US Seeks Over $10M From Equipment Parts Importer for Unpaid Duties, Penalties
The U.S. brought a negligence case Dec. 9 seeking more than $10 million in unpaid duties and damages against Iron Mule, a Missouri-based importer of equipment parts used in methane and oil field operations (U.S. v. Iron Mule Products, CIT # 24-00222).
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The government argued that Iron Mule had entered merchandise into the U.S. "by means of material false statements, acts, or omissions." When importing 208 entries, Iron Mule had "misrepresented the applicable [tariff] classification [and] omitted that additional duties were applicable under," sections 232 and 301. CBP calculated the loss of revenue as $3,260,333.38 in unpaid duties.
Iron Mule's actions were the result of negligence and "failure to exercise reasonable care and competence to ensure that statements made and information provided in connection with the importation of the subject merchandise was complete and accurate." Furthermore, the company, "lacked the necessary controls and procedures within its business to ensure compliance," with U.S. trade law, according to CBP.
From 2015 to 2020, the company imported 208 entries of various equipment parts such as pipe fittings, bull plugs and carbon steel flanges from China, Cambodia, India and Korea.
In October, CBP issued a penalty of $6,786,832.58, plus post-judgment interest to Iron Mule and demanded repayment of that plus duties in the amount of $3,260,333.38, "plus pre-judgment and post-judgment interest, costs, and such other relief as may be just and appropriate." Iron Mule has yet to pay the amount totaling at least $10,047,166.