A federal grand jury in Puerto Rico indicted a Chinese national on 31 counts of wire fraud, one count of conspiracy to defraud the U.S. and one count of wire fraud conspiracy.
Shuyi Mo is alleged to have conspired with a Puerto Rico-based American importer to ship goods through Malaysia to avoid paying duties, according to a May 3 news release. He was indicted April 26 and detained April 29 by HSI San Juan and HSI San Francisco while waiting to board a flight to China at the San Francisco International Airport.
“The misclassification of merchandise to pay lower duties to the United States government is a duty evasion violation that will not go unpunished,” HSI San Juan acting Special Agent in Charge Rebecca González-Ramos said in the news release. “One of our main missions in HSI is to protect U.S. businesses from fraudulent trade practices. We will continue our collaboration with customs and trade authorities to expose these illegal practices and bring those who engage in these practices to justice.”
HIS San Juan conducted a Global Trade Investigations Group investigation in collaboration with U.S. Customs and Border Protection and uncovered the plan to ship goods from China to Puerto Rico through Malaysia, the release reported.
Mo, the manager of Chinese supplier Neviews Development Co. LTD, reportedly schemed with a Puerto Rico-based American importer to ship porcelain mosaic tiles through Malaysia to avoid paying about 718% in antidumping and countervailing duties, the release said.
“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” U.S. Attorney for the District of Puerto Rico W. Stephen Muldrow said in the release. “The U.S. attorney’s office is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”
