The Court of International Trade declined to grant summary judgments sought by both parties in a lawsuit over the correct classification of Ziploc plastic bags. CIT Judge Jennifer Choe-Groves ruled that "because genuine issues of material fact remain unresolved, the court denies the cross-motions for summary judgment and the case shall proceed to trial." The case involves Ziploc bags imported from Thailand through the Port of Los Angles in 2013. S.C. Johnson & Son, represented by Pisani & Roll, challenged CBP's classification of the bags as “articles for the conveyance or packing of goods” in heading 3923. S.C. Johnson argues that the bags are better classified in heading 3924 as “other household articles.” While CIT denied the summary judgment requests, it declined to address the classification arguments, including whether Generalized System of Preferences benefits apply.

No lawsuits were filed at the Court of International Trade during the week of Sept. 3-9.

The Court of International Trade on Sept. 6 ruled against several petroleum importers seeking drawback on taxes and fees, finding CBP correctly denied the claims because the importers did not include amounts for merchandise processing fee, harbor maintenance tax and excise taxes. Following precedent set by the Federal Circuit over the past 20 years, CIT said the importers were required to file a complete claim within the three years after export, and that the complete claim must include the full amount of drawback requested.

The following lawsuits were filed at the Court of International Trade during the week of Aug. 27 - Sept. 2:

The following lawsuits were filed at the Court of International Trade during the week of Aug. 20-26:

Foreigners without close ties to U.S. companies cannot be held in violation of the Foreign Corrupt Practices Act for acts that took place outside the U.S., the U.S. Court of Appeals for the 2nd Circuit said in an Aug. 24 decision. The government had alleged Lawrence Hoskins, a U.K. national and senior vice president of France-based Alstom Resources Management, was guilty of FCPA violations by way of conspiring with employees of a U.S.-based subsidiary to bribe Indonesian officials in an effort to secure a power generation contract. But conspiring with U.S. officials was not good enough, the appeals court ruled, affirming a district court decision. Unlike U.S. nationals, who are explicitly liable for the FCPA for conduct abroad, “the FCPA clearly dictates that foreign nationals may only violate the statute outside the United States if they are agents, employees, officers, directors, or shareholders of an American issuer or domestic concern,” the court said. “To hold Hoskins liable, the government must demonstrate that he falls within one of those categories or acted illegally on American soil.” The government can still pursue FCPA charges if it proves Hoskins was acting as an agent of a U.S. company, the appeals court said. Hoskins also faces money laundering charges filed in 2013 with the FCPA charges, according to a post on The FCPA Blog.

A federal judge sentenced a customs broker to 10 months in prison, followed by three years of supervised release, over a federal excise tax evasion scheme, the U.S. Attorney's Office for the Southern District of Florida said in a news release. Alberto Rodriguez, of Briarwood, New York, pleaded guilty in June to charges involving false entry summaries to misrepresent tobacco excise taxes due on large quantities of cigars (see 1806110013). Rodriguez also must pay $503,681.15 in restitution to CBP, equal to the estimated amount of tobacco excise taxes he evaded.

The following lawsuits were filed at the Court of International Trade during the week of Aug. 13-19:

President Donald Trump’s recent decision to double Section 232 duties on steel from Turkey further demonstrates the vague and arbitrary nature of the tariffs and their unconstitutional conflict with the principle of separation of powers, the American Institute for Imported Steel and steel importers said in a brief submitted Aug. 16 as part of their ongoing court challenge of the tariffs (see 1806270036). No reason was given for the action -- imports of steel from Turkey are already falling quickly -- and no legal recourse exists for steel importers to challenge the doubling of tariffs, the brief said. “That is because section 232 lacks an ‘intelligible principle’ guiding the President on what he may do, and does not require him to justify the differing treatment of Turkey from that of other large exporters of steel to the United States or even to base the additional 25 percent tariff increase on any facts, findings, or administrative record of any kind,” the brief said. “Singling out imports from Turkey for double tariffs is the latest and perhaps the clearest example that, like the Emperor with no clothes, section 232 is a naked grant of unchecked power to the President that cannot stand if our constitutional system of separation of powers is to be maintained,” it said.

The Department of Justice filed charges against 22 defendants over imports of counterfeit luxury goods from China, DOJ said in a news release. Six indictments and a criminal complaint were unsealed in the U.S. District Court for the Eastern District of New York on Aug. 16, it said. "The charges include conspiracy to traffic, and trafficking, in counterfeit goods; conspiracy to smuggle, and smuggling, counterfeit goods into the United States; money laundering conspiracy; immigration fraud and unlawful procurement of naturalization," DOJ said. Four of the defendants served as the importers for shipping containers full of counterfeit goods through the Port of New York/New Jersey, it said. "They fraudulently used the names, addresses and other identifying information of legitimate import companies and falsified the descriptions of the containers’ contents on U.S. customs paperwork associated with the containers of counterfeit goods." The goods, which include Louis Vuitton and Tory Burch handbags, Michael Kors wallets, Hermes belts and Chanel perfume, would have been worth more than $450 million if real, DOJ said.