CIT Certifies Appeal to CAFC on Multiple Broker Penalties
In U.S. v. UPS Customhouse Brokerage, Inc., dba UPS Supply Chain Solutions, Inc., the Court of International Trade (CIT) has certified UPS' immediate interlocutory appeal to the U.S. Court of Appeals for the Federal Circuit (CAFC) on the following question of law regarding multiple broker penalties:
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- whether pursuant to 19 USC 1641(d)(1)(A), U.S. Customs and Border Protection (CBP) may issue more than one penalty notice for a customs broker's alleged failure to exercise responsible supervision and control based upon the customs broker's alleged repeated misclassification of entered merchandise over a period of time and on multiple separate entry documents; and if so,
- whether the aggregate penalty sought from those multiple penalty notices may exceed $30,000.
(According to the CIT, UPS was dissatisfied with the CIT's June 2006 decision (UPS I) in favor of CBP. The CIT states that although it is confident of its reasoning and holding in the case, the question of law presented satisfies the requirements necessary to be certified for interlocutory appeal. If the CAFC accepts this certified question on interlocutory appeal, it may affirm or reverse the CIT's opinion in UPS I.)
CIT Previously Upheld CBP's Interpretation of Broker Penalties Statute
According to the CIT, the substantive issue in UPS I was the meaning of the statutory phrase contained in 19 USC 1641(d)(2)(A), " a monetary penalty not to exceed $30,000 in total for a violation or violations of" the customs brokers' requirements of 19 USC 1641(d)(1).
(UPS 1 had upheld CBP's position that it may pursue multiple broker penalties, which in total exceed $30,000, for violations of the broker statute that occurred prior to the first pre-penalty notice, provided that no single monetary penalty exceeds $30,000.)
(See ITT's Online Archives or 09/15/06 news, (06091520), for BP summary of the CIT's original ruling in this case.)
CIT Slip Op. 06-156, dated 10/19/06, available at http://www.cit.uscourts.gov/slip_op/Slip_op06/06-156.pdf