UNITED STATES COURT OF INTERNATIONAL TRADE

Slip Op. 25-73

In United States v. Aegis Security Insurance Company, Court No. 22-000327, Slip Op. 25-73, dated June 11, 2025, Judge Restani evaluated cross-motions for summary judgment. The issue was whether defendant Aegis owed plaintiff United States unpaid antidumping duties plus interest. Aegis, a security insurance company, had issued a surety bond to Presstek, guaranteeing payment of Presstek’s duties concerning its business importing honey from China. Judge Restani held in favor of the defendant, Aegis, and granted its motion for summary judgment against the government.

In October 2003, Presstek imported honey from China, subject to an antidumping duty order issued by the US Department of Commerce. Presstek executed a bond, underwritten by Aegis, to pay any impending duties  owed. Aegis agreed to be liable for “any duties, taxes, and subsequent charges demanded by Customs… regarding the subject entry imported by Presstek.” See Gov. SOF, paras. 4-5; Aegis SOF, para. 19. Commerce’s administrative review concerning the time period including October 2003 concluded that Presstek’s rate of duties owed was much lower than what had been originally calculated for Presstek. Because Customs “failed to timely liquidate the subject entry of honey” however, the entry was deemed liquidated in March 2009, when a much higher rate of duties owed applied. After over seven years passed, Customs billed Presstek at the higher rate of duties owed. Neither Presstek nor Aegis paid Customs. Following Aegis’s failure to pay, the United States commenced the lawsuit at issue.

Judge Restani, on behalf of the Court of International Trade, found that 1) the government breached the bond contract by failing to issue the demand in a reasonable time and 2) the statute of limitations ran from the date of liquidation. Judge Restani reasoned that “[t]he government’s failure to fulfill [the implied duty of good faith and fair dealing] would constitute breach of contract” and “[b]y not making a timely demand, Customs failed to act diligently and allowed the contract to fall into no man’s land.” Judge Restani referred to the duty as “a reasonableness requirement.” Accordingly, Judge Restani reasoned that, in failing to show that its delay in issuing the first demand to Presstek was reasonable, the government “breached the bond contract and cannot recover.”

On her second conclusion, Judge Restani reasoned that analysis of congressional intent and legislative history supported the conclusion that the statute of limitations began to run following the date of the deemed liquidation rather than the date of the demand. “The six-year statute of limitations therefore expired” in March 2015. Because the government did not file suit until November 2022, Judge Restani held that the action commenced was barred by the six-year statute of limitations. Accordingly, the court granted Aegis’ motion for summary judgment.