A controversial case on the liability of compliance and corporate officers for their employer’s customs violations now goes to the Supreme Court justices’ chambers for a decision on whether to hear the appeal, after Harish Shadadpuri, owner of Trek Leather, filed a final brief on April 27 in favor of his petition for certiorari. Shadadpuri's lawyer, Al Daniel, argued that a decision from the Court of Appeals for the Federal Circuit misinterpreted the customs penalty laws and was unsupported by the facts of the case. Daniel expects a decision from the Supreme Court on whether to consider the case by the end of June.
Brian Feito
Brian Feito is Managing Editor of International Trade Today, Export Compliance Daily and Trade Law Daily. A licensed customs broker who spent time at the Department of Commerce calculating antidumping and countervailing duties, Brian covers a wide range of subjects including customs and trade-facing product regulation, the courts, antidumping and countervailing duties and Mexico and the European Union. Brian is a graduate of the University of Florida and George Mason University. He joined the staff of Warren Communications News in 2012.
The following lawsuits were filed at the Court of International Trade during the week of April 20-26:
CBP should consider adjusting its implementation schedule for the Automated Commercial Environment if the trade community isn’t ready by the Nov. 1 deadline for mandatory filing, said the CBP Advisory Committee on Commercial Operations (COAC) in a formal recommendation adopted at its April 24 meeting. Under CBP’s current plans, filers that aren’t ready for ACE on Nov. 1 will have to file on paper as the Automated Commercial System (ACS) is shut down. COAC’s One U.S. Government at the Border Subcommittee said it is “concerned that reverting to paper will significantly slow the velocity of trade, especially given the pre-holiday peak season.”
With deadlines for regulations implementing the Food Safety Modernization Act fast approaching and importer compliance with the Foreign Supplier Verification Program required in about two years, the Food and Drug Administration is faced with the increasingly imminent challenge of getting the word out to importers and foreign suppliers tasked with new responsibilities, said FDA officials at a meeting on FSMA implementation on April 23 in Washington, D.C.
ORLANDO, Fla. -- CBP and the National Customs Brokers & Forwarders Association of America are set to launch the Broker Known Importer Program (BKIP) in the coming week, said agency and trade association leadership at the NCBFAA annual conference on Aug. 22. With functionality in the Automated Commercial Environment in place since January, CBP will issue a CSMS message next week detailing the voluntary program, which will lower the agency’s risk profile for an importer if their broker informs CBP through a flag checked at entry that it “knows” the importer and has advised the importer of its compliance responsibilities. The CSMS message will allow BKIP to “go live,” said Mary Jo Muoio of OHL Trade Services.
The following lawsuits were filed at the Court of International Trade during the week of April 13-19
Trek Leather Decision on Corporate Officer Liability Confirms 40 Years of Precedent, Says Government
The recent court decision in Trek Leather on corporate employee liability for customs violations does nothing to expand the coverage of customs penalties to employees of corporate importers of record, said the U.S. government in a brief filed April 15 opposing a Supreme Court hearing of the case. Despite consternation from the trade industry that a September 2014 decision of the Court of Appeals for the Federal Circuit will cause upheaval by subjecting import compliance professionals to “massive penalties” for negligent misstatements on entry documentation (see 1503170027), the controversial decision merely served to confirm over 40 years of Court of International Trade precedent and the plain language of 19 USC 1592, said the government’s brief.
Footwear importers hope changes to the tariff schedule for athletic shoes get included in the package of trade legislation brewing on Capitol Hill, say trade association leadership. A recently requested modification to Chapter 64 of the HTS would result in substantial duty savings for importers of athletic shoes that include internal plastic membranes, such as trail runners and hiking shoes with Gore-Tex, they said. The changes require legislative action because they lack congressional authorization to affect duty rates, according to a government official. Recent movement on trade in Congress is the best opportunity in a decade for minor initiatives like tariff changes to make it into law, said Matt Priest, FDRA president.
The following lawsuits were filed at the Court of International Trade during the week of April 6-12:
The following lawsuits were filed at the Court of International Trade during the week of March 30 - April 5: