In an unusual column in the New York Times, the paper’s international trade reporter Ana Swanson reports that the “significant increase in tariffs in recent months appears to have prompted an increase trade and customs fraud.” Ms Swanson is correct. Vietnam, Korea, Taiwan have recently reported instances in which products made in China have been shipped there on their way to the U.S. after the country of origin has been changed from made in China to made in those nations. In addition, recent news stories have reported that Chinese exporters are now offering lucrative deals to U.S. customers attendant with a promise of bearing the full burden of tariffs.
In this scheme, sellers pay for all import duties, but actually pay nothing extra as they under-invoice shipments, allowing them to offer U.S. customers pre-tariff prices, while still turning a profit. This is illegal and in violation of US Tariff laws. In an effort to learn whether companies are in fact trying to evade tariffs Ms. Swanson asks the readers to let her know in a built in submission form evidence the readers have seen of customs fraud or tariff dodging. Cudos to Ms. Swanson for this effort as our Customs and Border Patrol the entity responsible to catch tariff evaders does not have sufficient staffing to deal with the vast fraud and fraudulent schemes through Mexico, or directly from China.
Jeffrey Newman is a whistleblower lawyer representing doctors who become whistleblowers reporting SEC violations, Medicare and Medicaid fraud. He also represents whistleblowers in IRS tax evasion cases, SEC violations and tariff fraud cases. Jeff frequently writes on events affecting world social developments including AI. He can be reached at Jeff@JeffNewmanLaw.com or at 978-880-4758
