According to a Wall Street Journal report, $25 million worth of aluminium has been seized by U.S. customs officials. As sources says the stockpile may be linked to a Chinese billionaire accused of dumping cheap aluminium across the world.
This is a significant step taken by federal authorities probing the activities of U.S. companies connected to Chinese aluminium magnate Liu Zhongtian in relation to the allegations that the companies are helping the Chinese aluminium major to avoid large chunk of tariff by routing the metal through other countries. In October 2016, the Wall Street Journal reported that Homeland Security and the Justice Department were investigating the matter and the agents questioned former employees of companies associated with Mr. Liu.
The aluminium has become crucial issue in American-Chinese trade relations, with U.S. companies they are getting affected by cheap Chinese metal being sold into the U.S. illegally. According to sources involved, massive stockpile of aluminium t has crisscrossed the world and depressed the price of some aluminium products as a part of the scheme.
The shipping containers of aluminium seized this week by Homeland Security belong to Perfectus Aluminum Inc., a California company founded by Mr. Liu’s son and now run by an associate, according to corporate records, court documents and sources. The aluminium had been detained by U.S. customs authorities since September before this week’s seizure. The metal will be moved from the Port of Long Beach in California to an undisclosed location, a person familiar with the matter said.
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According to the report, testing is being conducted on the aluminium stocks to determine if the metal is restricted under U.S. law. Perfectus denies all allegations calling them unlawful and imposed without explanation. The company denies circumventing any duties on aluminium imported from China. China Zhongwang spokesperson also denies any connection to Perfectus.
According to sources, a giant aluminum stockpile amassed by firms owned by Chinese associates has moved around the world and currently accumulated in Vietnam, as supported by shipping records.
Most of the seized aluminium is in the form of pallets, which are made of shaped products welded together and are used for transporting heavy cargo of aluminium.
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