CIT Orders Government to Produce Documents in Penalty Case Against Alleged Evader

The Court of International Trade ordered DOJ to produce documents in response to two discovery requests by Zhe "John" Liu, a defendant in a penalty case (U.S. v. Zhe "John" Liu, CIT # 22-00215).

DOJ has accused Liu of a multiyear fraud scheme involving several companies he operated or was an agent of, including GL Paper, NC Supply Group, CEK Group, Garment Cover Supply and AB MA Distribution. According to DOJ, Liu created the succession of companies to engage in schemes to evade antidumping and countervailing duties on Chinese wire hangers by transshipping through Malaysia, India and Thailand (see 2302070047).

Judge Jane Restani ordered the government to fully respond to Liu's requests. If the government is unable to admit or deny certain requests pertaining to when it received entry information, DOJ must confirm a "diligent search was made" and explain in detail how the ACE system does not record dates of when certain information is submitted to CBP, the March 8 order said.

In his Feb. 13 motion to compel, Liu sought various documents relating to entries made by entities involved in his alleged scheme. He said the requested discovery "goes to the essential issues in the litigation including the purported scheme" and the documents at issue "make up the apparent crux of plaintiff’s case."