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CIT Refers Customs Penalty Suit on Tire Entries to Mediation

The Court of International Trade on Oct. 30 referred a customs penalty suit against importer Katana Racing to mediation under Judge Jennifer Choe-Groves. The judge overseeing the case, Lisa Wang, said the mediation period will expire March 17 unless Choe-Groves recommends an extension (U.S. v. Katana Racing, CIT # 19-00125).

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The U.S. and Katana asked for mediation after the trade court's recent decision rejecting the importer's renewed motion to dismiss (see 2410230026). The government brought the suit to collect duties on 386 tire entries, which Katana said were entered as the result of identity theft. The importer waived the statute of limitations while it worked with CBP to sort out the issue, though it was eventually billed $5.7 million for the duties. Katana then tried to revoke the waiver.

CIT first said the waiver was properly revoked (see 2203280047), though the U.S. Court of Appeals for the Federal Circuit reversed, finding that the statute of limitations isn't a jurisdictional issue but an affirmative defense and returning it to the trade court (see 2308030034). Wang rejected a renewed motion to dismiss, finding, among other things, that the U.S. didn't fail to bring the case on time or properly identify the person liable for the violation (see 2409090047).