Monthly Archives

September 2012

Sep 20

Dulles CBP Global Entry Surpasses 250,000 User Sessions

By Blog, Grab Bag

Global Entry, a U.S. Customs and Border Protection (CBP) initiative to speed pre-approved trusted travelers through international arrivals processing, surpassed 250,000 user sessions at Washington Dulles International Airport Sunday.

Washington Dulles International Airport, where Global Entry launched on June 6, 2008, ranks seventh nationally in user sessions.

The program, popular with the international travel community, continues to grow in membership. More than 414,000 members have enrolled in Global Entry. Another 750,000 travelers enjoy the expedited processing benefits of Global Entry through other trusted traveler programs such as NEXUS (Northern border) and SENTRI (Southern border). Interested travelers can learn more about Global Entry membership. ( Global Entry )

“Global Entry works. It has proven to be a winner for frequent, low-risk international travelers, such as business professionals, travel industry representatives, U.S. diplomats and airline employees,” said Christopher Hess, CBP Port Director for the Port of Washington (DC). “Global Entry at Washington Dulles International Airport continues to set significant milestones in user sessions and continues as one of our nation’s pace setters for trusted traveler processing,” said Hess.

Global Entry members also automatically qualify for participation in the TSA Pre✓™ expedited passenger screening program for domestic travel.

Washington Dulles, with its 250,918 Global Entry user sessions, ranks behind New York’s John F. Kennedy International Airport, Houston’s George Bush Intercontinental Airport, Newark (N.J.) Liberty International Airport, Miami International Airport, Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.

Trusted travelers with Global Entry benefits have processed their international arrivals a combined 2,959,578 times at self-help kiosks located in 37 airports in the United States and at pre-clearance stations overseas.

The most significant benefit to Global Entry is time saved waiting in primary inspection lines. Average processing time for Global Entry members is about one minute. Wait times for passengers without trusted traveler memberships can be lengthy during peak arrival times. View your local airport wait times on CBP.gov. ( Airport Wait Times )

Participation in Global Entry is voluntary. Participants must possess a machine-readable U.S. passport or permanent resident card, pay a non-refundable $100 application fee, submit an online application, pass a law enforcement check, and complete an interview at a CBP enrollment center. ( Global Entry )

Washington Dulles was one of three original airports to deploy Global Entry in June 2008; JFK and Houston Intercontinental were the others. More than 3.2 million international travelers arrived to Washington Dulles during 2011.

SOURCE: CBP

 

Sep 20

Customs Seizes $29K in Unreported Currency

By Blog, Export, Import, International Business

U.S. Customs and Border Protection (CBP) officers at Washington Dulles International Airport (IAD) seized $29,000 Monday from a Ghanaian woman for violating federal currency reporting regulations.

The passenger, who arrived to Dulles from London, declared possessing less than $10,000. While examining her bags, CBP officers discovered a large sum of U.S. currency in a zippered compartment of her handbag. The final count was $29,000.

There is no limit to how much currency travelers can import or export; however federal law requires travelers to report to CBP amounts exceeding $10,000 in U.S. dollars or equivalent foreign currency.

CBP officers seized the $29,000 and advised the traveler how to petition for the return of her seized currency.

“Travelers who refuse to comply with federal currency reporting requirements run the risk of having their currency seized, and may potentially face criminal charges,” said Christopher Hess, CBP port director for the Port of Washington. “The traveler was given the opportunity to truthfully report her currency. The easiest way to hold on to your money is to report it.”

In addition to narcotics interdiction, CBP routinely conducts inspection operations on arriving and departing international flights and intercepts currency, weapons, prohibited agriculture products or other illicit items.

Travelers are encouraged to visit CBP’s Travel website to learn rules governing travel to and from the U.S. ( Travel )

The Privacy Act prohibits releasing the traveler’s name since she was not criminally charged.

