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CBP Officers in Tacoma Seize Shipments in Violation of Trade Laws - U.S. Customs & Border Protection

TACOMA, Wash. — U.S. Customs and Border Protection import specialists and officers at the Port of Tacoma seized three shipments of goods from China in February that were in violation of various laws or regulations.

“CBP remains focused on enforcing the importation of counterfeit products and products that violate other regulations while facilitating the lawful importation of merchandise,” said Mark Wilkerson, director of the Area Port of Seattle. “Stopping the flow of illicit goods is a priority trade issue for CBP. The importation of counterfeit merchandise can damage the U.S. economy and threaten the health and safety of the American people.”

One of the seizures included a shipment of nearly 120 pieces of furniture with a retail value of nearly $720,000 that was in violation of trademark laws. During inspection of the shipment, a CBP import specialist conferred with representatives from the trademark holders and determined the furniture infringed upon trademarks and was subject to seizure.

Another seizure included a shipment of 950 microphones and cables with a value of more than $25,000. While examining the cargo, a CBP officer discovered that on the packaging of the items it said, “Made & Manufactured in the U.S.A.,” whereas on the cartons of the items it had “Made in China” on the outside of them. Additionally, the invoice and packing list had the country of origin declared as China. The items were seized under 19 USC 1595A(c) for violation of 15 USC 1124 and 15 USC 1125, which is the law regarding false designation of origin.

Finally, CBP officers seized a shipment of 950 automotive head lamps with a value of nearly $80,000. The head lamps were found to be in violation of standards set by the National Highway Traffic Safety Administration.

CBP is responsible for enforcing nearly 500 U.S. trade laws and regulations on behalf of 47 federal agencies, facilitating legitimate trade, collecting revenue, and protecting the U.S. economy and its consumers from harmful imports and unfair trade practices.

With the growth of foreign trade, unscrupulous companies have profited billions of dollars from the sale of counterfeit and pirated goods. To combat the illicit trade of merchandise violating laws relating to Intellectual Property Rights (IPR), trademark and copyright holders may register with CBP through an online system. Such registration assists CBP officers and import specialists in identifying merchandise that violate U.S. law.

CBP’s IPR enforcement strategy is multi-layered and includes seizing illegal merchandise at our borders, pushing the border “outward” through audits of suspect importers, cooperating with our international trading partners, and collaborating with industry and governmental agencies to enhance these efforts.


USITC:  News Releases - U.S. International Trade Commission

Yesterday, U.S. District Judge Marcia S. Krieger for the U.S. District Court for Colorado entered a consent decree of permanent injunction against EonNutra LLC, CDSM LLC and HABW LLC, manufacturers and distributors of unapproved drugs and dietary supplements, and their owner, Michael Floren, requiring Floren’s businesses to immediately cease operations until they come into compliance with federal laws.

Floren marketed products on many websites, including www.sotosupplements.com, www.deerantlermax.com, www.warhorselabs.com, www.primalragenutrition.com and www.dnnutrition.com. In addition, his products were sold in a retail location in Colorado Springs, Colorado.

“Companies that market their products with unproven health claims and also continue to violate manufacturing regulations put consumers’ health in jeopardy,” said Melinda Plaisier, FDA associate commissioner for regulatory affairs. “The FDA will take the enforcement actions necessary to protect consumers from this undue risk.”

The FDA inspected Floren’s businesses, which shared a location, four times since 2012. Despite assurances from Floren that the deficiencies noted during the inspections would be corrected, follow-up FDA inspections revealed that Floren repeatedly failed to make the necessary corrections.

Over the course of the inspections, the FDA determined Floren’s dietary supplement products to be misbranded and unapproved new drugs because they were being marketed with drug claims despite not being approved for any use. Some of the claims Floren’s dietary supplement products were marketed with included the treatment of high cholesterol, hypertension, diabetes, depression and muscle pain.

During the inspections, FDA investigators also found Floren’s businesses were manufacturing and distributing misbranded and adulterated dietary supplements. Numerous violations of the agency’s current Good Manufacturing Practice (cGMP) regulations for dietary supplements were found, including failure to establish specifications for dietary supplement components and failure to test or verify that components and finished products meet product specifications for identity, purity, strength or composition. Because Floren’s businesses failed to follow cGMP regulations, their dietary supplements are adulterated under the Federal Food, Drug, and Cosmetic Act. Some of the supplements were also misbranded because Floren’s businesses failed to properly list on the products’ label the number of servings per container and the correct serving size per container. Additionally, they failed to list each ingredient contained in the dietary supplements and identify the part of the plant each botanical dietary ingredient was derived from.

The consent decree prohibits Floren and his businesses from marketing misbranded or unapproved new drugs and adulterated or misbranded dietary supplements. Before Floren and his businesses can resume operations, they must, among other things, recall their dietary supplements, hire labeling and good manufacturing practices experts and receive written permission from the FDA to resume operations.

