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Mediation in Customs Spat on Seized Tires Comes Up Empty

Mediation in a customs suit at the Court of International Trade on CBP's detention of importer Inspired Ventures' tire entries didn't result in a settlement, Judge Claire Kelly said in a report of mediation filed on Oct. 9 (Inspired Ventures v. United States, CIT # 24-00062).

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Elon Pollack, counsel for Inspired, said in an email it's "bewildering that the government won't [capitulate]," adding that the government's counsel "already admitted that the agency was wrong; yet is bent on fabricating obstacles to release the tires." Pollack said he thinks the government's "dug in" position during mediation and litigation is an attempt to gain additional duty payments from the importer, adding that it's "irrational" and against CBP's processes.

Judge Lisa Wang previously granted Inspired's motion for court-annexed mediation, disagreeing with the government's claim that the issue in dispute is "legal in nature" and not amenable to mediation (see 2505200046). The importer filed suit to contest the detention of its tire entries, which the agency held on the suspicion that the goods were in violation of Transportation Department safety standards.

Inspired asked for court-led mediation after the U.S. acknowledged Inspired would be a "prevailing party" in the case but that CBP will detain the tires "no matter the Court's decision" (see 2505050002). Over a year after the entries were filed, the U.S. said 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.