United States v. Aegis Sec. Ins. Co.

2025 CIT 73
CourtUnited States Court of International Trade
DecidedJune 11, 2025
Docket22-00327
StatusPublished

This text of 2025 CIT 73 (United States v. Aegis Sec. Ins. Co.) is published on Counsel Stack Legal Research, covering United States Court of International Trade primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Aegis Sec. Ins. Co., 2025 CIT 73 (cit 2025).

Opinion

Slip Op. 25-

UNITED STATES COURT OF INTERNATIONAL TRADE

UNITED STATES,

Plaintiff, v. Before: Jane A. Restani, Judge

AEGIS SECURITY INSURANCE COMPANY, Court No. 22-00327

Defendant.

OPINION AND ORDER

[Granting the defendant’s motion for summary judgment because the government’s action to recover on the Customs bond is barred by the statute of limitations and contracting principles.]

Dated: June, 2025

Beverly A. Farrell, U.S. Department of Justice, International Trade Field Office, of New York, NY, for the plaintiff the United States. With her on the brief was Taylor Rene Bates.

Jason Matthew Kenner, Sandler, Travis & Rosenberg, PA, of New York, NY, and Jeffrey Mark Telep, King & Spalding, LLP, of Washington, DC, for the defendant Aegis Security Insurance Company.

Restani, Judge: Before the court are cross-motions for summary judgment. Def.’s Mot. for

Summ. J., ECF No. 30 (Oct. 21, 2024) (“Aegis MSJ”); Pl.’s Cross-Mot. for Summ. J., ECF No.

34 (Dec. 9, 2024) (“Gov. MSJ”). Plaintiff, the United States (“government”), seeks to recover

unpaid antidumping duties and interest totaling $100,700 under a United States Customs and

Border Protection (“Customs”) bond from Aegis Security Insurance Company (“Aegis”). Gov.

MSJ at 1, 32. Aegis asks the court to find that the government’s action is barred because the

government failed to issue the demand in a reasonable time and because the government failed to

commence the action within the applicable six-year statute of limitations. Aegis MSJ at 11, 25.

At issue is when the statute of limitations began to run and, separately, if Customs unreasonably Court No. 22-00327 Page 2

delayed in issuing a demand to Aegis to collect on the bond. Two decisions of this court have held

that Customs may not collect on such stale claims. For the reasons set forth below, the court agrees

with the results of those matters and concludes that the government may not recover on the bond

here.

BACKGROUND

There are no material facts in dispute in this case. Pl.’s Statement of Undisputed Material

Facts at 1, ECF No. 36 (Dec. 10, 2024) (“Gov. SOF”); Def.’s Statement of Undisputed Material

Facts at 1, ECF No. 30-1 (Oct. 21, 2024) (“Aegis SOF”). On October 20, 2003, Presstek Wood

Technologies Inc. (“Presstek”) imported honey from the People’s Republic of China (“China”).

Gov. SOF ¶ 1; Aegis SOF ¶ 21. The imported product was subject to an antidumping duty order

on honey from China issued by the Department of Commerce (“Commerce”). See Notice of

Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order;

Honey From the People’s Republic of China, 66 Fed. Reg. 63,670 (Dep’t Commerce Dec. 10,

2001) (“Honey Order”); Gov. SOF ¶ 1; Aegis SOF ¶ 20. In its entry papers, Presstek declared that

Wuhan Bee Healthy Ltd. (“Wuhan Bee”) was the exporter, and that the entry was subject to

antidumping duties at a rate of 183.8% ad valorem. Gov. SOF ¶ 2; Aegis SOF ¶ 31. Presstek

executed a single transaction bond, underwritten by Aegis, to secure the duties, taxes, and charges

owed. Aegis SOF ¶ 19; see Gov. SOF ¶¶ 3–4. At the time, a bond was permitted in lieu of a cash

deposit of estimated duties in new shipper reviews.1 By the terms of the bond, Aegis agreed to be

