In the view of the renowned international trade lawyers, US importers should be careful about making sure that the Chinese company from which they are getting their products should be listed on the shipping documents. If the company is not listed on the import documents, US importers could face a strong legal action and end up behind the bars.
Here we are furnishing some of the false claim acts US importers should take care of–
1. A Chinese pharma company sent an email to the US company to buy their pharma product. But as the Chinese pharma company is not covered by the American antidumping order, they make an offer to ship the product through Taiwan and list them as Taiwan products. US importers should abstain from penning a deal no matter how lucrative the offer is from the Chinese side.
Consequences– If the US authority finds that the product that you are exporting is produced by a Chinese company that is not covered by the American antidumping order and instead of Taiwan it is manufactured in China, the entire shipment will be seized. The US importing company will be criminally liable under U.S. customs law and subject to potentially massive damages under the U.S. False Claims Act.
2. A US importer is sourcing product from a Vietnamese company but in reality, the Vietnamese company is not producing the product by themselves. They are only transshipping product that comes from the Chinese company that owns it. If a situation arrives when the Vietnamese government shut down the Vietnamese facility for transshipping Chinese products, the US importer will automatically become consignee of the products and not the importer of record because US antidumping laws make the importer of record liable for AD duties and not the consignee.
Consequences– According to the US law, the US importer ( US consignee) will be termed as a conspirator to defraud the US government to avoid AD duties and the owner of the US consignee company may send to prison.
You are taking a huge risk in case you are involving in a business deal with a Chinese company that is utilizing transshipments to minimize US customs duties. The very first thing you need to do to avoid any sort of legal punishment is to contact a lawyer immediately.