{"attribution":{"source":"legal.exploreworldai.com","canonical":"https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:cafc-24-1142-2026-01-08","cite_as":"NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:cafc-24-1142-2026-01-08)","license":"https://legal.exploreworldai.com/revision","version":"legal-2026-10-11","fingerprint":"ewai:us:e0b409","proof":"sha256:8dd82326f28d4c477fad0138db0a939839e47c63dd3982c640f0626801436a6d","jurisdiction":"us","lang":"en","publisher":"NovaCopilot by ExploreWorld Legal","terms":"https://legal.exploreworldai.com/om"},"brand_source":"Source: NovaCopilot","item":{"schema_version":"1.0.0","id":"us:cafc-24-1142-2026-01-08","jurisdiction":"us","lang":"en","brand_source":"Source: NovaCopilot","brand":{"product":"NovaCopilot","platform":"ExploreWorldAI","infrastructure":"ExploreWorld Legal","infrastructure_url":"legal.exploreworldai.com","legal_entity":"Valkiv Ventures AB","permanent_url":"https://legal.exploreworldai.com/novacopilot","source":"Source: NovaCopilot","powered_by":"Powered by NovaCopilot","license":"https://legal.exploreworldai.com/licensvillkor"},"sections":[{"title":"United States Court of Appeals","paragraphs":["para_2","para_3","para_4"]},{"title":"Plaintiff-Appellant","paragraphs":["para_6","para_7"]},{"title":"Defendant-Appellee","paragraphs":["para_9"]},{"title":"2024-1142","paragraphs":["para_11"]},{"title":"Appeal from the United States Court of International","paragraphs":["para_13","para_14","para_15"]},{"title":"Decided: January 8, 2026","paragraphs":["para_17","para_18","para_19","para_20"]},{"title":"MONICA PERRETTE TRIANA, International Trade Field","paragraphs":["para_22"]},{"title":"NY, argued for defendant-appellee. Also represented by","paragraphs":["para_24"]},{"title":"MCCARTHY, JUSTIN REINHART MILLER, BRETT SHUMATE;","paragraphs":[]},{"title":"EMMA TINER, Office of Assistant Chief Counsel, United","paragraphs":[]},{"title":"States Customs and Border Protection, United States De-","paragraphs":["para_28"]},{"title":"Case: 24-1142 Document: 47 Page: 1 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US2","paragraphs":["para_31"]},{"title":"Before PROST and CUNNINGHAM, Circuit Judges, and","paragraphs":[]},{"title":"ANDREWS, District Judge.1","paragraphs":["para_34"]},{"title":"Plaintiff Midwest-CBK, LLC (Midwest) appeals from","paragraphs":["para_36"]},{"title":"(CIT) denying Midwest’s motion for partial summary judg-","paragraphs":["para_38","para_39","para_40","para_41","para_42","para_43"]},{"title":"Midwest’s transactions qualified as sales “for exportation","paragraphs":["para_45","para_46","para_47","para_48","para_49"]},{"title":"2 Midwest moved the CIT to enter a final judgment","paragraphs":["para_51","para_52","para_53"]},{"title":"Int’l Trade 2023). As such, the CIT’s ruling on the motion","paragraphs":["para_55","para_56","para_57"]},{"title":"Case: 24-1142 Document: 47 Page: 2 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 3","paragraphs":[]},{"title":"I. BACKGROUND3","paragraphs":[]},{"title":"Midwest was a Minnesota-based retailer of Christmas","paragraphs":["para_62"]},{"title":"United States, 578 F. Supp. 3d 1296, 1298 (Ct. Int’l Trade","paragraphs":[]},{"title":"2022). For the time period relevant to this case, Midwest","paragraphs":["para_65","para_66","para_67"]},{"title":"Midwest had Canadian bank accounts to pay for expenses","paragraphs":["para_69"]},{"title":"Midwest “purchas[ed] merchandise from foreign sup-","paragraphs":["para_71"]},{"title":"Canada, this merchandise was stored in Midwest’s On-","paragraphs":["para_73"]},{"title":"States-based sales staff to solicit orders and submit them","paragraphs":["para_75","para_76","para_77","para_78","para_79","para_80"]},{"title":"State Uniform Commercial Code.”5 J.A. 667; see Midwest-","paragraphs":["para_82"]},{"title":"The importer of record for merchandise, with a few ex-","paragraphs":["para_84","para_85"]},{"title":"(Customs). See 19 U.S.C. § 1484(a). An “entry” means the","paragraphs":[]},{"title":"3 For the facts in this background section, we draw","paragraphs":["para_88","para_89"]},{"title":"4 Midwest wound up active operations at the end of","paragraphs":["para_91"]},{"title":"5 “The term ‘FOB’ means ‘free on board.’” Midwest-","paragraphs":["para_93"]},{"title":"Case: 24-1142 Document: 47 Page: 3 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US4","paragraphs":["para_96","para_97","para_98","para_99","para_100"]},{"title":"States. See 19 U.S.C. § 1504. “Liquidation means the final","paragraphs":["para_102","para_103"]},{"title":"In 2013, Midwest informed Customs that Midwest","paragraphs":["para_105","para_106","para_107","para_108","para_109","para_110","para_111","para_112","para_113","para_114"]},{"title":"Customs all the information Customs had ever requested","paragraphs":["para_116","para_117","para_118","para_119","para_120","para_121","para_122","para_123"]},{"title":"2016, stating that the subject merchandise should be val-","paragraphs":["para_125","para_126","para_127","para_128","para_129"]},{"title":"Midwest subsequently brought this action. Midwest as-","paragraphs":["para_131","para_132"]},{"title":"Case: 24-1142 Document: 47 Page: 4 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 5","paragraphs":["para_135","para_136","para_137"]},{"title":"States. Id. at 27. Midwest also contends that various en-","paragraphs":["para_139","para_140","para_141"]},{"title":"II. LEGAL STANDARD","paragraphs":[]},{"title":"We review the CIT’s decision granting summary judg-","paragraphs":["para_144","para_145"]},{"title":"The CIT reviews a decision by Customs to extend a liq-","paragraphs":["para_147","para_148"]},{"title":"United States, 6 F.3d 763, 768 (Fed. Cir. 1993) (“Customs","paragraphs":["para_150","para_151","para_152"]},{"title":"157 F.3d at 855 (reviewing extensions for abuse of discre-","paragraphs":["para_154","para_155","para_156","para_157","para_158","para_159","para_160"]},{"title":"III. DISCUSSION","paragraphs":[]},{"title":"A. Liquidation by Operation of Law","paragraphs":[]},{"title":"The usual rule is that, absent a proper extension of the","paragraphs":["para_164","para_165","para_166","para_167","para_168"]},{"title":"Case: 24-1142 Document: 47 Page: 5 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US6","paragraphs":["para_171","para_172","para_173","para_174","para_175"]},{"title":"Before the CIT, the heart of the parties’ dispute on this","paragraphs":["para_177","para_178","para_179","para_180","para_181","para_182"]},{"title":"2014. Midwest-CBK, 578 F. Supp. 3d at 1309. The United","paragraphs":[]},{"title":"States responded that during the period when the exten-","paragraphs":["para_185","para_186","para_187"]},{"title":"The CIT agreed with the Government’s position, hold-","paragraphs":["para_189","para_190","para_191"]},{"title":"1310. Thus, the CIT found that Customs did not abuse its","paragraphs":["para_193","para_194"]},{"title":"First, Midwest argues that Customs’ decision to extend","paragraphs":["para_196","para_197"]},{"title":"24. Midwest claims that since Customs possessed all the","paragraphs":["para_199","para_200","para_201"]},{"title":"6 There are other statutory bases under which Cus-","paragraphs":["para_203","para_204"]},{"title":"Case: 24-1142 Document: 47 Page: 6 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 7","paragraphs":["para_207","para_208","para_209","para_210","para_211","para_212"]},{"title":"Fire & Marine, 6 F.3d at 768). The court found that