Import Duty Archives - Customs & International Trade Law Firm

IEEPA May Be on the Chopping Block, But Your Duty Exposure Isn’t
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IEEPA May Be on the Chopping Block, But Your Duty Exposure Isn’t
tariffs

IEEPA May Be on the Chopping Block, But Your Duty Exposure Isn’t

On November 5, 2025, the Supreme Court of the United States (SCOTUS) held oral arguments for Trump v. V.O.S. Selections, Inc., regarding the legality of the International Emergency Economic Powers Act (IEEPA). The case will ultimately decide whether the Trump Administration has the authority to impose tariffs under IEEPA. Importers and trade professionals are watching the case closely, but even if the IEEPA tariffs are thrown out, the new administration has made clear that it will pivot and use other legal avenues to impose tariffs. Since oral argument, multiple discussions have been held with the Department of Justice and the plaintiffs regarding any refund possibilities. Based on these discussions, it appears that the United States is anticipating losing this matter at the Supreme Court but wants to put barriers to recovery. The United States has also clearly stated that they intend to find other ways to impose similar duties.

The message is clear: even if the Supreme Court strikes down IEEPA tariffs, tariff exposure is here to stay. NOW is the time for importers to revisit their valuation practices, explore duty minimization strategies, and ensure they are taking every lawful step to minimize duty impact going forward.

Why Tariffs Will Stay Even if IEEPA Dies

Since the earliest days of the Trump Administration, the White House has made tariffs a cornerstone of their trade and “America First” policy. The President and Administration officials have repeatedly touted tariffs as one of the best tools available to level the international trade playing field, […]

By Jennifer Diaz|2026-01-09T17:08:04-05:00January 9, 2026|tariffs|0 Comments

Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M
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Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M
Import, penalty

Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M

Ford Motor Company has agreed to pay $365 million for allegedly misclassifying and understating the value of hundreds of thousands of vehicles.

According to the Department of Justice, Ford engaged in a scheme to avoid higher duties by misclassifying cargo vans. Between 2009 and 2013, the company imported Transit Connect cargo vans into the United States but presented them to Customs and Border Protection (CBP) with temporary seats and other features to make them appear to be passenger vehicles. The seats were never intended to carry passengers and Ford removed them as part of post-importation processing. The inclusion of the seats allowed Ford to avoid paying the 25% duty rate for cargo vehicles and instead they paid a duty rate of just 2.5%.

This case dates back to February 2012 when the Port of Baltimore advised Ford it was initiating an investigation into Ford’s classification practices. (Typically, prior to investigating an entity, CBP sends a request for information first. For more information on how this process typically begins read “Now, More than Ever, Be Wary of and Responsive to a CBP Form 28!”).

In 2013 Customs determined that the vans were improperly classified and liquidated the vehicles at the 25% duty rate. Ford protested, and Customs denied the protest. Ford then filed a complaint with the U.S. Court of International Trade (CIT). The CIT agreed with Ford, finding that Ford engaged in legitimate tariff engineering. The government appealed to the United States Court of Appeals for the Federal Circuit where […]

By Jennifer Diaz|2024-03-15T14:49:39-04:00March 15, 2024|Import, penalty|0 Comments

Clothing Wholesaler Executive Avoids Paying Millions in Duties – Sentenced to 4 Years in Prison

Mohamed Daoud Ghacham, a 40-year-old executive from California has been sentenced to 48-months in prison for customs fraud. Ghacham, who was at the helm of a Paramount-based clothing wholesale company, engaged in a deceitful scheme that allowed his business to sidestep paying millions in customs duties on imported garments.

United States District Judge Maame Ewusi-Mensah Frimpong handed down the sentence, which also includes a restitution payment of $6,390,781.

The fraudulent operation involved importing clothing from China and presenting U.S. Customs and Border Protection (CBP) with a fraudulent second invoice with a lowered value. At Ghacham’s direction, Chinese suppliers would prepare two invoices for orders – a true invoice with the actual price paid and a fraudulent invoice with an understated price. Ghacham submitted the false invoices to CBP, allowing them to avoid millions of dollars in duties for over a decade.

Ghacham also faced charges related to conspiring to engage in transactions with a known narcotics trafficker.

The sentencing of Ghacham and his company concludes a comprehensive investigation by Homeland Security Investigations and CBP, with assistance from the U.S. Department of Commerce Office of Export Enforcement, the Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation.

This case underscores the U.S. government’s unwavering commitment to enforcing its customs laws and the severe consequences for those who choose to circumvent them.

Interested in learning more about CBP enforcement? Check out our upcoming webinar on the False Claims Act (FCA). We will discuss damages and criminal liability for making false claims to the government, whistleblower […]

By Jennifer Diaz|2024-03-15T14:25:27-04:00March 15, 2024|Import, penalty|0 Comments