Nike's new trademark suit against a freight forwarder raises new questions about liability of service providers for counterfeiting violations, industry lawyers said. While the dispute began as one of a string of trademark cases against customs brokers, Nike expanded the lawsuit in August to directly allege counterfeiting by City Ocean. The forwarder has since moved to dismiss the case, and some lawyers agree that Nike’s arguments are threadbare at the moment. But the lawyer who first brought City Ocean into the case as a third party defendant says the forwarder, and CBP as well, should have noticed the allegedly counterfeit shipments were not as advertised.
Chairman Mario Cordero discussed proposed changes to Federal Maritime Commission (FMC) regulations for Ocean Transport Intermediaries during an Aug. 22 address to members of the Los Angeles Customs Brokers & Freight Forwarders Association (LACBFFA). Cordero said the proposed changes to the FMC’s OTI regulations under the proposed rulemaking (see 13082122) could make the FMC’s “regulatory process more efficient” by “improving transparency” and adapting to changing industry conditions.
The Eastern New York U.S. District Court dismissed on Aug. 30 an importers’ claim that Panalpina fraudulently induced it to enter into a contract for customs brokerage and freight forwarding services. Michael Kearnis, formerly president of Pinnacle Interior Elements, said Panalpina’s misclassification of Pinnacle’s wood flooring, and subsequent failure to fix the problem, amounted to going back on Panalpina’s promises of a seamless supply chain. Magistrate Judge Ramon Reyes ruled that Panalpina’s errors were at most a breach of contract, and did not amount to fraudulent inducement to sign the contract in the first place, because the broker and forwarder intended to fulfill the contract when it was signed.
The Federal Motor Carrier Safety Administration (FMCSA) provided some questions and answers outlining new financial and licensing requirements to be implemented under the Moving Ahead for Progress in the 21st Century Act (MAP-21). The Q-and-A, a response to many requests from motor carriers and transportation companies, does not mention customs brokers specifically, but does discuss the responsibilities of freight forwarders under the regulations. There's been ongoing concerns as to how the legislation would apply to customs brokers (see 13041101), despite assurance from the National Customs Brokers and Forwarders Association of America that the bill's language exempts most work done by customs brokers (see 12070325).
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Pharmaceutical and trade groups urged FDA to tread lightly as it puts in place new requirements for drug importers under the Food and Drug Administration Safety and Innovation Act (FDASIA). The National Customs Brokers and Forwarders Association of America (NCBFAA), American Association of Exporters and Importers (AAEI), and the Pharmaceutical Research and Manufacturers of America (PhRMA) each submitted comments in favor of an FDA definition of importer that recognizes that trade services firms like customs brokers can’t be responsible for compliance. They also said FDA should be careful not to impose new data submission requirements that are too onerous. AAEI and PhRMA pushed FDA to establish a trusted drug importer program based on the Customs-Trade Partnership Against Terrorism (C-TPAT), and NCBFAA cautioned against a repeat of the U.S. agent dilemma caused by FDA’s foreign food facility registration requirements.
CBP’s ability to consistently enforce Importer Security Filing (ISF) among different ports is one of several major worries for the agency’s new stricter enforcement policy on ISF, said surety company Roanoke Trade in an Aug. 27 document. According to Roanoke, CBP has said it will not impose uniformity across the ports for ISF hold and liquidated damages outside of the directions already given to the ports from CBP headquarters. The document, “ISF Enforcement Summary,” addresses ISF enforcement among ports and CBP policies on liquidated damages claims, and lays out industry concerns, CBP responses, and Roanoke’s own input as a surety.
A man from Sierra Leone was arrested at John F. Kennedy International Airport in New York, N.Y. for brokering the supply of “yellowcake” uranium to Iran in violation of U.S. export laws, said the U.S. Attorney’s Office for the Southern District of Florida. Patrick Campbell of Freetown, Sierra Leone, faces up to 20 years in prison after an Immigration and Customs Enforcement undercover agent negotiated the uranium shipments and then convinced Campbell to come to the U.S. to finalize negotiations.
Miami-based customs broker pleaded guilty Aug. 23 to Lacey Act violations, after it acted as broker on an entry of caviar but didn’t file the required declaration, said the U.S. Attorney’s Office for the Southern District of Florida. Data Freight Corporation admitted it didn’t file Fish and Wildlife Service Form 3-177 for 468 grams of Siberian sturgeon caviar that was imported in 2011 and 2012, even though it knew or should have that the declaration was required.