SOURCE: CBP

 

Sep 20

Officers Seize 17 Vehicles and Assess $93,500 in Fines

By Export, Import, International Business

Recently, U.S. Customs and Border Protection officers working outbound operations at the Santa Teresa port of entry seized 17 vehicles and assessed penalties totaling $93,500.

The discovery was made when CBP officers, conducting routine outbound enforcement operations in the vehicle export facility, detected issues with the paperwork linked to several vehicles destined for Mexico. Further investigation resulted in the seizure of 17 vehicles attempting to circumvent the CBP exportation process by presenting fraudulent export paperwork. Each of the 17 violations carries a fine of $5,500. A total of $93,500 in fines and penalties were assessed against the exporter. All 17 vehicles were also seized by CBP.

“This entire episode is curious because there was really nothing to gain here other than a small savings in time,” said CBP Santa Teresa assistant port director Fred Hutterer. “CBP does not charge a fee to process vehicles for export.”

The CBP vehicle export process is fairly simple. An exporter presents his original certificate of title or certified copy of the certificate of title and the CBP export cover sheet with the vehicle’s information (VIN/make/model) to CBP officers. The copies are date and time stamped which initiates the 72-hour requirement of the vehicle to remain in the United States prior to the formal export. During this 72-hour window CBP performs a series of checks to make sure the vehicle is eligible for export. After the 72 hours have elapsed the exporter will present the original title and the vehicle to CBP for verification. Once CBP determines that all requirements have been met the vehicle can be exported.

CBP officers at the Santa Teresa port process approximately 36,000 vehicles for export annually. The Santa Teresa port of entry is the only designated vehicle export location in the El Paso area.

SOURCE: CBP

Sep 14

Members of Counterfeit Nike Sneaker Ring Face Up to 5 Years in Prison and $250,000 Fine

By Customs IP Enforcement, Export, Import, Intellectual Property, International Business, International IP, News

Registered Trademark of Nike

Five individuals have pleaded guilty to conspiring to import misclassified merchandise. Each faces up to five years in federal prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

“The trademark laws in the United States were created to protect the investment of American manufacturers such as Nike as well as consumers,” said U.S. Attorney William J. Hochul Jr., Western District of New York. “These laws are designed to create a level playing field for businesses and protect consumers who might unwittingly purchase inferior counterfeit goods. Our office will continue to aggressively enforce customs laws for the benefit of American businesses and those who purchase their products.”

“Selling counterfeit goods is stealing,” said James C. Spero, special agent in charge of HSI Buffalo. “HSI is committed to ensuring the legitimate copyright holders are protected from individuals who are only motivated by greed. People and organizations which produce and sell counterfeit products undermine the U.S. economy; create inferior and sometimes dangerous products; and jeopardize public safety.”

Xiao Cheng Lin, 50, and his wife, Ling Zhen Hu, 51, both of New York, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to import misclassified merchandise. Hu, a native of China, worked for an individual who imported thousands of pairs of sneakers from China that bore the Nike “swoosh” logo and Nike labeling, but were not genuine Nike sneakers. Hu then negotiated the sale of large quantities of the mislabeled sneakers to Malik Bazzi, 44, of Montreal, who then sold them to customers throughout the United States — including in Buffalo — via his warehouses in Manhattan and Brooklyn. Bazzi is currently scheduled to be sentenced Feb. 1, 2013. Hu admitted that she negotiated the sale of 7,500 pairs of sneakers to Bazzi.

Lin, also a native of China, worked with his wife, delivering the 7,500 pairs of sneakers to Bazzi. The HSI investigation revealed that Bazzi’s customers then sold the counterfeit Nike sneakers on the street and in retail stores to customers for about half the price of genuine Nike sneakers.

As part of their plea agreements, both Lin and Hu agreed to abandon any claim to more than $600,000 and dozens of pairs of counterfeit sneakers seized from their New York residence following their 2007 arrest.

The defendants were arrested along with 21 others. To date, 20 of the defendants have been convicted.

