Slip Op. 18- 
UNITED STATES COURT OF INTERNATIONAL TRADE

UNITED STATES, Plaintiff,

v. GREENLIGHT ORGANIC, INC.,
Defendant. Before: Jennifer Choe-Groves, Judge
Court No. 17-00031

OPINION AND ORDER [Denying Defendant’s motion for summary judgment.] Dated: November 29, 2018 William G. Kanellis and Kelly A. Krystyniak, Attorneys, Commercial Litigation Branch, Civil Division, U.S. Department of Justice, of Wash ington, D.C., for Plaintiff United States. With them on the brief were Chad A. Readler, Ac ting Assistant Attorney General, Jeanne E. Davidson, Director, and Patricia M. McCarthy , Assistant Director. Peter S. Herrick, Peter S. Herric k, P.A., of St. Petersburg, FL, Joshua A. Levy, Kennedys CMK, LLP, of Miami, FL, and Frances P. Hadfield, Crowell & Moring, LLP, of New York, N.Y., for Defendant Greenlight Organic, Inc.
Choe-Groves, Judge: This action comes before the cour t under 19 U.S.C. § 1592 (2012) for fraud in the course of impor ting merchandise into the commerce of the United States. Before the court is a motion for summary judgment brou ght by Defendant Greenlight Organic, Inc. (“Greenlight”) against Plaintiff United States (“Government”). See Def.’s Mot. Summ. J., July 9, 2018, ECF No. 89; see also Mem. L. Supp. Def.’s Mot. Summ. J., July 9, 2018, ECF No. 89 (“Def.’s Mem.”). Greenlight asserts that the Government’s action is time-barred by the five-year statute of limitations set forth in 19 U.S.C. § 1621 because the Government became aware ofCourt No. 17-00031 Page 2
Greenlight’s fraudulent activities in 2011, more than five years before filing the summons and complaint in this case. See Def.’s Mem. 1. Plaintiff has filed a response in opposition to Defendant’s motion. See The United States’ Opp’n Def.’s Mot. Summ. J., Aug. 20, 2018, ECF No. 93. The Government contends that the stat ute of limitations began to run in February 2012 when the Government first obtained double-invoicing records from Greenlight. See id. at 1–2. For the following reasons, the court concludes that there are insufficient undisputed facts for the court to determine when the Government first discovered Greenlight’s fraudulent activities for the purposes of 19 U.S.C. § 1621 at this stage of the proceedings. Greenlight’s Motion for Summary Judgment is denied, and th is issue is reserved for trial.
UNDISPUTED FACTS The following facts are not in dispute. The United States initiated this action on behalf of U.S. Customs and Border Protection (“Customs” ). See The United States’ Rule 56.3 Statement of Issues of Material Fact 1, Aug. 20, 2018, ECF No. 93 (“Pl.’s Facts”); Def.’s Resp. to the United States’ Rule 56.3 Statement of Issues of Material Fact 1, Sept. 4, 2018, ECF No. 95 (“Def.’s Facts Resp.”). Defendant Greenlight im ports products including at hletic apparel and is owned by Parambir “Sonny” Aulakh. See Pl .’s Facts 1; Def.’s Facts Resp. 1–2. The Government filed a civil complaint against Greenlight on February 8, 2017. See Pl.’s Facts 11; Def.’s Facts Resp. 20. The compla int sought the following relief: (1) the amount of “approximately $238,516.57 in unpa id duties and fees, pursuant to 19 U.S.C. § 1592(d), plus interest,” and (2) “a penalty for fraud, pursua nt to 19 U.S.C. § 1592(c)(1) in the amount of approximately $3,232,032, stemming from Greenligh t’s violations of 19 U.S.C. § 1592(a) relating to approximately 122 entries of wearing apparel.” See Pl.’s Facts 11; Def.’s Facts Resp.Court No. 17-00031 Page 3
20. Greenlight denied liability under 19 U.S.C. § 1592 in its Answer. See Pl.’s Facts 12; Def.’s Facts Resp. 21. Greenlight pled further that the Government’s action for fraud in this case was time-barred because the statute of limitations expi red before the Government filed the action. See Pl.’s Facts 12; Def.’s Facts Resp. 22.
JURISDICTION AND STANDARD OF REVIEW The court has jurisdiction over the underlying action pursuant to 28 U.S.C. § 1582. The court will grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. USCIT R. 56(a). To raise a genuine issue of material fact, a party cannot rest upon me re allegations or denials and must point to sufficient supporting evidence for th e claimed factual dispute to require resolution of the differing version of the truth at trial. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248–49 (1986); Barmag Barmer Maschinenfab rik AG v. Murata Mach., Ltd., 731 F.2d 831, 835– 36 (Fed. Cir. 1984).
ANALYSIS The Government filed its Complaint in this matter on February 8, 2017 alleging fraudulent misclassification and undervaluation. In pertinent part, 19 U.S.C. § 1592(a)(1) states: Without regard to whether the United States is or may be deprived of all or a portion of any lawful duty thereby, no person, by fraud, gross negligence, or negligence-- (A) may enter, introduce, or attempt to enter or introduce any merchandise into the commerce of the United States by means of-- (i) any document, written or oral statement, or act which is material and false, or (ii) any omission which is material. 19 U.S.C. § 1592(a)(1). To prove a fraudulent viol ation of the statute, Pl aintiff must establish,Court No. 17-00031 Page 4
by clear and convincing evidence, that Greenlig ht (1) deliberately introduced merchandise into the commerce of the United States by means of material false statements, acts or omissions; and (2) intended to defraud the revenue or otherwise violate the laws of th e United States. See 19 U.S.C. § 1592(a)(1), (e)(2); United States v. Inn Foods, Inc., 31 CIT 1474, 1484, 515 F. Supp. 2d 1347, 1357 (2007). A statute of limitations imposes a time limit for suing in a civil case, which is based on the date when the claim accrued. CTS Co rp. v. Waldburger, 134 S. Ct. 2175, 2182 (2014). A statute of limitations requires a plaintiff to pursue diligent prosecution of known claims and promotes justice by preventing surprises through plaintiff’s “revival of claims that have been allowed to slumber until evidence has been lost, memories have faded, and witnesses have disappeared.” Id. at 2183 (citing R.R. Telegra phers v. Ry. Express Agency, Inc., 321 U.S. 342, 348–49 (1944)). In actions alleging fraud under 19 U.S.C. § 1592, the statute sets fort h a five-year statute of limitations for initiating a case before the Court: No suit or action to recover any duty under se ction 1592(d) . . . of th is title . . . shall be instituted unless such suit or action is commenced within five years after the time when the alleged offense was discovered . . . except that-- (1) in the case of an alleged violation of section 1592 . . . of this title, no suit or action (including a suit or action fo r restoration of lawful duties under subsection (d) of such sections) may be instituted unless commenced within 5 years after the date of the alleged violation or, if such violation arises out of fraud, within 5 years after the date of discovery of fraud

