Posted on 05/12/2009 2:32:44 AM PDT by Cindy
Note: The following text is a quote:
Washington man and Chinese national charged in honey import conspiracy Illegal import scheme cost United States millions
SEATTLE - Two men accused of conspiring to defraud the United States by submitting false paperwork on the importation of numerous shipments of Chinese honey are in federal custody today following an international investigation by U.S. Immigration and Customs Enforcement (ICE).
Boa Zhong Zhang, 58, a Chinese national, was arrested this morning at Los Angeles International Airport as he prepared to board a United Airlines flight to Denver. Zhang, a long-time employee of Changge Jixian Bee products Ltd., located in Henan, China, arrived in Los Angeles May 3, on a flight from Zhengzhou, China.
Chung Po Liu, 68, of Bellevue, Wash., turned himself in to federal prosecutors in Seattle this morning. Liu is a corporate officer and former president of Rainier Cascade, an import company registered with the U.S. government, as well as the president of Evergreen Produce, Inc., a business that sells and transports honey imported by Rainier Cascade.
Both men are expected to make their initial appearance in federal court today. Liu's hearing will take place in Seattle. Zhang's initial appearance will be held in Los Angeles. The conspiracy charges lodged against the two men carry a maximum penalty of five years in prison and a $250,000 fine.
According to ICE investigators, the value of the illegally imported honey is more than $1.4 million and the anti-dumping duties owed on the honey total more than $3.3 million.
"Those who misrepresent the origin of goods imported into the United States are motivated by greed and unfairly seek a financial advantage over those who play by the rules," said Leigh Winchell, special agent in charge of the ICE Office of Investigations in Seattle. "ICE aggressively investigates these cases to deter this type of illegal activity and protect those who abide by our nation's customs laws and regulations."
Court documents filed in the case show that Zhang and Liu devised a scheme to sell Chinese honey to Rainier Cascade - but not before shipping the product to other Asian countries, where it was repackaged to hide its true country of origin
ICE has been investigating the origin of the honey shipped to the United States for Rainier Cascade and Evergreen Produce since January 2008. Investigators determined there were no manufacturing facilities in Thailand and the Philippines where the honey was supposedly processed. In fact, one of the locations was actually a warehouse used for storage and repackaging of goods.
When ICE agents executed search warrants at the offices of Rainier Cascade and Evergreen Produce in April 2008, they recovered multiple e-mails between Liu and Zhang, as well as invoices indicating the honey was manufactured in China and shipped using falsified documents.
In January 2007, officers with U.S. Customs and Border Protection (CBP) confiscated a shipment of honey in Long Beach, Calif. Liu allegedly presented falsified documents attempting to prove the honey came from the Philippines. After the honey was released, investigators found additional documentation that the shipment was Chinese honey that had been shipped via the Philippines.
In January 2008, several honey shipments were intercepted at the Port of Seattle and testing later indicated the honey likely originated in China. Another shipment was encountered in February 2008 and again it was not marked with the country of origin. ICE later seized the honey.
In addition to the arrest of Zhang and Liu, Yong Xiang Yan, the president of a Chinese honey manufacturing company, was arrested on a criminal complaint filed in Chicago in a separate case. That complaint alleges that Yan conspired to import falsely labeled honey into the United States for a Chicago-based honey distributor. According to the complaint, the honey's country of origin was falsified and some of the Chinese honey was found to be contaminated with three different antibiotics.
Since 2001, anti-dumping duties have been applied to all honey imports from China. The duties are designed to offset the effects of unfair trade practices that provide imports an unfair advantage over competing U.S. goods. The duty on Chinese honey was 183 percent from 2001 until 2007, when it was raised to 221 percent.
Seattle ICE agents received substantial assistance in the investigation from the agency's attache; offices in the Philippines and Thailand as well as from CBP, the Port of Seattle Police Department and the U.S. Food and Drug Administration.
-- ICE --
"That complaint alleges that Yan conspired to import falsely labeled honey into the United States for a Chicago-based honey distributor. According to the complaint, the honey's country of origin was falsified and some of the Chinese honey was found to be contaminated with three different antibiotics."
Yes, that’s the money line. The main case they are discussing is just price protection of expensive American products. As you point out, in another case the honey was contaminated. But not in the main case described in the article.
Why would you add antibiotics to the honey? Isn’t honey naturally anti-biotic? I wonder if they shipped it in used containers, since only some of the honey was found to be contaminated. What percent?
“Why would you add antibiotics to the honey? Isn’t honey naturally anti-biotic?”
They probably bottled it in the same place they made those antibiotics. Thats why your last dose of antibiotic tasted a little like honey. They need that to cover up the other contaminates.
Thanks for posting this.
It may not seem like a big deal, but U.S. beekeepers have been taking it on the chin for some time now. I used to be a hobby beekeeper (backyard only). But the ones in it for business work very hard, rotating their hives from state to state, to pollinate our fruits and vegetables. And in the last couple years, they’ve had to deal with the mysterious Colony Collapse Disorder, which has hit the industry quite hard. These are, for the most part, family farm-type operations. They have tried to expose restaurant chains who offer “honey” packages, when in fact they are only part honey and often illegally dumped honey, not even from Amercian beekeepers. Beekeepers are the ultimate entrepreneurs, and their work is largely unnoticed and unappreciated. So thanks again for finding and posting this.
Btw, if anyone is ever looking for a really cool family hobby, I recommend beekeeping. It is the all time coolest and interesting family activity. I wish I had a little more space here to resume it.
You’re welcome Daisy and I appreciate your post.
It’s a good description of the current situation here in America.
I thought about doing that at one time but having developed allergies in my dotage I had to toss that plan and instead start keeping an auto-injector handy in case of a bee sting. I still love honey though.
Pretty soon we’ll be forced to take the honey, contaminated or not, because we owe China so much money they will insist on it and we’ll have no choice but to comply.
What’s going on with milk?
Mind you, I have a fresh box of Raisin Bran nearby.
I’m not afraid to use it.
:)
*did I already mention that the Cavs won tonight?*
In addition to the problems mentioned (pricing, antibiotic contamination), I suspect the Chinese are quite adept on “extending” honey. I would recommend looking elsewhere if the label indicates foreign origin (buy direct from your local beekeeper).
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