Customs Broker Faces Over $3 Million in Penalties for Profiting Off Misclassified Entries
The U.S. government is seeking over $3 million in penalties from a customs broker it says profited by underpaying duties owed by clients. In a complaint filed May 9 at the Court of International Trade, the government said Kenneth H. Chew collected the full amount of duties owed on entries he filed on behalf of his clients, but actually paid lower amounts of duties to CBP by falsifying entry documentation and pocketed the difference.
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According to the complaint, Chew engaged in the scheme between 2006 and 2010, filing 275 entries with false information. After taking full payment from his clients, Chew knowingly misclassified and undervalued the merchandise on the associated entries to lower the amount of duty owed, it said. Chew would sometimes alter his customer’s invoices to support the misstatements. CBP discovered the falsified information “in the course of a review of entries of one of the importers for which Mr. Chew acted as broker,” said the complaint. CBP subsequently examined entries filed by Chew on behalf of other importers.
Overall, Chew cost the government $401,371.52 in unpaid duties, said the complaint. A list of entries attached to the complaint alleges Chew skimmed up to $22,390.26 off the importer for each entry, with the majority of the entries netting Chew less than $1,000. The government is seeking $3,210,972.16 in penalties, plus the unpaid duties for a total of $3,612,343.68. It also seeks interest and costs.
Email ITTNews@warren-news.com for a copy of the complaint.