Chinese National Indicted in Puerto Rico for Fraud Scheme to Avoid Antidumping and Countervailing Duties - U.S. Customs & Border Protection
SAN JUAN, Puerto Rico —A federal Grand Jury indicted Shuyi MO, a citizen of the People’s Republic of China (PRC), for fraud by wire and conspiracy to commit offense to defraud the United States.
On Apr. 26, the District of Puerto Rico indicted MO for 18 U.S. Code § 1343 - Fraud by wire, 18 U.S. Code § 371 - Conspiracy to commit offense or to defraud United States, 18 U.S. Code § 1349 - Attempt and conspiracy to commit wire fraud.
A joint investigation between U.S. Customs and Border Protection (CBP) San Juan Field Operations, and Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG), revealed an illegal transshipment of merchandise from China through Malaysia imported into the United States.
“CBP remains vigilant on products produced in certain countries that are transshipped through third countries to evade detection and elude duties,” stated Roberto Vaquero, Director of San Juan Field Operations. “CBP has a long history of innovation and technology to support a growing trade enforcement mission and has been successful with origin determinations in the past, whether it be through DNA analysis, pollen analysis, or other means.”
The fraud scheme involved U.S.-based entities that were importing Chinese ceramic tile transshipped through Malaysia into the United States and misclassifying the merchandise to circumvent antidumping and countervailing duties (AD/CVD).
According to the indictment, Shuyi MO is the manager of PRC-based supplier Neviews Development Co. LTD (NEVIEWS) who conspired with a U.S. importer based in Puerto Rico, to transship porcelain mosaic tiles from China through Malaysia to circumvent antidumping and countervailing duties of approximately 718%.
MO was arrested on Apr. 29 by HSI San Juan in coordination with HSI San Francisco prior to his departure to China via the San Francisco International Airport.
The loss of revenue for the United States Government regarding these fraudulent importations is approximately $1.1 million. The potential loss of revenue for the United States Government regarding MO’s fraud scheme at a national level is approximately $5 million.
AD/CVD is one of CBP’s priority trade issues which represent high-risk areas that can cause significant revenue loss, harm the U.S. economy, or threaten the health and safety of the American people. Priority trade issues drive risk-informed investment of CBP resources and enforcement and facilitation efforts, including the selection of audit candidates, special enforcement operations, outreach, and regulatory initiatives.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Initiation of Five-Year (Sunset) Reviews
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Automated Put Walls and Automated Storage and Retrieval Systems, Associated Vehicles, Associated Control Software, and Component Parts Thereof (II); Notice of Commission Determination Not To Review an Initial Determination Terminating the Investigation Based on Withdrawal of the Complaint; Termination of the Investigation
• Stainless Steel Flanges From China and India; Institution of Five-Year Reviews
• Silicon Metal From China; Institution of a Five-Year Review
• Dioctyl Terephthalate From South Korea; Cancellation of Hearing for Full Five-Year Review
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review
• Light-Walled Rectangular Pipe and Tube From the People's Republic of China: Preliminary Results of the Antidumping Duty Administrative Review; 2021-2022
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review and Join Annual Inquiry Service List
• Rescission of Antidumping and Countervailing Duty Administrative Reviews
• Investigations; Determinations, Modifications, and Rulings, etc.: Boltless Steel Shelving Units Prepackaged for Sale From India, Malaysia, Taiwan, Thailand, and Vietnam; Institution of Anti-Dumping Duty Investigations and Scheduling of Preliminary Phase Investigations
• Pneumatic Off-the-Road Tires from India
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Silicon Metal From Kazakhstan: Rescission of Countervailing Duty Administrative Review; 2020-2021
• 1,1,1,2-Tetrafluoroethane (R-134a) From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, Partial Rescission, and Preliminary Determination of No Shipments; 2021-2022
• Common Alloy Aluminum Sheet From Taiwan: Rescission of Antidumping Duty Administrative Review; 2020-2022
• Determination of Sales at Less-Than-Fair Value: Certain Freight Rail Couplers and Parts Thereof From Mexico: Preliminary Affirmative Determination of Sales at Less Than Fair Value Preliminary Negative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Non-Refillable Steel Cylinders From India; Institution of Anti-Dumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Brass Rod From Brazil, India, Israel, Mexico, South Africa, and South Korea; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Boltless Steel Shelving Units Prepackaged for Sale From India, Malaysia, Taiwan, Thailand, and Vietnam; Revised Schedule for the Subject Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Circular Welded Carbon-Quality Steel Pipe From the United Arab Emirates: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Drawn Stainless Steel Sinks From the People's Republic of China: Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review; 2021-2022
• Common Alloy Aluminum Sheet From India: Preliminary Results of Countervailing Duty Administrative Review and Partial Rescission; 2020-2021
• Certain Frozen Warmwater Shrimp From the Socialist Republic of Vietnam: Final Results and Final Determination of No Shipments of Antidumping Duty Administrative Review; 2021-2022
• Certain Lined Paper Products From India: Amended Final Results of Antidumping Duty Administrative Review; 2020-2021
