HSI Investigation Leads to Indictment of Chinese National Circumventing Antidumping and Countervailing Duties in Puerto Rico

SAN JUAN, Puerto Rico – On April 26, 2023 a federal Grand Jury in the District of Puerto Rico returned an indictment charging Shuyi Mo, a citizen and resident of the People’s Republic of China (PRC), with thirty-one counts of wire fraud in violation of 18 U.S.C. § 1343, one count of a wire fraud conspiracy in violation of 18 U.S.C. § 1349, and one count of conspiracy to defraud the United States in violation of 18 U.S.C. § 371.

Mo was arrested on Saturday April 29, 2023, by HSI San Juan in coordination with HSI San Francisco as he awaited to board a flight to the PRC via the San Francisco International Airport.

An investigation by Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG), in collaboration with US Customs and Border Protection (CBP), revealed an illegal transshipment scheme of merchandise from the PRC to Puerto Rico via Malaysia.

According to the indictment, Shuyi Mo is the manager of PRC-based supplier Neviews Development Co. LTD (NEVIEWS) who conspired with a US importer based in Puerto Rico to transship porcelain mosaic tiles from PRC through Malaysia to circumvent anti-dumping and countervailing duties of approximately 718%.

“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The U. S. Attorney’s Office is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”

“The misclassification of merchandise to pay lower duties to the United States Government is a duty evasion violation that will not go unpunished. One of our main missions in HSI is to protect U.S. businesses from fraudulent trade practices. We will continue our collaboration with customs and trade authorities to expose these illegal practices and bring those who engage in these practices to justice,” said Acting Special Agent in Charge Rebecca González-Ramos.

“CBP remains vigilant on products produced in certain countries and are transshipped through third countries to evade detection and elude duties,” stated Roberto Vaquero, Director of San Juan Field Operations. “CBP has a long history of innovation and technology to support a growing trade enforcement mission and has been successful with origin determinations in the past, whether it be through DNA analysis, pollen analysis, or other means.”

Assistant United States Attorney Alexander Alum of the Financial Fraud & Public Corruption Section of the United States Attorney’s Office for the District of Puerto Rico is prosecuting this case.

If you have information on potential customs fraud violations, please contact Homeland Security Investigations at 787-729-6969.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

About Homeland Security Investigations (HSI)

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI's workforce of more than 8,700 employees is comprised of more than 6,000 special agents stationed in 237 U.S. cities and 93 overseas locations in 56 countries. HSI's international presence represents the largest DHS investigative law enforcement presence overseas and one of the largest in U.S. law enforcement.

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