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Bill Upton, President of Vulcan Steel Products was recently featured in a video published by the CBP called “Inside CBP Focuses on Trade Fraud”.

01/24/2012

 

Inside CBP, an in-house video production of the Customs and Border Patrol, recently featured Bill Upton, President of Vulcan Steel Products, in their expose discussing rampant Trade Fraud perpetrated by foreign companies and domestic importers.

This type of customs fraud normally takes place in the form of illegal transshipments. A typical illegal transshipment occurs when:

  1. A product is manufactured in China that has an anti-dumping or countervailing duty order against it.
  2. The product is shipped to another country that does not have a dumping order against it.
  3. The product is then relabeled and then transshipped to the US. duty free.

This illegal transshipment often involves repackaging of the product to hide the country of origin and the production of fraudulent material test reports and country of origin certifications. This illegal activity is causing billions of dollars of harm to US industry and is costing the US Government millions of dollars in uncollected duties.

This illegal activity is a federal offense and in the recent case of wire garment hanger fraud resulted in the importer of record being sentenced to 70 months in jail and being fined over $7 million.

CPB is working diligently with manufacturers and importers to stop these fraudulent shipments into the United States and to ensure that allegations of illegal evasion of antidumping or countervailing duty orders are investigated.