July 23, 2026  ·  Complaint filed June 30, 2026  ·  United States District Court for the Southern District of New York, No. 1:26-cv-05556-ALC

By David Brunk, civil litigation attorney

Read the filing

IP Trading Florida v. Brauner International Corporation Claims $288,509.43 in duties wrongly assessed

IP Trading Florida, LLC sent a demand letter to Brauner International Corporation on October 20, 2025, alleging the customs broker misclassified frozen pastry imports under Harmonized Tariff Schedule code 1905.90.10.41 and seeking $288,509.43 in damages. The demand letter was addressed to William Brauner, an individual at Brauner International Corporation, who is identified as the non-party recipient of the letter. IP contends Brauner’s advice ignored a December 2011 Customs and Border Protection (CBP) ruling obtained by Emmi USA Inc. that applied the code to fully or partially prepared frozen goods, not raw pastries like those imported under the Mette Munk brand. The letter demands payment within 21 calendar days or faces suit for breach of fiduciary duty, breach of contract, and negligence.

The letter states, in its words, that “Brauner’s failures constituted a clear breach of its duties, fiduciary and otherwise,” and warns that continued refusal to pay will result in litigation and attorney’s fees. The October 20, 2025 demand letter outlines the allegations and sets the 21-day deadline for Brauner International Corporation to remit the $288,509.43 payment before IP Trading Florida, LLC initiates legal proceedings.

Alleged Misclassification of Frozen Pastries Under HTS 1905.90.10.41

IP Trading Florida, LLC alleges that Brauner International Corporation advised it to classify frozen pastries under Harmonized Tariff Schedule (HTS) code 1905.90.10.41 as duty-free, a classification the demand letter calls incorrect. The letter states, in its opening paragraph, that Brauner “advised IP that HTS #1905.90.10.41 is free of duty” and that “HTS #9903.88.03 only applies to goods if the country of origin is China.” IP claims it relied on Brauner’s guidance and subsequently received notices of action from U.S. Customs and Border Protection for misclassified entries. The demand letter further alleges that Brauner had prior experience with imports under the Mette Munk brand and knew or should have known that HTS 1905.90.10.41 did not apply to raw pastries, as the December 2011 CBP ruling obtained by Emmi USA Inc. specifically covered fully or partially prepared frozen goods under that code.

The demand letter alleges that Brauner “you have doubled down on your insistence that you reported the correct HTS codes” after IP raised concerns. IP contends that a December 2011 CBP ruling involving Emmi USA Inc., which obtained the ruling on HTS 1905.90.10.41 for frozen desserts, covered fully or partially prepared frozen goods, not the raw pastries IP was importing. The letter asserts that Brauner had prior experience with Mette Munk raw pastry imports and knew 1905.90.10.41 did not apply.

IP seeks $288,509.43 in damages, representing the additional duties allegedly owed due to the misclassification, including a 25% additional duty rate for China-origin goods under HTS 9903.88.03.

Additional Duty Under HTS 9903.88.03 for China-Origin Goods

The demand letter alleges that Brauner International Corporation misrepresented the scope of Harmonized Tariff Schedule (HTS) subheading 9903.88.03, which imposes a 25% additional duty rate for China-origin goods. According to the filing, Brauner advised IP Trading Florida, LLC that the 25% duty "only applies to goods if the country of origin is China," a statement the letter quotes verbatim. The letter contends that this advice was incorrect and that the misclassification of IP’s frozen pastries under HTS 1905.90.10.41—rather than the proper tariff heading—triggered the 25% additional duty under HTS 9903.88.03. The resulting liability forms the basis of IP’s $288,509.43 damages claim, which includes the full amount of the additional duties imposed under this provision.

The demand letter also references the December 2011 CBP ruling obtained by Emmi USA Inc., which classified frozen desserts under HTS 1905.90.10.41 but limited its application to fully or partially prepared frozen goods. IP alleges that Brauner’s failure to adhere to this ruling, despite its prior experience with similar imports, constitutes a breach of its duties under customs regulations.

Parties: IP Trading Florida, Brauner International, and Non-Parties

IP Trading Florida, LLC (“IP”), a Florida-based importer, sent a demand letter to Brauner International Corporation (“Brauner”), a customs broker, alleging that Brauner’s misclassification of frozen pastries under Harmonized Tariff Schedule (“HTS”) code 1905.90.10.41 led to $288,509.43 in damages. The letter, dated October 20, 2025, was addressed to William Brauner, an individual at Brauner International Corporation, who is identified as the non-party recipient of the demand. The letter accuses Brauner of breach of fiduciary duty, breach of contract, and negligence, and demands payment within 21 calendar days or face litigation.

The demand letter names an individual at Brauner as the recipient but does not list them as a defendant. Instead, the claims are directed solely at Brauner International Corporation. IP alleges that Brauner advised it that HTS code 1905.90.10.41 was duty-free for frozen pastries, a classification IP later relied upon, only to receive notices of action from U.S. Customs and Border Protection (“CBP”) for incorrect classification. The letter also references a December 2011 CBP ruling obtained by Emmi USA Inc. on the classification of frozen desserts under HTS 1905.90.10.41 to argue that the ruling applied to fully or partially prepared frozen goods, not raw pastries like those IP imported.

The letter references two non-parties in its narrative. Emmi USA Inc., a company that obtained a December 2011 CBP ruling on the classification of frozen desserts under HTS 1905.90.10.41, is cited to argue that the ruling applied to fully or partially prepared frozen goods, not raw pastries. The letter also mentions Mette Munk, a product brand associated with Brauner’s prior imports of raw pastries, alleging that Brauner had experience with similar imports and knew or should have known that HTS 1905.90.10.41 did not apply.

IP’s demand letter asserts that customs brokers can be liable for incorrect HTS advice when importers justifiably rely on it, citing Brauner’s alleged failure to properly classify the goods as a breach of its fiduciary and contractual duties. The letter does not allege any wrongdoing by Emmi USA Inc. or Mette Munk, nor does it suggest their involvement in the dispute beyond providing context for the classification issue.

Claims: Breach of Fiduciary Duty and Negligence

IP Trading Florida, LLC (“IP”) alleges that Brauner International Corporation (“Brauner”) breached its fiduciary duty by providing incorrect Harmonized Tariff Schedule (“HTS”) classification advice and failing to correct its errors, resulting in $288,509.43 in damages. The demand letter asserts that Brauner’s conduct constituted “a clear breach of its duties, fiduciary and otherwise,” citing the broker’s obligation to exercise reasonable care and diligence in advising importers on customs classifications. IP contends that Brauner, as a licensed customs broker, owed a duty to IP to provide accurate and reliable HTS codes, particularly given the broker’s prior experience with imports of Mette Munk raw pastries, which IP claims Brauner knew did not qualify for duty-free treatment under HTS 1905.90.10.41.

The letter further alleges that IP justifiably relied on Brauner’s advice, as evidenced by its statement that the HTS codes Brauner dictated were indeed utilized. IP asserts that this reliance was reasonable, given Brauner’s role as a customs broker and its representation that HTS 1905.90.10.41 was “free of duty” for the imported frozen pastries. The demand letter invokes the legal principle that customs brokers may be held liable for incorrect HTS advice when an importer relies on it to its detriment.

In addition to the breach of fiduciary duty claim, IP alleges negligence on Brauner’s part, arguing that the broker failed to exercise the standard of care expected of a licensed customs broker. The demand letter asserts that Brauner’s insistence on the correctness of the HTS codes, despite prior U.S. Customs and Border Protection (“CBP”) rulings indicating otherwise, demonstrates a failure to meet this standard. Specifically, IP points to the December 2011 CBP ruling obtained by Emmi USA Inc., which covered fully or partially prepared frozen goods under HTS 1905.90.10.41, as evidence that Brauner should have known the classification did not apply to raw pastries. The letter contends that Brauner’s alleged negligence directly resulted in IP’s exposure to additional duties, including the 25% additional duty rate for China-origin goods under HTS 9903.88.03, penalties, and legal costs.

Claim: Breach of Contract

IP Trading Florida, LLC (“IP”) alleges that Brauner International Corporation (“Brauner”) breached its contractual obligations by providing incorrect Harmonized Tariff Schedule (“HTS”) classification advice for frozen pastry imports. The demand letter states that Brauner advised IP to use HTS code 1905.90.10.41, which Brauner represented as duty-free, despite prior experience with similar imports indicating the code did not apply to raw pastries. IP contends it relied on Brauner’s guidance, only to receive notices of action from U.S. Customs and Border Protection (“CBP”) for misclassification.

The letter asserts that Brauner’s contractual duties included accurate HTS classification and that its failure to fulfill this obligation directly caused IP’s financial harm. Specifically, IP claims damages of $288,509.43, reflecting additional duties, including the 25% additional duty rate for China-origin goods under HTS 9903.88.03, penalties, and related costs incurred due to the misclassification. The demand cites Brauner’s insistence on the correctness of the HTS codes as evidence of its refusal to rectify the error, stating, in its words, “you have doubled down on your insistence that you reported the correct HTS codes.”

Under the contract, Brauner acted as IP’s customs broker, a role the demand letter describes as carrying both fiduciary and contractual responsibilities. The letter alleges that Brauner’s conduct violated these obligations, particularly its duty to provide accurate classification advice. IP further contends that Brauner’s prior experience with Mette Munk brand raw pastry imports should have alerted it to the inapplicability of HTS 1905.90.10.41, which the December 2011 CBP ruling obtained by Emmi USA Inc. had limited to fully or partially prepared frozen goods.

The demand letter sets a 21-day deadline for Brauner to remit the $288,509.43 payment, after which IP threatens to file suit for breach of contract, breach of fiduciary duty, negligence, and attorney’s fees.

Cause of Action: December 2011 CBP Ruling on HTS 1905.90.10.41

The demand letter references a December 2011 CBP ruling obtained by Emmi USA Inc. in its dispute with Brauner International Corporation. According to the filing, the ruling classified frozen desserts under HTS code 1905.90.10.41 but specifically applied to fully or partially prepared frozen goods, not raw pastries like those IP Trading Florida, LLC imported under the Mette Munk brand. IP alleges that Brauner International Corporation failed to adhere to this ruling, despite its prior experience with similar imports, and instead advised IP to use the same HTS code for its raw pastry products. The letter asserts that Brauner’s disregard for the 2011 ruling constitutes a breach of its duties and forms the basis for IP’s claims of breach of fiduciary duty, breach of contract, and negligence.

Cause of Action: October 20, 2025 Demand Letter to William Brauner

The October 20, 2025 demand letter sent to William Brauner, an individual at Brauner International Corporation, outlines IP Trading Florida, LLC’s allegations that Brauner International Corporation misclassified frozen pastry imports under HTS code 1905.90.10.41, leading to $288,509.43 in damages. The demand letter accuses Brauner of breach of fiduciary duty, breach of contract, and negligence, and sets a 21-day deadline for payment before IP initiates litigation. The letter specifically names William Brauner as the recipient of the demand but does not assert claims against him personally, instead directing all legal allegations at Brauner International Corporation.

Relief Sought: $288,509.43 Payment and Threat of Litigation

IP Trading Florida, LLC has demanded that Brauner International Corporation pay $288,509.43 within 21 calendar days to resolve claims arising from the alleged misclassification of frozen pastry imports. The demand letter, sent on October 20, 2025, to William Brauner as the non-party recipient, states that failure to pay will result in litigation for breach of fiduciary duty, breach of contract, negligence, and attorney’s fees.

The $288,509.43 figure represents the damages IP claims it incurred due to Brauner’s alleged incorrect advice on Harmonized Tariff Schedule (HTS) classifications. According to the demand, Brauner advised IP that HTS code 1905.90.10.41 was duty-free for frozen pastries, a classification IP later relied upon before receiving notices of action from U.S. Customs and Border Protection (CBP) for incorrect entries. The letter alleges Brauner “doubled down on [its] insistence that [it] reported the correct HTS codes” despite prior experience with similar imports under the Mette Munk brand, which the demand contends should have alerted Brauner to the inapplicability of the 1905.90.10.41 code. The damages calculation includes the 25% additional duty rate for China-origin goods under HTS 9903.88.03, which IP alleges was triggered by Brauner’s misclassification.

The demand asserts that Brauner’s conduct constituted “a clear breach of its duties, fiduciary and otherwise.” IP demands payment within 21 calendar days, warning that failure to comply will result in a lawsuit alleging breach of fiduciary duty, breach of contract, negligence, and attorney’s fees.

The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.

The allegations described here are taken from the filing and remain unproven; no responsive pleading is reflected in the source document.

David Brunk is a civil litigation attorney. He can be reached at david@newmanbrunk.com.