U.S. CUSTOMS, FDA UNCOVER HONEY DUMPING SCHEME

U.S. CUSTOMS, FDA UNCOVER HONEY DUMPING SCHEME       The U.S. Customs Service and the Food and Drug Administration on Wednesday said they have discovered bulk imports of Chinese honey that were contaminated with antibiotics.
   The honey was detected during an investigation into a widespread scheme appearing to evade payment of U.S. antidumping duties on bulk imports of Chinese honey. Customs said some of the bulk honey in arrested containers had tested positive for chloramphenicol (CAP), a potentially harmful antibiotic and unapproved food additive. Food and animal products containing CAP are illegal in the United States.
   Currently, Customs is stopping all suspect bulk honey imports to the U.S. for the FDA to determine whether they contain CAP.
   As part of the investigation that tipped agents to the contaminated honey, Customs and FDA agents during the past week have executed search warrants on businesses and residences in Los Angeles, Newark, Tampa, and other locations.
   The probe into this scheme began as a dumping investigation, Customs said. Dumping of a product occurs when merchandise manufactured outside the U.S. is sold here at a price that is below the cost of production, or below the price sold in the foreign home market. Foreign manufacturers or importers may dump products on the U.S. market to gain market share or maximize profits and minimize losses in production.
   In Sept. 2000, several U.S. honey producers filed an unfair trade case alleging dumping of honey imports from China. In May 2001, the U.S. Commerce Department issued a notice of preliminary determination requiring Customs to collect anti-dumping duties on imports of natural honey from certain Chinese companies. The duty rates increased between 34 and 184 percent.
   In June 2002, U.S. Customs attach's in Bangkok and Singapore initiated an investigation and began working with their law enforcement counterparts in Australia, Malaysia, and Thailand.
   “This case is an excellent example of cooperation between U.S. Customs, the FDA, as well as authorities in Australia, Thailand, and Malaysia,” said Robert Bonner, U.S. Customs Commissioner.