Download Gold, US Customs and Money Laundering

38th International Precious
Metals Conference
June 7th, 2014- June 10th, 2014
JW Marriot Grande Lakes Resorts and Spa
Orlando, Florida
Speaker: Peter Quinter
www.gray-robinson.com
Contact Information
Peter Quinter, Chair
Customs and International Trade Law Group
GrayRobinson, P.A.
(954) 270-1864
[email protected]
Skype: Peter.Quinter1
Miami, Florida
www.gray-robinson.com
Gold, U.S. Customs and
Money Laundering –
What is the Connection?
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Do you have questions about importing/exporting?
http://www.grcustomslaw.com
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United States District Court for the
Southern District of Florida
United States of America
vs.
Natalie Ladin and Jed Ladin
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Criminal Charges
1. Entering goods into the United States by means of
false statements in violation of 18 USC 545.
2. Smuggling in violation of 18 USC 545.
3. Conspiracy to commit money laundering, in
violation of 18 USC 1956.
4. Conspiracy to smuggle , in violation of 18 USC 371.
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Trade Based Money Laundering
a means of transferring money from the United
States to foreign countries via the purchase of
foreign gold on other precious metals or general
merchandise from overseas.
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Bank Secrecy Act
PATRIOT Act
FINCEN
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Allegation
• Trade based money laundering
• Undervaluation of gold imports
• Overpayment for foreign seller for gold
imports
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Importer Declared $6,451,904 in
gold scrap shipments
Importer wired $24,317,665 to foreign seller
of the scrap gold
Overpayment of $17,865,761
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• Declared value $187,673 according to commercial invoice
of foreign shipper
• Assayed spot price value according to CBP $697,036
• Undervalued by 73%
• Upon conviction 20 years of imprisonment for each
violation
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Harmonized Tariff Schedule
of the United States
Chapter 71
Natural or Cultured Pearls, Previous or
semiprecious stones, precious metals, metals
clad with previous metal, and articles thereof;
imitation jewelry; coin
The term “precious metal” means- silver, gold,
or platinum.
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Imported Silver, Gold, and Platinum
enters the United States
DUTY FREE
• No Customs duties or fees are paid to
U.S. Customs and Border Protection
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U.S. Customs Entry Requirements
1. Value
2. Country of Origin
3. Description
4. Tariff Classification
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CBP Advance Ruling Procedures
Question:
how to properly value and declare to CBP scrap jewelry
imported on consignments
Answer:
initially declared insurance value, then after assaying and
determining a price, amend the declaration to CBP to reflect
the actual price paid
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CBP Seizure Process
• Notice of Detention
• Notice of Seizure from CBP Fines,
Penalties, and Forfeitures office
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30 Days to Respond
• 4 Options
– File a petition
– Claim and cost bond
– Abandonment
– Offer in compromise
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How a Typical Seizure Case Commences
with U.S. Customs and Border
Protection:
• U.S. Customs finds a violation, and places
the merchandise on hold for “intensive
examination”.
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What Type of Merchandise is
Subject to Seizure?
•
•
•
•
Prohibited Merchandise (Counterfeit, Controlled
substances)
Restricted Merchandise (CPSC, FDA, Quota)
Undeclared, unreported or smuggled merchandise
(non-reporting of currency over 10,000)
Goods which aid or facilitate the illegal importation of
merchandise
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FP&F Refers certain cases to
CBP’s Headquarters
•
•
•
•
Cases are sent to Chief,
Penalties Branch,
Regulations & Rulings,
Office of International Trade
Value of the merchandise is
over $100,000.
Novel or complex issues
concerning a Ruling, policy or
procedure.
HQ Recommendation sent to
FP&F and Final Decision
issued by FP&F.
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Currency Seizures
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Penalty Authority
• U.S. Customs Statutory authority to issue penalties
is from Title 19 U.S.C. § 1592 for:
 Fraud
 Gross Negligence
 Negligence
• 19 CFR Part 171
 Appendix B
 Offer in Compromise
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Contact Information
Peter Quinter, Chair
Customs and International Trade Law Group
GrayRobinson, P.A.
(954) 270-1864
[email protected]
Skype: Peter.Quinter1
Miami, Florida
www.gray-robinson.com