• Certain Magnesia Carbon Bricks From the People's Republic of China: Final Determination in Covered Merchandise Inquiry
• Certain Aluminum Foil From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2021
• Circular Welded Carbon-Quality Steel Pipe From the United Arab Emirates: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Certain Hot-Rolled Steel Flat Products From Japan: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Phosphate Fertilizers From the Russian Federation: Preliminary Results and Partial Rescission of the Countervailing Duty Administrative Review; 2020-2021
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Common Alloy Aluminum Sheet From India: Preliminary Results of Antidumping Duty Administrative Review; 2020-2022
• Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Administrative Review in Part, and Intent To Rescind in Part; 2021
• Wooden Cabinet and Vanities and Components Thereof From the People's Republic of China: Preliminary Results, Preliminary Determination of No Shipments, and Partial Rescission of the Antidumping Duty Administrative Review; 2021-2022
• Common Alloy Aluminum Sheet From Spain: Preliminary Results of Antidumping Duty Administrative Review; 2020-2022
• Certain Aluminum Foil From People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review, Partial Rescission of Antidumping Duty Administrative Review, and Preliminary Determination of No Shipments; 2021-2022
• Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Administrative Review in Part; and Intent To Rescind in Part; 2021
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DHS Statement on the Lifting of Title 19 Requirements - U S. Department of Homeland Security
Beginning May 12, 2023, DHS will no longer require non-U.S. travelers entering the United States via land ports of entry and ferry terminals to be fully vaccinated against COVID-19 and provide related proof of vaccination upon request. DHS intends to rescind these Title 19 travel restrictions in alignment with the end of the Public Health Emergency and the termination of the Presidential Proclamation on air travel.
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Sentencing Part of $91 Million Resolution with Three Gree Companies and Follows Indictment of Company Executives of Gree U.S. Subsidiary - Department of Justice
LOS ANGELES – The City of Industry-based subsidiary of a Chinese appliance company was sentenced today to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to domestic consumers were defective and could catch fire.
Gree USA Inc. was sentenced this morning after pleading guilty in January to a felony violation of the Consumer Product Safety Act (CPSA). The fine, along with provisions to pay restitution to victims, was part of a $91 million resolution with three related Gree companies that represents the first corporate criminal enforcement action ever brought under the CPSA.
Gree USA, a U.S. subsidiary of Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong), entered into a plea agreement in connection with a criminal information filed in 2021. Gree USA pleaded guilty to one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC.
Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Gree Hong Kong entered into a deferred prosecution agreement (DPA) in connection with the same case. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and also agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty.
According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but the companies failed to report that information to the CPSC for months. The companies reported and recalled the dehumidifiers only after consumer complaints of fires and resulting harm continued to mount.
“This corporation endangered the safety of American consumers by failing to promptly report a known problem with their defective humidifiers,” said United States Attorney Martin Estrada. “Fortunately, authorities were able to stop this practice before Gree USA could cause greater harm. This historic case underscores our commitment to protect the public from dangerous products that could cause consumers real harm and to hold accountable corporate entities who knowing violate our laws in promotion of their greed.”
“Homeland Security Investigations (HSI) works tirelessly to protect the American consumer from health and safety risks posed by sub-standard products entering the United States,” said HSI Los Angeles Acting Special in Charge Eddy Wang. “HSI, the Department of Justice, and the Consumer Protection Safety Commission will continue to hold corporations accountable for placing profits above people.”
As part of the Gree USA plea agreement and the Gree Zhuhai and Gree Hong Kong DPA, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects.
“Today’s sentencing of Gree USA is part of the Department of Justice’s ongoing efforts to hold accountable companies and executives that purposefully delay reporting dangerous consumer products to the CPSC,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with the CPSC to ensure consumers’ safety.”
“Today’s sentencing should serve as an example that companies will be held to account when they put profits before consumer safety,” said Chair Alex Hoehn-Saric of the CPSC. “The egregious behavior detailed in this case cannot be tolerated, and we are grateful for the support of the Department of Justice in bringing this company to justice and keeping consumers safe.”
The United States Attorney’s Office and the Consumer Protection Branch of the Justice Department’s Civil Division previously indicted Charley Loh, 64, of Arcadia, and Simon Chu, 67, of Chino Hills – respectively, the CEO and chief administrative officer of Gree USA – with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on November 7 in Los Angeles.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI investigated this case.
