Surety Says Statute of Limitations for Duty Collections Expires 6 Years Post-Liquidation
The statute of limitations for collection of duties under a bond expires six years after the relevant entries are liquidated, surety Aegis Security Insurance Co. said in its response to a customs penalty complaint from the government. Aegis disputed the U.S. claim that the calculation of delinquency runs from the billing of the subject entry (U.S. v. Aegis Security Insurance Co., CIT # 22-00327).
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The government filed the suit, saying Aegis must pay over $100,000 in unpaid duties on an entry of honey from China imported by Presstek Wood Technologies in 2002. The entry was subject to a final antidumping duty rate of 101.48%, leading to a $57,489.60 bill sent to Presstek.
The bill became delinquent in November 2016, and CBP made its first payment demand, including interest, in February 2017. Aegis protested the demand, leading to CBP manually entering a liquidation for the entry in 2019 and issuing a new bill to Presstek that also became delinquent. The government filed suit against Aegis seeking payment (see 2211230056).