CIT Finds Importer Failed to Exercise Reasonable Care in Disregarding Legal Advice

June 18, 2008

The U.S. Court of International Trade ("CIT") ruled in a recent decision, United States v. Optrex America, Inc., that the importer had failed to exercise reasonable care in classifying certain LCD products.  In its decision, the CIT held that Optrex had misclassified the LCD glass panels, noting that such action amounted to a false statement under the penalty statute (19 U.S.C. 1592).  As a result, the burden shifted to Optrex to demonstrate that it had exercised reasonable care.  The CIT further held that Optrex failed to exercise reasonable care by disregarding a ruling by the U.S. Court of Appeals for the Federal Circuit regarding the classification of similar merchandise, as well as advice by Optrex's attorneys that the Company should seek a binding classification ruling from U.S. Customs and Border Protection.

Additional detail and discussion concerning this decision is available here.