Topline<\/p>\n
A reusable bag company and its chief executive agreed to a $7.3 million federal settlement to resolve claims they disguised Chinese-made plastic bags to avoid antidumping duties.<\/p>\n
The Justice Department announced the settlement Wednesday.<\/p>\n
Photo by J. David Ake\/Getty ImagesKey Facts<\/p>\n
Redi-Bag USA and its CEO Jeffrey Rabiea agreed to the $7.3 million settlement following claims they falsely designated Chinese-manufactured polyethylene retail carrier bags as originating from Hong Kong on customs entry forms, according to the Justice Department<\/a>.<\/p>\n The duty Rabiea allegedly sought to avoid imposed tariffs of up to 77.5% on the value of Chinese-made polyethylene retail carrier bags, meaning falsely routing shipments through Hong Kong could have saved Redi-Bag from much of its import costs.<\/p>\n Federal prosecutors accused the company of ordering its employees to cover \u201cMade in China\u201d markings on its bags and telling the bags\u2019 overseas manufacturer to remove the markings.<\/p>\n Redi-Bag also allegedly canceled orders when they were scheduled for inspection.<\/p>\n John Maierhoffer, a former contracted sales representative for Redi-Bag who sued the company in a whistleblower lawsuit in 2021, will receive about $1.3 million from the settlement.<\/p>\n What To Watch For<\/p>\n Redi-Bag\u2019s assets were acquired by AmerCareRoyal just one day before the settlement\u2019s announcement, according to a press release<\/a>, raising questions about how the new owner will manage any ongoing compliance obligations.<\/p>\n Key Background<\/p>\n Antidumping duties on Chinese-made polyethylene retail carrier bags are designed to stop Chinese manufacturers from undercutting U.S. producers by selling below cost. The Justice Department\u2019s Trade Fraud Task Force was launched last year to target customs evasion schemes and has exceeded $1 billion in total civil and criminal recoveries, penalties and forfeitures since its launch, according to CBS News<\/a>, which noted the single largest case handled by the task force was a $549.5 million settlement over evaded aluminum duties in May.<\/p>\n","protected":false},"excerpt":{"rendered":"Topline A reusable bag company and its chief executive agreed to a $7.3 million federal settlement to resolve…\n","protected":false},"author":2,"featured_media":543562,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-543561","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/543561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=543561"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/543561\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/543562"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=543561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=543561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=543561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}