Hemp Harvester Importer Files CIT Case Over Excluded Goods After District Court Rejection

Washington state-based importer Keirton USA filed a complaint in the Court of International Trade on Aug. 19 after the U.S. District Court for the Western District of Washington found that the trade court was the case's proper jurisdictional home. Keirton, a self-described importer of "agricultural equipment used to process cannabis and other farm goods, including hemp and kale" is challenging CBP's deemed exclusions of shipments of such machinery as "drug paraphernalia" (Keirton USA, Inc. v. U.S. Customs and Border Protection, CIT #21-00452).

Keirton originally took its case to the district court, believing that district courts have jurisdiction over such exclusion decisions. The district court instead ruled that CIT was the proper place for such a lawsuit, declaring that "given that Keirton is challenging the merits of whether CBP may exclude its future shipments from entry into the United States, the CIT’s experience in interpreting exclusion orders can be brought to bear on Keirton’s claims" (see 2104160035).

The importer's troubles with CBP date back to 2012 when it first had a shipment of its signature product, Twister Trimmers, seized on the basis that it was "drug paraphernalia." The matter was resolved via a nonconfidential settlement, and another government agency sold a part of the seized machines through an online auction in Florida, Keirton's lawyer said in the complaint. From 2012 to 2019, no additional shipments of any Keirton parts were seized until May 2020. In the months that followed, CBP detained more than $1 million in Keirton shipments, alleging again that the merchandise was to be used for illegal purposes.

Following additional litigation and a $180,000 settlement payment on Dec. 31, 2020, CBP said it would halt seizures of the Washington company's merchandise and “work with Keirton to expedite the release of the Twister Trimmer components so that Keirton could assemble and sell the supposedly 'unlawful' -- as asserted by CBP -- components within the United States." Weeks later, CBP circumvented this by denying Keirton products entry to the U.S. rather than seizing them, Keirton said. CBP said it was unable to make an admissibility declaration for the goods, while Keirton said that the products were no different from the ones imported from 2012 to 2019, and even ones in shipments that were not seized in 2020 and 2021.

The company said in its district court case that continued aggressive action by CBP will run the manufacturer out of business and that these actions by CBP should be curbed. “The public has an interest in preventing agency overreaching, prevent[ing] inconsistent agency action, in the preservation of legally operated businesses that conduct import and export businesses, and in a clear interpretation of the statute and its lawful application,” Keirton said.