United States Files Suit For Unpaid Duties and Penalties For Alleged Transshipment of Chinese Aluminum Wire

The United States has filed a civil lawsuit against Repwire LLC, a Florida Corporation that imports wire and cables. The lawsuit alleges that Repwire made false statements to customs officials in importing aluminum wire into the United States. The lawsuit also names as defendants Repwire's manager, Jose Pigna, and insurer, American Alternative Insurance Corporation.

The United States' complaint contends that Repwire, through gross negligence or negligence, misrepresented to U.S. Customs and Border Protection (CBP) the imported wire's classification code and country of origin. Repwire allegedly falsely classified the imported wire from China as aluminum wire with connectors instead of wire without connectors, and after import duties on the former were subsequently raised, Repwire allegedly then falsely identified the country of origin for various entries of its merchandise as Singapore or Korea. Both of these alleged misrepresentations resulted in Repwire failing to pay the appropriate amount of duties owed on its merchandise.

"The Justice Department is committed to pursuing individuals and companies who evade customs duties or otherwise engage in unfair trade practices that harm U.S. manufacturers," said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. "We will continue to employ all of our tools to ensure that U.S. manufacturers are competing on a level playing field."

"CBP takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices," said Executive Director Susan Thomas of Cargo and Conveyance Security, Office of Field Operations, CBP. "These civil penalties should serve as a warning to those who attempt to do harm to our economy and American businesses."

The complaint alleges that Repwire, acting through Pigna, avoided various duties owed on the imported wire, including Section 301 duties, which are owed on certain Chinese merchandise, including aluminum wires without connectors, and anti-dumping and countervailing duties associated with Chinese aluminum wire. Antidumping and countervailing duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

The complaint seeks the recovery of over $11 million in import duties and up to $62 million in civil penalties.

CBP's Electronics Center of Excellence and Expertise and Homeland Security Investigations (HSI) Miami investigated the case. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.

Trial Counsel Daniel Hoffman of the Civil Division's Commercial Litigation Branch, National Courts Section, handled the case.

The case, which is filed in the Court of International Trade, is captioned United States v. Repwire LLC, and Jose Pigna, and American Alternative Insurance Corporation, No. 24-00173.

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with United States trade laws.

The claims in the complaint are allegations only, and there has been no determination of liability.

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