Seko Logistics to Continue Lawsuit, Says CBP Still Hasn't Provided Reasons for Type 86 Removal
Seko Logistics will still pursue its lawsuit challenging CBP's suspension of the company from Type 86 filing and the Customs-Trade Partnership Against Terrorism, despite CBP's conditional reinstatement of the customs broker, according to a June 4 statement from the company. The Chicago-area customs broker and freight forwarder says CBP still hasn’t fully provided its reasons for Seko’s initial suspension.
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Seko is asking to be fully reinstated into both Type 86 and CTPAT since its “alleged violations leading to the agency’s action” haven’t been identified. It said it will continue its lawsuit challenging the suspension until is reinstated unconditionally or "the alleged violations leading to the agency’s action are identified, if these violations even exist."
“The details of such violations have never been provided to Seko despite repeated requests to the agency and threat of legal action,” the company said in its statement.
CBP had suspended Seko from the Type 86 program and CTPAT beginning May 27 (see 2405310031), but the company was on May 31 conditionally reinstated through Aug. 29, according to a June 4 response filed by the U.S. government before the Court of International Trade. Seko filed suit to challenge the suspension June 1 (see 2406030044).
CBP Acting Commissioner Troy Miller said on May 31 that the agency had suspended “multiple customs brokers” from participating in the Entry Type 86 program because of concerns that the brokers were not fully complying with the program.
The government noted in its June 4 court filing that it has given several conditions that Seko must meet to remain in CTPAT and Type 86 after the company's temporary reinstatement ends. Those conditions were redacted in the court filing, but the filing said they "reflect CBP's efforts to engage" Seko in the "administrative process" and "work towards" Seko's continued participation while "ensuring" Seko remains in compliance with "all program requirements."
Government attorneys said they need three weeks to respond to Seko's preliminary injunction request, which was also filed with the court on June 1.
“This case presents novel issues relating to both the T86 and CTPAT programs and the Government’s response will therefore require coordination with numerous components within the agency,” the June 4 court filing said.
Seko said CBP gave it and other brokers only seven days to respond to the suspension before it would go into effect. The company asserts that it has “an exceptionally high 99.999+% compliance rate” and that it has asked CBP repeatedly about Seko’s deficiencies and for proof of compliance.
“We are incredibly disappointed by, and strongly disagree with, the original decision by CBP,” Seko President and CEO James Gagne said in Seko's June 4 statement. “We intend to pursue all appropriate actions to protect our company, our clients, and the U.S. consumer while we continue working as an important compliance partner in global supply chains in good standing with U.S. Customs and with C-TPAT.”
The company also expressed concern that its removal and conditional reinstatement could threaten its business and reputational standing with its customers: “Seko has yet to be provided any evidence or examples of compliance issues and has had to face the business and reputational harm associated with such a draconian measure from CBP, for which no ascertainable reason or history of violations seems to support.”
CBP didn't immediately comment.