U.S. Customs and Border Protection (CBP) has dismantled a duty-evasion network attempting to bypass tariffs imposed during the Trump administration, according to a FOX Business report. The investigation, conducted under the Enforce and Protect Act (EAPA), uncovered over $400 million in unpaid trade duties, with expectations of further increases as the probe continues.
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Rodney Scott, CBP Commissioner, stated that the EAPA program is crucial to trade enforcement, emphasizing efforts to prevent evasion and ensure fairness for U.S. businesses. According to data from the IndexBox platform, U.S. imports from China have faced increased scrutiny in recent years due to similar evasion tactics.
The operation found that $250 million of the unpaid duties stemmed from 23 Chinese shell companies rerouting goods through South Korea, Indonesia, and Vietnam to avoid tariffs. A source revealed that investigators inspected mattress factories in Taiwan and Indonesia, discovering no actual production activity.
Susan S. Thomas, acting Executive Assistant Commissioner for CBPs Office of Trade, noted that this case marks the largest consolidated EAPA investigation to date, with potential for further discoveries as additional importers are identified.
