Herdade Lokua and Jospin Mujangi, both of the Democratic Republic of the Congo, were arrested and indicted for trafficking elephant ivory and white rhinoceros horn from the Congo to Seattle, the Department of Justice said. The pair allegedly worked with a middleman to bring in four packages that contained the ivory and rhinoceros horn. All four were sent via air freight, with three arriving in August and September 2020, and the remaining one in May 2021. Lokua and Mujangi also conspired to send large packages via ocean freight. The shipments in this scheme allegedly included elephant ivory, pangolin scales and rhinoceros horns. The pair cut the tusks and horn into smaller pieces that were painted black to avoid detection. The parts were mixed with ebony wood and declared as "wood" with values of $50-$60, DOJ said. The duo also allegedly paid bribes to local authorities in Kinshasa, the city where they live, to get the goods out of the Congo. Lokua and Mujangi now stand accused of conspiracy, money laundering, smuggling and Lacey Act violations, facing a maximum of 20 years in prison for the smuggling and money laundering charges and five years for the Lacey Act and conspiracy violations.
CBP did not violate importer Diamond Tools Technology's due process rights when it found that the company evaded antidumping duties on diamond sawblades from China, the Court of International Trade said in an Oct. 29 opinion, made public Nov. 5. However, Judge Timothy Reif did remand the case to CBP, finding that the actual finding of evasion was not supported as there was no "material and false statement" made by DTT. The judge also upheld CBP's authority to find that DTT's entries that pre-dated the start date of a related anti-circumvention inquiry are "covered merchandise."
Chinese appliance manufacturer Gree Electric Appliances Inc. and two of its subsidiaries pleaded guilty to failing to tell the Consumer Product Safety Commission that millions of its dehumidifiers it sold to U.S. customers were defective and could catch fire, the Department of Justice said. Resolving the first corporate criminal enforcement actions ever brought under the Consumer Product Safety Act, Gree entered into a deferred prosecution agreement, agreeing to pay a total penalty of $91 million and provide restitution for any uncompensated victims of fires caused by the dehumidifiers.
Queen Apparel NY, and its sole owner, Hank Hyunho Choi, agreed to pay $50,000 and cease all future importing activities due to fraudulent underreporting of imports to evade customs duties, the U.S. Attorney's Office for the Southern District of New York said. Queen and Choi admitted to falsifying customs documents to skirt the import duties, leading to the settlement. The company made and imported garments for other companies that would then sell those garments through department stores and retail chains in the U.S., the U.S. Attorney's Office said. Choi managed the business. From 2009 to 2013, Choi and his company made the garments overseas, brought them to the U.S. and then repeatedly undervalued the shipments on customs forms to evade paying the proper amount of duties. This conduct was discovered via a whistleblower who filed a lawsuit under the False Claims Act, the U.S. Attorney's Office said. The case was settled, with the eventual agreement containing admissions from Queen and Choi about the nature of their business and conduct during the relevant time period.
The Court of International Trade granted the Department of Justice's motion to stay a case challenging the expansion of Section 232 duties on steel and aluminum “derivatives,” in an Oct. 14 order, due in part to the defendant's likelihood of succeeding on appeal. Finding that a recent U.S. Court of Appeals for the Federal Circuit opinion indicates DOJ's chances of success at the appellate court, CIT also stayed any resulting liquidation but noted that the fact pattern in the present case reads differently from that of the recent Federal Circuit case.