IPFS News Link • Free Trade
California men indicted in scheme to dodge duties on Chinese hangers
• al.comFederal authorities enforcing trade sanctions brought at the request of an Alabama hanger manufacturer have uncovered a multimillion-dollar, international conspiracy to circumvent duties on cheap Chinese imports, according to court documents.
According to an indictment handed down by a federal grand jury this
week, two men in California conspired to ship Chinese wire clothes
hangers to the United States, move them to Mexico where they were
stamped "Made in Mexico," and then ship them back to the United States
for sale at prices that undercut U.S. manufacturers.
The alleged scheme was meant to circumvent duties levied on Chinese
hangers by the U.S. government after Leeds-based M&B Metal Products
complained in 2007 that Chinese manufacturers were "dumping" hangers on
the U.S. market, or selling them below cost.
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