A New Jersey man was arrested Dec. 14 for the illegal import and trafficking of narwhal tusks (whale tusk) and associated money laundering crimes, the Justice Department said. A federal grand jury in Bangor, Maine, returned an indictment Nov. 14 that was partially unsealed upon the arrest of Andrew L. Zarauskas of Union, N.J. The indictment also names Jay G. Conrad of Lakeland, Tenn., who was summoned to appear in the District of Maine on Jan. 3, 2013. The indictment charges Conrad and Zarauskas with conspiracy, money laundering conspiracy, smuggling and money laundering violations for buying narwhal tusks knowing the tusks had been illegally imported into the United States, as well as selling or attempting to sell the tusks after their illegal importation. Zarauskas was arrested this morning at his home in Union.
Bon-Ton Stores of York, Pa., agreed to pay a civil penalty of $450,000 to resolve Consumer Product Safety Commission allegations that it knowingly failed to report to CPSC immediately that its children’s hooded jackets and sweatshirts were sold with drawstrings through the hood. The CPSC said children’s upper outerwear with drawstrings pose a strangulation hazard to children. CPSC and three U.S. importers announced recalls of children’s jackets and sweatshirts with drawstrings through the hood on February 18, March 10 and May 27, 2010. Bon-Ton was a retailer of about 800 total jackets and sweatshirts in all three recalls. In agreeing to the settlement, Bon-Ton denies CPSC staff allegations that it knowingly violated the law.
The Court of International Trade affirmed CBP’s Harmonized Tariff Schedule classification of R.T. Foods’ tempura vegetables from Thailand as vegetable preparations in Chapter 20, rather than as miscellaneous edible preparations in Chapter 21. CBP’s classification as vegetables specifically described the product, so it could not instead be classified in R.T. Foods’ preferred catch-all edible preparations provision, CIT said.
Correction: The correct spelling for the name of an attorney referenced in our Dec. 13 report on the International Custom Products vs. U.S. court case (See ITT's Online Archives 12121239 is Kelly Herman, of Venable.
Zhaoqing New Zhongya Aluminum Co. appealed an Oct. 11 Court of International Trade ruling affirming the final determination in the antidumping investigation of aluminum extrusions from China (A-570-967). In its decision, CIT agreed with the International Trade Administration's decision to treat three Chinese companies, including Zhaoqing New Zhongya, as a single entity and apply adverse facts available (AFA) to that entity. The combined entity was assigned an AD rate of 33.28 percent as a result.
Del Monte appealed the Court of International Trade’s Oct. 12 ruling that its tuna is correctly classified in the Harmonized Tariff Schedule as packed in oil, despite being packaged in marinade consisting of only 2.48 percent oil. The company had argued its tuna should be classified in one of two subheadings for fish not in oil, dutiable at 6 or 12.5 percent, respectively. CIT’s decision means the tuna is dutiable at 35 percent. In arriving at its decision, CIT relied on a U.S. Note and century-old case law to say that any oil content whatsoever means the fish is packed in oil.
The Court of International Trade stayed Koehler’s challenge of the 2008-09 antidumping administrative review of lightweight thermal paper from Germany (A-428-840) on the issue of zeroing, as well as other aspects of the final results, pending resolution of Union Steel v. U.S. In Union Steel, currently on appeal, CIT affirmed the International Trade Administration’s explanation for zeroing in administrative reviews but not investigations. The ITA provided a similar explanation in this case. The U.S. government opposed the stay, arguing that Koehler did not raise the issue during the administrative review and so failed to exhaust its administrative remedies. Shortly before the final results were issued, CAFC decided for the first time in Dongbuv. U.S not to affirm the ITA’s use of zeroing in administrative reviews. The ITA said the decision was merely a remand, not an actual change to the law, so it did not merit waiving the exhaustion requirement. But CIT said the fact that the law is now “unsettled” by the remand means it is waiving the exhaustion requirement and staying the case.
A California man was sentenced Dec. 10 to two and a half years in federal prison for importing counterfeit goods, including counterfeit exercise equipment purporting to be Malibu Pilates, Bowflex and Ab Circle Pro, reported Immigration and Customs Enforcement. Stanley Kuo Jua Yang was remanded into custody at the conclusion of Monday's sentencing hearing, ICE said.
Yen Ling Chen, a citizen of Taiwan, pleaded guilty Dec. 11 to violating the International Emergency Economic Powers Act by attempting to export weapons-grade carbon fiber from the U.S. to Taiwan, said the Department of Justice. Chen was arrested in the U.S. after attempting to negotiate a deal to acquire tons of the specialized fiber, which has applications in the defense and aerospace industries and subject to Bureau of Industry and Security controls, it said. Chen faces up to 20 years in prison.
HSBC Holdings will pay $375 million to settle potential liability on behalf of it and affiliates for apparent violations of the Iranian Transactions Regulations, the Burmese Sanctions Regulations, the Sudanese Sanctions Regulations, the Cuban Assets Control Regulations, and the Libyan Sanctions Regulations, the Treasury Department's Office of Foreign Assets Control said.