the","paragraphs":["para_214","para_215","para_216","para_217","para_218","para_219"]},{"title":"Co., 157 F.3d at 856. Given the lack of explanation, the","paragraphs":["para_221","para_222","para_223"]},{"title":"The facts in Ford Motor Co. are readily distinguishable","paragraphs":["para_225","para_226","para_227","para_228","para_229","para_230"]},{"title":"CBK, 578 F. Supp. 3d at 1309. Customs thus submitted suf-","paragraphs":["para_232","para_233"]},{"title":"As a result, we hold that Midwest has not “eliminate[d] all","paragraphs":["para_235","para_236","para_237","para_238","para_239","para_240"]},{"title":"Second, Midwest argues that the internal review that","paragraphs":[]},{"title":"Customs engaged in cannot form the basis for an extension","paragraphs":["para_243"]},{"title":"Case: 24-1142 Document: 47 Page: 7 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US8","paragraphs":["para_246","para_247","para_248","para_249","para_250","para_251","para_252","para_253"]},{"title":"Co. held, “Customs accurately notes that the statute does","paragraphs":["para_255","para_256","para_257"]},{"title":"1504(b)(1).” Ford Motor Co., 157 F.3d at 856. The record","paragraphs":["para_259","para_260","para_261","para_262"]},{"title":"These rounds of internal review were reasonably necessary","paragraphs":["para_264","para_265","para_266"]},{"title":"Third, Midwest argues in its reply brief that the Gov-","paragraphs":["para_268","para_269","para_270","para_271","para_272","para_273","para_274","para_275"]},{"title":"7 This process required Customs to audit more","paragraphs":["para_277","para_278","para_279","para_280"]},{"title":"Case: 24-1142 Document: 47 Page: 8 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 9","paragraphs":["para_283","para_284","para_285","para_286"]},{"title":"That Customs did not use some of the information in the","paragraphs":["para_288","para_289"]},{"title":"We therefore affirm the CIT’s ruling that Customs did","paragraphs":["para_291","para_292","para_293"]},{"title":"B. Appraisement","paragraphs":[]},{"title":"There is a hierarchy of various appraisement methods","paragraphs":["para_296"]},{"title":"8 (a) Generally","paragraphs":[]},{"title":"(1) Except as otherwise specifically provided for in","paragraphs":["para_299","para_300","para_301"]},{"title":"(A) The transaction value provided for under","paragraphs":["para_303"]},{"title":"(B) The transaction value of identical merchan-","paragraphs":["para_305","para_306","para_307","para_308"]},{"title":"(C) The transaction value of similar merchan-","paragraphs":["para_310","para_311","para_312"]},{"title":"(D) The deductive value provided for under","paragraphs":["para_314","para_315"]},{"title":"Case: 24-1142 Document: 47 Page: 9 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US10","paragraphs":["para_318","para_319","para_320","para_321","para_322","para_323","para_324","para_325"]},{"title":"In order for merchandise to be appraised on the basis","paragraphs":["para_327","para_328"]},{"title":"States, 175 F.3d 1327, 1338–39 (Fed. Cir. 1999). Midwest","paragraphs":["para_330"]},{"title":"See Appellant’s Opening Br. 27. Thus, the only question is","paragraphs":["para_332"]},{"title":"States.” This determination is a “fact-specific” one that","paragraphs":["para_334","para_335","para_336","para_337"]},{"title":"Before the CIT, Midwest contended that the sales in","paragraphs":["para_339"]},{"title":"Midwest-CBK, 578 F. Supp. 3d at 1303. Midwest claimed","paragraphs":["para_341"]},{"title":"Buffalo, NY” pursuant to the New York Uniform Commer-","paragraphs":["para_343","para_344","para_345"]},{"title":"(E) The computed value provided for under","paragraphs":["para_347","para_348","para_349","para_350","para_351","para_352"]},{"title":"Case: 24-1142 Document: 47 Page: 10 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 11","paragraphs":["para_355","para_356","para_357"]},{"title":"1401a(b)(1). Id. In support of this argument, Midwest re-","paragraphs":["para_359"]},{"title":"Supp. 1344 (Ct. Int’l Trade 1989). The United States re-","paragraphs":["para_361","para_362","para_363"]},{"title":"Court should not apply Orbisphere because Orbisphere re-","paragraphs":["para_365","para_366","para_367"]},{"title":"The CIT agreed with the United States. It found that","paragraphs":[]},{"title":"Orbisphere’s reliance on Massce rendered Orbisphere un-","paragraphs":["para_370","para_371","para_372"]},{"title":"Applying the law to the facts in this case, the CIT found","paragraphs":["para_374","para_375","para_376"]},{"title":"1306. The CIT found these transactions constituted sales","paragraphs":["para_378","para_379","para_380"]},{"title":"The crux of Midwest’s challenge to the CIT’s finding is","paragraphs":[]},{"title":"Midwest’s assertion that sales of the merchandise in ques-","paragraphs":["para_383"]},{"title":"Opening Br. 29. Midwest claims these sales should not be","paragraphs":["para_385"]},{"title":"States” and thus cannot form the basis of a transaction","paragraphs":["para_387","para_388"]},{"title":"First, this assertion is not supported by the text of 19","paragraphs":["para_390"]},{"title":"Case: 24-1142 Document: 47 Page: 11 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US12","paragraphs":["para_393","para_394","para_395"]},{"title":"Second, Midwest’s challenge is not supported by prior","paragraphs":["para_397","para_398"]},{"title":"VWP, we found that sales between a Canadian manufac-","paragraphs":["para_400","para_401","para_402","para_403","para_404","para_405","para_406"]},{"title":"Fashions, the CIT considered Customs’ use of “the sale be-","paragraphs":["para_408","para_409","para_410"]},{"title":"U.S.-based distributor’s] price charged to its U.S. custom-","paragraphs":["para_412","para_413"]},{"title":"1999). Midwest has not explained why either of these cases","paragraphs":["para_415"]},{"title":"Midwest’s other argument as to why 19 U.S.C. §","paragraphs":[]},{"title":"1401a(b)(1) should not apply to sales unless they occur","paragraphs":["para_418","para_419","para_420","para_421","para_422","para_423","para_424"]},{"title":"N.J.” Id. at 1344–45. The CIT, relying heavily upon the","paragraphs":[]},{"title":"Massce court’s interpretation of § 402(d) of the Tariff Act of","paragraphs":[]},{"title":"1930, found that the choice between using transaction","paragraphs":["para_428","para_429"]},{"title":"Case: 24-1142 Document: 47 Page: 12 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US 13","paragraphs":["para_432","para_433","para_434","para_435","para_436","para_437","para_438","para_439","para_440","para_441"]},{"title":"The CIT in the case before us correctly found Orbi-","paragraphs":["para_443"]},{"title":"The Massce decision interpreted § 402(d) of the Tariff Act","paragraphs":["para_445","para_446","para_447","para_448","para_449"]},{"title":"C.C.P.A. at 55 (emphasis added). Thus, Massce interpreted","paragraphs":["para_451","para_452","para_453"]},{"title":"The Trade Agreements Act was passed in 1979. As the","paragraphs":[]},{"title":"CIT correctly noted, the Trade Agreements Act “removed","paragraphs":["para_456","para_457"]},{"title":"In addition, as the Senate Committee on Finance specifi-","paragraphs":["para_459","para_460","para_461","para_462","para_463","para_464","para_465","para_466","para_467","para_468"]},{"title":"Case: 24-1142 Document: 47 Page: 13 Filed: 01/08/2026","paragraphs":[]},{"title":"MIDWEST-CBK, LLC v. US14","paragraphs":[]},{"title":"Orbisphere