Maple Leaf Fish Co. v. United States

Citation596 F. Supp. 1076
Decision Date03 August 1984
Docket NumberCourt No. 81-10-01412.
PartiesMAPLE LEAF FISH COMPANY, Plaintiff, v. UNITED STATES, Defendant.
CourtU.S. Court of International Trade

Barnes, Richardson & Colburn, New York City (David O. Elliott, New York City, on the cross-motion; John J. Galvin, New York City, of counsel on the memoranda) for plaintiff.

Richard K. Willard, Acting Asst. Atty. Gen., Washington D.C., Joseph I. Liebman, Atty. in Charge, Intern. Trade Field Office, Commercial Litigation Branch, Civil Div., New York City (Michael P. Maxwell, New York City, on the motion) for defendant.

MEMORANDUM OPINION AND ORDER

CARMAN, Judge:

On March 14, 1980, the American Mushroom Institute, a trade association representing domestic canners and growers of mushrooms, filed a petition for import relief with the United States International Trade Commission (the Commission, ITC), under the provisions of section 201 of the Trade Act of 1974, 19 U.S.C. § 2251 (1982). The ITC, on March 24, 1980, commenced an investigation to determine whether mushrooms classifiable under Item 144.20 of the Tariff Schedules of the United States (TSUS) as "mushrooms, ... otherwise prepared or preserved" were "being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article," 19 U.S.C. § 2251(b)(1). Notice of the investigation was published in the Federal Register on April 2, 1980. See 45 Fed. Reg. 21,753 (1980). The Commission's investigation, which included public hearings and consideration of briefs submitted by interested parties, resulted in an affirmative determination of injury to the domestic industry as a result of increased quantities of imports. The ITC, in a report issued in August of 1980, concluded:

On the basis of the information developed in the course of the investigation, the Commission has determined, (Commissioner Bedell not participating) that mushrooms, prepared or preserved, provided for in item 144.20 of the Tariff Schedules of the United States (TSUS), are being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article.

USITC, Report to the President on Investigation No. TA-201-43 Under Section 201 of the Trade Act of 1974, at 1. (USITC Publication 1089 August, 1980)(hereinafter the ITC Report).

The ITC Report was transmitted to the President as required by 19 U.S.C. § 2251(d), and, on October 17, 1980, the President determined to provide import relief in the form of increased duties.1 On October 23, 1980, a Presidential Import Relief Determination was published in the Federal Register. See 45 Fed.Reg. 70,361 (1980). Presidential Proclamation 4801 was issued on October 29, 1980. See Proclamation No. 4801, 16 Weekly Comp. Pres. Doc. 2610 (Oct. 29, 1980). Pursuant to the determination and proclamation, item 922.55, providing for supplemental, or cumulative, duties on imported mushrooms classifiable under item 144.20 of the TSUS, was inserted into the tariff schedules. The supplemental duties were in the form of additional ad valorem assessments of 30, 25 and 20 percent, depending upon the date of importation.

The plaintiff, a Canadian importer of frozen battered and breaded mushrooms, filed this action on October 14, 1981, challenging the assessment of supplemental duties insofar as frozen and battered mushrooms were concerned.

On June 21, 1983, the court issued a memorandum opinion and order denying defendant's motion to dismiss for lack of subject matter jurisdiction and for failure to state a claim upon which relief can be granted. See Maple Leaf Fish Co. v. United States, 5 C.I.T. ___, 566 F.Supp. 899 (1983). In that opinion, the court held that subject matter jurisdiction existed under 28 U.S.C. § 1581(a) (1982), and that judicial review in this case extended to the issue of whether "the administrative action of the ITC and the President had been exercised in such a manner as to conform with the procedural requirements of statutory authority and had been performed according to law." 5 C.I.T. at ___, 566 F.Supp. at 903. The case presently is before the court on cross-motions for summary judgment.

As alluded to in the court's earlier opinion, plaintiff's claim fundamentally seeks to restrict the scope of Presidential Proclamation 4801 to include only canned mushrooms. As to the assessment of supplemental duties on frozen battered and breaded mushrooms, plaintiff contends that such action is ultra vires, illegal, and therefore void.

The plaintiff's assertions principally are grounded upon the lack of information and input to the ITC regarding frozen mushrooms. In plaintiff's view, the ITC, in its report to the President, made recommendations as to all mushrooms classifiable under item 144.20, TSUS, although the information before the agency when it made its report pertained only to canned, and not frozen, mushrooms.2 This shortcoming, according to plaintiff, tainted the President's actions with an ultra vires quality since he was not entitled to act with respect to goods for which he had not received a report from the ITC. Plaintiff's interpretation of the scope of the ITC findings is based in large measure on the language of the ITC Report, and separate views, which, in the main, discuss canned mushrooms exclusively.

