Surety Seeks Indemnification in Customs Penalty Case on Wire Importer
Surety firm American Alternative Insurance Corp. filed a cross-claim in a customs penalty suit brought by the U.S. against importer Repwire, its manager Jose Pigna and the surety. On Dec. 9, American Alternative Insurance told the Court of International Trade that Repwire and Pigna should be compelled to pay the over $13 million penalty and that the company and its manager "are obligated to indemnify" the insurance company for the amount of duties and fees being demanded (United States v. Repwire, CIT # 24-00173).
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The U.S. issued a penalty notice in 2024 to Repwire seeking over $13 million in unpaid antidumping and countervailing duties on aluminum wire from China after the parties claimed its wire imports had come from Singapore or South Korea (see 2409110061). Filing suit after a failure of Repwire to pay up, the government now is seeking over $62 million in unpaid duties and penalties against the importer and its manager.
As another party to the case, American Alternative Insurance filed a cross-claim against Repwire and Pigna, first noting that "it has become necessary" to employ trade lawyers to shield itself against the government's claim for the duties and fees. The insurance company said the importer and its manager "are financially solvent and able to pay the demand for duties."
The company said Repwire and Pigna "are or will be liable" to the company "for all claims for withheld duties and fees asserted" by the U.S. and secured by a pair of customs bonds for which the company acted as a surety if the U.S. is successful in "obtaining judgment" against the surety. The bonds collectively set a $200,000 penalty limit the surety will pay.
American Alternative Insurance said Repwire and Pigna "are obligated to indemnify Cross-Claimant AAIC for the amount of withheld duties and fees being demanded."