Aegis Security Insurance Company has prevailed in a closely watched case over customs bond enforcement, after a federal trade court ruled the government waited too long to try collecting more than $100,000 in unpaid duties tied to a 2003 honey import.
The decision, handed down June 2025 by the US Court of International Trade, ended a years-long legal back-and-forth between the United States and Aegis, which had underwritten a single transaction bond for Presstek Wood Technologies Inc. The bond covered a shipment of honey from China, which was subject to antidumping duties imposed by the Department of Commerce.
When Presstek brought in the goods on October 20, 2003, it listed Wuhan Bee Healthy Ltd. as the exporter and declared the entry subject to antidumping duties at a rate of 183.8% ad valorem. Rather than posting a cash deposit, Presstek used the bond from Aegis, which was capped at $100,700. That bond was meant to secure any duties, taxes, or charges owed on the entry.
Commerce later determined a revised duty rate of 101.48% ad valorem, which would have resulted in a $57,489.60 liability. But because US Customs and Border Protection failed to timely liquidate the entry, it was deemed liquidated on March 19, 2009, at the originally declared rate—raising the liability to $100,634.18.
On November 25, 2016, more than seven years after the liquidation, Customs issued a bill to Presstek. When Presstek failed to pay, Customs made a first demand on Aegis on February 6, 2017. Aegis protested on April 25, 2017, and Customs granted the protest in part. Customs then issued a second bill to Presstek on March 15, 2019, and made a second demand on Aegis on June 4, 2019. Aegis neither paid nor protested. The United States filed suit on November 22, 2022.
Aegis argued that the claim was time-barred and that Customs failed to act within a reasonable time. The court agreed. While the bond incorporated regulatory language from 19 C.F.R. § 113.62(a)(1)(ii), which requires the surety to “pay, as demanded by [Customs], all additional duties, taxes, and charges subsequently found due,” the court found that standard contracting principles still applied. That meant Customs was obligated to act in a reasonable time.
The court ruled that the nearly eight-year delay between liquidation and the first demand was unreasonable, particularly since the delay was caused by Customs losing documentation. During this time, Aegis’ reinsurer, Lincoln General Insurance Company, became insolvent, increasing Aegis’ financial exposure.
The court also found that the government’s right to sue began on March 19, 2009, the date of liquidation, not the date of demand. Under 28 USC. § 2415(a), the government had six years to file suit. By filing on November 22, 2022, the government was well outside the allowable period. The court granted summary judgment for Aegis and denied the government’s claim.
For insurers active in the customs bond market, the ruling underscores the need for clarity on liability triggers and timely government action. It also highlights how procedural delays can have real-world financial consequences for sureties, especially in cases involving reinsurer insolvency or shifting legal interpretations.
