Perfectus Drops Challenge of Aluminum Pallet Seizures
Perfectus Aluminum agreed to drop its lawsuit challenging CBP’s seizure of extruded aluminum pallets, following the government’s filing of a fifth civil forfeiture complaint covering “the remainder” of Perfectus’ pallets on Feb. 9 in federal district court. The new complaint covers “approximately” 279,808 aluminum structures in “the shape of pallets” seized from the Port of Los Angeles/Long Beach and warehouses in Walnut and Industry, California, over the course of 2017, according to the complaint.
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A “related criminal investigation remains ongoing,” according to a joint status report filed by Perfectus and the government on Feb. 9. The government alleges Perfectus and its related entities in China schemed to evade more than $1.5 billion in antidumping and countervailing duties on aluminum extrusions from China by importing them as pallets subject to the “finished merchandise” exemption (see 1709180035). “Perfectus had no intention of using or selling the bogus pallets, which were too heavy, too expensive, and otherwise unsuitable for use as pallets,” the government said in its Feb. 9 forfeiture complaint.” Instead, Perfectus intended to melt them down, it said.
The other four forfeiture cases have been stayed pending the outcome of the criminal investigation, and the government on Feb. 20 moved to do the same in the most recently filed forfeiture action. The complaint says Perfectus, after its scheme was detected, had intended to export the pallets to Vietnam so they could again be imported as Vietnamese extrusions and avoid AD/CV duties on China. After CBP began seizing the pallets at the port, Perfectus moved the rest of its pallets to the Industry and Fontana warehouses, where they were seized in September, the latest forfeiture complaint said.
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