Surety Cites Statute of Limitations on Bond Collection Decision in Similar Case

CBP's attempts to collect a 14-year-old bond for antidumping duties on Chinese garlic may be affected by the Court of International Trade's ruling in a similar case, defendant Aegis Security said in a notice of supplemental authority. CIT Judge Richard Eaton ruled on Aug. 22 that the statute of limitations for CBP to collect on customs bonds runs six years from the date of the underlying liquidation rather than from the date that CBP demanded payment (see 2308220054). Though Aegis notes that CIT judges are not bound by the decisions of other judges on the court, the company has been arguing for a similar result (see 2210270054).

The current case concerns a $50,000 bond issued by Aegis in 2002. The government has continued to seek recovery since the principal, Linyi, failed to pay in 2014. CBP demanded payment from Aegis in 2015 and has since argued that Aegis breached the terms of the bond and that the six-year statute of limitations began when CBP issued the bill (see 2308110039).