relied upon the Massce court’s interpretation of","paragraphs":["para_472","para_473","para_474"]},{"title":"U.S.C. §1401a(b)(1) does not require an international sale","paragraphs":["para_476","para_477"]},{"title":"States.” Domestic sales, in certain circumstances, may","paragraphs":["para_479","para_480"]},{"title":"Finally, Midwest argues that the purchase orders for","paragraphs":["para_482","para_483","para_484","para_485","para_486"]},{"title":"1401a(b)(1), we need not reach the merits of this conten-","paragraphs":["para_488"]},{"title":"Accordingly, we agree with the well-reasoned opinion","paragraphs":["para_490","para_491","para_492","para_493","para_494"]},{"title":"578 F. Supp. 3d at 1304. Transaction value is the proper","paragraphs":["para_496"]},{"title":"IV. CONCLUSION","paragraphs":[]},{"title":"We have considered Midwest’s arguments and find","paragraphs":["para_499","para_500"]},{"title":"AFFIRMED","paragraphs":[]},{"title":"Case: 24-1142 Document: 47 Page: 14 Filed: 01/08/2026","paragraphs":[]}],"paragraphs":[{"text":"United States Court of Appeals","paragraph_id":"para_1"},{"text":"for the Federal Circuit","paragraph_id":"para_2"},{"text":"______________________","paragraph_id":"para_3"},{"text":"MIDWEST-CBK, LLC,","paragraph_id":"para_4"},{"text":"Plaintiff-Appellant","paragraph_id":"para_5"},{"text":"v.","paragraph_id":"para_6"},{"text":"UNITED STATES,","paragraph_id":"para_7"},{"text":"Defendant-Appellee","paragraph_id":"para_8"},{"text":"______________________","paragraph_id":"para_9"},{"text":"2024-1142","paragraph_id":"para_10"},{"text":"______________________","paragraph_id":"para_11"},{"text":"Appeal from the United States Court of International","paragraph_id":"para_12"},{"text":"Trade in Nos. 1:17-cv-00154-JCG, 1:17-cv-00155-JCG,","paragraph_id":"para_13"},{"text":"1:17-cv-00272-JCG, Judge Jennifer Choe-Groves.","paragraph_id":"para_14"},{"text":"______________________","paragraph_id":"para_15"},{"text":"Decided: January 8, 2026","paragraph_id":"para_16"},{"text":"______________________","paragraph_id":"para_17"},{"text":"PATRICK KLEIN, Neville Peterson LLP, New York, NY,","paragraph_id":"para_18"},{"text":"argued for plaintiff-appellant. Also represented by JOHN","paragraph_id":"para_19"},{"text":"M. PETERSON; RICHARD F. O'NEILL, Seattle, WA.","paragraph_id":"para_20"},{"text":"MONICA PERRETTE TRIANA, International Trade Field","paragraph_id":"para_21"},{"text":"Office, United States Department of Justice, New York,","paragraph_id":"para_22"},{"text":"NY, argued for defendant-appellee. Also represented by","paragraph_id":"para_23"},{"text":"BRANDON ALEXANDER KENNEDY, AIMEE LEE, PATRICIA M.","paragraph_id":"para_24"},{"text":"MCCARTHY, JUSTIN REINHART MILLER, BRETT SHUMATE;","paragraph_id":"para_25"},{"text":"EMMA TINER, Office of Assistant Chief Counsel, United","paragraph_id":"para_26"},{"text":"States Customs and Border Protection, United States De-","paragraph_id":"para_27"},{"text":"partment of Homeland Security, New York, NY.","paragraph_id":"para_28"},{"text":"Case: 24-1142 Document: 47 Page: 1 Filed: 01/08/2026","paragraph_id":"para_29"},{"text":"MIDWEST-CBK, LLC v. US2","paragraph_id":"para_30"},{"text":"______________________","paragraph_id":"para_31"},{"text":"Before PROST and CUNNINGHAM, Circuit Judges, and","paragraph_id":"para_32"},{"text":"ANDREWS, District Judge.1","paragraph_id":"para_33"},{"text":"ANDREWS, District Judge.","paragraph_id":"para_34"},{"text":"Plaintiff Midwest-CBK, LLC (Midwest) appeals from","paragraph_id":"para_35"},{"text":"the final judgment of the U.S. Court of International Trade","paragraph_id":"para_36"},{"text":"(CIT) denying Midwest’s motion for partial summary judg-","paragraph_id":"para_37"},{"text":"ment and granting the cross-motion for partial summary","paragraph_id":"para_38"},{"text":"judgment of Defendant United States.2 This court has ju-","paragraph_id":"para_39"},{"text":"risdiction pursuant to 28 U.S.C. § 1295(a)(5). We hold that","paragraph_id":"para_40"},{"text":"the CIT ruled correctly in granting the government’s cross-","paragraph_id":"para_41"},{"text":"motion for summary judgment that (1) the subject entries","paragraph_id":"para_42"},{"text":"were not deemed liquidated by operation of law; and (2)","paragraph_id":"para_43"},{"text":"Midwest’s transactions qualified as sales “for exportation","paragraph_id":"para_44"},{"text":"to the United States” under 19 U.S.C. § 1401a(b)(1). Ac-","paragraph_id":"para_45"},{"text":"cordingly, we affirm.","paragraph_id":"para_46"},{"text":"1 Honorable Richard G. Andrews, District Judge,","paragraph_id":"para_47"},{"text":"United States District Court for the District of Delaware,","paragraph_id":"para_48"},{"text":"sitting by designation.","paragraph_id":"para_49"},{"text":"2 Midwest moved the CIT to enter a final judgment","paragraph_id":"para_50"},{"text":"of dismissal against Midwest to permit it to appeal the","paragraph_id":"para_51"},{"text":"case; this dismissal was granted by the CIT. Midwest-CBK,","paragraph_id":"para_52"},{"text":"LLC v. United States, 662 F. Supp. 3d 1377, 1378–79 (Ct.","paragraph_id":"para_53"},{"text":"Int’l Trade 2023). As such, the CIT’s ruling on the motion","paragraph_id":"para_54"},{"text":"and cross-motion for partial summary judgment merge into","paragraph_id":"para_55"},{"text":"the final decision under Federal Rule of Appellate Proce-","paragraph_id":"para_56"},{"text":"dure 3(c)(4).","paragraph_id":"para_57"},{"text":"Case: 24-1142 Document: 47 Page: 2 Filed: 01/08/2026","paragraph_id":"para_58"},{"text":"MIDWEST-CBK, LLC v. US 3","paragraph_id":"para_59"},{"text":"I. BACKGROUND3","paragraph_id":"para_60"},{"text":"Midwest was a Minnesota-based retailer of Christmas","paragraph_id":"para_61"},{"text":"ornaments and similar items.4 Midwest-CBK, LLC v.","paragraph_id":"para_62"},{"text":"United States, 578 F. Supp. 3d 1296, 1298 (Ct. Int’l Trade","paragraph_id":"para_63"},{"text":"2022). For the time period relevant to this case, Midwest","paragraph_id":"para_64"},{"text":"“maintained its corporate office in [] Minnesota” and “its","paragraph_id":"para_65"},{"text":"inventory, distribution, warehousing, invoicing, and order","paragraph_id":"para_66"},{"text":"control departments [in] Ontario, Canada.” Id. at 1300.","paragraph_id":"para_67"},{"text":"Midwest had Canadian bank accounts to pay for expenses","paragraph_id":"para_68"},{"text":"related to its Canadian operations. Id.","paragraph_id":"para_69"},{"text":"Midwest “purchas[ed] merchandise from foreign sup-","paragraph_id":"para_70"},{"text":"pliers for exportation to Canada.” Id. Once imported into","paragraph_id":"para_71"},{"text":"Canada, this merchandise was stored in Midwest’s On-","paragraph_id":"para_72"},{"text":"tario-based warehouse. Id. Midwest employed a United","paragraph_id":"para_73"},{"text":"States-based sales staff to solicit orders and submit them","paragraph_id":"para_74"},{"text":"to Midwest’s personnel in Minnesota and Ontario. Id. Pur-","paragraph_id":"para_75"},{"text":"chase orders were reviewed by Midwest’s personnel in Can-","paragraph_id":"para_76"},{"text":"ada, who would prepare the merchandise for shipment","paragraph_id":"para_77"},{"text":"from Canada to the United States. Id. The purchase orders","paragraph_id":"para_78"},{"text":"provided to Midwest’s customers included the language:","paragraph_id":"para_79"},{"text":"“All prices FOB Buffalo, NY as defined by the New York","paragraph_id":"para_80"},{"text":"State Uniform