The Honey Fraud: Gaming US Food Import Laws for Profit
In 2008, the largest food fraud in American history was foiled by customs agents suspicious of six shipping containers from China labeled as originating from Korea. These containers were filled with honey destined to be used in various American food products.
The ensuing investigation revealed a food fraud totaling to-date over $180 million. During the course of the investigation, agents traced the origin of the fraud to German company ALW. (1)
According to the DOJ (Department of Justice), “14 individuals, including executives of Alfred L. Wolff GmbH and several affiliated companies of the German food conglomerate and others were charged for allegedly avoiding approximately $80 million in anti-dumping duties on Chinese-origin honey. Authorities seized and forfeited more than 3,000 drums of honey that entered the country illegally”. (2)
Chinese national Gong Ji Chen was indicted for creating a fake company to hide the Chinese honey origin. (3) Overall, six companies were charged with various crimes perpetrated to avoid tariffs on imported Chinese honey. The tariffs are 221% of declared value, nearly three times more than other foreign countries. (2)
Source: http://www.topsecretwriters.com/2013/10/the-honey-fraud-gaming-us-food-import-laws-for-profit/
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