United States v. Israel Rubin, as President of I.D. Enterprises, Inc. I.D. Enterprises

This case is one of first impression as to the subpoena powers of the United States Customs Service (Customs). Invoking 19 U.S.C. § 1510 , the United States sought enforcement of an administrative subpoena issued by the Customs under authority of 19 U.S.C. § 1509 and directed to I.D. Enterprises, Inc. and its president, Israel Rubin (here collectively I.D.). The district court ordered enforcement. I.D. appealed. We reverse and remand.

FACTS

I.D. is a wholesaler of watches, most of which are imported. It imports more than 250,000 watches every month, most of which are either quartz or mechanical. The great bulk of the watches come by air; there are also occasional shipments by sea. I.D. places its orders abroad by telephone, or in person, or sometimes by letter.

In I.D.’s fiscal year 1989, the year in question, I.D. employed Norman Krieger, Inc., a customs broker licensed by the Customs, to prepare and submit necessary documents to Customs. When the goods arrived by air the Customs documents were delivered directly to Krieger by the importing carrier. The documents for ocean shipments came either to Krieger, I.D. or I.D.’s bank. Krieger would prepare a Customs Entry and Entry…