CIT Allows Importer 2,000 More Words for Reply in $100 Million Customs Penalty Case
The Court of International Trade in a Jan. 30 order gave importer Wanxiang America an additional 2,000 words for its upcoming reply brief as it seeks to dismiss a $100 million customs penalty case. Wanxiang America had asked for an extra 3,000 words, arguing that the extra words will give the court "a more complete understanding of Defendant's argument as to (a) why the Government cannot, as a matter of law, establish any Section 1592 violation and (b) the Government’s case against the Defendant amounts to significant Government overreach by Customs" (see 2301270079) (United States v. Wanxiang America, CIT # 22-00205).
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Wanxiang America imported universal joints and parts, wheel hub assemblies, radial ball bearings, tapered roller bearings, and other automobile parts and accessories between 2007 and 2012. The U.S. alleged these goods were subject to the antidumping duty order on tapered roller bearings from China and said Wanxiang America should have paid the cash deposit rate of 92.84% pn the goods, since the relevant exporter, Wanxiang Qianchao, was subject to the all-others rate.
In its October 2022 motion to dismiss, Wanxiang America said that the U.S. cannot retroactively apply a scope ruling to argue that an importer negligently avoided antidumping duties on imports that were not subject to the AD order at the time of entry. Wanxiang America argued that it was entitled to its parent Wanxiang Group’s zero percent antidumping duty rate because it was a subsidiary and shared exporting personnel with its controlling company (see 2210140075). In opposition, DOJ said that Wanxiang America’s arguments largely go to the merits of the government’s claims but "do not detract from the sufficiency and plausibility of those claims" (see 2212220047).
The defendant then asked for 3,000 more words to file in its reply, for a total of 10,000 words. The U.S. opposed the motion, arguing that a plaintiff needs only enough facts to state a relief claim that's plausible on its face. Since the importer is looking for more words to try to show that the U.S. cannot prove the allegations in the complaint, the motion should be denied, the government said.