Trade court - Gross negligence on misclassification of wallets, handbags 

January 7: The U.S. Court of International Trade today granted the government’s motion for default judgment for approximately $325,000 in civil penalties plus post-judgment interest relating to allegations of gross negligence in the misclassification of 46 entries of wallets and handbags from June 2006 and April 2009. United States v. LaFidale, Inc., Slip. Op. 14-3 (CIT January 10, 2014)

The trade court previously held in a 2013 decision that the government had established liability for the misclassification, but that because of certain discrepancies in a supporting affidavit, the court denied a motion for default judgment.


Today’s order found that a December 2013 affidavit satisfactorily established the actual and potential customs duty loss. Because the company failed to respond, the court entered default judgment for the government.


Read the trade court’s order [PDF 425 KB]



For more information, contact a professional with KPMG’s Trade & Customs practice:


Douglas Zuvich

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Luis A. Abad

(212) 954-3094


Amie Ahanchian

(202) 533-3247


Or your local KPMG Trade & Customs professional.




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