LOS ANGELES, June 4 (Reuters) - Privately held SEKO
Logistics said U.S. Customs and Border Protection (CBP) has
conditionally reinstated its participation in two vital
international trade programs, but still has not identified the
violations that led to the suspensions.
The Illinois-based customs broker, which is seeking
unconditional reinstatements, said on Tuesday that CBP has yet
to provide any evidence or examples of compliance issues to
justify its actions.
"The agency's lack of a direct response in this matter has
led to a clear and present danger to SEKO's business, its
reputation and its clients," SEKO said in a statement.
CBP could not be immediately reached for comment.
The industry is monitoring the dispute since it is unusual
for customs brokers to be targeted in CBP crackdowns.
On Friday, the CBP announced that it had suspended multiple
customs brokers from its "Entry Type 86" expedited customs
clearance program to prevent abuse of the tariff exemption for
direct-to-consumer imports valued at under $800 per day.
Chinese-founded Shein, PDD Group's Temu and
ByteDance's TikTok Shop use the tariff exemption when they ship
products directly from factories in China to U.S. shoppers in
individually addressed packages.
"We are incredibly disappointed by, and strongly disagree
with, the original decision by CBP," said SEKO CEO James Gagne,
who added that the company maintained a "99.999+%" compliance
rate in the expedited clearance program.
CBP on Friday said the suspended brokers' entries "posed
unacceptable compliance risk" and that "bad actors" were
exploiting the tariff exemption to send contraband, including
materials used to make synthetic drugs like fentanyl, into the
United States. The agency did not say whether shippers were
undervaluing or misclassifying shipments.
SEKO has also said that CBP suspended it from the agency's
Customs Trade Partnership Against Terrorism (CTPAT) security
program that many large shipping customers rely on.
SEKO on Saturday filed a lawsuit in the U.S. Court of
International Trade, seeking to stop the suspensions and win
full reinstatements.
SEKO also alleged that CBP failed to give the company
adequate notice of the suspensions or an opportunity to address
any unverified deficiencies identified the agency.