⏱ 2 min read
Redi-Bag USA, a New York-based supplier of custom bags, liners, and packaging, and its CEO, Jeffrey Rabiea, have been caught in a customs fraud scheme in New Jersey. The company and its CEO knowingly misrepresented the country of origin of polyethylene retail carrier bags (PRCBs) on customs entry forms, claiming they came from Hong Kong when they were actually made in China. This deception allowed them to evade antidumping duties owed to the United States, which are imposed to protect American businesses from foreign companies ‘dumping’ products at below-cost prices.
The scheme, which took place over an unspecified period, involved importing PRCBs from China and then transshipping them through Hong Kong to disguise their true origin. By doing so, Redi-Bag USA and Rabiea avoided paying antidumping duties of up to 77.57% on the value of the PRCBs, as required by the Antidumping Duty Order No. A-570-886.
The U.S. Attorney’s Office for the District of New Jersey announced that Redi-Bag USA and Rabiea have agreed to pay a total of $7.3 million to settle the allegations. U.S. Attorney Robert Frazer stated that the settlement demonstrates the office’s commitment to investigating and pursuing businesses that evade customs duties through unlawful conduct.
The investigation and settlement highlight the importance of complying with customs regulations and the consequences of attempting to evade duties. The case also underscores the role of law enforcement agencies, including U.S. Customs and Border Protection, in protecting American businesses and taxpayers from unfair trade practices.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: New Jersey
- Location: NJ
- Source: DOJ Press Release
