CAFC Rules on Protestable CBP Decisions Regarding NAFTA Claims (Reverses CIT Decision)
In Corrpro Cos. v. United States, the Court of Appeals for the Federal Circuit reversed the CIT, ruling that Customs did not make a protestable decision as to North American Free Trade Agreement ((NAFTA) eligibility.
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As a result, the CIT's decision finding jurisdiction under 28 USC 1581(a), as well as its classification of subject entries of sacrificial magnesium anodes from Mexico under MX 8543.30.00 (duty-free), are reversed.
The CAFC explains that Corrpro did not claim duty-free treatment for certain entries of sacrificial magnesium anodes under NAFTA at time of entry, or within one year of the date of importation under 19 USC 1520(d). However, after the goods liquidated, Corrpro filed protests under 19 USC 1514(a) to Customs' liquidation, arguing that the goods were classified under MX 8543.30.00 (duty-free). A Certificate of Origin substantiating its assertion of NAFTA eligibility was submitted to Customs for the first time after the protest was denied, and after its complaint was filed at the CIT.
The CAFC ruled that, under its precedent, there is a protestable decision as to NAFTA eligibility that confers jurisdiction in the CIT under 28 USC 1581(a) only when the importer has made a valid claim for NAFTA treatment, either at entry or within a year of entry, with a written declaration and Certificate(s) of Origin presented in a timely fashion, and Customs has engaged in "some sort of decision-making process" expressly considering the merits of that claim.
As Corrpro did not satisfy the requirements as stated above, the CAFC ruled that there is no protestable decision conferring jurisdiction on the CIT under 28 USC 1581(a).
CAFC Docket 05-1073 (dated 01/03/06) available at http://www.fedcir.gov/opinions/05-1073.pdf
CIT Slip Op. 04-116 (dated 09/10/04) available at http://www.cit.uscourts.gov:8080/cs.html?charset=iso-8859-1&url=http%3A//www.cit.uscourts.gov/slip_op/slip_op04/Slip%2520Op.%252004-116.pdf&qt=04-116&col=slipop&n=1&la=en