US Sues Canadian Clothing Co. Over NAFTA Exemptions

Law360, New York (October 18, 2010, 1:00 PM EDT) -- The federal government has launched a $1.1 million lawsuit against Canadian clothing exporter Specialty House Apparel Co., saying it illegally applied North American Free Trade Agreement exemptions to clothes that were actually made from Taiwanese fabric.

Specialty House exported to the U.S. clothes made from Taiwanese polyester about 260 times between May 2000 and April 2005 while claiming they "originated” in Canada, U.S. Department of Justice lawyers said in a suit filed Friday in the U.S. Court of International Trade.

The alleged misclassifications allowed Specialty House...
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