CBP Probes Greenbrier for Alleged Rail Tariff Evasion

The US Department of Customs and Border Protection (CBP) has preliminarily determined that Greenbrier Companies (GBX) may have evaded payment of antidumping duties on freight rail couplers (FRC), in violation of an existing trade order. The investigation, initiated under the Enforce and Protect Act (EAPA), follows allegations that GBX improperly claimed its imports were exempt from tariffs.

“The domestic industry is committed to the full and fair enforcement of the antidumping order on freight rail couplers. The law is clear: freight rail couplers from China and Mexico, whether unmounted or mounted onto a freight rail car, are subject to antidumping duties. We commend CBP for their investigation into this important matter, including whether importers have been misusing the instrument of international traffic exemption,” says Daniel Pickard, Lead Counsel, Buchanan Ingersoll & Rooney.

According to CBP, evidence suggests that GBX entered FRCs into the United States by misclassifying them, asserting that the components and railcars to which they are attached qualified for exemption as instruments of international traffic (IIT). CBP concludes that there is “a reasonable suspicion” of evasion and has moved forward with interim measures while continuing its investigation.

The agency has mandated “live” entry for all FRC imports, requiring GBX to submit proper documentation and duties prior to release. CBP also suspended liquidation of entries made after the case began and extended liquidation for earlier entries, effectively placing imports under heightened scrutiny.

In a related proceeding, the domestic industry has petitioned the US Department of Commerce to recalculate GBX’s duty liabilities retroactively to July 2024. If violations are confirmed, importers could face significant penalties, ranging from civil fines to criminal charges for intentional or reckless disregard of customs regulations.

A final determination is expected within the year. If CBP affirms its preliminary findings, GBX and other importers involved will be accountable for unpaid duties on all improperly entered FRC imports.

Buchanan’s international trade and national security attorneys emphasize that the case underscores the importance of strict compliance with trade remedy laws designed to maintain fair competition in the US railcar manufacturing industry.