US, Importer Agree to Settle Customs Fraud Case on Knit Garments
The U.S. and importer Greenlight Organic, along with its owner Parambir Singh "Sonny" Aulakh, agreed to settle a customs fraud suit, the pair said in a joint status report at the Court of International Trade Aug. 23. No details of the settlement were provided, and counsel for Greenlight didn't immediately respond to a request for comment (United States v. Greenlight Organic, CIT # 17-00031).
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The U.S. filed the customs fraud suit in 2017 to address a misclassification scheme led by Greenlight. The government alleged that the company committed fraud when it claimed its Vietnam-origin knit garments were misclassified as woven garments, which undervalued the goods. The trade court said there was little agreement on the facts, moving the case to a trial (see 2302160067). The case was then stayed pending a parallel criminal case.