CIT Says US Waited Too Long to Demand Payment on Customs Bond From Surety

The Court of International Trade on March 18 said the U.S. government's eight-year delay in demanding surety company Aegis Security Insurance Co. pay a customs bond for Chinese garlic entries was "unreasonable and a breach of contract." Judge Stephen Vaden said that while the six-year statute of limitations runs from the date CBP issues a bill and not the liquidation date, the eight-year delay in issuing the bill violated the "reasonable time requirement," which is an implied contractual term. Vaden also held that Aegis' "impairment of suretyship" defense failed since the surety could have made a claim with its insurer.