Commercial Code.”5 J.A. 667; see Midwest-","paragraph_id":"para_81"},{"text":"CBK, 578 F. Supp. 3d at 1300.","paragraph_id":"para_82"},{"text":"The importer of record for merchandise, with a few ex-","paragraph_id":"para_83"},{"text":"ceptions, is required to submit “entries” for that merchan-","paragraph_id":"para_84"},{"text":"dise to United States Customs and Border Protection","paragraph_id":"para_85"},{"text":"(Customs). See 19 U.S.C. § 1484(a). An “entry” means the","paragraph_id":"para_86"},{"text":"3 For the facts in this background section, we draw","paragraph_id":"para_87"},{"text":"heavily from the findings of the CIT. These facts are undis-","paragraph_id":"para_88"},{"text":"puted.","paragraph_id":"para_89"},{"text":"4 Midwest wound up active operations at the end of","paragraph_id":"para_90"},{"text":"2018.","paragraph_id":"para_91"},{"text":"5 “The term ‘FOB’ means ‘free on board.’” Midwest-","paragraph_id":"para_92"},{"text":"CBK, 578 F. Supp. 3d at 1307.","paragraph_id":"para_93"},{"text":"Case: 24-1142 Document: 47 Page: 3 Filed: 01/08/2026","paragraph_id":"para_94"},{"text":"MIDWEST-CBK, LLC v. US4","paragraph_id":"para_95"},{"text":"“documentation or data required . . . to be filed with [Cus-","paragraph_id":"para_96"},{"text":"toms] . . . to secure the release of imported merchandise","paragraph_id":"para_97"},{"text":"from [Customs’] custody, or the act of filing that documen-","paragraph_id":"para_98"},{"text":"tation.” 19 C.F.R. § 141.0a(a). Entries must undergo “liqui-","paragraph_id":"para_99"},{"text":"dation” at the time merchandise is brought into the United","paragraph_id":"para_100"},{"text":"States. See 19 U.S.C. § 1504. “Liquidation means the final","paragraph_id":"para_101"},{"text":"computation or ascertainment of duties on entries . . . .” 19","paragraph_id":"para_102"},{"text":"C.F.R. § 159.1.","paragraph_id":"para_103"},{"text":"In 2013, Midwest informed Customs that Midwest","paragraph_id":"para_104"},{"text":"would enter merchandise based on its “deductive value,”","paragraph_id":"para_105"},{"text":"which it then did into 2016. Midwest-CBK, 578 F. Supp. 3d","paragraph_id":"para_106"},{"text":"at 1301. “Customs subsequently extended the deadline for","paragraph_id":"para_107"},{"text":"liquidation of [Midwest’s] entries and initiated a Regula-","paragraph_id":"para_108"},{"text":"tory Audit to determine the proper basis of valuation.” Id.","paragraph_id":"para_109"},{"text":"at 1302. “The audit involved multiple steps, including a","paragraph_id":"para_110"},{"text":"risk assessment of the relevant issues, the issuance of a","paragraph_id":"para_111"},{"text":"questionnaire, a walkthrough of import practices . . ., inter-","paragraph_id":"para_112"},{"text":"views with [Midwest’s] personnel, and the issuance of a fi-","paragraph_id":"para_113"},{"text":"nal report.” Id. By June 14, 2014, Midwest had delivered to","paragraph_id":"para_114"},{"text":"Customs all the information Customs had ever requested","paragraph_id":"para_115"},{"text":"from Midwest. Id. at 1309. “Customs completed its field-","paragraph_id":"para_116"},{"text":"work on October 14, 2014” and “issued a Draft Audit Report","paragraph_id":"para_117"},{"text":"on July 1, 2015, concluding that transaction value,” not de-","paragraph_id":"para_118"},{"text":"ductive value, “was the proper basis of [appraisement] for","paragraph_id":"para_119"},{"text":"the subject merchandise.” Id. at 1302. Midwest submitted","paragraph_id":"para_120"},{"text":"responsive comments on July 8, 2015, and Customs sought","paragraph_id":"para_121"},{"text":"no additional information from Midwest. Id. “Customs is-","paragraph_id":"para_122"},{"text":"sued a Final Audit Report to [Midwest] on February 24,","paragraph_id":"para_123"},{"text":"2016, stating that the subject merchandise should be val-","paragraph_id":"para_124"},{"text":"ued on the basis of transaction value.” Id. After further dis-","paragraph_id":"para_125"},{"text":"cussions with Midwest, Customs liquidated Midwest’s","paragraph_id":"para_126"},{"text":"merchandise according to transaction value, which Cus-","paragraph_id":"para_127"},{"text":"toms calculated using the original entered values plus a","paragraph_id":"para_128"},{"text":"75.75% upward adjustment. Id. at 1302–03.","paragraph_id":"para_129"},{"text":"Midwest subsequently brought this action. Midwest as-","paragraph_id":"para_130"},{"text":"serts that Customs improperly appraised the subject mer-","paragraph_id":"para_131"},{"text":"chandise based on transaction value rather than deductive","paragraph_id":"para_132"},{"text":"Case: 24-1142 Document: 47 Page: 4 Filed: 01/08/2026","paragraph_id":"para_133"},{"text":"MIDWEST-CBK, LLC v. US 5","paragraph_id":"para_134"},{"text":"value. Appellant Opening Br. 25–27. The basis for this as-","paragraph_id":"para_135"},{"text":"sertion is that the sales of this merchandise constituted do-","paragraph_id":"para_136"},{"text":"mestic sales and not sales for exportation to the United","paragraph_id":"para_137"},{"text":"States. Id. at 27. Midwest also contends that various en-","paragraph_id":"para_138"},{"text":"tries should have been deemed liquidated by operation of","paragraph_id":"para_139"},{"text":"law, because Customs “had no basis to extend liquidation","paragraph_id":"para_140"},{"text":"of entries after June 14, 2014.” Id. at 18.","paragraph_id":"para_141"},{"text":"II. LEGAL STANDARD","paragraph_id":"para_142"},{"text":"We review the CIT’s decision granting summary judg-","paragraph_id":"para_143"},{"text":"ment “without deference.” Ford Motor Co. v. United States,","paragraph_id":"para_144"},{"text":"157 F.3d 849, 854 (Fed. Cir. 1988).","paragraph_id":"para_145"},{"text":"The CIT reviews a decision by Customs to extend a liq-","paragraph_id":"para_146"},{"text":"uidation deadline for entries under the abuse of discretion","paragraph_id":"para_147"},{"text":"standard of review. St. Paul Fire & Marine Ins. Co. v.","paragraph_id":"para_148"},{"text":"United States, 6 F.3d 763, 768 (Fed. Cir. 1993) (“Customs","paragraph_id":"para_149"},{"text":"may, for statutory purposes . . . employ up to four years to","paragraph_id":"para_150"},{"text":"effect liquidation so long as the extensions it grants are not","paragraph_id":"para_151"},{"text":"abusive of its discretionary authority.”); see Ford Motor Co.,","paragraph_id":"para_152"},{"text":"157 F.3d at 855 (reviewing extensions for abuse of discre-","paragraph_id":"para_153"},{"text":"tion). Since the CIT granted summary judgment that the","paragraph_id":"para_154"},{"text":"undisputed record showed that Customs did not abuse its","paragraph_id":"para_155"},{"text":"discretion, we review that decision de novo. V.O.S. Selec-","paragraph_id":"para_156"},{"text":"tions, Inc. v. Trump, 149 F.4th 1312, 1327 (Fed. Cir. 2025).","paragraph_id":"para_157"},{"text":"We review the CIT’s statutory interpretation de novo.","paragraph_id":"para_158"},{"text":"Int’l Customs Prods., Inc. v. United States, 748 F.3d 1182,","paragraph_id":"para_159"},{"text":"1186 (Fed. Cir. 2014).","paragraph_id":"para_160"},{"text":"III. DISCUSSION","paragraph_id":"para_161"},{"text":"A. Liquidation by Operation of Law","paragraph_id":"para_162"},{"text":"The usual rule is that, absent a proper extension of the","paragraph_id":"para_163"},{"text":"liquidation deadline, “an entry of merchandise . . . not liq-","paragraph_id":"para_164"},{"text":"uidated within 1 year . . . shall be deemed liquidated at the","paragraph_id":"para_165"},{"text":"rate of duty, value, quantity, and amount of duties asserted","paragraph_id":"para_166"},{"text":"by the importer of record.” 