Foreign Vessel Repairs – Exemptions From 50% Duty

All U. S. Flag vessels are subject to the vessel repair statute (19 U.S.C. § 1466). Under the statute all foreign vessel repairs and purchases of parts, materials, and equipment are subject to the extremely high Customs duties when the vessel returns to the United States. To avoid the duties, the vessel owner/operator must file the required documented Application for Relief making the appropriate claims for remission/exemption within the statutory time limits.

Our firm has been assisting vessel owners and operators with their customs entry and filing procedures and submissions since 1979. The review process begins prior to a vessel’s arrival in the U.S. and continues with the appropriate submissions including the necessary legal precedents to support the requested exemptions. Section 4.14 of the Customs Regulations (19 CFR 4.14) sets out the documents, filing times and evidentiary information required to procedurally satisfy the statutory mandate of 19 U.S.C. § 1466.

False Claims Act (FCA) – Qui Tam (whistleblower); Reporting Customs Fraud

Individuals and companies committing customs fraud evade paying duties that protect against unfair trade practices. Under the qui tam provisions of the False Claims Act (31 U.S.C. § 3729 – 3733), a whistleblower may report evidence of a company committing customs fraud to the U.S. Department of Justice and potentially receive a reward. The False Claims Act empowers private citizens with knowledge of fraud to file a lawsuit under seal (without revealing the identity of the filer) on behalf of the United States. If an investigation substantiates the allegations of fraud against the United States, the private citizen is entitled to share in any recovery. Huge rewards may be possible. Our firm can help potential whistleblowers navigate the complex Customs laws and regulations to file suit in U.S. Federal District Court.

Foreign Air Carrier Regulation (CBP Overflight Exemptions)

Our firm represents Mexican air carriers before the Department of Transportation to obtain and renew exemptions from foreign air carrier permits (49 U.S.C. § 40109), and the Federal Aviation Administration to meet the FAA’s requirements for operations specifications. Lastly, the firm uses its expertise to the advantage of our Mexican aircraft clients throughout the regulatory challenges any foreign citizen faces upon entering and exiting the U. S. Also, we help clients apply for a CBP Overflight Exemption which allows carriers to overfly certain designated airports for CBP processing arriving from areas south of the United States.

Foreign Corrupt Practices Act (FCPA)

The Foreign Corrupt Practices Act of 1977 (“FCPA”), aimed at curtailing corruption and bribery, makes it illegal for individuals and organizations to make payments or provide anything of value to influence foreign government officials for the purpose of obtaining or retaining business. The jurisdictional reach of this law is very broad. It applies not only to US citizens and residents and corporations incorporated under the laws of the US, and their foreign subsidiaries, but also to any company which issues or has its stock traded within the US (such as by ADR’s). It also applies to transactions between foreign persons where either the goods or the payments are routed through the US. Individuals and/or businesses engaged with foreign entities are wise to understand the scope of the FCPA and implement internal procedures that ensure compliance with the FCPA. Indeed, in recent years, many observers have noted that the United States Department of Justice (“DOJ”) and the Securities Exchange Commission (“SEC”) have aggressively investigated violations of the FCPA, leading to very large monetary penalties and even long periods of incarceration for violators, which have included many non US corporations and foreign citizens.

Recently the US authorities have also asserted money laundering charges in connection with bribery cases, and suspected bribe payments are subject to FINCEN reporting requirements by banks and other financial institutions.

Givens & Johnston represents and defends entities that are subject to DOJ or SEC criminal or civil investigations or who are facing other FCPA related enforcement actions. Our firm also offers assistance with implementing compliance measures to manage and reduce FCPA exposure through due diligence, training, internal audits, compliance programs and manuals, and other proactive strategies.