Chinese Suppliers Looking to Subvert U.S. Trade Laws
U.S. Senator Ron Wyden's (D-OR) Subcommittee on International Trade has found that Chinese companies are looking to commit Customs fraud in order to enter the U.S. market. An experiment conducted by his staff found that Chinese manufacturers of products subject to AD/CVD orders (ranging from steel nails to diamond saw blades) expressed interest in avoiding these orders.
Some manufacturers even volunteered methods for evading U.S. duties including changing the country-of-origin documents associated with the merchandise, rerouting goods through third countries, or in at least one case, undervaluing their product to lower the cost of the duties owed.
Scott Paul, Executive Director of the Alliance for American Manufacturing (AAM), commented: “This stunning investigation shows just how far some Chinese manufacturers are willing to go to cheat and avoid complying with dumping orders. Worse yet, the Chinese seem to have no fear of punishment. That’s a failure of enforcement of our trade laws. Our workers and businesses must know they have a level playing field on which to compete. Senator Wyden’s report shows that we have a long way to go. We support the Senator’s call for enhanced enforcement measures and passage of S. 3725, legislation that would help accomplish that goal.”
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