USD4.3 billion large amount of made-in-China aluminum falsely-labeled as Made-in-Vietnam before heading to the US is seized.
According to the General Department of Vietnam Customs and a report published in 2016 by The Wall Street Journal, the company involved in the import of over 500,000 tonnes of aluminum from Mexico to Vietnam in 2016.
The Global Vietnam Aluminum Company was established by two Australian nationals who came from China, Jacky Cheung and Wang Tong, with investment capital of nearly VND 5 trillion (USD217 million). The company was licensed in 2011 for producing aluminum for export with capacity of over 200,000 tonnes a year.
"China Zhongwang Group stood behind the project," the report said. "Following high tariffs imposed on Chinese aluminum to the US market, the Chinese group had secretly transported their products to Mexico and Vietnam before exporting to the market to enjoy lower tax."
Head of the General Department of Vietnam Customs, Nguyen Van Can, recently told local media that Vietnam’s aluminum exports to the US were subject to a tax of about 15 per cent, but products from China were levied at up to 374 per cent, almost 25 times higher. As such, some products are being disguised with made in Vietnam labels to try to evade US anti-dumping duties.
Head of the General Department of Vietnam Customs, Nguyen Van Can announces the case on October 28
The department announced on October 28 that they had seized 1.8 million tonnes of Chinese aluminum worth about USD4.3 billion which were falsely labeled as Vietnamese before being shipped mostly to the US.
The Department have collaborated with the Ministry of Public Security, the Ministry of Industry and Trade, the Vietnam Chamber of Commerce and Industry and other relevant agencies to investigate and block the shipment.
Can said that they were working with American authorities during the investigation.
Vietnam has become a top destination for suppliers looking to avoid US and Chinese tariffs amid the ongoing trade war between the two countries, which also makes it a potential magnet for fraudsters.