United States v. Country Flavor Corp.
2012 Ct. Intl. Trade LEXIS 65
Ct. Intl. Trade2012Background
- Government renews motion for default judgment against Country Flavor Corp. after default entered in Country Flavor I.
- Thirteen 2006 entries of frozen fish fillets from Vietnam were misclassified; duties should have been assessed at the 63.88% Vietnam-wide rate.
- Country Flavor’s surety, International Fidelity Insurance Company, covered some payments; surety paid $6,582.22 before suit and later $274,417.78 related to other bonds.
- Country Flavor settled with the surety on some claims; the surety was dismissed from the action with prejudice.
- Country Flavor moved for default judgment; Country Flavor I held liability but denied entry of a default for the precise damages and penalty amounts.
- Renewed Motion for Default Judgment corrects misstatements, establishes total duties of $308,781.23, and domestic value of merchandise at $874,497.21, enabling the requested civil penalty and unpaid duties.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the civil penalty properly calculated | Country Flavor negligence penalty equals two times lost revenue, within statutory cap. | Previous pleadings misstate values; penalties must align with statutory caps and proper domestic value. | Yes; civil penalty of $617,562.00 is proper (two times $308,781.23) and within the statutory cap. |
| Are the unpaid antidumping duties correctly determined | Total duties due are $308,781.23, with certain payments by the surety reducing the balance to $28,984.75. | Discrepancies in earlier pleadings require clarification before judgment on duties. | Yes; remaining unpaid duties are $28,984.75 (plus prejudgment interest). |
| Did the Renewed Motion cure defects in the prior filing | New declarations and documents fix prior misstatements and support the sums sought. | Prior misstatements undermined credibility; need precise accounting. | Yes; Renewed Motion cures earlier deficiencies and supports default judgment. |
Key Cases Cited
- United States v. Country Flavor Corp., 36 CIT 1296 (2012) (first default-judgment decision addressing liability and monetary amounts)
- Pan Pacific Textile Group, Inc., 30 CIT 138 (2006) (definition of domestic value for penalties and duty calculations)
- United States v. Complex Machine Works Co., 23 CIT 942 (1999) (penalty determination factors and mitigation considerations)