Judges at the U.S. Court of Appeals for the Federal Circuit pressed counsel for importer Blue Sky the Color of Imagination and the government during oral argument on Oct. 7 in the importer's customs classification suit on its notebooks with calendars. During the argument, Judges Alan Lourie, Raymond Chen and William Bryson grappled with whether the court is bound by its 2010 ruling in Mead v. U.S. and whether the goods are properly classified as calendars or diaries (Blue Sky The Color of Imagination v. U.S., Fed. Cir. # 24-1710).
The U.S. District Court for the District of Columbia on Sept. 30 vacated a decision from USDA's Animal and Plant Health Inspection Service to "switch to a new system for mitigating the risk of a pest outbreak caused by imported Chilean table grapes." Judge Amir Ali held that the action was arbitrary and capricious under the Administrative Procedure Act (California Table Grape Commission v. U.S. Dep't of Ag., D.D.C. # 24-02645).
A Los Angeles-based wholesale clothing importer and two of its executives were sentenced on Sept. 29 for avoiding payment of over $8 million in customs duties on imported clothing and money laundering, the U.S. Attorney's Office for the Central District of California announced.
Two Colorado companies and their top executives were indicted last month for conspiring to evade tariff payments on their imports of forklifts, DOJ announced on Sept. 30. The companies, Endless Sales and Octane Forklifts; current executives Brian Firkins and Jeffrey Blasdel; and former executive J.R. Antczak allegedly conspired to undervalue the forklifts from China at entry, then hide their Chinese origin and sell them to federal government agencies by declaring them to be made in the U.S.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 22-28:
The U.S. opened a customs penalty suit last week against wire garment hanger importer LGA Trading and its director, Galo Goya, at the Court of International Trade, seeking over $3.1 million as a penalty for negligence and over $1.9 million in unpaid duties (United States v. LGA Trading, CIT # 25-00214).
CBP and trading company Letex Apparels on Sept. 25 settled Letex's negligence suit against the agency for damaging its imports in the Los Angeles/Long Beach Seaport port (see 2505220057). The parties said they will be filing a stipulation of dismissal within the next 30 days (Letex Apparels Co. v. United States, C.D. Cal. # 2:25-04462).
The case against the lists 3 and 4A tariffs is unlikely to be heard by the Supreme Court or the full U.S. Court of Appeals for the Federal Circuit, and the recent decision from the Federal Circuit upholding the tariffs likely gives the Trump administration greater confidence in using tariff authorities other than the International Emergency Economic Powers Act, various attorneys told us.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 15-21:
Two Chinese nationals were recently sentenced to lengthy prison sentences for importing fentanyl precursor chemicals and money laundering through Wuhan-based chemical manufacturer Amarvel Biotech, the U.S. Attorney's Office for the Southern District of New York announced last week. Qingzhou Wang, who operated as Amarvel's principal executive, was sentenced Sept. 18 to 25 years in prison, while Yiyi Chen, the company's marketing manager, was sentenced last month to 15 years.