Urbano v. U.S., 97-1500
| Citation | 146 F.3d 1346 |
| Decision Date | 10 June 1998 |
| Docket Number | No. 97-1500,97-1500 |
| Parties | John V. URBANO, Plaintiff-Appellant, v. UNITED STATES, Defendant-Appellee. |
| Court | United States Courts of Appeals. United States Court of Appeals for the Federal Circuit |
John N. Politis, Politis & Politis, of Los Angeles, CA, argued for plaintiff-appellant.
Mikki Graves Walser, Trial Attorney, International Trade Field Office, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, New York City, argued for defendant-appellee. With her on the brief were Frank W. Hunger, Assistant Attorney General, David M. Cohen, Director, Commercial Litigation Branch, Civil Division, Washington, DC. Also on the brief was Joseph I. Liebman, Attorney-in-Charge, International Field Office, New York City. Of counsel on the brief was Stephanie Dick, Deputy Associate Chief Counsel, Office of Associate Chief Counsel, United States Customs Service, Long Beach, CA.
Before RICH, RADER, and BRYSON, Circuit Judges.
The statute of limitations governing the revocation of a customs broker's license requires the government to commence revocation proceedings within five years of the date of the alleged violation on which the proposed revocation is based. See 19 U.S.C. § 1641(d)(4) (1994). In 1994, the Customs Service administratively revoked the brokerage license of appellant John V. Urbano. Mr. Urbano contends that the revocation proceedings were initiated more than five years after the violations on which the proceedings were based and that the statute of limitations therefore bars the revocation of his license.
On March 9, 1993, the Customs Service served notice on Mr. Urbano, directing him to show cause why his license should not be revoked. The notice initiated what the Customs Service refers to as "preliminary proceedings" that can lead to a possible license revocation. See 19 C.F.R. § 111.59 (1993). Subsequently, on July 5, 1994, the Customs Service initiated what it refers to as "formal proceedings" for license revocation by serving Mr. Urbano with a "Notice to Show Cause and Statement of Charges." See id. The alleged violations, the last of which took place in February 1989, occurred less than five years before service of the March 1993 notice to show cause, but more than five years before service of the notice of formal proceedings in July 1994.
Mr. Urbano contends that the initiation of "preliminary proceedings" in March 1993 did not constitute the commencement of proceedings referred to in the limitations statute and that the limitations period therefore expired before he was served with the July 1994 notice of formal proceedings and statement of charges. The Court of International Trade disagreed, holding that the service of the notice to show cause in March 1993 was sufficient to satisfy the statute of limitations for revocation proceedings. Urbano v. United States, 967 F.Supp. 1322 (CIT 1997).
We agree with the Court of International Trade. The statute that sets forth the procedures for revoking or suspending brokers' licenses is 19 U.S.C. § 1641(d)(2)(B) (1994). At the time of the proceedings in this case, that statute read as follows:
The appropriate customs officer may, for good and sufficient reason, serve notice in writing upon any customs broker to show cause why a license or permit issued under this section should not be revoked or suspended. The notice shall be in the form of a statement specifically setting forth the grounds of the complaint, and shall allow the customs broker 30 days to respond. If no response is filed, or the appropriate customs officer determines that the revocation or suspension is still warranted, he shall notify the customs broker in writing of a hearing to be held within 15 days, or at a later date if the broker requests an extension and shows good cause therefor, before an administrative law judge appointed pursuant to section 3105 of Title 5, who shall serve as the hearing officer.
19 U.S.C. § 1641(d)(2)(B) (1988).
As the statute indicates, the process for revoking a customs brokerage license has two stages. First, the Customs Service must serve notice on the broker directing him to show cause why his license should not be revoked. The notice must set forth "the grounds of the complaint" and the broker must be given 30 days to respond. 19 U.S.C. § 1641(d)(2)(B) (1988). If the broker does not respond or if the Customs Service, after reviewing the broker's response, determines that revocation is still warranted, the Customs Service proceeds to the second stage of the revocation process by notifying the broker of a formal revocation hearing to be held before an administrative law judge. Id. Following the hearing, the administrative law judge makes a recommendation to the Secretary of the Treasury, who issues a written decision based on the record made at the hearing. Id.
The Customs Service's regulations track the statutory requirements for both stages of the revocation process, although the regulations characterize the first stage of the proceedings as "preliminary" and...
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Shiepe v. U.S., Slip Op. 15.
...to revoke [a] license constitutes an abuse of discretion." Urbano v. United States, 967 F.Supp. 1322, 1329 (CIT 1997), aff'd, 146 F.3d 1346 (Fed.Cir.1998). Specifically, [a]fter satisfying itself [sic] the agency has acted within its statutory authority and the action was accompanied by app......