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Nec Solutions (America), Inc. v. United States

Citations: 411 F.3d 1340; 27 I.T.R.D. (BNA) 1193; 2005 U.S. App. LEXIS 10957; 2005 WL 1366525Docket: 2004-1085

Court: Court of Appeals for the Federal Circuit; June 10, 2005; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The United States Court of Appeals for the Federal Circuit reviewed the case involving NEC Solutions (America, Inc.) and the United States regarding the liquidation of television set entries from Japan. The case arose after the United States Court of International Trade granted summary judgment in favor of NEC, determining that the United States Customs Service failed to liquidate entries within the six-month period mandated by 19 U.S.C. 1504(d) after receiving notice of the lifting of a suspension. The government argued that an email deemed as notice was ambiguous, lacking specificity about the duty rate. The court, however, found that the email provided clear and sufficient notice under the statute. NEC cross-appealed regarding later entries, claiming that court opinions provided to Department of Justice attorneys sufficed as notice to Customs. The court rejected this argument, maintaining that notice to Justice does not equate to notice to Customs, as per established precedent. The appellate court affirmed the lower court's ruling, supporting the validity of the email as notice and denying NEC's cross-appeal, thus concluding that Customs failed to meet its obligations under the statute, resulting in the deemed liquidation of the entries at the asserted rates.

Legal Issues Addressed

Constructive Notice and Service Requirements

Application: The court ruled that serving an opinion to the Department of Justice does not constitute notice to Customs, affirming the precedent set in Fujitsu.

Reasoning: Thus, the court denied NEC's cross-appeal, affirming that the June 23, 2000 email served as proper notice, while service to Justice did not fulfill notice requirements under 19 U.S.C. 1504(d).

Liquidation of Entries under 19 U.S.C. 1504(d)

Application: The court determined that an email constituted sufficient notice for the lifting of a suspension of liquidation, requiring Customs to act within six months.

Reasoning: The Court of International Trade ruled the e-mail was clear and unambiguous, indicating the removal of any suspension of liquidation for NEC’s entries.

Notice Requirements for Customs Liquidation

Application: The court held that notice to Customs does not require detailed liquidation instructions or duty rate information, focusing instead on the clarity of the communication.

Reasoning: The court finds that the e-mail meets the requirements of 19 U.S.C. 1504(d), rejecting the government's argument that more detailed notice, including applicable duty rates, is necessary.