The Canadian CEO of a company that makes cannabis agricultural equipment has sued the U.S. Homeland Security Department and Customs and Border Protection, saying they detained him at the U.S.-Canada border and ordered his removal for allegedly abetting the spread of narcotics despite a prior U.S. Court of International Trade finding that his company was operating legally.
In a complaint filed Wednesday in Washington federal court, Aaron McKellar said his company, Eteros Technologies USA Inc., had in 2022 secured a ruling from the CIT that the import of cannabis-related merchandise is lawful and exempt from federal prohibitions when imported into states where possession of cannabis paraphernalia is legal.
According to the complaint, McKellar attempted to enter the U.S. for nonbusiness reasons on Oct. 4, and CBP officers detained him at the port of entry, interrogating him at length about Eteros' operations and remarking that his customers should "buy from an American company" and "from an American citizen."
Eteros is incorporated in Washington state and has its headquarters in Las Vegas, and it employs U.S. citizens and pays U.S. taxes, according to the complaint.
The CBP officers took a sworn statement from McKellar and summarily concluded that he was "contributing to the proliferation of the marijuana industry" and issued an expedited removal order, after which McKellar received a five-year entry ban, and his trusted traveler NEXUS membership was revoked, according to the complaint, and CBP denied his request for reconsideration.
However, CBP officers have not taken any action to revoke or rescind McKellar's L-1A visa work authorization, which he received as the result of the Court of International Trade case in 2022, according to the complaint.
McKellar alleged that the CBP's action in granting that work visa affirms that the agency has no reason to believe his conduct is unlawful, as does the lack of any facts or allegations made against Eteros.
If the court does not step in, McKellar said the company faces irreparable harm through the exclusion of key personnel from the country, threat of prosecution against U.S. and Canadian employees and the risk of business termination and chilling of the industry.
The suit alleges violations of the federal Administrative Procedure Act and the Fifth Amendment, and seeks an order revoking the CBP's findings and restoring McKellar's NEXUS membership.
A spokesperson for the government defendants declined to comment Thursday.
An attorney for Eteros and McKellar declined to comment Thursday.
Eteros and McKellar are represented by Richard F. O'Neill, John M. Peterson and Patrick B. Klein of Neville Peterson LLP and Douglas A. Cowgill of Cross Border Visas, U.S. Business Immigration Lawyers.
Counsel information for the federal defendants was not available Thursday.
The case is Eteros Technologies USA Inc. et al. v. United States of America et al., case number 2:25-cv-00181, in the U.S. District Court for the Western District of Washington.
--Editing by Rich Mills.
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