Adv
LANGUAGES
English
Hindi
Spanish
French
German
Chinese_Simplified
Chinese_Traditional
Japanese
Russian
Arabic
Portuguese
Bengali
Italian
Dutch
Greek
Korean
Turkish
Vietnamese
Hebrew
Polish
Ukrainian
Indonesian
Thai
Swedish
Romanian
Hungarian
Czech
Finnish
Danish
Filipino
Malay
Swahili
Tamil
Telugu
Gujarati
Marathi
Kannada
Malayalam
Punjabi
Urdu
AL CIRCLE

Homeland Security agents question U.S. Aluminium companies on fake Chinese imports

EDITED BY : 10MINS READ

According to a report from Wall Street Journal, Federal investigators have launched a probe into the allegations that some U.S. companies may be linked to aluminium giant China Zhongwang Holdings Ltd in evading import tariffs on Chinese aluminium by means of illegal ways.
 
As a part of the investigation, Homeland Security agents questioned former employees of companies associated with Liu Zhongtian, the founder and chairman of China Zhongwang, sources said. The Security agents are probing whether those companies were involved in civil or criminal offences like smuggling or wire fraud and coordinating with the U.S. Department of Justice.

In September, The Wall Street Journal reported that the U.S. Commerce Department was investigating if Aluminum Shapes LLC, a New Jersey firm, imported pallets as fake semis to avoid tariffs and to remelt them and use as primary aluminium. This was a part of its probe into Mr. Liu’s commercial activities in US and the preliminary findings of the probe would be released next week. Aluminum Shapes however denied any such allegations.

News

According to sources, Homeland Security is probing into whether Zhongwang aluminium products are exported to the U.S. as fake semis (pallets) at much lower tariff rate to avoid steep U.S. tariffs of about 374.15%.
Homeland Security is also investigating another allegation that about one million tons of aluminum shipped to Aluminicaste Fundición de México, a factory once owned by Mr. Liu’s son might be an effort to route the metal through another country to disguise its source and to evade tariff.

A September Wall Street Journal article first highlighted these charges, although Mr. Liu denied any connection to the huge Mexican stockpile. Mr. Liu’s attorney also vehemently denied the charges as “a totally misguided allegation”

{googleAdsense}

Homeland Security investigators questioned Aluminum Shapes and Peng Cheng Aluminum Enterprise Inc. in Walnut, Calif, according to people familiar with the matter.
“Most of the questions were about the pallets,” said Garry Goehring, a former Aluminum Shapes manager. The agents asked about Mr. Liu and whether pallets stored at Aluminum Shapes came from overseas, among other things, Mr. Goehring added.

Aluminum Shapes confirmed that Mr. Goehring was a former employee of the firm.
Solomon Rosenthal, a spokesman for Aluminum Shapes, said the company isn’t aware of the Homeland Security investigation or of any illegal imports of aluminum shipping pallets. “We welcome an official investigation and will participate and assist in any way possible, as we have not engaged in any improprieties,” he said.

According to a China Zhongwang spokeswoman they have no ties with Aluminum Shapes or Peng Cheng and nor have they been approached by U.S. authorities about any investigation.

China Zhongwang is the world’s second-largest producer of “extrusions”—pipes, rods and panels used in various applications. In 2010, the U.S. Commerce Department imposed high tariffs on subsidized aluminium products from China which were being sold below market price in the U.S. market.
 
In 2015, U.S. aluminium-industry representatives reported to the Commerce Department that China Zhongwang exported fake semis to U.S. companies in recent years to evade tariffs. Zhongwang however said that it exported aluminum pallets to the U.S. following all established trade laws. An Aluminum Shapes spokesman last month said that the thousands of tons of Chinese-made aluminum pallets stored at its facilities did not belong to them and the owner stored the stock on rent.  

{googleAdsense}

{alcircleadd}
Adv
Adv
Adv
Adv
Adv
Adv
Adv
EDITED BY : 10MINS READ

Responses

Adv
Adv
Adv
Loading...
Adv
Adv
Adv
Loading...
Reports VIEW ALL
Loading...
Loading...
Business Leads VIEW ON AL BIZ
Loading...
Adv
Adv
Would you like to be
featured with us?
Loading...

AL Circle News App
AL Biz App

A proud
ASI member
© 2025 AL Circle. All rights reserved. AL Circle is not responsible for content from external sources.