"All was good" between the DOJ and ASG until August 2021 when the DOJ allegedly followed a tip from an insider to discover the line, which was apparently not known to Bayside port officials. DOJ attorneys have reportedly accused ASG subsidiaries Kloosterboer International Forwarding and Alaska Reefer Management of trying to circumvent the Jones Act, stating the company's "actions were not a one-time error or oversight, but rather part of a calculated and secret scheme to find a loophole in the Jones Act, which was only revealed when the government received a tip from a third party."
ASG reportedly insists the rail line fulfills the criteria for Jones Act exemption, stating that the Bayside Canadian Railway is "indisputably a registered Canadian rail line; the goods are loaded onto it and travel a short distance," adding that its products are not legally required to travel a minimum distance. In response, ASG is suing the Department of Homeland Security to deflect fines that amount to over $350 million—nearly 90 percent of the company's 2015 revenue, according to The Seattle Times. That the ASG flouted the spirit of the law seems incontrovertible, but whether it violated the letter is another matter entirely, and one for the court to decide.
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