#United States #San Juan #Greenberg Traurig #Castro Business Enterprises #Import Law

Legal Victory for Castro Business Enterprises

On March 13, 2026, Greenberg Traurig, LLP celebrated a major win in the U.S. District Court for the District of Puerto Rico, representing Castro Business Enterprises (CBE) in two high-stakes cases concerning the wrongful seizure of imported goods valued at approximately $3.148 million. The legal team, led by Francisco O. Sánchez and Carlos J. Andréu-Collazo, successfully argued that the seizure by U.S. Customs and Border Protection (CBP) was unfounded, as CBE had complied with existing import regulations.

Background of the Case

The cases, numbered 19-cv-1550 and 19-cv-1551, stemmed from the seizure of two shipments of cigarettes imported from Canada by CBE in 2018. CBP claimed that CBE had not adhered to the requirements outlined in statute 19 U.S.C. § 1681a, insisting that CBE was responsible for generating its own healthcare warning plan approved by the Federal Trade Commission (FTC).

However, the legal interpretation of Section 1681a, coupled with the relevant regulatory framework, supported the position that CBE was only required to certify compliance with an existing FTC-approved plan rather than produce its own. CBE had done exactly that, demonstrating adherence to the necessary guidelines.

Court Proceedings

Initially, a magistrate judge favored the government’s stance; however, Judge Silvia Carreño-Coll demonstrated a comprehensive understanding of the relevant laws and rejected the recommendation made by the magistrate. The district court ultimately ruled in favor of CBE, issuing a summary judgment that confirmed the importer’s compliance with Section 1681a's requirements.

In response to the ruling, the court ordered the government to return the value of the seized goods, which unfortunately had perished while in government custody. The awarded amount is reflective of the value determined during the seizure by CBP.

Implications of the Ruling

This ruling serves as a landmark decision, not only bringing clarity to the regulatory landscape for CBE but also setting a precedent that may assist other importers facing similar challenges. “Prevailing for CBE is truly rewarding,” said Sánchez and Andréu-Collazo in a joint statement. “It’s crucial not only for the company but also for the multitude of importers seeking clarity regarding shipment regulations.”

Legal Landscape

Greenberg Traurig’s litigation practice is composed of over 800 attorneys who regularly navigate complex legal challenges across various courts and arbitration panels. Their victory in this case underscores the firm’s commitment to its clients and its ability to advocate effectively in matters of significant legal contention.

CEO of Greenberg Traurig, LLP, notes, “This victory is not just a win for CBE, but an essential reassurance for all companies engaged in international trade. Understanding legal obligations is paramount, and this case clarifies many of those uncertainties.”

Conclusion

As the legal landscape surrounding international trade continues to evolve, this case highlights the critical need for compliance and the expertise required to navigate legal challenges. Greenberg Traurig continues to solidify its position as a leader in providing strategic legal services, helping clients find clarity in complex regulatory environments.

Greenberg Traurig, LLP operates with a vast presence, employing nearly 3,100 lawyers in multiple countries, ensuring they possess both the geographic and legal breadth to advise clients effectively. Recognized for their excellence and philanthropy, they remain a significant asset in the realm of legal services across borders and industries.