Well-traveled aluminum stockpile in $1.8B tariff evasion

1 August, 2019

hero-shot_0012-1600x505-e1505592422864-37y0xr1ffd9m4o4ucwdlvk

pallets

download-37y0wtm7ljhivrkxwh76yo

aluminum seized

A Los Angeles grand jury has indicted Liu Zhongtian, 55, and China Zhongwang Holdings Ltd (1333.HK), for alleged $1.8 billion aluminum tariff evasion. Companies affiliated with Liu went through ports in the Los Angeles area to import aluminum extrusions that were “tack-welded” together, to appear as finished “pallets” that were not subject to duties. A “massive” money laundering operation involving the use of shell companies to transfer funds to Zhongwang.

 

China Zhongwang Holdings Limited (Chinese: 中国忠旺控股有限公司) is the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China. The company is headquartered in Liaoyang, China.
https://www.justice.gov/usao-cdca/pr/federal-indictment-alleges-scheme-avoid-payment-18-billion-anti-dumping-duties-chinese

A significant stockpile of aluminium was discovered at the Aluminicaste Fundición de México S. de RL de CV plant in San José Iturbide, Guanajuato, a firm that Liu Zhongtian’s son Liu Zuopeng is listed as a representative with the local government. As the stockpiles in Mexico have begun to attract unwanted attention, Liu’s group allegedly began moving the remaining 1.5 million metric tons out of North America and to a particular destination in Vietnam on the outskirts of Bien Hoa called Global Vietnam Aluminium (GVA).

Reports indicate that the stockpile, which takes the form of aluminium pallets, were seized while in the possession of Perfectus Aluminum Inc., which is a firm created by the merger of Pengcheng Aluminum Enterprise Inc. USA and six other legal entities. Liu Zuopeng was CEO, CFO, and secretary for Pengcheng and his wife, Liu Chengcheng, served as that firm’s director.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: