US Seeks $1.4M Penalty Against Health Product Importer for Skirting Section 301 Duties
The U.S. on Feb. 3 brought a complaint against importer Shunny Corp., doing business as Sampac Enterprises, alleging that the company negligently misreported the country of origin of its health products to avoid import duties. The government is seeking nearly $200,000 in unpaid duties, along with a nearly $1.4 million penalty (United States v. Shunny Corp., CIT # 25-00039).
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The complaint, filed at the Court of International Trade, said that from February to November 2020, Shunny imported health products, including "bee pollen, royal jelly, various plants and parts of plants, ginseng root, licorice, mulberry, rosa, astragalus, stevia, and filters." The importer told CBP the goods came from Hong Kong, when the actual country of origin was China, the U.S. alleged.
Shunny avoided the 25% Section 301 duty applicable to the goods, the government said. The complaint alleged that Shunny failed "to exercise reasonable care and competence to ensure that statements made and information provided in connection with Shunny’s entries of the subject merchandise were complete and accurate," depriving the U.S. of $199,348.50 in duties.
Shunny didn't immediately respond to a request for comment.