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United States v. UPS Customhouse Brokerage, Inc.

Citation: 213 F. App'x 985Docket: Misc. No. 836

Court: Court of Appeals for the Federal Circuit; December 28, 2006; Federal Appellate Court

Narrative Opinion Summary

The case involves UPS Customhouse Brokerage, Inc., which seeks to appeal a decision from the United States Court of International Trade concerning liability limits under the customs broker penalty statute, specifically 19 U.S.C. 1641(d)(2)(A). The dispute arose after UPS paid $15,000 in a penalty case but refused additional payments totaling $75,000 in two other cases, related to alleged misclassifications for duty exclusions. The Court of International Trade denied UPS's motion for summary judgment, focusing on the legal question regarding the issuance of multiple penalties and the possibility of exceeding a $30,000 aggregate limit. The United States opposed the appeal, and the court, exercising its discretion under 28 U.S.C. 1292(d)(2), decided not to permit the interlocutory appeal. Consequently, the petition for appeal was denied, and the United States was granted an extension to respond to the motion for summary judgment, delaying further proceedings.

Legal Issues Addressed

Judicial Discretion in Granting Appeals under 28 U.S.C. 1292(d)(2)

Application: The court exercises its discretion to deny permission for an interlocutory appeal, indicating that the circumstances do not justify an appeal prior to a final decision.

Reasoning: The United States opposes the appeal, and the court notes that it has discretion under 28 U.S.C. 1292(d)(2) to permit such appeals. However, it concludes that granting UPS's petition is not warranted.

Limits of Liability under the Customs Broker Penalty Statute

Application: The case examines whether penalties imposed on a customs broker for misclassifications can exceed a certain aggregate amount and whether multiple penalties can be issued for repeated offenses.

Reasoning: The Court of International Trade denied UPS's motion for summary judgment, stating the key issue is whether the Bureau of Customs and Border Protection can issue multiple penalty notices for repeated misclassifications and whether penalties can exceed $30,000 in aggregate.