Importer Asks CIT for Court-Led Mediation in Spat on Detained Tires
Importer Inspired Ventures moved the Court of International Trade for a mediator in its case against CBP's decision to put two of its rubber tire entries on hold under suspicions that the goods had a high risk of tariff evasion. Inspired Ventures said the issue is "ripe for settlement" in light of the government's concession that CBP erred in detaining the tires (Inspired Ventures v. United States, CIT # 24-00062).
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CBP detained the tire entries, then -- upon physical inspection -- suggested the goods may be in violation of Transportation Department safety standards, corresponding with DOT to review the goods. DOT's National Highway Traffic Safety Administration told CBP that the tires aren't compliant with various department regulations.
CBP then sought to seize the goods, though it issued Inspired a seizure notice only after the company brought the present case at CIT. A jurisdictional spat ensued on whether CIT was the proper home for the action, with Judge Lisa Wang ultimately ruling that CBP has the relevant admissibility authority, not DOT (see 2407020012).
Inspired Ventures is seeking court-led mediation after the U.S. said the importer will be a "prevailing party" but that CBP will detain the tires "no matter the Court's decision." Over a year after the entries were filed, the U.S. now says the importer must file "live entries" and deposit around three times the applicable ordinary and antidumping and countervailing duties to secure the release of the goods.
The importer said this amounts to a "continued taking" of its property and argued that mediation is the best forum for resolving the remaining disputes.