On Sept. 5, 2012, LaKeith Fowler, 32, of Dallas, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Fowler, one of Bazzi’s customers, purchased and sold approximately 12,000 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Fowler sold the sneakers in a retail store he owned in the Dallas-area. As part of his plea agreement, Fowler agreed to forfeit two bank accounts to the government which contain over $44,000 in deposits. The accounts were used to conduct counterfeit sneaker transactions.

On Sept. 7, 2012, Davion Briant, 37, of Milwaukee, also pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Briant, another of Bazzi’s customers, purchased and sold approximately 4,500 pairs of counterfeit Nike sneakers he obtained from Bazzi from April to September 2007. Briant owned a retail store in the Milwaukee-area where he sold the counterfeit sneakers.

On Sept. 10, 2012, Hussien Sara, 30, of New York, pleaded guilty before Judge Arcara to conspiring to traffic in counterfeit sneakers. Sara worked in Bazzi’s warehouses where, on behalf of Bazzi, he took delivery of over 13,000 pairs of counterfeit sneakers from several suppliers, including Hu and Lin. In addition, Sara assisted in packaging the sneakers for shipment to Bazzi’s customers located throughout the United States.

Lin and Hu will be sentenced Jan. 24, 2013; Fowler Dec. 14, 2012; Briant Jan. 7, 2013; and Sara Jan. 11, 2013. All will be sentenced by Judge Arcara in Buffalo.

SOURCE: ICE

Sep 14

Jim Chester Speaks at Dallas Association of Young Lawyers Luncheon

By Grab Bag, News

J. F. (Jim) Chester, founding partner in the Dallas-based global business & technology law firm of CHESTER pllc, recently presented on the legal implications of representing multiple clients to an audience of young attorneys at an event sponsored by the Dallas Association of Young Lawyers (DAYL).

The title of the presentation, which was held at the Belo Mansion, the Dallas Bar Association’s headquarters in Dallas, Texas, was: “Who’s Your Client (for Transactional Attorneys)?” Chester co-presented on a panel with Dan Baucum and John Andrews.  Chester and the other panelists discussed how to avoid ethical dilemmas while representing multiple clients.  The discussion covered scenarios and solutions to common representation issues that arise in corporate, estate planning, and family practices.

DAYL regularly holds informational luncheons, such as the recent event presented by Chester, as part of its Lunch and Learn program, which was created about three years ago as a way to help DAYL members get practical and substantive information that they may not be getting in the workplace.

Chester reports, “I was honored to participate in this DAYL program.  Avoiding ethical issues is important for all lawyers, including young attorneys. It’s great that the DAYL provides programs such as this one to allow young attorneys to learn from a range of more experienced practitioners.”

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the US, around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, domestic and international contracts, and e-commerce matters.  Additional information about the firm and its attorneys may be found at www.chester-law.com

Sep 14

What Controls: Online Terms or a Written Contract?

By Blog, Internet / eCommerce, News, Technology Transactions

In the case of Fadal Machining Centers, LLC  v. Compumachine, Inc., the Ninth Circuit decided that the arbitration clause found in the terms and conditions on a company website was binding on the parties.

Fadal Machining Centers (“Fadal”) manufactures machines and Compumachine is one of Fadal’s exclusive distributors. The two parties had a distribution agreement that included a forum selection provision. Including this provision meant that the parties agreed to bring suits against each other in a previously agreed upon forum. This implies that the parties could sue each other under the contract. However, when Fadal sued Compumachine over unpaid invoices, the district court dismissed the case because each of Fadal’s invoices referred to Fadal’s website for terms and conditions of sale and those online terms said that non-payment claims had to be submitted to arbitration. Fadal appealed, but the Ninth Circuit Court of Appeals affirmed the district court’s decision.

The lesson for companies is this: be careful about what terms and conditions you post online. Although these online terms and conditions may never be officially entered into by a contract in writing, they can still be binding when they are incorporated by reference.

Read the case in its entirety here.

