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Three Companies Indicted for Smuggling Scheme to Avoid AD/CV Duties

Wednesday, June 26, 2013
Sandler, Travis & Rosenberg Trade Report

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations has announced the arrest of five individuals and the indictment of three companies on charges of smuggling aluminum to avoid antidumping duties of 30-33% and countervailing duties of 374.15%. According to an HSI press release, these entities allegedly purchased aluminum from China and transshipped it to Malaysia, where they repackaged it and created false invoices to make it appear the aluminum originated in Malaysia. The aluminum was then imported into Puerto Rico to avoid the AD/CV duties.

HSI states that the forfeiture allegations include judgments of $26.75 million for the unpaid AD/CV duties and $6.9 million related to charges of conspiracy to commit wire fraud and money laundering. The federal government seeks to forfeit real estate properties and bank accounts as substitute assets.

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