Trade Court Rejects Faster Schedule in Seko's Suit on Type 86 Suspension

June 12, 2024 by Jacob Kopnick|Penalties and Courts

The Court of International Trade on June 12 rejected customs broker Seko Customs Brokerage's motion for an expedited briefing schedule on its motion for an injunction in its suit against CBP's suspension of the company from participation in the Entry Type 86 and Customs-Trade Partnership Against Terrorism programs (Seko Customs Brokerage v. U.S., CIT # 24-00097).

Judge Claire Kelly said Seko can't satisfy the good cause standard required for faster briefing because there's "no allegation that adherence to a normal briefing schedule will moot the case." She also said Seko can't show that an ordinary briefing schedule will lead to "extraordinary hardship." The court said the broker has been "conditionally reinstated and is currently participating in both CTPAT and the T86 programs." Seko also failed to show that expedited briefing would be in the "public interest," Kelly said.

The U.S. opposed Seko's motion for expedited briefing, saying that the company has "already received the relief it seeks." The broker asked the court for rescission of its suspension from both programs, an order that CBP unconditionally reinstate the broker into the programs and an order compelling CBP to provide the specific transactions used to identify the Type 86 violations.

The government argued that CBP "has already conditionally reinstated" the broker into both programs until Aug. 29. In addition, the request for full and unconditional reinstatement "has no basis in the law and does not support a further shortening of the briefing schedule," the U.S. said.

No broker or importer "has an unfettered right to participate in either CTPAT or the ET86 Test and its request ignores CBP’s prerogative in monitoring and ensuring safety and compliance in the programs it administers," the government argued.

The trade court said Seko on June 11 was provided with a "detailed explanation of the underlying violations of the T86 program that led to its suspension under both programs so that it may take remedial action required by Customs and convert its 90-day conditional reinstatement into an unconditional reinstatement into both programs."

In its motion to speed up the briefing, Seko said it will face "extraordinary hardship" without the tightened schedule due to "reputational harm or business losses related to the conditional nature of its reinstatement" (see 2406100039). In response, the government said relief "will not remedy any alleged reputational harm or business losses plaintiff has suffered up until this point" and that type of injury "does not rise to the level necessary for 'good cause' under the Rules of this Court."

Seko was among several brokers suspended from the Type 86 program last month, as announced in a statement from CBP. The agency requested documentation from Seko in July 2023 for 10 Type 86 entries, finding "significant non-compliant" filings in the same, though no specifics were given at the time of the suspension (see 2406030044).