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Seko Fights US Bid for More Time to File Reply Brief in Type 86 Suspension Suit

Seko Customs Brokerage on Aug. 22 opposed the government's bid to get more time to file a brief in support of its motion to dismiss Seko's case against the company's removal from the Entry Type 86 pilot and Customs-Trade Partnership Against Terrorism programs. The customs broker said the U.S. failed to show good cause why it should get more time to file the brief (Seko Customs Brokerage v. U.S., CIT # 24-00097).

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The brokerage said the government shouldn't get more time because the company continues to suffer "significant hardship" due to "the ongoing reputational damage" from the government's "requirement of a remedial action plan compelling SEKO to accept liability for third-party fraud where CBP has no statutory or regulatory basis to do so."

So far in the lawsuit, the Court of International Trade rejected Seko's bid for a preliminary injunction against its removal from the programs, finding that the company already received all the relief it sought when CBP conditionally reinstated the company into the programs (see 2407260045). Concurrently, the U.S. moved to dismiss Seko's case, similarly claiming that the company doesn't have a cause of action since it's been conditionally reinstated into the programs (see 2408060047).

The U.S. now wants more time to reply to Seko's opposition to the motion to dismiss due both to the "necessity of incorporating and accurately explaining the dialogue" between Seko and CBP and the "novel nature of issues involved under review." In response, Seko said no good cause existed for the extension because all "pertinent communications from" Seko and CBP are on the record and the nature of the issues isn't novel to the U.S.

Seko added that granting the extension would continue its daily suffering of "irreparable financial and reputational harm associated with" its initial suspension from the programs. The requirement of a remedial action plan "continues to damage SEKO's reputation in that it is being held accountable for issues that were not caused by SEKO," the brief said. The company said that, despite its submission of a remedial plan that CBP rejected, the agency "continues to hold SEKO liable for third-party fraud without any meaningful explanation or statutory or regulatory basis."