CBP uncovers $400M in transshipment scheme to evade Trump tariffs
Gxstocks' Edward Lawrence details how U.S. importers and a network of Chinese shell companies funneled goods through South Korea, Indonesia and Vietnam to repackage products and avoid tariffs.
EXCLUSIVE: U.S. Customs and Border Protection has busted up a duty-evasion ring attempting to evade President Trump’s tariffs, Gxstocks exclusively reports.
The CBP uncovered over $400 million in unpaid trade duties through investigations permitted under the Enforce and Protect Act (EAPA), a tactic used to police and stop illegal transshipments and other methods aimed at defrauding the U.S. government. That figure is expected to rise as the investigation deepens.
"CBP’s EAPA program is a critical component of our trade enforcement efforts. We’re working tirelessly to prevent evasion and ensure a level playing field for U.S. companies," said Rodney Scott, CBP Commissioner. "Our mission, under the leadership of President Trump, is to support economic fairness, protect domestic industry, and uphold the integrity of U.S. supply chains" according to a release detailing the sting.
Rodney Scott, President Donald Trump's nominee to be chief of U.S. Customs and Border Protection, prepares to testify during his confirmation hearing before the Senate Finance Committee in the Dirksen Senate Office Building on Capitol Hill on April 3 (Photo by Chip Somodevilla/Getty Images News / Getty Images)
A source tells Gxstocks’ Edward Lawrence that one of the operations had boots on the ground in Taiwan and Indonesia to look at mattress factories and found that there was no production going on.
CHINA BUILDING 'LEVERAGE' AGAINST FOREIGN RIVALS
Additionally, over half, or $250 million, came from a network of 23 Chinese shell companies which funneled repackaged goods as if they were made in Asian nations, including South Korea, Indonesia and Vietnam, to avoid tariffs.
A U.S. Customs and Border Patrol van on patrol (Photo by John Moore/Getty Images / Getty Images)
"Never before has CBP identified this many importers evading AD/CVD in a single consolidated EAPA investigation," said Susan S. Thomas, acting Executive Assistant Commissioner for CBP’s Office of Trade. "The revenue identified for collection exceeds $250 million, but this figure may increase as we uncover additional importers in the scheme."
TRUMP'S OIL CARD MAY PROVE USEFUL AGAINST PUTIN
Cargo stands on the floor of a bonded warehouse at John F. Kennedy International Airport in New York City on June 16, 2014. (Lucas Jackson/Reuters / Reuters Photos)
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Another 89 cases have been flagged for "suspicion of duty evasion," the department reports.
