U.S. gets tough on seafood importer
The rules governing dumping and fair competition within the seafood sector in the United States are not always viewed as being reasonable, as they don’t take into consideration the fact that other countries may be able to produce a certain fish at a cost considerable lower than what farmers in the U.S. may be faced with. So when Vietnamese producers of pangasius catfish started to flood the North American market with cheap fish, American catfish farmers complained and got an anti-dumping duty of over 63% charged on the imported catfish, because they could not compete with the Asian producers.
The National Fisheries Service explained a recent court case related to the catfish duty;
Thomas George, the former Chief Executive Officer of Sterling Seafood Corporation, was sentenced on July 27th to 22 months in prison for importing falsely labeled fish from Vietnam and evading over $60 million in federal tariffs, as well as selling over $500,000 (~€392,000) in similarly misbranded fish purchased from another importer, United States Attorney Paul J. Fishman announced.
George, 61, of Old Tappan, New Jersey, pleaded guilty before United States Magistrate Judge Patty Shwartz on January 26, 2010, to an Information charging him with one count of importing falsely labelled goods into the United States and one count of selling falsely labelled fish in the United States with the intent to defraud. United States District Judge Faith S. Hochberg imposed the sentence on July 27th in Newark federal court.
According to documents filed in this case and statements made in court: From January 2003 to June 2006, George maintained a business relationship through Sterling Seafood with a seafood distribution company located in Vietnam. As part of that business relationship, Sterling Seafood regularly purchased fish in the catfish family, Pangasius hypophthalmus , sometimes referred to as Vietnamese catfish. Sterling Seafood would then resell the fish in the United States.
In the interest of fairly regulating commerce in the U.S., the U.S. Department of Commerce establishes anti-dumping duties or tariffs on certain imported products - taxes imposed to increase the price of goods so they do not provide unfair competition to comparable goods produced locally. In January 2003, an anti-dumping duty or tariff was placed on all imports of Vietnamese catfish into the United States because catfish was being marketed at a significantly lower price than was market rate at that time. That initial anti-dumping order imposed a duty of up to 63.88 percent on all catfish subject to the order, and was adjusted based on market conditions.
At his plea hearing, George admitted that from 2004 to 2006, he agreed with the Vietnamese distribution company to engage in a scheme to falsely identify and declare the purchase and importation of the Vietnamese catfish in order to evade the applicable anti-dumping duties. George stated that he specifically instructed the Vietnamese company to fraudulently identify the Vietnamese catfish as "grouper" on commercial contracts, purchase orders, and other documents because grouper was not subject to any anti-dumping duties. Additionally, George admitted that from 2004 to 2005, he purchased over $500,000 of similarly misbranded Vietnamese catfish that was imported from Vietnam by a Virginia corporation and then sold that misbranded Vietnamese catfish throughout the United States.
In addition to the prison term, Judge Hochberg sentenced George to a year of supervised release and ordered him to pay restitution in the amount of $64,173,839.16 (~€ 50.3 million).
