Court of International Trade Denies Penalty Case against Out of Business Importer

The Court of International Trade (CIT) denied a motion to collect a civil penalty of $51,102 for negligent classification from a company that has gone out of business. This company had filed a prior disclosure and paid over $800,000 in unpaid duties on misclassified medical scrubs. Ultimately, it was determined that the government failed to provide enough detail to support their claim that the defendant failed to exercise reasonable care.