Myhra

I. OVERVIEW

Pentax Corporation (Pentax) imported mismarked goods. Pentax admitted its error by letter to the United States Customs Service (Customs), seeking to limit its potential liability by qualifying for “prior disclosure” status under 19 U.S.C. § 1592 (c)(4). That statute requires the violator to tender any unpaid duties. Customs demanded that Pentax tender a ten percent marking duty required for mismarked goods. 19 U.S.C. § 1304 (f). Pentax refused to tender any money claiming that no duty was unpaid.

Pentax brought this action in Montana District Court seeking judicial review of Customs’ determination that Pentax must prepay $5.2 million by a certain date to qualify for prior disclosure status. The district court granted a temporary restraining order preventing Customs from denying Pentax prior disclosure status.

The district court later granted Customs’ motion to dismiss for lack of jurisdiction. The court, at Pentax’s request, entered an injunction pending appeal preventing Customs from withholding prior disclosure status for failing to pay the $5.2 million; the money is currently deposited in the district court’s registry. Pentax appeals the district court’s…