On Apr. 26, the District of Puerto Rico indicted MO for 18 U.S. Code § 1343 - Fraud by wire, 18 U.S. Code § 371 - Conspiracy to commit offense or to defraud United States, 18 U.S. Code § 1349 - Attempt and conspiracy to commit wire fraud.

A joint investigation between U.S. Customs and Border Protection (CBP) San Juan Field Operations, and Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG), revealed an illegal transshipment of merchandise from China through Malaysia imported into the United States.

“CBP remains vigilant on products produced in certain countries that are transshipped through third countries to evade detection and elude duties,” stated Roberto Vaquero, Director of San Juan Field Operations. “CBP has a long history of innovation and technology to support a growing trade enforcement mission and has been successful with origin determinations in the past, whether it be through DNA analysis, pollen analysis, or other means.”

The fraud scheme involved U.S.-based entities that were importing Chinese ceramic tile transshipped through Malaysia into the United States and misclassifying the merchandise to circumvent antidumping and countervailing duties (AD/CVD).

According to the indictment, Shuyi MO is the manager of PRC-based supplier Neviews Development Co. LTD (NEVIEWS) who conspired with a U.S. importer based in Puerto Rico, to transship porcelain mosaic tiles from China through Malaysia to circumvent antidumping and countervailing duties of approximately 718%.

MO was arrested on Apr. 29 by HSI San Juan in coordination with HSI San Francisco prior to his departure to China via the San Francisco International Airport.

The loss of revenue for the United States Government regarding these fraudulent importations is approximately $1.1 million. The potential loss of revenue for the United States Government regarding MO’s fraud scheme at a national level is approximately $5 million.

AD/CVD is one of CBP’s priority trade issues which represent high-risk areas that can cause significant revenue loss, harm the U.S. economy, or threaten the health and safety of the American people. Priority trade issues drive risk-informed investment of CBP resources and enforcement and facilitation efforts, including the selection of audit candidates, special enforcement operations, outreach, and regulatory initiatives.

Original source can be found here