EonNutra, CDSM, and HABW are based in Colorado Springs, Colorado.

The complaint was filed by the U.S. Department of Justice on behalf of the FDA.

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.


Service, Partner Nations to Wildlife Traffickers: There’s Nowhere to Hide - Fish & Wildlife Service

Operation Thunderbird, a global anti-wildlife trafficking initiative, recently turned a bright spotlight on the alarming depth and breadth of the planet’s wildlife poaching problem. In just three weeks, this coordinated international law enforcement effort resulted in the identification of nearly 900 suspects and 1,300 seizures of illicit wildlife products. Many of these were made by our own U.S. Fish and Wildlife Service law enforcement officers, demonstrating the significant role our nation plays in both the problem of wildlife trafficking and in implementing the solutions.

More than 60 countries participated including Canada, China, India, Mexico, Mozambique, South Africa, Zambia and the European Union (EU). The operation highlighted what can be achieved when countries work together to end the illegal wildlife trade.

The Service, for its part, not only increased inspection activities and timely reporting of seizure data but also engaged our special agent attachés stationed at U.S. embassies in Beijing, China; Gaborone, Botswana; Lima, Peru; Dar es Salaam, Tanzania; and Bangkok, Thailand. These agents are a relatively new but growing addition to the Service’s arsenal in the fight against poaching and the illegal wildlife trade. They provide several unique international collaborative functions including information-sharing; and training and relationship-building in nations that also can play a significant role in the fight, either as wildlife range states or trafficking consumer states.

 

In the United States, special agents and wildlife inspectors increased pro-active inspection efforts at multiple U.S. ports, such as Honolulu, Hawaii; New York, New York; Los Angeles, California; Miami, Florida; Newark, New Jersey; New Orleans, Louisiana; Portland, Oregon; and the San Ysidro Port of Entry (at the California-Mexico border).

Service agents worked in concert with Homeland Security Investigations, U.S. Customs and Border Protection, and other government partners to target shipments and investigate those who attempted to smuggle wildlife. They also strengthened cooperation and information-sharing with partner nations. An example of the many successes of the operation, U.S. authorities in California intercepted an ocean container full of illegal shark fins and began transnational investigations with several other countries.

Operation Thunderbird was conceived during the recent 17th meeting of the Conference of the Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

Efforts such as Operation Thunderbird represent a positive example of international collaboration, with a message to would-be global wildlife traffickers: The world is working together to combat wildlife crime. There is nowhere to hide.


ZTE Corporation Agrees to Plead Guilty and Pay Over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to Iran - Department of Justice

Combined Penalty of $1.19 Billion with Department of Commerce and Department of Treasury Actions Shows All of Government Approach to Sanctions Enforcement

ZTE Corporation has agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement. ZTE simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.

Attorney General of the United States Jeff Sessions, Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John R. Parker for the Northern District of Texas and FBI Assistant Director Bill Priestap for the Counterintelligence Division made the announcement today.

“ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Sessions. “This plea agreement holds them accountable, and makes clear that our government will use every tool we have to punish companies who would violate our laws, obstruct justice and jeopardize our national security. I am grateful to the Justice Department’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI for their outstanding work on this investigation.”

“ZTE engaged in an elaborate scheme to acquire U.S.-origin items, send the items to Iran and mask its involvement in those exports. The plea agreement, which is pending before the Court, alleges that the highest levels of management within the company approved the scheme. ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators. Its actions were egregious and warranted a significant penalty,” said Acting Assistant Attorney General McCord. “The enforcement of U.S. export control and sanctions laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions.”

“ZTE Corporation not only violated our export control laws but, once caught, shockingly resumed illegal shipments to Iran during the course of our investigation,” said U.S. Attorney Parker. “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.” 

"The plea agreement in this case shows ZTE repeatedly violated export controls and illegally shipped U.S. technology to Iran," said Assistant Director Priestap. "The company also took extensive measures to hide what it was doing from U.S. authorities. This case is an excellent example of cooperation among multiple U.S. agencies to uncover illegal technology transfers and make those responsible pay for their actions."

The plea agreement, which is contingent on the court’s approval, also requires ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program. ZTE is also required to cooperate fully with the Department of Justice (DOJ) regarding any criminal investigation by U.S. law enforcement authorities. The plea agreement ends a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS and the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

A criminal information was filed today in federal court in the Northern District of Texas charging ZTE with one count of knowingly and willfully conspiring to violate the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and has accepted responsibility for its criminal conduct by entering into a plea agreement with the government. The plea agreement, which is contingent on the court’s approval, requires that ZTE pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.

Read further - Summary of Criminal Conduct
 
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