CIT Stays Customs Penalty Case Pending Criminal Investigation

The Court of International Trade in a Dec. 1 order stayed a customs fraud case against Zhe "John" Liu pending resolution of the ongoing criminal investigation of Liu. The civil case against Liu and importer GL Paper Distribution was filed at the trade court in July 2022, in which the U.S. alleged that Liu operated a scheme via a series of companies that imported steel wire hangers that were given false countries of origin. Liu allegedly created the companies for a transshipment scheme that involved sending wire hangers from China subject to antidumping and countervailing duties through Malaysia, India and Thailand in a bid to disguise their origin (see 2303160050). Judge Jane Restani stayed the government's case against Liu and GL Paper, ordering the parties to file a joint status report April 1 (U.S. v. Zhe "John" Liu, CIT # 22-00215).