Cheese Importer Can't Claim CAFTA-DR, as Not Actual Importer of Cheese, CIT Says

A company that sold Nicaraguan cheese in transit before entry cannot claim Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) benefits on the cheese because it is not the importer, even though it is still listed as importer of record on entry documentation, the Court of International Trade said in a recent decision (here).

La Nica Product had its customs broker file entries for the cheese, claiming preferential tariff treatment under CAFTA-DR. It later filed post-entry amendments attempting to change the importer of record for the shipments, claiming it had sold the shipments in transit to a subsequent U.S. purchaser, CIT said. CBP requested additional information on La Nica’s CAFTA-DR claims and documentation of the sale to the subsequent purchaser, but La Nica did not respond to the request, the court said. CBP denied the post-entry amendments and liquidated the cheese at a non-preferential rate, putting La Nica on the hook for $85,012 in duties.

La Nica protested, this time providing CBP with certificates of origin and invoices for the sales to the subsequent purchaser. When CBP denied the protest, La Nica filed suit challenging the denial of CAFTA-DR preferences. But it continued to say that it had sold the merchandise in transit before entry.

CIT ruled that, because La Nica was not the importer, it could not file a CAFTA-DR claim. Though La Nica may still be listed as importer of record on entry documentation, that’s only because its post-entry amendment was denied, the court said. La Nica admits it was not the importer, regardless of what is listed on the entry, it said. La Nica argued that the denial of its post-entry amendment means CBP found it to be the importer of record, but CIT disagreed. The denial was related to La Nica’s failure to provide information demonstrating that the subsequent purchasers were the actual importers of record for the entries, CIT said.

(La Nica Prod., Inc. v. U.S., Slip Op. 17-9, CIT # 13-00300, dated 02/02/17, public version 02/10/17, Judge Kelly)

(Attorneys: Peter Herrick for plaintiff La Nica Product, Inc.; Beverly Farrell for defendant U.S. government)