury, company plaintiffs have submitted affidavits alleging that because of the ongoing proceedings government officials of the independent republics are hesitant to establish long term business relationships with the company plaintiffs because they are afraid of adverse effects on their ability to export their uranium to the United States through the company plaintiffs. Allegations of harm to potential future business relations are too speculative to constitute irreparable harm. Company plaintiffs have not put forth “probative evidence” demonstrating irreparable harm.
See Nat’l Hand Tool Corp. v. United States,
14 CIT -,-,
As to the balance of hardships, at this point it is impossible to determine if it is plaintiffs or the petitioning domestic industry which is suffering the greater harm. The domestic industry has endured numerous delays in its quest to obtain relief. There seems to be no dispute that it is beleaguered. Rather, plaintiffs allege that the domestic industry is not simply beleaguered but dead and, therefore, logically can suffer no harm. The court has been presented insufficient evidence to resolve this matter. As plaintiffs have the burden on this issue, the hardships are presumed to balance. Even if the court is in error with respect to the issue of irreparable harm based on constitutional deprivation, plaintiffs have demonstrated no hardship which would warrant preliminary relief.
Finally, the court must consider the public interest. The issues of statutory interpretation involved here are extremely complicated and of great importance to all of the parties, sovereign and otherwise. In view of the lack of imminent irreparable harm or demonstrable hardship, it is inappropriate to resolve them in a hurried manner 17 or according to a likelihood of success on the merits standard. They should be definitively resolved as soon as possible.
Accordingly, plaintiffs’ motion for preliminary injunctive relief is denied. The parties shall consult on a further briefing schedule. The results of such consultation
Notes
. On January 27, 1992, Techsnabexport Ltd., a joint stock company registered in the Russian Federation, replaced V/O Techsnabexport, an all-union export sales and marketing organization.
. Although Energy Fuels Nuclear, Inc. is apparently not a party to this action, it is mentioned as a respondent in TENEX’s submissions to Commerce.
.On May 11, 1992, the court consolidated Court No. 92-04-00243, an action brought by the sovereign plaintiffs with Court No. 92-04-00248, an action brought by the nonsovereign plaintiffs, TENEX, the sole official exporter during the period of investigation, NUEXCO, the sole U.S. importer during the period of investigation and GNSS. On that same date, the court denied a motion to intervene filed by the Russian Federation as untimely.
. In their petition, petitioners stated their intent to include each of the individual republics so that if any of the republics withdrew from the USSR, the domestic industry would not be denied relief.
. Commerce submitted these questionnaires to the Russian Embassy under the assumption that the Russian Embassy was acting as liaison with the independent republics.
. The questionnaire letter was dated January 29, 1992. In a letter dated February 3, 1992, Ukraine acknowledged receipt of the questionnaire.
. Tajikistan received a copy of the questionnaire in mid-February through its authorized representative to the Russian Federation.
. 28 U.S.C. § 1581(i) provides as follows:
(i)In addition to the jurisdiction conferred upon the Court of International Trade by subsections (a)-(h) of this section and subject to the exception set forth in subsection (j) of this section, the Court of International Trade shall have exclusive jurisdiction of any civil action commenced against the United States, its agencies, or its officers, that arises out of any law of the United States providing for—
(1) revenue from imports or tonnage;
(2) tariffs, duties, fees, or other taxes on the importation of merchandise for reasons other than the raising of revenue;
(3) embargoes or other quantitative restrictions on the importation of merchandise for reasons other than the protection of the public health or safety; or
(4) administration and enforcement with respect to the matters referred to in paragraphs (1) — (3) of this subsection and subsections (a)-(h) of this section.
28 U.S.C. § 1581(i) (1988).
. Pursuant to 28 U.S.C. § 1581(c), this court has jurisdiction over all actions commenced under § 516A of the Tariff Act of 1930. Section 516A of the Tariff Act of 1930 as amended, 19 U.S.C. § 1516a provides, in part, as follows:
Judicial review in countervailing duty and antidumping duty proceedings ...
(B) Reviewable determinations
The determinations which may be contested under subparagraph A are as follows:
(i) Final affirmative determinations by the administering authority and by the Commission under section 167Id or 1673d of this title, including any negative part of such a determination (other than a part referred to in clause (ii)).
(ii) A final negative determination by the administering authority or the Commission under 1671d or 1673d of this title, including, at the option of the appellant, any part of a final affirmative determination which specifically excludes any company or product.
(iii) A final determination, other than a determination reviewable under paragraph (1), by the administering authority or the Commission under section 1675 of this title.
(iv) A determination by the administering authority, under section 1671c or 1673c of this title, to suspend an antidumping duty or countervailing duty investigation, including any final determination resulting from a continued investigation which changes the size of the dumping margin or net subsidy calculated, or the reasoning underlying such calculations, at the time the suspension agreement was concluded.
(v) An injurious effect determination by the Commission under section 1671c(h) or 1673c(h) of this title.
(vi) A determination by the administering authority as to whether a particular type of merchandise is within the class or kind of merchandise described in an existing finding of dumping or antidumping or countervailing duty order.
(3) Exception — Notwithstanding the limitation imposed by paragraph (2)(A)(i)(II) of thissubsection, a final affirmative determination by the administering authority under section 1671d or 1673d of this title may be contested by commencing an action, in accordance with the provisions of paragraph (2)(A), within thirty days after the date of publication in the Federal Register of a final negative determination by the Commission under section 1671d or 1673d of this title.
19 U.S.C. § 1516a (1988).
. Cases such as
Norcal/Crosetti Foods, Inc. v. United States,
. Specifically, this provision provides:
In any civil action not specified in this section, the Court of International Trade shall, where appropriate, require the exhaustion of administrative remedies.
28 U.S.C. § 2637(d) (1988).
. At this time, the court does not reach the issue of whether the procedures are adequate in statutory terms.
. The court notes that all plaintiffs had both constructive and actual notice of the investigation. See supra nn. 5-7, and accompanying text.
. Several times Commerce extended the deadline for plaintiffs to respond to the questionnaires.
. The sovereign plaintiffs also note the preliminary ITC determination which occurred prior to dissolution of the USSR. How ITC might or could respond to the issue of dissolution or participation of the republics has not been addressed. Thus, at the present time this would appear an inappropriate basis on which to find constitutional harm.
. Company plaintiffs may not allege constitutional violations based on the rights of third parties.
. At the start of this litigation, Commerce gave May 18, 1992, as the date for issuance of the preliminary determination. The court has been informed that this date has been postponed to May 28, 1992.