. 19 U.S.C. § 1621 (emphasis added). The language “w ithin 5 years after the date of discovery of fraud” invokes the discovery rule, which tolls the statute of limitations period until the date when the plaintiff first learns of the fraud. United States v. Spanish Foods, Inc., 24 CIT 1052,Court No. 17-00031 Page 5
1056, 118 F. Supp. 2d 1293, 1297 (2000) (citing United States v. Ziegler Bolt & Parts Co., 19 CIT 13, 17 (1995); United States v. Modes Inc., 16 CIT 879, 887, 804 F. Supp. 360, 368 (1992)). Determining when a statute of limitations begins to run is a fact-specific inquiry. Spanish Foods, 24 CIT at 1056, 118 F. Supp. 2d at 1297–98. The question of when a plaintiff discovered fraud is not one that often lends itself to resolution by way of summary judgment. Here, genuine issues of materi al fact exist as to when the Government first discovered the fraudulent misclassification and undervaluation. The record on summary judgment does not provide the court with enough information to assess when the Government first had knowledge of Greenlight’s fraudulent activities. For exam ple, the record does not demonstrate clearly whether the Government had knowledge of Greenl ight’s intent to defraud the revenue or otherwise violate the laws of the United States when the Government discovered Greenlight’s misclassification of its entries in 2011. More facts are needed to ascertain when the Government first had know ledge of Greenlight’s fraudulent misclassification andundervaluation activities, including when the Government began to suspect a potential doubleinvoicing scheme and when the Government had k nowledge of an intent to defraud with respect to the misclassification of entries. Because more facts are necessary to determine when the Government gained knowledge of the specific ca uses of action alleged against Greenlight, the court is unable to determine on summary judgment whether Plaintiff initiated this case outside of the statute of limitations peri od permitted in 19 U.S.C. § 1621. The court denies Defendant’s Motion for Summary Judgment. The Parties may present evidence on this issue at trial.Court No. 17-00031 Page 6

CONCLUSION Accordingly, upon consideration of Defendan t’s Motion for Summary Judgment, and all other papers and proceedings in this action, it is hereby
ORDERED that Defendant’s motion is denied.

/s/ Jennifer Choe-Groves Jennifer Choe-Groves, Judge Dated: November 29, 2018 New York, New York