A Guilty Plea, Increased Audits, And Increased Competition In Container Shipping. Your weekly All-Ways round-up of Supply Chain news.
| A New Jersey company has agreed to pay $3.1 million plus interest after its owner pleaded guilty to mislabeling hazardous chemicals and evading customs duties.
The Department of Justice reported that the owner participated in a scheme to defraud by importing mislabeled chemicals, including hazardous ones, to enter the U.S. from China, resulting in a $1.4 million underpayment in customs duties over five years.
The company was charged with violating the False Claims Act for conspiring with a Chinese vendor to mislabel chemicals and submitting falsified documents to customs brokers. As part of the settlement, the company admitted to mislabeling chemicals upon importation into the U.S. |
|
| The U.S. Customs and Border Protection (CBP) employs audit resources as part of its enforcement strategies, focusing on importer compliance with trade laws. The Trade Regulatory Audit (TRA) group conducts audits using a risk-based approach and collaborates with other CBP components and agencies.
Besides full audits, TRA also performs risk analysis and survey assessments (RASAs) to gather import activity data swiftly.
CBP's increased audit-related activities over the past five years underscore the importance of importers being proactive in compliance efforts.
Statistics indicate a rise in completed audits, revenue from importer audits, trade penalties issued, and total trade liquidated damages. This trend emphasizes the growing scrutiny on import compliance, urging importers to take preventive measures and be prepared for potential audits.
Importers should know their import data, conduct regular internal reviews, and engage experts to navigate audits effectively.
During audits, it's crucial to respond promptly, involve qualified professionals, and have them review submitted information to streamline the process and reduce costs. |
|
| Fewer Exemptions, More Competition |
|
| Cosco Shipping Holdings anticipates heightened competition in the container shipping sector following the European Union's decision to revoke antitrust exemptions for carriers and the subsequent restructuring of shipping alliances.
The company highlighted the potential significant impact of these changes on corporate alliances in its annual results filings to the Hong Kong and Shanghai stock exchanges. Despite cautious optimism about the market outlook for the year, Cosco expressed concerns about factors like inventory restocking in Europe and the US, as well as the gradual rise of emerging markets, which are expected to drive increased demand for container shipping.
However, Cosco cautioned that the industry would continue to face challenges such as escalating geopolitical risks, the accelerating pace of environmental sustainability initiatives, and growing customer demands for low-carbon and digital supply chains.
In terms of financial performance, Cosco reported a 78% decline in profits to $3.3 billion and a 57% decrease in revenue to $24.3 billion for 2023. Cosco narrowly avoided a fourth-quarter loss, largely due to flat demand during the peak season.
Despite the challenging market conditions, Cosco Shipping Holdings remains vigilant about navigating the evolving landscape of the container shipping industry while striving to adapt to changing customer expectations and market dynamics. |
|
