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SEKO wins conditional reinstatements from US customs agency
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SEKO wins conditional reinstatements from US customs agency
Jun 4, 2024 5:43 PM

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.

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