U.S. Customs and Border Protection (CBP) has conditionally reinstated Seko Logistics into two customs programs days after suspending the company from using the provisions amid a wider crackdown on duty-free shipments into the U.S.
But the logistics services provider is dead set on finding out why, and has taken legal action against the agency to ensure its full reinstatement into both programs.
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Seko Logistics was suspended from participating in the Entry Type 86 and Customs-Trade Partnership Against Terrorism (C-TPAT) imports programs, the company confirmed in a Tuesday statement. Seko was one of six reported customs brokers that was suspended from Entry Type 86, which is a voluntary program designed to give the agency more data about e-commerce parcels arriving in the U.S. to expedite the customs process.
The Entry Type 86 program is designed particularly for shipments imported into the U.S. at a value less than the $800 de minimis threshold, which has attracted foreign e-commerce giants like Shein and Temu to transport goods en masse to individual customers without paying import duties. This practice has drawn scrutiny from American lawmakers and retailers who claim these companies get unfair trade advantages from the practice, while also pushing prices lower.
When The Loadstar initially reported the suspension, the supply chain publication indicated that a major seizure had been made related to shipments from Shein. That report has not been confirmed.
In a Saturday complaint filed with the U.S. Court of International Trade, Seko Logistics alleged that the details of the violations have never been provided to the company despite repeated requests to the agency and a threat of legal action.
The third-party logistics (3PL) provider wanted to clarify the alleged deficiencies and understand what proof-of-compliance issues are specific to the firm, calling CBP’s suspension a “draconian measure” in a statement.
The company also said the reinstatements didn’t come until Seko made the legal threat.
Seko seeks injunctive relief to remove any conditions for reinstatement until alleged violations leading to the agency’s suspension decision are identified.
“We are incredibly disappointed by, and strongly disagree with, the original decision by CBP,” said James Gagne, president and CEO of Seko Logistics, in a 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.”