CIT Orders Forwarder to Pay $10,000 Penalty For Customs Business Without a License

The Court of International Trade on Jan. 21 ordered a Louisiana company to pay a $10,000 fine, plus interest, for transacting customs business without a license (here). The court found Freight Forwarder International (FFI) paid duties and fees on behalf of its clients. While the company had a licensed customs broker on staff, the company itself wasn’t licensed as a corporation, ruled CIT.

Although it fought the penalty at the administrative level with CBP and asked for mitigation, which CBP denied, FFI did not defend itself in court. Therefore, CIT found the company to be in “default” and took all of the government’s allegations as true.

According to evidence submitted by the government, FFI appeared as the payer of their clients’ duties and fees for 19 entries in 2009 and 2010. It also invoiced its clients on its own letterhead for the payments. Paying duties and fees and preparing documents filed with CBP are both customs business under 19 USC 1641, said CIT. Under Section 1641, it is a violation for any “person” to transact customs business without a license. Because “persons” include corporations, FFI was required to hold a corporate license in order to conduct customs business, said CIT. Because it did not, it is liable for a $10,000 penalty, the court ruled.

(U.S. v. Freight Forwarder Int'l, Inc., Slip Op. 15-05, #14-00134, dated 01/21/15, Judge Kelly)