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Alcan Sales, Div. Of Alcan Aluminum Corp. v. The United States

Citations: 693 F.2d 1089; 4 I.T.R.D. (BNA) 1097; 1982 U.S. App. LEXIS 12550Docket: 82-17

Court: Court of Appeals for the Federal Circuit; November 17, 1982; Federal Appellate Court

Narrative Opinion Summary

The case involves Alcan Sales, a division of Alcan Aluminum Corporation, appealing a ruling from the United States Court of International Trade that upheld Presidential Proclamation No. 4074, which imposed a 10% ad valorem duty on imports during a national emergency under the Trading With the Enemy Act (TWEA). The proclamation addressed an economic crisis in 1971 marked by a balance of payments deficit and declining gold reserves. Alcan contested the validity of the duty, arguing that section 9(a) of TWEA required the government to refund the surcharges. However, courts consistently found that section 9(a) applies only to property seizures and not to regulatory actions like import surcharges. The Federal Circuit Court affirmed the lower court's decision, emphasizing the exclusive jurisdiction of the United States Court of International Trade over such regulatory matters. The ruling further clarified that section 9(a) claims related to property do not extend to regulatory powers granted under section 5(b) of the TWEA. Thus, Alcan's appeal for recovery of surcharge payments was denied, and the court maintained that the surcharge program was a legitimate exercise of presidential authority during a national emergency.

Legal Issues Addressed

Jurisdiction of United States Court of International Trade

Application: The Court of International Trade has exclusive jurisdiction over actions related to import surcharge programs, not section 9(a) claims.

Reasoning: Litigation regarding the import surcharge program falls within the exclusive jurisdiction of the United States Court of International Trade.

Limitations of Section 9(a) of the TWEA

Application: Section 9(a) does not apply to regulatory actions such as import surcharges and is limited to property vesting powers.

Reasoning: Section 9(a) applies only to the property vesting powers of section 5(b) and retains its original limitations.

Non-Applicability of Section 9(a) to Import Surcharges

Application: Claims for the return of surcharge payments under section 9(a) are not viable as the section does not pertain to import surcharges.

Reasoning: The appellant's claim that the United States Court of International Trade can hear its section 9(a) claim and order the return of surcharge payments lacks merit, as section 9(a) does not pertain to actions involving the import surcharge program.

Presidential Authority under Trading With the Enemy Act (TWEA)

Application: The President's authority to impose a 10% ad valorem duty during a national emergency was upheld as a valid exercise of powers under section 5(b) of the TWEA.

Reasoning: Prior rulings have confirmed that Presidential Proclamation 4074, which established the surcharge program, was a valid use of the President's authority under section 5(b).