This matter was prosecuted by Assistant U.S. Attorney Joseph Johns of the Environmental and Community Safety Crimes Section, along with Assistant Director Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch. Patricia Vieira of the CPSC’s Office of General Counsel provided substantial assistance.
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CBP Seizes 3,175 Pounds of Marijuana at Detroit Cargo Facility - U.S. Customs & Border Protection
DETROIT — U.S. Customs and Border Protection (CBP) officers assigned to the Port of Detroit intercepted 3,175 pounds of marijuana at the Fort Street Cargo Facility, April 20.
The illicit cargo was discovered after an inbound tractor trailer hauling a shipment of tires was selected for additional screening. The subsequent physical inspection conducted by officers revealed multiple packages of marijuana concealed inside the tires among brown packing paper and garbage bags.
“The CBP officers in Detroit continue to work diligently—day and night—to accomplish our border security mission in order to protect our nation and the communities we serve,” said Port Director Devin Chamberlain. “This success is a testament to their hard work and dedication.”
The marijuana, cargo, tractor and trailer were seized by CBP.
Marijuana remains a Schedule I controlled substance in the U.S., therefore importation is prohibited and contrary to federal law.
Travelers are encouraged to learn more about current regulations before attempting to bring items into the United States to avoid penalties, seizures, and even arrest.
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Hurricane Season: Be Prepared - Food & Drug Administration
When gale-force winds start blowing and torrential rains raise water levels, you need to be ready.
Power outages mean refrigerated food and medicine supplies may spoil. Floods may contaminate tap water and emergency supplies not stored properly with sewage, chemicals, heavy metals, pathogenic microorganisms, or other contaminants.
If the storm or flood is severe enough, you may need to evacuate with little time to prepare. Don’t put off being prepared until the emergency hits.
Keeping Food and Water Safe
Consumers, especially in storm-prone areas, should maintain an emergency kit stocked with non-perishable food, extra medication and hygiene supplies. Here are some food-related tips to remember:
• Do not eat any food that is not in a waterproof container if there is any chance it came in contact with flood water.
• Inspect canned foods and discard any food in damaged cans. Damaged cans may have swelling, leakage, punctures, holes, or rusting.
• Follow tips on how to keep food safe at proper temperatures.
• Discard any perishable food (such as meat, poultry, fish, milk, eggs or leftovers) that has been held at room temperature for 2 hours or more (or 1 hour if outdoor temperatures are above 90º F).
Water Storage: How Much is Enough?
Access to clean water is essential. The Federal Emergency Management Agency, Red Cross and Centers for Disease Control and Prevention recommend a minimum of one gallon of water per day for each member of the family. Store at least a 3-day supply of water for each person. However, a 2-week supply is better if you have the space.
Food Safety During Power Outages
Power loss is common in severe storms, but there are ways to increase the time the food in your fridge will remain safe to eat. It’s important to keep the refrigerator and freezer doors closed. Food in an unopened refrigerator and freezer is safe to consume if the power outage lasts less than 4 hours. The foods in the freezer are typically safe for 48 hours if it is full or 24 hours if the freezer is half full.
For refrigerated items, after the 4-hour power outage, it is best to pack them into a cooler surrounded by ice or frozen gel packs for storage. Check the food temperature of these items before cooking or eating them and toss them out if the item has been above 40 degrees Fahrenheit for two hours or more.
For infants, ready-to-feed formula should be used. However, if only concentrated or powdered formula is available, prepare the formula with bottled water or water that has been sterilized. Your doctor or public health authorities can advise if water needs to be boiled before use. You should ensure that the bottles and nipples used are also sanitized.
To keep your drinking water safe:
• Use bottled water that has not been exposed to flood waters if it is available. If you don't have bottled water, you should boil water for one minute. This will kill most types of disease-causing organisms, such as cholera, typhoid, salmonella, giardia, E. coli, and amoebas. Let the boiled water cool and store it in clean containers with covers.
• If you can't boil water, you can disinfect it for drinking or other use by adding 1/8 teaspoon (or 8 drops) of regular, unscented, liquid household bleach per gallon of water. Stir it well and let it stand for at least 30 minutes before using it.
• If the water is cloudy, filter it through layers of clean cloth or allow it to settle, then draw off the clear water for disinfection.
• If you have a well that has been flooded, the water should be tested and disinfected after flood waters recede. If you suspect that a well may be contaminated, contact your local or state health department or agriculture extension agent for specific advice.
For more information on keeping food and water safe during a hurricane and flooding check our page on Food and Water Safety During Power Outages and Floods. You can also find additional instructions on disinfecting drinking water during an emergency on the Environmental Protection Agency’s website.
READ FURTHER: Planning Ahead Can Make a Huge Difference