Mexican sentenced for U.S. anti-dumping violations
The owner of two dry cleaners in Tijuana, Mexico, was sentenced in early June to 70 months in federal prison after pleading guilty to violating U.S. anti-dumping laws, according to U.S. Immigration and Customs Enforcement.
Arturo Huizar-Velazquez, 49, was also ordered to pay more than $3 million in restitution to the U.S. government and to forfeit more than $4 million in proceeds gained through the scheme. The charges against him included conspiracy, entry of goods by means of false statements, wire fraud, and money laundering.
The Mexican businessman purchased steel wire hangers from Chinese companies and had them shipped to the United States without marking the country of origin.
After the hangers arrived in Long Beach, Calif., Huizar-Valazquez arranged for them to be shipped to Tijuana where they were falsely labeled as “Made in Mexico,” before being shipped back to the United States through the Otay Mesa port of entry. The scheme allowed Huizar to exploit the North American Free Trade Agreement and avoid paying duty on the hangers.
The investigation of the illegal transshipment scheme began in December 2009 when U.S. Customs and Border Protection received a tip through its e-Allegations portal, an online system for reporting trade violations.
A co-defendant in the case, Jesus De La Torre-Escobar, 31, of Tijuana, Mexico, and one of Huizar-Velazquez’s employees, pleaded guilty in January to one criminal count of making false statements to import goods. At the time of his plea, he admitted to having falsely told CBP officers the garment hangers were manufactured in Mexico. De La Torre-Escobar was sentenced to 1 year of time served in May and ordered to pay restitution of more than $3 million to the U.S. government.
The U.S. government established punitive duties on Chinese steel wire hangers after determining that manufacturers were selling goods far below market value at the expense of domestic makers.
Mexican sentenced for U.S. anti-dumping violations
