Sterling Footwear is liable for gross negligence related to unpaid customs duties due to misclassification on hundreds of footwear entries, the Court of International Trade ruled in a Oct. 12 decision. CIT Judge Mark Barnett specifically avoided a decision on the liability of Sterling's CEO and majority shareholder, Alex Ng. The Justice Department sought a summary judgment on Ng's culpability but because some of the facts involved remain in dispute, Barnett didn't decide that issue.
The Court of International Trade on Oct. 10 dismissed a challenge to the timeliness of a CBP demand for payment from a surety related to an importer’s unpaid antidumping duties on preserved mushrooms from China. Hartford Fire Insurance argued the six-year and 30-day deadlines for CBP’s demand ran out because it should have been calculated from the date of deemed liquidation in 2006, not from the date CBP actually liquidated the entries in 2011. CIT found it did not have jurisdiction over the case because the issue should have been raised in a protest and challenged in a denied protest lawsuit under 28 USC 1581(a), not under CIT’s “residual” jurisdiction under 28 USC 1581(i).
The government of Canada recently issued the following trade-related notices as of Oct. 10 (some may also be given separate headlines):
The following lawsuits were filed at the Court of International Trade during the week of Oct. 2-8:
Irregularities on a single transaction bond issued to cover antidumping duties on Chinese garlic don’t mean the surety doesn’t have to pay out to CBP, the Court of International Trade said in an Oct. 5 decision. Handwritten changes to the bond after it was signed, in apparent violation of CBP’s regulations, don’t invalidate the bond, CIT said. And despite lengthy delays before the underlying entry was liquidated, the government’s lawsuit to collect was not filed too late, it said.
The Census Bureau is accepting public comments through Dec. 5 on routed export transactions and the definition of and party responsibilities in such transactions, the agency said. “The Census Bureau is soliciting comments on the clarity, usability, and any other matters related to the regulatory requirements for routed transactions,” the agency said. Census is asking for suggestions for the “definition of routed export transaction,” in the case that commenters find the current CFR definition unclear; is asking whether it should modify the set of data elements required from the U.S. authorized agent when filing electronic export information; and is asking whether it should modify the dataset that the U.S. principal party in interest (USPPI) is required to provide to the U.S. authorized agent, among other things. Other data elements, including the shipment reference number, export information code and foreign-trade zone identifier, are required to be reported, but federal regulations don’t list the party responsible for providing the information. Census wants comments on whether the USPPI or U.S. authorized agent should report these required data elements, the agency said. Census is also asking how Foreign Trade Regulations requirements could be revised to align with the Export Administration Regulations on routed export transactions.
A warehouse purportedly controlled by Perfectus Aluminum on Oct. 3 asked the Central California U.S. District Court to dismiss a government lawsuit seeking forfeiture of over 500 containers of aluminum pallets. The warehouse company says the government’s entire case is based on the illegally retroactive application of a 2017 scope ruling that found aluminum pallets are subject to AD/CV duties on aluminum extrusions from China (see 1707100006).
With CBP regulations on new drawback procedures still not issued, software developers are growing concerned about whether they will be ready for the new system’s upcoming deployment in ACE. CBP has pledged to have capabilities in place for the new Trade Facilitation and Trade Enforcement Act drawback provisions on Feb. 24, but though the agency has found funding and begun its own programming efforts, software developers have been unable to start coding, leaving little time for testing before the deadline, several developers said in interviews.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 25 - Oct. 1:
The Court of International Trade will end its reserve calendar procedures, in a change to its rules that takes effect Oct. 23. The amendment to CIT rule 83 creates a new “Customs Case Management Calendar” for challenges of protests denied by CBP, with a hard 24-month time limit, extendable to 48 months, unless the case is assigned, a complaint is filed, the case is consolidated, the case is suspended under a test case, or the case is voluntarily dismissed.