The intersection of state and federal regulation on hashish has led to some attention-grabbing conditions on the border, particularly the place hashish associated property is seized. States resembling Washington, Oregon, and California have legalized hashish for all makes use of, whereas the federal Managed Substances Act nonetheless prohibits marijuana distribution and sale anyplace in the US.
Though a selected product or piece of apparatus is likely to be authorized inside a state’s territory, attempting to import that product or piece of apparatus on the border (even in that very same state) presents a particular set of challenges. This usually results in U.S. Customs and Border Safety (CBP) seizing numerous gadgets that hashish corporations search to import to be used inside the state. On this context, many hashish corporations discover themselves questioning, what ought to we do now, and what occurs subsequent?
Don’t panic when hashish associated property is seized
If your organization had merchandise or tools seized on the border, the primary (and maybe most essential) step is to keep away from panic. Customs guidelines and laws are typically opaque and mired in ambiguity. There are additionally typically novel conditions when the federal government merely has not but taken an official place about whether or not anybody can import a selected merchandise. No person is getting arrested (assuming you aren’t carrying hashish your self). Approaching these points with a recreation plan, executed with out panic, is paramount.
Perceive your choices when hashish associated property is seized
When the federal government seizes property on the border, it offers an importer with (basically) 4 choices:
- The importer can search to administratively problem CBP’s seizure and search to vary its thoughts.
- The importer can elect to make a proposal in compromise (OIC) to resolve the dispute, which is once more processed administratively.
- The importer can elect to have the matter addressed on the Division of Justice (DOJ) by formal forfeiture proceedings.
- The importer can merely abandon the property and stroll away.
Importantly, an importer’s election amongst these 4 choices have to be made inside 30 days. The importer’s alternative will seemingly rely on the importer’s goal with the actual merchandise or property.
If the importer believes it has a authorized proper to make use of the merchandise or tools in commerce in the US, it is going to seemingly elect to problem the seizure by CBP or DOJ. If then again the importer realizes it has made a mistake, it’s extra seemingly to decide on the OIC or abandonment route. Every of those decisions carries its personal prices and advantages.
Difficult the hashish associated property seizure administratively or by DOJ
If the importer elects to problem the seizure, it engages in a chronic course of with CBP or DOJ to dispute the authorized foundation for the refusal of entry. There are usually not essentially any set or customary kinds for these challenges, which ought to stick principally to the straightforward info surrounding the purported use of the product or tools. Designations at entry are essential. The problem course of begins with the designated use for the product or tools on the border, earlier than the product or tools is seized.
If the importer has administratively challenged CBP, there are a couple of rounds of forwards and backwards previous to a call. By way of DOJ, the importer can have its concern heard earlier than a federal courtroom. The advantage of these challenges is clearly potential: after participating on this course of as soon as, the importer can have a set customary for any tried importation of future product or tools. In different phrases, it may well relaxation simple every successive time it seeks to import the product or tools.
An unsuccessful problem leads principally to extra prices—paying storage charges for the seized gadgets. If the property is refused entry after these challenges, CBP or DOJ (by the courts) can and can impose fines primarily based on the appraised worth of the product or tools.
Making an OIC or abandoning the hashish associated property
If the importer would quite keep away from the time and price of participating on this problem course of, it may well elect to both settle the matter (an OIC) or just abandon the property.
The advantage of both of those routes is the importer might keep away from any judicial or administrative proceedings. The importer could make a proposal to pay a penalty primarily based on the appraised worth after which stroll away with the product or tools. (The clever importer will search to have storage charges waived on this occasion, in reference to the OIC.)
The importer should then prepare to choose the product or tools up and have it delivered to a different nation, resembling Canada, and import the product or tools there. If the importer elects to desert the property, it seemingly incurs no penalty apart from the lack of its property.
Select the precise crew
Harris Bricken’s customs and worldwide commerce attorneys have in depth expertise with each one in all these points, and we are able to help with any challenges your hashish firm faces on the border adjoining to states the place hashish is authorized. We are able to help with any of the problems your organization faces in these unsure instances, whereas at all times understanding that the importer’s goal takes first precedence.