US Seeks $70 Million From Importer for Gross Negligence

The United States brought an action Sept. 10 seeking more than $70 million against an importer of aluminum wire from China (U.S. v. Repwire, CIT # 24-00173).

The importer, Repwire, working through manager Jose Pigna, dodged antidumping and countervailing duties over a period of years by falsely claiming the wire had come from Singapore or South Korea, DOJ said in its complaint.

Repwire initially imported its wire under the correct heading, citing the correct country of origin, the government said. At that time, the wire carried duties of 3.9%. However, after the imposition of Section 301 duties on “wires without connectors,” Repwire first falsely classified its entries as “wires fitted with connectors” to avoid them. The company added connectors to the wires when it did so, but they “were nonfunctional additions added as an artifice to avoid duties,” it said.

But in 2018, the orders were further modified to include aluminum wires with connectors. At that point, the following month, Repwire began to claim Singapore as its wires’ country of origin “in an apparent attempt to circumvent expanded Section 301 duties,” the U.S. said. In 2020, the importer began claiming Korea, too, it said.

CBP issued a penalty notice to Repwire in 2024 seeking $13,339,632.29, which it amended down to $13,124,100.69 after consideration of “oral and written presentations” by the defendant, it said. Repwire has not paid any of the unpaid duties and penalties as of Sept. 10, the government said.

The government said it is seeking $62,128,775.63 from Repwire and Pigna, which is equal to the domestic value of the wire, “an amount less than four times the total loss of revenue resulting from the violations.” If the court does not find that the defendants have committed gross negligence, however, then it said it was seeking $57,758,530.67 for negligence, “equal to two times the lawful duties, taxes, and fees of which the United States is or may be deprived.”

It added it is also seeking $11,471,196.17 for duties, taxes and fees the U.S. has been deprived of by the importer.