Claims of Stolen Identity, Improper POA Don't Affect Liability for AD Duties, CBP Says

Claims of stolen identity used on entry documents for goods subject to antidumping duties were not enough to limit liability on such duties for a named importer of record, CBP said in an Aug. 14 ruling. The lack of a proper Power of Attorney for the involved customs broker also does not change liability for the duties, CBP said in HQ H271023. The listed IOR, Green Island Import Export USA, told CBP it did not authorize imports of polyethylene retail carrier bags after it received a bill for unpaid duties.

A shipment of PET bags was imported in 2013 and entered with the name and importer identification number of Green Island, a "small importer and wholesaler of dried and frozen seafood and other food products." The entry was filed by customs broker Solan A. James Enterprise, which had a POA signed by David Rong, who was described as a "manager" with Green Island. CBP subsequently sought to collect more than $17,000 in AD duties and interest and would later liquidate the entry "at double the antidumping duties, in the amount of $34,990.28, because Green Island did not provide a non-reimbursement statement."

The company protested and said "it did not intend, cause and/or authorize the filing of the entry in question or the importation of covered merchandise." The company also submitted an affidavit from Green Island President Kyle Jia Li, who "declared that he is the sole corporate officer with the authority to sign Power(s) of Attorney and that he has only issued one Power of Attorney for Customs broker services to A Plus Brokerage."

CBP said it began looking at the entry at issue after it discovered an effort to circumvent the AD order in another entry that listed Green Island as the ultimate consignee, though not the IOR, using C.H. Robinson Freight Services as the broker, CBP said. The agency met with Rong, Li and a customs broker with C.H. Robinson in 2014 to discuss the entry and three similar entries, it said. Li provided translations for Rong, who didn't speak English, CBP said. "During the interview, Mr. Li stated that he allowed Mr. Rong to store shipments at his warehouse and that he also wired payments to the manufacturer on behalf of Mr. Rong," CBP said. "The record includes three examples of such wire payments from Green Island."

All of "the evidence points to Green Island as the importer of record -- as the owner or purchaser of the merchandise," CBP said. "Green Island’s contention that it cannot be the importer of record does not outweigh CBP’s authority to rely on the entry documentation and evidence before it. Green Island claims that while its identity was stolen for purposes of the entry documents, the wire transfers were deliberate and done as a favor to Mr. Rong. Even after Mr. Li learned of the fraud he alleges, he still interpreted for Mr. Rong during the interview with CBP and did not otherwise distance himself from Mr. Rong."

Even while "Green Island’s claim that the broker did not possess a valid POA may have merit, it does not destroy the validity of CBP’s reliance on the information provided in the entry documents," CBP said. It's true that Rong would not have been authorized to sign a POA and marks a failure by the customs broker to exercise responsible supervision and control. "This failure, however, does not absolve Green Island of its responsibilities as the importer of record under the specific facts of this case," CBP said. "The evidence supports the port’s finding that Green Island was properly identified as the importer of record on the entry," the agency said.