DOJ Asks CIT to Prohibit Use of Wristwatch Importer's Late Discovery Materials

The U.S. asked the Court of International Trade on Jan. 9 to bar a wristwatch importer from using any materials the importer provided the government in its supplement to a document production request, saying it had been untimely (Ildico Inc. v. U.S., CIT # 18-00136).

The importer, Ildico, brought its case to CIT in 2018 to contest the tariff classification CBP assigned to more than 35 models of its watches. Ildico claims its goods should be classified under the duty-free Harmonized Tariff Schedule heading 9101.21.50 covering wristwatches clad with precious metals, not under heading 9102 as “other wristwatches.”

The case has dragged on due to an “extensive” discovery process, DOJ said. For example, since the beginning of discovery, Ildico has served four sets of admissions requests, two sets of interrogatories, and three sets of document requests on the U.S.; the U.S. has served one set of interrogatories and one set of document requests on it in turn, the department said

“Discovery in this case has been challenging” because Ildico refused to provide information about the watches’ material components, such as the watches’ bills of materials or purchase orders, DOJ said. The commercial invoices “do not fully describe” the watches, and Ildico would not produce any of the actual watches for discovery.

“Instead, Ildico made three ‘representative’ model variations available for inspection by the Import Specialist,” DOJ said. “During the deposition of the Government’s designated representative, Ildico permitted the witness, agency counsel, and undersigned counsel to inspect a sample of the purported synthetic sapphire crystal prior to engaging in a colloquy with the witness about the crystal.”

DOJ said that, although fact discovery ended in September 2023, Ildico then provided further supplemental materials -- photographs that showed the watches’ faces and text “purporting to describe the merchandise” -- in December. Ildico didn't initially explain why the materials had been delayed, and it only told DOJ their source and purpose in an email Jan. 3, the department said.

“In an effort to portray its actions as harmless, Ildico contends that the photographs do not add any new or material information in this action,” it said. “ ... Ildico is incorrect. Ildico’s dilatory actions not only violated this Court’s discovery rules and Scheduling Order, but it also has placed the Government in the position of receiving information and samples that it cannot probe.”

It asked the court to prohibit Ildico from using the materials in trial or in any motion for summary judgment.

“It is long established that discovery ‘is not a game,’” DOJ said.