19 U.S.C. § 1504(a)(1). The Sec-","paragraph_id":"para_167"},{"text":"retary of the Treasury is permitted to extend the","paragraph_id":"para_168"},{"text":"Case: 24-1142 Document: 47 Page: 5 Filed: 01/08/2026","paragraph_id":"para_169"},{"text":"MIDWEST-CBK, LLC v. US6","paragraph_id":"para_170"},{"text":"liquidation deadline if “the information needed for the","paragraph_id":"para_171"},{"text":"proper appraisement or classification of the . . . merchan-","paragraph_id":"para_172"},{"text":"dise . . . is not available to the Customs Service.” 19 U.S.C.","paragraph_id":"para_173"},{"text":"§ 1504(b)(1).6 Customs is permitted to obtain up to three","paragraph_id":"para_174"},{"text":"such one-year extensions. 19 C.F.R. § 159.12(e).","paragraph_id":"para_175"},{"text":"Before the CIT, the heart of the parties’ dispute on this","paragraph_id":"para_176"},{"text":"matter was whether Customs properly extended the liqui-","paragraph_id":"para_177"},{"text":"dation period under 19 U.S.C. § 1504(b)(1). Midwest con-","paragraph_id":"para_178"},{"text":"tended that Customs did not have the authority to extend","paragraph_id":"para_179"},{"text":"the liquidation period beyond June 14, 2015, because Mid-","paragraph_id":"para_180"},{"text":"west had fully responded to all of Customs’ initial and sup-","paragraph_id":"para_181"},{"text":"plemental requests for information on or before June 14,","paragraph_id":"para_182"},{"text":"2014. Midwest-CBK, 578 F. Supp. 3d at 1309. The United","paragraph_id":"para_183"},{"text":"States responded that during the period when the exten-","paragraph_id":"para_184"},{"text":"sions were made, Customs was busy collecting and review-","paragraph_id":"para_185"},{"text":"ing information from Midwest to determine the proper","paragraph_id":"para_186"},{"text":"basis of appraisement of the merchandise. Id.","paragraph_id":"para_187"},{"text":"The CIT agreed with the Government’s position, hold-","paragraph_id":"para_188"},{"text":"ing that Customs had a reasonable basis for extending liq-","paragraph_id":"para_189"},{"text":"uidation in order to complete the audit process, ensure its","paragraph_id":"para_190"},{"text":"accuracy, and comply with established standards. Id. at","paragraph_id":"para_191"},{"text":"1310. Thus, the CIT found that Customs did not abuse its","paragraph_id":"para_192"},{"text":"discretion in so acting. Id.","paragraph_id":"para_193"},{"text":"Midwest now raises three arguments on appeal.","paragraph_id":"para_194"},{"text":"First, Midwest argues that Customs’ decision to extend","paragraph_id":"para_195"},{"text":"liquidation in this case should not be reviewed under an","paragraph_id":"para_196"},{"text":"“abuse of discretion” standard. Appellant Opening Br. 23–","paragraph_id":"para_197"},{"text":"24. Midwest claims that since Customs possessed all the","paragraph_id":"para_198"},{"text":"information it required from Midwest by June 14, 2014, the","paragraph_id":"para_199"},{"text":"statutory condition for further extensions under 19 U.S.C.","paragraph_id":"para_200"},{"text":"§ 1504(b)(1) had disappeared. Id. at 24–25. Midwest likens","paragraph_id":"para_201"},{"text":"6 There are other statutory bases under which Cus-","paragraph_id":"para_202"},{"text":"toms may properly extend the liquidation period. As Cus-","paragraph_id":"para_203"},{"text":"toms does not assert them, we do not address them.","paragraph_id":"para_204"},{"text":"Case: 24-1142 Document: 47 Page: 6 Filed: 01/08/2026","paragraph_id":"para_205"},{"text":"MIDWEST-CBK, LLC v. US 7","paragraph_id":"para_206"},{"text":"the facts of this case to those in Ford Motor Co., where this","paragraph_id":"para_207"},{"text":"court overturned the CIT’s grant of summary judgment in","paragraph_id":"para_208"},{"text":"favor of the government and held that “the [CIT] cannot","paragraph_id":"para_209"},{"text":"uphold a decision to extend a liquidation if an importer","paragraph_id":"para_210"},{"text":"‘eliminate[s] all reasonable bases for making that deci-","paragraph_id":"para_211"},{"text":"sion.’” Ford Motor Co., 157 F.3d at 855 (quoting St. Paul","paragraph_id":"para_212"},{"text":"Fire & Marine, 6 F.3d at 768). The court found that the","paragraph_id":"para_213"},{"text":"reasons proffered by Customs to the CIT were “quite circu-","paragraph_id":"para_214"},{"text":"lar: Customs delayed because it needed more information","paragraph_id":"para_215"},{"text":"yet argues it must have needed more information because","paragraph_id":"para_216"},{"text":"it delayed . . . . [Customs] had known [it] needed to perform","paragraph_id":"para_217"},{"text":"this task three years earlier. Customs offers no explanation","paragraph_id":"para_218"},{"text":"for taking three years to perform this task.” Ford Motor","paragraph_id":"para_219"},{"text":"Co., 157 F.3d at 856. Given the lack of explanation, the","paragraph_id":"para_220"},{"text":"court held that the evidence “could show that Customs","paragraph_id":"para_221"},{"text":"abused its discretion in seeking time extensions,” making","paragraph_id":"para_222"},{"text":"the grant of summary judgment improper. Id. at 857.","paragraph_id":"para_223"},{"text":"The facts in Ford Motor Co. are readily distinguishable","paragraph_id":"para_224"},{"text":"from those in the case before us, however. Based on the un-","paragraph_id":"para_225"},{"text":"disputed facts in this case, Customs offers good reasons for","paragraph_id":"para_226"},{"text":"its extension of liquidation: it conducted several rounds of","paragraph_id":"para_227"},{"text":"audits, confirmed the accuracy of those audits, and re-","paragraph_id":"para_228"},{"text":"viewed them to ensure compliance with Generally Ac-","paragraph_id":"para_229"},{"text":"cepted Government Auditing Standards. See Midwest-","paragraph_id":"para_230"},{"text":"CBK, 578 F. Supp. 3d at 1309. Customs thus submitted suf-","paragraph_id":"para_231"},{"text":"ficient evidence into the record to demonstrate that the ex-","paragraph_id":"para_232"},{"text":"tension of the liquidation period was justified in this case.","paragraph_id":"para_233"},{"text":"As a result, we hold that Midwest has not “eliminate[d] all","paragraph_id":"para_234"},{"text":"reasonable bases for [Customs in] making [the] decision” to","paragraph_id":"para_235"},{"text":"extend liquidation. Ford Motor Co., 157 F.3d at 855 (quot-","paragraph_id":"para_236"},{"text":"ing St. Paul Fire & Marine, 6 F.3d at 768). We therefore","paragraph_id":"para_237"},{"text":"hold, in light of the factual record before us, that Customs’","paragraph_id":"para_238"},{"text":"extension of liquidation did not constitute an abuse of dis-","paragraph_id":"para_239"},{"text":"cretion.","paragraph_id":"para_240"},{"text":"Second, Midwest argues that the internal review that","paragraph_id":"para_241"},{"text":"Customs engaged in cannot form the basis for an extension","paragraph_id":"para_242"},{"text":"of liquidation. Appellant Opening Br. 25. It is undisputed","paragraph_id":"para_243"},{"text":"Case: 24-1142 Document: 47 Page: 7 Filed: 01/08/2026","paragraph_id":"para_244"},{"text":"MIDWEST-CBK, LLC v. US8","paragraph_id":"para_245"},{"text":"that Customs had received all the information it requested","paragraph_id":"para_246"},{"text":"from Midwest for proper appraisement of the subject