Hooked on Hangers

What’s so great about hangers?    Well, we use the inexpensive plastic or metal contraptions to hang our clothing in the closet so we don’t have to pick out our work clothes out of a pile of wrinkled fabric and iron them each morning. 

Hangers must be pretty important.  Last year a U.S. importer of steel write garment hangers was arrested and charged with fraud, smuggling and other charges related to the importation of the hangers.  The “other” charges were related to an attempt to circumvent payment of customs duties by claiming the hangers were made in Mexico and subject to NAFTA.  To make matters worse, metal hangers from China are subject to antidumping duties. 

Arturo Huizar-Valazquez, admitted purchasing the hangers from Chinese companies, shipping to the U.S without the country of origin, then shipping them to Mexico where they were fraudulently labeled “Made in Mexico," and returned to the U.S.

Recently, Huizar-Velazquez was ordered to pay more than $3 million in restitution to the U.S. government and to forfeit over $4 million in proceeds gained through the illegal activities.

CBP and ICE agents worked together on this case and the punishment should serve as a warning to others who are currently violating U.S. trade laws or just thinking about ways to circumvent the system.  When you are caught, the government is going to swoop down, take your profits, demand restitution and find you a place to stay in the prison system.