CBP Seeks Over $2M Penalty From Aluminum Extrusions Importer for Unpaid Duties

The government alleged that Forest Group entered Chinese-origin aluminum extrusions into the U.S. as "consumption" entries instead of goods subject to AD/CVD. The U.S. said the importer "should have known that its Entries of aluminum extrusions were subject to the AD/CVD Orders," including a 33.28% AD rate and a 374.15% CVD rate.

Instead, the company wrote in its entry summaries that the imported aluminum extrusions weren't subject to any AD or CVD, and that the goods were only subject to a 1.5% tariff. The agency said Forest Group "to date" hasn't paid any of the duties, taxes, fees or penalties it owes.

The complaint, filed at the Court of International Trade, also claimed that Drapery Hardware USA, doing business as Forest Drapery Hardware, is liable to the "same extent as Forest Group" since it's Forest Group's successor.

The government said Forest Group entered one shipment of Chinese-origin aluminum extrusions in 2011 and one in 2012. CBP said it issued pre-penalty and penalty notices, seeking the duties and an over $2 million penalty for "negligent violations."

In 2012, after learning of the penalty, Forest Group's Dutch parent company, Bospart Holland, formed Forest Drapery Hardware because it believed the penalty would "destroy Forest Group," the government said. The company "decided on a strategy for dealing with the ongoing tariff issue and for improving marketing for some of the products that Forest Group sold." Forest Drapery Hardware was formed in 2013.

Before Forest Group's dissolution in 2023, Steven Wright was president, CEO, CFO and secretary for both companies. Following Forest Drapery Hardware's incorporation, Forest Group shifted its operations and assets to Forest Drapery Hardware, the U.S. said. The successor company advertised the development as a "name change" and continues to tout its decades of experience in importing aluminum extrusions -- experience amassed under the name Forest Group.

As a result, the U.S. said it's entitled to the unpaid duties and penalty from Forest Drapery Hardware. The successor company "was admittedly created to avoid paying a penalty" and over the two years following its incorporation it "received the substantial majority of Forest Group's assets and business." Thus, the company "is liable for Forest Group’s debts to CBP as the successor-in-interest to, and/or alter ego of, Forest Group," the complaint said.

A spokesperson for Forest Group didn't immediately respond to a request for comment.