mer-","paragraph_id":"para_247"},{"text":"chandise on or before June 14, 2014, the date by which Mid-","paragraph_id":"para_248"},{"text":"west had fully responded to all of Customs’ initial and","paragraph_id":"para_249"},{"text":"supplemental requests for information. Midwest claims","paragraph_id":"para_250"},{"text":"that prolonged internal deliberations do not provide a basis","paragraph_id":"para_251"},{"text":"for extending the liquidation period. Id. This argument is","paragraph_id":"para_252"},{"text":"unconvincing however, because the Court in Ford Motor","paragraph_id":"para_253"},{"text":"Co. held, “Customs accurately notes that the statute does","paragraph_id":"para_254"},{"text":"not require that information justifying a delay must come","paragraph_id":"para_255"},{"text":"from the importer. A need for internal information from","paragraph_id":"para_256"},{"text":"other Customs personnel might also satisfy section","paragraph_id":"para_257"},{"text":"1504(b)(1).” Ford Motor Co., 157 F.3d at 856. The record","paragraph_id":"para_258"},{"text":"shows that Customs engaged in several rounds of internal","paragraph_id":"para_259"},{"text":"deliberations to verify the accuracy of the information it re-","paragraph_id":"para_260"},{"text":"ceived and ensure the accuracy of the calculations it de-","paragraph_id":"para_261"},{"text":"rived therefrom.7 Midwest-CBK, 578 F. Supp. 3d at 1309.","paragraph_id":"para_262"},{"text":"These rounds of internal review were reasonably necessary","paragraph_id":"para_263"},{"text":"for the proper appraisement or classification of the mer-","paragraph_id":"para_264"},{"text":"chandise involved and thus form a proper basis for the ex-","paragraph_id":"para_265"},{"text":"tension of liquidation.","paragraph_id":"para_266"},{"text":"Third, Midwest argues in its reply brief that the Gov-","paragraph_id":"para_267"},{"text":"ernment’s “proffered explanation” for Customs’ decision to","paragraph_id":"para_268"},{"text":"extend liquidation “is untrue.” Appellant Reply Br. 10. The","paragraph_id":"para_269"},{"text":"“proffered explanation” is well-supported by citations to","paragraph_id":"para_270"},{"text":"the record, Appellee Resp. Br. 47–48, and the claim of un-","paragraph_id":"para_271"},{"text":"truth is not. Midwest further argues that the “proffered ex-","paragraph_id":"para_272"},{"text":"planation” is “immaterial and cannot satisfy the statutory","paragraph_id":"para_273"},{"text":"requirements for lawfully extending liquidation.” Appel-","paragraph_id":"para_274"},{"text":"lant Reply Br. 10. The CIT held, and we agree, that “the","paragraph_id":"para_275"},{"text":"7 This process required Customs to audit more","paragraph_id":"para_276"},{"text":"than 560 entries. Midwest-CBK, 578 F. Supp. 3d at 1302.","paragraph_id":"para_277"},{"text":"“Each entry comprise[s] ten to hundreds of line items, and","paragraph_id":"para_278"},{"text":"each line item may include any number of different items","paragraph_id":"para_279"},{"text":"that were subject to a particular classification.” J.A. 732.","paragraph_id":"para_280"},{"text":"Case: 24-1142 Document: 47 Page: 8 Filed: 01/08/2026","paragraph_id":"para_281"},{"text":"MIDWEST-CBK, LLC v. US 9","paragraph_id":"para_282"},{"text":"record reflects that Customs was actively engaged through-","paragraph_id":"para_283"},{"text":"out the audit process in collecting and reviewing the infor-","paragraph_id":"para_284"},{"text":"mation needed to determine the proper method of","paragraph_id":"para_285"},{"text":"appraisement.” Midwest-CBK, 578 F. Supp. 3d at 1310.","paragraph_id":"para_286"},{"text":"That Customs did not use some of the information in the","paragraph_id":"para_287"},{"text":"final appraisement does not undercut the conclusion that","paragraph_id":"para_288"},{"text":"Customs reasonably considered the information.","paragraph_id":"para_289"},{"text":"We therefore affirm the CIT’s ruling that Customs did","paragraph_id":"para_290"},{"text":"not abuse its discretion in extending liquidation and that","paragraph_id":"para_291"},{"text":"the entries in question were not liquidated by operation of","paragraph_id":"para_292"},{"text":"law.","paragraph_id":"para_293"},{"text":"B. Appraisement","paragraph_id":"para_294"},{"text":"There is a hierarchy of various appraisement methods","paragraph_id":"para_295"},{"text":"for imported merchandise.8 19 U.S.C. § 1401a(a)(1). The","paragraph_id":"para_296"},{"text":"8 (a) Generally","paragraph_id":"para_297"},{"text":"(1) Except as otherwise specifically provided for in","paragraph_id":"para_298"},{"text":"this chapter, imported merchandise shall be ap-","paragraph_id":"para_299"},{"text":"praised, for the purposes of this chapter, on the ba-","paragraph_id":"para_300"},{"text":"sis of the following:","paragraph_id":"para_301"},{"text":"(A) The transaction value provided for under","paragraph_id":"para_302"},{"text":"subsection (b).","paragraph_id":"para_303"},{"text":"(B) The transaction value of identical merchan-","paragraph_id":"para_304"},{"text":"dise provided for under subsection (c), if the","paragraph_id":"para_305"},{"text":"value referred to in subparagraph (A) cannot be","paragraph_id":"para_306"},{"text":"determined, or can be determined but cannot","paragraph_id":"para_307"},{"text":"be used by reason of subsection (b)(2).","paragraph_id":"para_308"},{"text":"(C) The transaction value of similar merchan-","paragraph_id":"para_309"},{"text":"dise provided for under subsection (c), if the","paragraph_id":"para_310"},{"text":"value referred to in subparagraph (B) cannot be","paragraph_id":"para_311"},{"text":"determined.","paragraph_id":"para_312"},{"text":"(D) The deductive value provided for under","paragraph_id":"para_313"},{"text":"subsection (d), if the value referred to in sub-","paragraph_id":"para_314"},{"text":"paragraph (C) cannot be determined and if the","paragraph_id":"para_315"},{"text":"Case: 24-1142 Document: 47 Page: 9 Filed: 01/08/2026","paragraph_id":"para_316"},{"text":"MIDWEST-CBK, LLC v. US10","paragraph_id":"para_317"},{"text":"default method of appraisement is transaction value; other","paragraph_id":"para_318"},{"text":"methods are appropriate if the transaction value of im-","paragraph_id":"para_319"},{"text":"ported merchandise cannot be determined. Transaction","paragraph_id":"para_320"},{"text":"value of merchandise is defined as “the price actually paid","paragraph_id":"para_321"},{"text":"or payable for the merchandise when sold for exportation","paragraph_id":"para_322"},{"text":"to the United States” in addition to various other miscella-","paragraph_id":"para_323"},{"text":"neous costs (e.g., packing costs, royalty or licensing fees,","paragraph_id":"para_324"},{"text":"commission costs). 