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CIT Stays AD/CVD Evasion Case Until Tire Importer's Criminal Charges Resolved

The Court of International Trade stayed all proceedings in a case against 14 individuals for a scheme to evade antidumping and countervailing duties until criminal charges also levied against eight of the defendants are settled, in an April 22 procedural order. The defendants allegedly evaded duties on off-the-road tires, passenger vehicle and light truck tires and truck and bus tires from China. The case in CIT has the government seeking $20.9 million in penalties for customs fraud and $5.6 million in unpaid duties for the eight individuals with criminal charges, as well as six other defendants and the Houston-based company Winland International, which does business as Super Tire. The Section 1582 penalty case alternatively seeks $12.5 million in penalties and $2.2 million in unpaid duties for gross negligence.

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Eight of the individuals face charges for criminal wire fraud and entry of goods by means of false statements for allegedly evading antidumping and countervailing duties by undervaluation and falsely declaring exporters with lower rates in the U.S. District Court for the Southern District of Texas (see 2012160035). Once criminal proceedings wrap up, CIT ordered that the parties have 15 days to submit a joint status report.