We previously wrote about the dangers of not knowing your supply chain, conducting due diligence, and how inadvertently buying goods you have no idea are subjecting to antidumping duties could get you into a mess of trouble and commercial penalties under 19 USC 1592.
At Channel 6 News in Houston, via the Associated Press, is an interesting story about antidumping duty evasion on honey that originates from China but was made it’s way through Latvia, Mexico, and ultimately, through the Port of Houston at the U.S. Border. Here is the interest party of the story, and it has to do with befuddlement at why Houston has become the focal point of illegal Chinese honey imports into the U.S.:
Before the latest seizures, federal agents disrupted a network of honey importers who managed to evade $180 million in antidumping duties, which are penalties placed on imports that are priced at less than fair value. The penalty is imposed top provide relief to domestic industries that may be hurt by the low import values.
According to Richard Halverson, with Homeland Security’s Houston investigations unit, the city has become a focal point for illegal honey imports, but officials are not sure why.
You can read the rest HERE. Usually people smuggle drugs, money, gold, jewelry, and other things we consider valuable. Honey is not in that category. But, the smuggling here dealt with avoiding paying extra duties. That gets the product in cheaper than competition. But how much duty savings is your freedom, or non-liability for 592 penalties worth?
If you need help conducting due diligence, or face duty or penalty liability with customs you should contact our office by e-mail or call (734) 855-4999. We are experienced in defending customs 592 penalties, disclosing potential violations through prior disclosures, responding to notices of penalties, and preparing detailed and well argued petitions for mitigation of penalties or liquidated damages. You can also make use of our other articles, such as: