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Honeygate uncovered in US Sting!
The undercover inquiry, codenamed "Honeygate" by US customs officials, ensnared two of America's biggest honey firms, which agreed to pay large fines after admitting to buying Chinese honey illegally.
Five alleged smugglers, including four honey brokers, were also charged with evading some $180 million (£118 million) in import duties, and selling honey that contained an unapproved antibiotic.
The case emerged amid ongoing tensions between Washington and Beijing over Chinese trade practices. US customs officials said it was "one of the largest criminal anti-dumping cases in history".
To protect domestic producers, the US imposed import duties of up to 221 per cent on Chinese honey in 2001, after declaring that it was being dumped on the US market at below-market-value.
Posing as a senior buyer for a co-operating honey firm, an undercover agent found that Chinese honey was arriving in the US disguised as other sweetening products, and being shipped via third countries.
Calling it "the tip of the iceberg", Daniel Ragsdale, the deputy director of US immigration and customs enforcement, said: "The honey industry has been under assault due to anti-dumping circumvention".
Under deferred prosecution agreements, Honey Holding, based in Texas, agreed to pay $1 million in fines. Groeb Farms, of Michigan, agreed to pay $2 million in fines.
The announcement was welcomed by Chuck Schumer, a Democratic senator for New York.
"This successful sting operation is sure to be a buzz kill for would-be honey smugglers,"said Mr Schumer. "For too long, foreign smuggling of this product has created a sticky situation for domestic honey producers. We need a zero-tolerance policy when it comes to honey laundering."
'Honeygate' uncovered in US sting - Telegraph
The undercover inquiry, codenamed "Honeygate" by US customs officials, ensnared two of America's biggest honey firms, which agreed to pay large fines after admitting to buying Chinese honey illegally.
Five alleged smugglers, including four honey brokers, were also charged with evading some $180 million (£118 million) in import duties, and selling honey that contained an unapproved antibiotic.
The case emerged amid ongoing tensions between Washington and Beijing over Chinese trade practices. US customs officials said it was "one of the largest criminal anti-dumping cases in history".
To protect domestic producers, the US imposed import duties of up to 221 per cent on Chinese honey in 2001, after declaring that it was being dumped on the US market at below-market-value.
Posing as a senior buyer for a co-operating honey firm, an undercover agent found that Chinese honey was arriving in the US disguised as other sweetening products, and being shipped via third countries.
Calling it "the tip of the iceberg", Daniel Ragsdale, the deputy director of US immigration and customs enforcement, said: "The honey industry has been under assault due to anti-dumping circumvention".
Under deferred prosecution agreements, Honey Holding, based in Texas, agreed to pay $1 million in fines. Groeb Farms, of Michigan, agreed to pay $2 million in fines.
The announcement was welcomed by Chuck Schumer, a Democratic senator for New York.
"This successful sting operation is sure to be a buzz kill for would-be honey smugglers,"said Mr Schumer. "For too long, foreign smuggling of this product has created a sticky situation for domestic honey producers. We need a zero-tolerance policy when it comes to honey laundering."
'Honeygate' uncovered in US sting - Telegraph
