Greenberg Traurig Wins Wrongful Seizure of Imported Goods Cases for Castro Business Enterprises Valued at $3.148M

MIAMI - March 20, 2026 - A Greenberg Traurig, LLP team led by Litigation Practice Shareholder Francisco O. Sánchez and Associate Carlos J. Andréu-Collazo triumphed March 13 in the U.S. District Court for the District of Puerto Rico for importer Castro Business Enterprises (CBE) in two related, multiyear wrongful seizure of imported goods cases (19-cv-1550 and 19-cv-1551). The decision brings clarity to several issues involving the federal government's statutory authority to seize property in international trade matters.

The virtually identical cases, which relate to CBE's importing two shipments of cigarettes from Canada that were seized by U.S. Customs and Border Protection (CBP) in 2018 in San Juan, were brought when the government alleged CBE failed to comply with import requirements set forth in statute 19 U.S.C. § 1681a.

The government contended that CBE, as the importer of the cigarettes into Puerto Rico, was required to submit and obtain approval of its own surgeon general health warning rotational plan from the Federal Trade Commission (FTC). However, the language of Section 1681a, together with the governing regulatory framework, requires only that an importer certify compliance with an FTC-approved rotational plan - not that the importer independently develop and secure approval of its own plan - which CBE had done.

Although a magistrate judge in the U.S. District Court for the District of Puerto Rico initially issued a report and recommendation in favor of the government, District Judge Silvia Carreño-Coll rejected that recommendation. The court instead granted summary judgment in CBE's favor, holding that CBE did not violate Section 1681a and fully complied with its requirements. The court further ordered the government to return the value of the wrongfully seized property - which perished in government custody during the lengthy case - based on the appraisal conducted by CBP at the time of seizure.

The total amount of the award between both cases is $3.148 million, which represents the total CBP appraised value of the property at seizure. A yet-to-be-determined amount of attorneys' fees and costs were granted by the court pursuant to the mandatory fee-shifting language contained in 28 USC § 2465(b)(1).

"Prevailing for CBE is truly rewarding, not only for its importance to the company, but also for the many importers that may find more clarity in requirements for the shipment of their property as a result of this decision," Sánchez and Andréu-Collazo said in a joint statement.