WASHINGTON (September 2025) - In a victory for U.S. freight rail coupler (FRC) manufacturers, the U.S. Department of Customs and Border Protection (CBP) has preliminarily determined that an importer of FRCs evaded payment of tariffs in violation of an existing antidumping order. CBP also implemented multiple interim measures against the importer.
The allegation, brought under the Enforce and Protect Act (EAPA), contained evidence that Greenbrier Companies (GBX) was entering FRCs into the United States by means of evasion – without paying the required duties pursuant to the antidumping order. The information in the allegation describes how GBX was improperly claiming that the FRCs and the railcars to which they are attached qualify for exemption from entry filing as instruments of international traffic (IIT).
CBP has determined that there is “a reasonable suspicion” that evasion occurred and will continue its investigation through the final phase. CBP initiated several interim measures such as requiring “live” entry of all imports of FRCs, requiring the importer to submit proper documentation and all duties prior to release of merchandise, extending liquidation of unliquidated entries that entered before the case was initiated, and suspending liquidation of unliquidated entries entered after the case was initiated. CBP’s determination that a reasonable suspicion exists that FRC’s are being entered into the customs territory of the United States through evasion of existing antidumping orders has significant implications for the entire rail car manufacturing industry.
“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 (IIT) exemption," said Daniel B. Pickard, lead counsel and practice group leader of the International Trade & National Security practice group at Buchanan Ingersoll & Rooney.
In a separate proceeding before the U.S. Department of Commerce, the domestic industry has asked for a recalculation of duty liability for GBX’s imports to be enforced retroactively to July 2024. Violations of U.S. customs laws can result in significant penalties, both for an individual and any organization involved in the violation. Customs penalties vary depending on the particulars of the violation but may include civil or criminal penalties. Civil or criminal fines for customs violations can be significant. A customs violation can be subject to criminal penalties when it involves the intentional or reckless disregard of customs regulations and can include making false statements or omissions in customs declarations in order to mislead authorities.
Upon an affirmative final determination of evasion, importers will be accountable for unpaid duties on all imports of FRCs imported in violation of the antidumping order. A final determination is expected within the year.
Buchanan’s team of international trade and national security attorneys has decades of experience supporting clients to ensure that the U.S. market is operating under fair and equal conditions through various trade remedies, including through the Enforce and Protect Act.