1 Normally, when an importer imports goods subject to an antidumping or countervailing duty order, the importer gives Customs a deposit representing the estimated amount of duties owed. See 19 U.S.C. § 1673e(a)(3). Congress briefly allowed new shippers to post bonds instead of cash deposits while undergoing a new shipper review. See 19 U.S.C. § 1675(a)(2)(B)(iii) (1994). Congress later eliminated the bond option for new shippers because the program allowed exporters to avoid paying duties by disappearing without paying the duties owed. Accordingly, the law permitting the bond program was suspended in 2006 and later revoked when the statute was Court No. 22-00327 Page 3

jointly and severally liable to pay any duties, taxes, and subsequent charges demanded by Customs,

up to the limit of liability of $100,700, regarding the subject entry imported by Presstek. Gov.

SOF ¶¶ 4–5; Aegis SOF ¶ 19.

Commerce conducted an administrative review of the Honey Order for the time period of

December 1, 2002, through November 30, 2003, which included the entry of honey made by

Presstek. Compl. at ¶ 14, ECF No. 2 (Nov. 22, 2022); see Honey From the People’s Republic of

China: Preliminary Results, Partial Recission, and Extension of Final Results of Second

Antidumping Duty Administrative Review, 69 Fed. Reg. 77,184 (Dep’t Commerce Dec. 27, 2004).

On September 19, 2008, following the conclusion of the administrative review and subsequent

judicial review by the United States Court of International Trade, Commerce published the

amended results of the administrative review. Honey From the People’s Republic of China: Notice

of Amended Final Results Pursuant to Final Court Decision, 73 Fed. Reg. 54,366, 54,367 (Dep’t

Commerce Sept. 19, 2008). In the amended results, Commerce calculated an antidumping duty

rate of 101.48% ad valorem. Id. Presstek’s antidumping duty liability was calculated to be

$57,489.60. Gov. SOF ¶ 9; Aegis SOF ¶ 23. Customs failed to timely liquidate the subject entry

of honey; thus, the subject entry was deemed liquidated on March 19, 2009, at the rate of duty,

value, quantity, and amount of duty asserted at time of entry. Gov. SOF ¶ 10; Aegis SOF ¶¶ 29,

32; see 19 U.S.C. § 1504(d). Because Presstek had asserted at the time of entry that the honey was

subject to antidumping duties at a rate of 183.8% ad valorem, Presstek’s liability for antidumping

duties for the subject entry became $100,634.18 as a result of the deemed liquidation, instead of

the $57,489.60 found to be owing by Commerce. See Gov. SOF ¶¶ 9, 18; Aegis SOF ¶¶ 23, 31.

amended in 2016. See Pension Protection Act of 2006, Pub. L. No. 109-280, § 1632, 120 Stat. 780 (2006); Trade Facilitation and Trade Enforcement Act of 2015, Pub. L. No. 114-125, § 433, 130 Stat. 122, 171 (2016). Court No. 22-00327 Page 4

Over seven years passed. On November 25, 2016, Customs billed Presstek for the subject

entry, which Presstek failed to pay. Gov. SOF ¶¶ 11–12; Aegis SOF ¶ 38. On February 6, 2017,

Customs made its first payment demand on Aegis demanding the unpaid duties plus the interest

that had accrued from the time the bill was issued to Presstek. Gov. SOF ¶ 13; Aegis SOF ¶ 39.

Aegis filed a protest of Customs’ demand on April 25, 2017, which Customs granted in part.2 Gov.

SOF ¶¶ 16–17; Aegis SOF ¶ 40. Almost two years later, on March 15, 2019, Customs issued a

second bill to Presstek, which Presstek once again failed to pay. Gov. SOF ¶ 17; Aegis SOF ¶ 40.

Customs made a second demand on Aegis on June 4, 2019. Gov. SOF ¶ 19; Aegis SOF ¶ 41.

Aegis did not pay or protest the demand. Gov. SOF ¶¶ 20–21; Aegis SOF ¶ 42. On November

22, 2022, the government filed suit to recover the unpaid antidumping duties and interest.3 See

Summons, ECF No. 1 (Nov. 22, 2022).

JURISDICTION AND STANDARD OF REVIEW

The court has jurisdiction pursuant to 28 U.S.C.

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