{"id":2188,"date":"2009-08-18T18:07:31","date_gmt":"2009-08-18T18:07:31","guid":{"rendered":"https:\/\/diaztradelaw.com\/?p=2188"},"modified":"2015-11-30T19:30:43","modified_gmt":"2015-11-30T19:30:43","slug":"a-victory-for-all-customs-brokers","status":"publish","type":"post","link":"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/","title":{"rendered":"A Victory for All Customs Brokers"},"content":{"rendered":"

The U.S. Court of Appeals for the Federal Circuit just issued an important\u00a0decision that will help all customs brokers who are facing a broker penalty action pursuant to 19 U.S.C. 1641<\/a> and 19 CFR Part 111.\u00a0 The Court held that U.S. Customs and Border Protection (CBP) must consider all ten factors specifically identified at 19 CFR 111.1<\/a>\u00a0when determining whether or not to mitigate a penalty issued by CBP against a customs broker for\u00a0failing to excercise “responsible supervision and control.”\u00a0 CBP had argued to the Court that it only needed to consider those factors it thought were relevant.\u00a0 The Court disagreed with CBP, and reversed the decision of the U.S. Court of International Trade. The Court stated:<\/p>\n

“Because Customs did not consider all ten factors listed in 19 CFR 111.1, its determination that UPS violated 19 U.S.C. 1641 was improper. Accordingly, we vacate that portion of he Court of International Trade’s judgment and remand for further proceedings.”<\/p>\n

So, even though the Court determined that UPS was wrong in its tariff classification of imported merchandise, and even though UPS paid CBP $15,000 in penalties for failing to exercise responsible supervision and control, it remains to be seen whether CBP will assess another $75,000 in penalties against UPS.\u00a0\u00a0 My guess is that CBP will pursue the remaining penalties against UPS which were also for alleged misclassification of the same merchandise on\u00a0different entries.\u00a0 The Court required\u00a0CBP to\u00a0at least consider all ten factors, but also explicitly\u00a0stated that CBP has the discretion to weigh each of the factors as it deems appropriate in determining whether to mitigate a penalty against a customs broker.<\/p>\n

If CBP does pursue the penalties, no doubt UPS will challenge them, especially because another remaining legal question will be whether the CBP regulation at 19 CFR 111.91<\/a>\u00a0which limits penalties to a maximum of $30,000 will apply.\u00a0 That is another issue of importance to all licensed customs brokers. If interested, please read\u00a0the complete Federal Circuit decision<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Court of Appeals for the Federal Circuit just issued an important\u00a0decision that will help all customs brokers who are facing a broker penalty action pursuant to 19 U.S.C. 1641 and 19 CFR Part 111.\u00a0 The Court held that U.S. Customs and Border Protection (CBP) must consider all ten factors specifically identified at 19 CFR 111.1\u00a0when determining whether or not to mitigate a penalty issued by CBP against a customs broker for\u00a0failing to excercise “responsible supervision and control.”\u00a0 CBP had argued to the Court that it only needed to consider those factors it thought were relevant.\u00a0 The Court disagreed with CBP, and reversed the decision of the U.S. Court of International Trade. The Court stated: “Because Customs did not consider all ten factors listed in 19 CFR 111.1, its determination that UPS violated 19 U.S.C. 1641 was improper. Accordingly, we vacate that portion of he Court of International Trade’s judgment and remand for further proceedings.” So, even though the Court determined that UPS was wrong in its tariff classification of imported merchandise, and even though UPS paid CBP $15,000 in penalties for failing to exercise responsible supervision and control, it remains to be seen whether CBP will assess another $75,000 in penalties against UPS.\u00a0\u00a0 My guess is that CBP will pursue the remaining penalties against UPS which were also for alleged misclassification of the same merchandise on\u00a0different entries.\u00a0 The Court required\u00a0CBP to\u00a0at least consider all ten factors, but also explicitly\u00a0stated that CBP has the discretion to weigh each of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[33],"tags":[],"class_list":["post-2188","post","type-post","status-publish","format-standard","hentry","category-customs-broker"],"yoast_head":"\nA Victory for All Customs Brokers - Customs & International Trade Law Firm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Victory for All Customs Brokers - Customs & International Trade Law Firm\" \/>\n<meta property=\"og:description\" content=\"The U.S. Court of Appeals for the Federal Circuit just issued an important\u00a0decision that will help all customs brokers who are facing a broker penalty action pursuant to 19 U.S.C. 1641 and 19 CFR Part 111.\u00a0 The Court held that U.S. Customs and Border Protection (CBP) must consider all ten factors specifically identified at 19 CFR 111.1\u00a0when determining whether or not to mitigate a penalty issued by CBP against a customs broker for\u00a0failing to excercise “responsible supervision and control.”\u00a0 CBP had argued to the Court that it only needed to consider those factors it thought were relevant.\u00a0 The Court disagreed with CBP, and reversed the decision of the U.S. Court of International Trade. The Court stated: “Because Customs did not consider all ten factors listed in 19 CFR 111.1, its determination that UPS violated 19 U.S.C. 1641 was improper. Accordingly, we vacate that portion of he Court of International Trade’s judgment and remand for further proceedings.” So, even though the Court determined that UPS was wrong in its tariff classification of imported merchandise, and even though UPS paid CBP $15,000 in penalties for failing to exercise responsible supervision and control, it remains to be seen whether CBP will assess another $75,000 in penalties against UPS.\u00a0\u00a0 My guess is that CBP will pursue the remaining penalties against UPS which were also for alleged misclassification of the same merchandise on\u00a0different entries.\u00a0 The Court required\u00a0CBP to\u00a0at least consider all ten factors, but also explicitly\u00a0stated that CBP has the discretion to weigh each of […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\" \/>\n<meta property=\"og:site_name\" content=\"Customs & International Trade Law Firm\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/facebook.com\/diaztradelaw\" \/>\n<meta property=\"article:published_time\" content=\"2009-08-18T18:07:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-11-30T19:30:43+00:00\" \/>\n<meta name=\"author\" content=\"Jennifer Diaz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:site\" content=\"@diaztradelaw\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jennifer Diaz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\"},\"author\":{\"name\":\"Jennifer Diaz\",\"@id\":\"https:\/\/diaztradelaw.com\/#\/schema\/person\/e4358517dcb10b6d836c8962295b4d96\"},\"headline\":\"A Victory for All Customs Brokers\",\"datePublished\":\"2009-08-18T18:07:31+00:00\",\"dateModified\":\"2015-11-30T19:30:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\"},\"wordCount\":331,\"commentCount\":0,\"articleSection\":[\"Customs Broker\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\",\"url\":\"https:\/\/diaztradelaw.com\/a-victory-for-all-customs-brokers\/\",\"name\":\"A Victory for All Customs Brokers - 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