19 U.S.C. § 1401a(b)(1).","paragraph_id":"para_325"},{"text":"In order for merchandise to be appraised on the basis","paragraph_id":"para_326"},{"text":"of transaction value, the goods must be (1) sold (2) for ex-","paragraph_id":"para_327"},{"text":"portation to the United States. VWP of Am., Inc. v. United","paragraph_id":"para_328"},{"text":"States, 175 F.3d 1327, 1338–39 (Fed. Cir. 1999). Midwest","paragraph_id":"para_329"},{"text":"does not contest that the merchandise was indeed “sold.”","paragraph_id":"para_330"},{"text":"See Appellant’s Opening Br. 27. Thus, the only question is","paragraph_id":"para_331"},{"text":"whether these sales were “for exportation to the United","paragraph_id":"para_332"},{"text":"States.” This determination is a “fact-specific” one that","paragraph_id":"para_333"},{"text":"“can only be made on a case-by-case basis” by a court con-","paragraph_id":"para_334"},{"text":"sidering the “reality of the transactions” between the seller","paragraph_id":"para_335"},{"text":"and buyer. E.C. McAfee Co. v. United States, 842 F.2d 314,","paragraph_id":"para_336"},{"text":"319 (Fed. Cir. 1988).","paragraph_id":"para_337"},{"text":"Before the CIT, Midwest contended that the sales in","paragraph_id":"para_338"},{"text":"question were not “for exportation to the United States.”","paragraph_id":"para_339"},{"text":"Midwest-CBK, 578 F. Supp. 3d at 1303. Midwest claimed","paragraph_id":"para_340"},{"text":"that, because the merchandise in question was sold “FOB","paragraph_id":"para_341"},{"text":"Buffalo, NY” pursuant to the New York Uniform Commer-","paragraph_id":"para_342"},{"text":"cial Code (UCC), sales of this merchandise should instead","paragraph_id":"para_343"},{"text":"importer does not request alternative valuation","paragraph_id":"para_344"},{"text":"under paragraph (2).","paragraph_id":"para_345"},{"text":"(E) The computed value provided for under","paragraph_id":"para_346"},{"text":"subsection (e), if the value referred to in sub-","paragraph_id":"para_347"},{"text":"paragraph (D) cannot be determined.","paragraph_id":"para_348"},{"text":"(F) The value provided for under subsection (f),","paragraph_id":"para_349"},{"text":"if the value referred to in subparagraph (E)","paragraph_id":"para_350"},{"text":"cannot be determined.","paragraph_id":"para_351"},{"text":"19 U.S.C. § 1401a(a)(1) (bolding removed).","paragraph_id":"para_352"},{"text":"Case: 24-1142 Document: 47 Page: 10 Filed: 01/08/2026","paragraph_id":"para_353"},{"text":"MIDWEST-CBK, LLC v. US 11","paragraph_id":"para_354"},{"text":"be considered as domestic sales. Id. at 1305. Midwest ar-","paragraph_id":"para_355"},{"text":"gued that a domestic sale could not be used as the basis of","paragraph_id":"para_356"},{"text":"a transaction value appraisement under 19 U.S.C. §","paragraph_id":"para_357"},{"text":"1401a(b)(1). Id. In support of this argument, Midwest re-","paragraph_id":"para_358"},{"text":"lied heavily upon Orbisphere Corp. v. United States, 726 F.","paragraph_id":"para_359"},{"text":"Supp. 1344 (Ct. Int’l Trade 1989). The United States re-","paragraph_id":"para_360"},{"text":"sponded by pointing to cases showing that an international","paragraph_id":"para_361"},{"text":"sale is not required to apply a transaction value appraise-","paragraph_id":"para_362"},{"text":"ment method under the statute. It also argued that the","paragraph_id":"para_363"},{"text":"Court should not apply Orbisphere because Orbisphere re-","paragraph_id":"para_364"},{"text":"lied on an older case, Massce, which was decided under a","paragraph_id":"para_365"},{"text":"predecessor version of the statute at issue. United States v.","paragraph_id":"para_366"},{"text":"Massce & Co., 21 C.C.P.A. 54 (1933).","paragraph_id":"para_367"},{"text":"The CIT agreed with the United States. It found that","paragraph_id":"para_368"},{"text":"Orbisphere’s reliance on Massce rendered Orbisphere un-","paragraph_id":"para_369"},{"text":"persuasive and that the existence of the “FOB Buffalo, NY”","paragraph_id":"para_370"},{"text":"term was not dispositive evidence that the sales in question","paragraph_id":"para_371"},{"text":"were domestic. Midwest-CBK, 578 F. Supp. 3d at 1305–07.","paragraph_id":"para_372"},{"text":"Applying the law to the facts in this case, the CIT found","paragraph_id":"para_373"},{"text":"that customers in the United States would place orders for","paragraph_id":"para_374"},{"text":"merchandise located in Canada; the merchandise would","paragraph_id":"para_375"},{"text":"then be shipped from Canada to the United States. Id. at","paragraph_id":"para_376"},{"text":"1306. The CIT found these transactions constituted sales","paragraph_id":"para_377"},{"text":"for exportation to the United States which could serve as","paragraph_id":"para_378"},{"text":"the basis for valuing these sales using transaction value.","paragraph_id":"para_379"},{"text":"Id. at 1306–07.","paragraph_id":"para_380"},{"text":"The crux of Midwest’s challenge to the CIT’s finding is","paragraph_id":"para_381"},{"text":"Midwest’s assertion that sales of the merchandise in ques-","paragraph_id":"para_382"},{"text":"tion occurred entirely in the United States. Appellant","paragraph_id":"para_383"},{"text":"Opening Br. 29. Midwest claims these sales should not be","paragraph_id":"para_384"},{"text":"characterized as sales “for exportation to the United","paragraph_id":"para_385"},{"text":"States” and thus cannot form the basis of a transaction","paragraph_id":"para_386"},{"text":"value appraisement. Id.","paragraph_id":"para_387"},{"text":"Midwest’s argument is unpersuasive.","paragraph_id":"para_388"},{"text":"First, this assertion is not supported by the text of 19","paragraph_id":"para_389"},{"text":"U.S.C. § 1401a(b)(1), which, as the CIT correctly noted,","paragraph_id":"para_390"},{"text":"Case: 24-1142 Document: 47 Page: 11 Filed: 01/08/2026","paragraph_id":"para_391"},{"text":"MIDWEST-CBK, LLC v. US12","paragraph_id":"para_392"},{"text":"“does not expressly require that a sale be international or","paragraph_id":"para_393"},{"text":"occur abroad” for the use of transaction value to apply.","paragraph_id":"para_394"},{"text":"Midwest-CBK, 578 F. Supp. 3d at 1306.","paragraph_id":"para_395"},{"text":"Second, Midwest’s challenge is not supported by prior","paragraph_id":"para_396"},{"text":"case law which suggests that domestic sales may in fact","paragraph_id":"para_397"},{"text":"serve as the basis of a transaction value appraisement. In","paragraph_id":"para_398"},{"text":"VWP, we found that sales between a Canadian manufac-","paragraph_id":"para_399"},{"text":"turer and its U.S. subsidiary were sales for exportation to","paragraph_id":"para_400"},{"text":"the United States that served as the basis for transaction","paragraph_id":"para_401"},{"text":"value. VWP, 175 F.3d at 1339. We noted, however, “if sales","paragraph_id":"para_402"},{"text":"by [the Canadian manufacturer] to [the U.S. subsidiary]","paragraph_id":"para_403"},{"text":"cannot serve as the basis for transaction value, then trans-","paragraph_id":"para_404"},{"text":"action value must be based upon sales by [the U.S. subsid-","paragraph_id":"para_405"},{"text":"iary] to its U.S. customers.” Id. at 1334. In La Perla","paragraph_id":"para_406"},{"text":"Fashions, the CIT considered Customs’ use of “the sale be-","paragraph_id":"para_407"},{"text":"tween [a U.S.-based distributor] and its U.S. customers” in","paragraph_id":"para_408"},{"text":"determining transaction value appraisement; the CIT con-","paragraph_id":"para_409"},{"text":"cluded that “transaction value can . . . be based on [the","paragraph_id":"para_410"},{"text":"U.S.