SOURCE: United States Court of Appeals for the Ninth Circuit

Sep 05

CHESTER pllc Selected for Inclusion in Dallas Chic CEO “Black Book”

By Blog, News

(Photo by Chic CEO)

CHESTER pllc was recently selected to be included in the Chic Black Book, a directory of trusted organizations that San Diego-based Chic CEO, Inc. (“Chic-CEO”) recommends to small business owners.  CHESTER pllc was one of just three legal service providers in the entire Dallas-Ft. Worth area to be included.

Chic-CEO, which maintains the web site www.Chic-CEO.com, provides a variety of services and resources to entrepreneurial women in cities throughout the United States.  In response to daily requests for recommendations of trusted service providers, Chic-CEO created the Chic Black Book to be a “go-to” guide its clients. In addition to recommendations for legal representation, the Dallas Chic Black Book has recommendations for bookkeeping services, marketing and brand specialists, website designers, and a number of other services that are commonly requested by emerging companies.

Jim Chester, founding member and managing attorney at CHESTER pllc, states, “We whole-heatedly support the work of groups like Chic-CEO, who assist entrepreneurs with getting the information and resources they need to be successful, and are honored to have been selected for inclusion in this highly-selective directory.”

CHESTER pllc is a Dallas, Texas law firm providing comprehensive legal services to innovation-based companies doing business in the U.S., around the world, and on the web.  Its mission (and passion) is helping entrepreneurs and emerging companies solve problems and protect their interests. CHESTER pllc delivers value by providing business-savvy, cost-effective solutions to legal challenges.  The firm offers a wide array of business legal solutions, such as business entity formation (LLCs, corporations, etc.), trademarks and other intellectual property, technology transactions, contracts, e-commerce and dispute resolution.  Additional information about the firm and its attorneys may be found at www.chester-law.com

Sep 05

Hong Kong Jewelry Exporter Faces Nearly $2 million in Fines and Restitution

By Blog, Export, Import, International Business

Recently, a Hong Kong-based jewelry exporter pleaded guilty to customs fraud charges and faces nearly $2 million in fines and restitution in a scheme discovered by U.S. Customs and Border Protection’s (CBP) Regulatory Audit Unit and investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Fai Po Jewellery (H.K.) Co., LTD, admitted to intentionally submitting false invoices to the government in connection with the importation of merchandise in order to avoid paying more than $1 million in customs duties. The company was also ordered to pay an $800,000 criminal fine and restitution of $1,017,737. Additionally, the company was ordered to pay the cost of the investigation in the amount of $144,324 and was placed on three years’ probation.

HSI special agents found that from early 2007 to late 2009, Fai Po enclosed false invoices in their direct shipments to U.S. purchaser ShopNBC while sending the actual full value invoice to the purchaser by email. Fai Po advised the purchaser to ignore the invoice enclosed in the shipment because it was there only to avoid customs clearance issues.

Since Fai Po was acting as both the exporter and importer, the company was responsible for customs duties, not the U.S. purchaser. The purchaser paid the higher amount listed on the true invoice, while Fai Po declared to the government the lower value on the fraudulent invoice. The purchaser was not aware of Fai Po’s scheme and didn’t receive any benefit from it.

“A few deliberate pen strokes on a customs declaration form amounted to the theft of more than $1 million from the American people,” said Brad Bench, special agent in charge of HSI Seattle, who oversees investigations in Alaska. “The defendant apparently believed its actions would go unnoticed, but it didn’t count on CBP’s ability to detect this anomaly or HSI’s commitment to holding those who commit customs fraud accountable.”

The fraud was detected by CBP when an audit revealed a discrepancy between the actual value of the gold jewelry shipment and what was stated on the fraudulent invoices.

Under the terms of probation, Fai Po is required to appoint a responsible corporate officer who will be required to prepare and submit quarterly reports to the U.S. Probation Office to ensure that no similar conduct occurs in the future.

SOURCE: ICE