A distributor of Chinese tires in California faces a fine of $17 million
According to information received yesterday from Long Beach, a company that supplies tires to the entire state of California may face a $17 million fine for alleged fraud. This penalty was imposed on the company by the federal government following an investigation.
Thus, the complaint filed by US customs officials on 03/09/15 against China Tire Warehouse Inc. was not only hastily reviewed but also already resulted in a verdict. Government representatives found the company guilty of forgery.
Recall that the essence of the complaint is that the company, which has been the largest importer of Chinese truck and passenger tires for 10 years, does not pay part of the taxes due to the US budget.
Moreover, as established during the investigation, some of the products were regularly recorded in the database as pneumatic tires, the import of which into the US is duty-free. And this is far from the only illegal fact discovered.
Under the duty-free scheme, by recording other tire models in the database as products for agricultural and forestry vehicles, the distributor again did not pay the due taxes. So, mass forgery and fraud are evident. Officials have obliged China Tire Warehouse Inc. to pay a fine of $16.9 million.
Thus, the complaint filed by US customs officials on 03/09/15 against China Tire Warehouse Inc. was not only hastily reviewed but also already resulted in a verdict. Government representatives found the company guilty of forgery.
Recall that the essence of the complaint is that the company, which has been the largest importer of Chinese truck and passenger tires for 10 years, does not pay part of the taxes due to the US budget.
Moreover, as established during the investigation, some of the products were regularly recorded in the database as pneumatic tires, the import of which into the US is duty-free. And this is far from the only illegal fact discovered.
Under the duty-free scheme, by recording other tire models in the database as products for agricultural and forestry vehicles, the distributor again did not pay the due taxes. So, mass forgery and fraud are evident. Officials have obliged China Tire Warehouse Inc. to pay a fine of $16.9 million.