ATMI APPEALING TRANSSHIPPING SUIT AGAINST LIMITED
WASHINGTON — Twice rejected in its legal bid to have The Limited Inc. cited for transshipping, the domestic textile industry is set to try again by appealing its case today.
The lawsuit alleges Limited circumvented U.S. apparel quota by filing false records claiming their imports came from Hong Kong when they actually were made in China. The Limited has denied any wrongdoing.
A spokeswoman for the American Textile Manufacturers Institute, which is pursuing the case, said the legal arguments on which the appeal will be based will be announced today. The appeal is slated to be filed in the U.S. Court of Appeals for the Sixth Circuit in Cincinnati.
The case — which also names as a defendant Tarrant Apparel Group, an importer-supplier to Limited — is the first trade lawsuit filed under the False Claims Act. The act allows nongovernment entities to sue on behalf of the government. The ATMI is attempting to recover duties the government would have received if transshipping were proven.
Two U.S. District Court judges have already dismissed the case, arguing the ATMI accuses the defendants of trying to avoid quota limits, not government fees.