Defendant, on the other hand, points out that all of the actions taken in this matter were performed properly according to strict statutory formulae. In the defendant's view, once it is established that the ITC and the President properly adhered to the prescriptions of sections 201, 202 and 203 of the Trade Act of 1974, 19 U.S.C. §§ 2251-2253 (1982) (the escape clause provisions), judicial review should be at an end. Defendant therefore maintains that the court cannot independently evaluate the ITC's Report and the actions that were taken on the basis of the report since these considerations have been delegated by Congress to the ITC and the President and require discretionary decisionmaking unshackled by judicial review.3 In short, defendant maintains that as long as the President received an affirmative injury report from the ITC, his action in prescribing supplemental duties for imported mushrooms was authorized by statute and could not be challenged.

In the court's opinion, it is evident that in the escape clause provisions, Congress delegated to the ITC and the President its legislative authority in a tariffmaking matter. As such, the actions of the ITC and the President are reviewable only to ensure proper construction of the statutory language, compliance with procedural requisites, and whether the scope of delegated authority was exceeded. In the instant matter, the court finds that the ITC and the President acted well within these circumscriptions.

REVIEW OF ESSENTIALLY LEGISLATIVE ACTION

That the action of the President in imposing increased duties on the imported mushrooms represents but one step in the legislative process is established by the plain import of the language of the escape clause provisions as well as its legislative history.

The Constitution, of course, commits to the legislative branch the power to regulate imports. U.S. Const. art. I. § 8, cls. 1, 3. For a period spanning virtually the life of the Republic, aspects of this power have been delegated to the Executive Branch. See Norwegian Nitrogen Products Co. v. United States, 288 U.S. 294, 308, 53 S.Ct. 350, 355, 77 L.Ed. 796 (1933). In most instances, the President is empowered to act upon his own finding of certain congressionally declared factual prerequisites. Id. at 309, 53 S.Ct. at 356; see Ellis K. Orlowitz Co. v. United States, 47 Cust. Ct. 583, 585, 200 F.Supp. 302, 305 (1961), aff'd, 50 CCPA 36 (1963). Under the escape clause provisions, the President is required to consider nine factors in determining whether and what method and amount of import relief to provide. 19 U.S.C. § 2252(c)(1)-(9). These considerations, however, expressly are "in addition to any other considerations ... he may deem relevant." Id. In addition, section 202(b)(1), 19 U.S.C. § 2252(b)(1), reveals Congress' intention that the President be granted expansive discretion in import relief decisions. Notably, this provision permits the President to decline to impose import relief if he determines "that the provision of such relief is not in the national economic interest of the United States." Id. A more subjective delegation of the fact-finding function would be difficult to fathom.

The ITC has similar broad discretion. Under section 201(b)(2), 19 U.S.C. § 2251(b)(2), the ITC in making its import relief report "shall take into account all economic factors which it considers relevant." Id. (emphasis added).

Although the sections cited above contain mandatory contemplative guidelines, "these factors do not amount to a formula for the decisionmaking process which can be judicially reviewed. Although the President must consider these factors, he has discretion to ascertain their significance and is also at liberty to consider other, possibly countervailing, factors." Florsheim Shoe Co. v. United States, 744 F.2d 787 at 795-96 (Fed.Cir.1984), aff'g 6 C.I.T. ___, 570 F.Supp. 734 (1983).

Moreover, the legislative history of the Trade Act of 1974 pertaining to the escape clause provisions is replete with references to the "flexibility" to be accorded the President and ITC in making these import relief decisions. See S. Rep. No. 1298, 93d Cong., 2d Sess 121, 124, 125, 126, reprinted in 1974 U.S. Code Cong. & Ad. News, 7186, 7265, 7268, 7269, 7270.

From the above discussion, it is clear that in the operation of the escape clause provisions as they pertain to the granting or withholding of import...

To continue reading

Request your trial
1 cases
  • Maple Leaf Fish Co. v. U.S.
    • United States
    • United States Courts of Appeals. United States Court of Appeals for the Federal Circuit
    • May 8, 1985
    ...of the United States (TSUS). The Court of International Trade (Carman, J.) ruled that they were so included. Maple Leaf Fish Co. v. United States, 596 F.Supp. 1076 (1984). We agree and affirm. I. Sections 2251-53 of Title 19 of the U.S.Code (Sections 201-03 of Title II of the Trade Act of 1......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT