Greenbrier disagrees with CBP ruling on freight rail couplers

The Greenbrier Companies Inc. (NYSE: GBX) stated it strongly disagrees with a U.S. Customs and Border Protection determination regarding freight rail couplers issued May 18 under the Enforce and Protect Act case 8183.

The Lake Oswego, Oregon-based railcar manufacturer said the CBP determination contradicts established practices in the North American rail interchange system that has operated for more than 80 years. Greenbrier argued that railcars are mobile transportation equipment that must move freely across borders under common carrier obligations, rather than static goods entering the U.S. market.

The company said the determination "risks disrupting efficient rail operations, increasing costs across the supply chain, and introducing barriers to trade within North America." Greenbrier stated the ruling could raise transportation costs for commodities including energy, agriculture and consumer goods, leading to higher prices for American businesses and consumers.

Greenbrier said it has operated in accordance with transportation practices, applicable law and agency guidance. The company characterized CBP's determination as departing from established treatment of freight traffic and introducing uncertainty for cross-border rail operations.

The company said it is evaluating options including administrative and judicial review. Greenbrier stated it will continue cooperating with CBP and other agencies while advocating for what it called the established legal interpretation.

Greenbrier designs, builds and markets freight railcars in North America, Europe and Brazil. The company owns a lease fleet of approximately 16,800 railcars and provides railcar management and leasing services.

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