Union Pacific, CBP Strike $50M Deal Over Drug Fines

Law360, New York (August 19, 2011, 6:15 PM EDT) -- Union Pacific Railroad Co. on Friday agreed to spend $50 million to improve supply chain security between the U.S. and Mexico in exchange for U.S. Customs and Border Protection dropping more than $500 million in fines over drug smuggling on trains.

Customs levied the substantial fines after discovering illegal narcotics on Union Pacific trains that originated in Mexico and crossed the border into the U.S. The railroad company said in a statement that it has challenged Customs' authority to assess the fines in a lawsuit filed...
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