-based distributor’s] price charged to its U.S. custom-","paragraph_id":"para_411"},{"text":"ers.” La Perla Fashions, Inc. v. United States, 22 C.I.T. 393,","paragraph_id":"para_412"},{"text":"399 (Ct. Int’l Trade 1998), aff’d, 185 F.3d 885 (Fed. Cir.","paragraph_id":"para_413"},{"text":"1999). Midwest has not explained why either of these cases","paragraph_id":"para_414"},{"text":"would be inapplicable to the facts currently before us.","paragraph_id":"para_415"},{"text":"Midwest’s other argument as to why 19 U.S.C. §","paragraph_id":"para_416"},{"text":"1401a(b)(1) should not apply to sales unless they occur","paragraph_id":"para_417"},{"text":"abroad rests on its reading of Orbisphere. Appellant Open-","paragraph_id":"para_418"},{"text":"ing Br. 39. In that case, U.S. customers placed orders for","paragraph_id":"para_419"},{"text":"merchandise at one of the plaintiff’s domestic locations. Or-","paragraph_id":"para_420"},{"text":"bisphere, 726 F. Supp. at 1344. The plaintiff forwarded","paragraph_id":"para_421"},{"text":"these orders to its office in Switzerland, where the mer-","paragraph_id":"para_422"},{"text":"chandise was manufactured, and then shipped the devices","paragraph_id":"para_423"},{"text":"to its customers in the United States “F.O.B. Haworth,","paragraph_id":"para_424"},{"text":"N.J.” Id. at 1344–45. The CIT, relying heavily upon the","paragraph_id":"para_425"},{"text":"Massce court’s interpretation of § 402(d) of the Tariff Act of","paragraph_id":"para_426"},{"text":"1930, found that the choice between using transaction","paragraph_id":"para_427"},{"text":"value and deductive value “depend[ed] substantially upon","paragraph_id":"para_428"},{"text":"where the sales of the product in question are deemed to","paragraph_id":"para_429"},{"text":"Case: 24-1142 Document: 47 Page: 12 Filed: 01/08/2026","paragraph_id":"para_430"},{"text":"MIDWEST-CBK, LLC v. US 13","paragraph_id":"para_431"},{"text":"have occurred.” Id. at 1350. Though the Orbisphere court","paragraph_id":"para_432"},{"text":"conceded that “definitions of ‘export value’ [under the Tar-","paragraph_id":"para_433"},{"text":"iff Act of 1930] and ‘transaction value’ [under 19 U.S.C. §","paragraph_id":"para_434"},{"text":"1401a(b)(1)] are not identical, the crucial element of each .","paragraph_id":"para_435"},{"text":". . [is] that there have been a sale abroad . . . before either","paragraph_id":"para_436"},{"text":"measure is applicable.” Id. at 1350–51. The CIT concluded","paragraph_id":"para_437"},{"text":"that the sales at issue in Orbisphere “were consummated","paragraph_id":"para_438"},{"text":"within the United States,” thus “establishing ‘deductive","paragraph_id":"para_439"},{"text":"value’ as the correct basis for valuation of the entries.” Id.","paragraph_id":"para_440"},{"text":"at 1358.","paragraph_id":"para_441"},{"text":"The CIT in the case before us correctly found Orbi-","paragraph_id":"para_442"},{"text":"sphere unpersuasive due to its heavy reliance upon Massce.","paragraph_id":"para_443"},{"text":"The Massce decision interpreted § 402(d) of the Tariff Act","paragraph_id":"para_444"},{"text":"of 1930. That section of the act stated that the “export value","paragraph_id":"para_445"},{"text":"of imported merchandise shall be the market value or the","paragraph_id":"para_446"},{"text":"price . . . at which such or similar merchandise is freely","paragraph_id":"para_447"},{"text":"offered for sale to all purchasers in the principal markets","paragraph_id":"para_448"},{"text":"of the country from which [it is] exported.” Massce, 21","paragraph_id":"para_449"},{"text":"C.C.P.A. at 55 (emphasis added). Thus, Massce interpreted","paragraph_id":"para_450"},{"text":"statutory language that defined “export value.” The statu-","paragraph_id":"para_451"},{"text":"tory language relevant in Massce expressly based the rele-","paragraph_id":"para_452"},{"text":"vant determination on sales outside the United States.","paragraph_id":"para_453"},{"text":"The Trade Agreements Act was passed in 1979. As the","paragraph_id":"para_454"},{"text":"CIT correctly noted, the Trade Agreements Act “removed","paragraph_id":"para_455"},{"text":"all references to foreign markets in which merchandise","paragraph_id":"para_456"},{"text":"might be traded.” Midwest-CBK, 578 F. Supp. 3d at 1306.","paragraph_id":"para_457"},{"text":"In addition, as the Senate Committee on Finance specifi-","paragraph_id":"para_458"},{"text":"cally noted in its report on the Trade Agreements Act,","paragraph_id":"para_459"},{"text":"“[t]he use of transaction value as the primary basis for cus-","paragraph_id":"para_460"},{"text":"toms valuation will allow use of the price which the buyer","paragraph_id":"para_461"},{"text":"and seller agreed to in their transaction as the basis for","paragraph_id":"para_462"},{"text":"valuation, rather than having to resort to the more difficult","paragraph_id":"para_463"},{"text":"concept[] of . . . ‘principal markets of the country of expor-","paragraph_id":"para_464"},{"text":"tation.’” S. Rep. No. 96-249, at 119 (1979). Our subsequent","paragraph_id":"para_465"},{"text":"case law has also indicated that § 402(d) of the Tariff Act","paragraph_id":"para_466"},{"text":"of 1930 “was repealed in 1979 by the Trade Agreements Act","paragraph_id":"para_467"},{"text":"of 1979.” VWP, 175 F.3d at 334. Thus, the CIT’s holding in","paragraph_id":"para_468"},{"text":"Case: 24-1142 Document: 47 Page: 13 Filed: 01/08/2026","paragraph_id":"para_469"},{"text":"MIDWEST-CBK, LLC v. US14","paragraph_id":"para_470"},{"text":"Orbisphere relied upon the Massce court’s interpretation of","paragraph_id":"para_471"},{"text":"a different term (“export value”) with a differently worded","paragraph_id":"para_472"},{"text":"definition in a superseded statute. We therefore find Orbi-","paragraph_id":"para_473"},{"text":"sphere unpersuasive. The CIT correctly decided that 19","paragraph_id":"para_474"},{"text":"U.S.C. §1401a(b)(1) does not require an international sale","paragraph_id":"para_475"},{"text":"or a sale abroad to have occurred for a sale of merchandise","paragraph_id":"para_476"},{"text":"to be considered as a sale “for exportation to the United","paragraph_id":"para_477"},{"text":"States.” Domestic sales, in certain circumstances, may","paragraph_id":"para_478"},{"text":"qualify as the basis for using transaction value as an ap-","paragraph_id":"para_479"},{"text":"praisement method.","paragraph_id":"para_480"},{"text":"Finally, Midwest argues that the purchase orders for","paragraph_id":"para_481"},{"text":"the subject merchandise included the language, “FOB Buf-","paragraph_id":"para_482"},{"text":"falo, NY,” which indicates that the sales in question consti-","paragraph_id":"para_483"},{"text":"tuted domestic sales. Appellant Opening Br. 33–35. Since","paragraph_id":"para_484"},{"text":"we find that a domestic sale can serve as the basis for ap-","paragraph_id":"para_485"},{"text":"praisement based on transaction value under 19 U.S.C. §","paragraph_id":"para_486"},{"text":"1401a(b)(1), we need not reach the merits of this conten-","paragraph_id":"para_487"},{"text":"tion.","paragraph_id":"para_488"},{"text":"Accordingly, we agree with the well-reasoned opinion","paragraph_id":"para_489"},{"text":"of the CIT: “After conducting a fact-specific inquiry of","paragraph_id":"para_490"},{"text":"whether the sales were for exportation to the United States","paragraph_id":"para_491"},{"text":"under 19 U.S.C. § 1401a(b)(1), . . . the undisputed evidence","paragraph_id":"para_492"},{"text":"demonstrates that [Midwest’s] sales were for exportation","paragraph_id":"para_493"},{"text":"to the United States at the time of the sale.” Midwest-CBK,","paragraph_id":"para_494"},{"text":"578 F. Supp. 3d at 1304. Transaction value is the proper","paragraph_id":"para_495"},{"text":"basis of appraisement.","paragraph_id":"para_496"},{"text":"IV. CONCLUSION","paragraph_id":"para_497"},{"text":"We have considered Midwest’s arguments and find","paragraph_id":"para_498"},{"text":"them unpersuasive. 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