Articles Tagged with tariff evasion

Atlantic-Blue-Crabs-300x200The owner of a Newport News seafood business was charged today by criminal information with conspiring to commit Lacey Act violations for blending foreign crab meat with Atlantic blue crab meat, then labeling the blended crab meat as “Product of USA”.

James R. Casey, 74, of Poquoson, is the owner and President of Casey’s Seafood, Inc. According to court documents, from at least July 2012 through June 2015, Casey knowingly conspired to replace Atlantic blue crab with crab meat from Indonesia, China, Thailand, Vietnam, and Central and South America. Casey and his co-conspirators falsely labeled at least 397,917 pounds of crab meat, with a retail value in the millions of dollars, as Atlantic blue crab and “Product of the United States”. According to court documents, Casey directed employees to remove foreign crabmeat from the original shipper’s packaging containers, blend and combine foreign crab meat from one processor with crab meat from another processor, and place it into different packing containers with a label declaring that the contents were a “Product of USA,” despite knowing that the contents were imported crab meat. Casey also directed employees to place labels with “Product of the USA” on containers that covered up labels that stated “Product of Brazil” or “Product of China”.

Casey has been charged with conspiracy to defraud the United States, and faces a maximum penalty of five years in prison, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

tariff-300x169

Bassett Mirror Company, has agreed to pay the United States $10.5 million to resolve allegations that it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC), the Justice Department announced today.   

The United States says that between January 2009 and February 2014, Bassett Mirror evaded duties owed on wooden bedroom furniture that the company imported from the PRC by knowingly misclassifying the furniture as non-bedroom furniture on its official import documents.  Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost.  The Department of Commerce assesses, and the Department of Homeland Security’s Customs and Border Protection collects, these duties to protect U.S. businesses and level the playing field for domestic products.  Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004.  At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to an antidumping duty.

“Those who import and sell foreign-made goods in the United States must comply with the laws meant to protect domestic companies and American workers from illegal foreign trade practices,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division.  “The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”