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DOJ Intends to File Unpaid Duty Counterclaim in Importer's Denied Protest Lawsuit

The Department of Justice intends to file a counterclaim seeking unpaid duties against an importer challenging the classification of its dried or bleached plant parts, according to a joint status report filed in the case April 21. Though Second Nature…

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originally filed the 19 USC 1581(a) denied protest challenge, DOJ “is now in the process of seeking internal U.S. Government approval to assert counterclaims for underpaid duties on products imported under cover of the subject entries that were previously inaccurately or incompletely described by Plaintiff,” the status report said. Second Nature says it “will not consent to allow [DOJ] to amend its Answer to raise a counterclaim after years of litigation, noting under USCIT Rule 15 leave of Court would be required to allow such an amendment.” Second Nature is challenging classification of the dried or bleached plant parts that are painted, dyed or glittered as not dried or bleached at a 7% duty. If classified as dried or bleached, they would be duty free.