Articles Tagged with #tariffevasion

Yesterday I wrote about the CEO of a clothing company who has been charged criminally by the U.S. Attorney in the Southern District of New York for falsely stating the value of children’s clothing imported from China, to evade U.S. customs tariffs. A quick review of recent criminal and civil cases reveals that the Department of Justice is now pursuing cases involving customs tariff fraud particularly as so many goods are imported from China and so many companies are creating ways of evading the tariffs placed on those goods. The issue has become even more prominent since tariffs have been hiked recently. Here are some other cases:

  • The Virginia based home furnishing company Bassett Mirro Company paid the U.S. $10.5 million to settle allegations that it knowingly made statements on customs declarations to avoid paying duties. This involved bedroom furniture that the company imported from China.
  • Toyo Ink SC Holdings Co Ltd paid $45 million to settle charges of tariff evasion by knowingly misrepresenting the country of origin for a particular colorant product. Toyo said it was made in Japan and Mexico when it was actually imported from China.

According to a Bloomberg news report, Vietnam said on Sunday that it found dozens of fake product-origin certificates and illegal transfers by companies evading U.S. tariffs on everything from agriculture to textiles and steel. It was the first time an Asian government has publicly said this was happening since the trade war between the U.S. and China started.

Vietnam pledged to increase penalties on trade-related fraud. U.S. trading partners including Vietnam are being asked to stop on illicit exports.

Vietnam is concerned it may be punished by the U.S. for allowing mislabeled Chinese products to flow to America, Do Van Sinh, a standing member of the National Assembly’s economic committee, was quoted as saying in the government’s statement.

The Synthetic Turf Council (STC) has learned that U.S. Customs and Border Protection (CBP) is investigating U.S. importers of synthetic turf that may be willfully evading tariffs placed on synthetic or artificial turf.

Based on publicly available information, the STC and industry participants have filed hundreds of e-Allegation violations that question whether the synthetic turf that is being imported into the U.S. is properly coded and subject to tariffs. CBP is using this data and other information in order to conduct its investigation.

According to CBP, e-Allegations provide a means for the public to report to CBP any suspected violations of trade laws or regulations related to the importation of goods into the U.S. These types of violations include misclassification of merchandise, false country of origin markings, health and safety issues, valuation issues and intellectual property rights.