Antidumping cases have been in the news a lot lately. Two importers recently paid the price for their roles in avoiding antidumping duties by incorrectly labeling product that should have been labeled as catfish; Vietnamese catfish is subject to antidumping duties.

Peter Xuong Lam, president of Virginia Star Seafood Corp., Fairfax, Va., was sentenced to five years in prison and debarred by FDA. He participated in a conspiracy to sell frozen catfish fillets falsely labeled as sole, grouper, founder, snakehead, channa and other species to avoid paying the duties of 63.88 percent.

Lam is the first person to be debarred by FDA, which may debar a person from importing if a person has been convicted of a felony for conduct relating to the importation of food into the U.S. The law also allows FDA to debar a person who has engaged in a pattern of importing or offering for import adulterated food that presents a threat of serious adverse health consequences or death to humans or animals.

Thomas George of Sterling Seafood Corp., Cresskill, N.J., pleaded guilty to evading more than $60 million in duties and selling more than $500,000 in similarly misbranded fish purchased from another importer. He is scheduled to be sentenced April 28. The charge of importing of falsely labeled goods carries a maximum sentence of two years in prison and a $250,000 fine or twice the monetary gain derived from the offense. The charge of selling misbranded fish carries a maximum sentence of three years in prison and a $250,000 fine or twice the monetary gain derived from the offense.

This comes after uncollected antidumping and countervailing duties rose by 63.3 percent in fiscal year 2009 to $294.7 million, up from $180.5 million.

China accounted for nearly 95 percent of total uncollected AD and CV duties ($277.5 million), with significant shortfalls for fresh garlic ($63.2 million, up from $22.8 million in FY 2008), crawfish tail meat ($40 million, up from $12.8 million), preserved mushrooms ($13.1 million, down from $40.9 million), honey ($58.3 million, up from $3.2 million) and wooden bedroom furniture ($92.5 million, up from $3.5 million). Members importing a product subject to antidumping duties should be aware of the duties and should also be suspicious when that product is offered by someone in a country not known to produce that item.

Meanwhile, The American Shrimp Processors Association is upset about a proposed settlement and revocation of the antidumping duty order on imported shrimp from Thailand. An ASPA statement said the Southern Shrimp Alliance, the group that originally filed the antidumping duty petition, is “selling out the American shrimp industry to Thailand in order to make a quick buck.”

SSA and the Thai Frozen Foods Association announced a settlement proposal in November, though no monetary details were shared.

The honey industry is closely watching a court case involving antidumping duties as well. The National Honey Packers and Dealers Association, a section of AFI, submitted a letter to the judge in the case requesting the maximum sentence for Yon Xiang Yan, the president of a Chinese honey company.

Yan pleaded guilty to one count of conspiracy to illegally smuggle 15 container loads of Chinese honey and, in doing so, avoiding U.S. anti-dumping duties of about $635,515. Yan also acknowledged he authorized an additional 21 shipments of Chinese honey through the Philippines and Thailand, avoiding $3.3 million in anti-dumping fees. Sentencing is scheduled for April 22. Yan faces a maximum penalty of five years in prison and a $250,000 fine.

Yan’s case is the latest development in the investigation of an allegedly illegal honey-importing effort operated out of the Chicago office of Hamburg, Germany-based Alfred L. Wolff. In 2008, two Wolff executives in Chicago were accused by federal authorities off conspiring to illegally import honey from China. The Philippines was one of several countries Wolff allegedly used to transship Chinese honey in order to avoid anti-dumping tariffs.

Consumer Group: FDA Needs to Look at Labels

The National Consumers League sent a letter to FDA urging improved efforts regarding labeling of processed fruit and vegetable products. About 20 years ago FDA prohibited the use of the term “fresh” on any fruit or vegetable product reconstituted or remanufactured from concentrate.

NCL asked FDA to issue a new guidance to industry setting forth FDA's enforcement policy regarding appropriate use of labeling claims. NCL also asked all fruit and vegetable products reconstituted or remanufactured from concentrate be required to disclose this prominently on the label's front panel.

Olive Shipment Refused by U.S.

U.S. Customs and Border Protection agents intercepted a shipment of 2,592 cans of Spanish olives stuffed with minced ham from Spain because livestock in Spain have been found to have Classical Swine Fever. A product entering the U.S. containing an animal ingredient requires a USDA-Veterinary Services certificate and a country of origin certificate. In this case, the shipper did not produce those documents. The product was refused entry and re-exported to Spain under CBP supervision.

Honey Can Help Keep Minds Sharp

Americans are losing their minds at an alarming rate, according to Mike McInnes of Isoactive, Edinburgh, U.K. Honey, he says, can help reverse that.

McInnes says too many people don’t eat for up 12-18 hours from when they eat dinner until their first meal the next day. He said sleep is a high-energy physiological excursion and energy for provision of cerebral energy must be sourced from the liver during the overnight fast. Thus, most of the western population goes to bed with a depleted liver, resulting in chronic nocturnal metabolic stress. McInnes said the effect of this on neural processing, memory and learning is devastating, which may be observed in the accelerating increase of all types of dementias, including Alzheimer's disease. An ounce of two of honey prior to sleep will activate the honey/insulin/melatonin cycle and “feed” the liver, so to speak.

Wal-Mart Plans Data Scorecard for Suppliers

Wal-Mart announced plans to introduce a scorecard to monitor the accuracy of product date given to the company by its suppliers. It’s part of the company’s Global Data Synchronization Network, which uses global industry standards to exchange data electronically.

Wal-Mart said the benefits of the system for new and existing products include quicker to-shelf time for new products and better purchase order accuracy. The company said it also optimizes transportation and logistics. Wal-Mart said that as of December, 46 percent (3,000) of its suppliers match their data using GDSN, accounting for 42 percent of its inventory. The company gave suppliers until the end of January to select and notify it of their data providers.

FDA to Continue to Look at BPA

FDA is carrying out studies to answer questions about the risks of bisphenol A, a chemical used to make a hard, clear plastic known as polycarbonate - used in many consumer products, including reusable water bottles and baby bottles. BPA is also found in epoxy resins, which act as a protective lining on the inside of metal-based food and beverage cans.

In the meantime, the agency is supporting a shift to a more robust regulatory framework for oversight of BPA in order to be able to respond quickly, if necessary, to protect the public. Since 2000, FDA has regulated new food contact substances through the Food Contact Notification Program, under which it receives a notification from each manufacturer of the basis for the safe use of a food contact substance. This notification allows FDA and the public to know how much of the substance is being used and for what applications. FDA can require individual manufacturers to conduct additional studies or submit additional safety and exposure data to address a significant safety concern and it can quickly revoke approved uses if necessary.

AFI News

AFI and Social Media: AFI created a group on LinkedIn. The name of the group is U.S. Food Import Industry. The group already has more than 100 members. The goal is to provide an outlet for discussion for those in the food import trade and to promote AFI’s events and efforts. We’re looking forward to growing participation from members.

AFI Annual Deadline: Last call for any changes to your directory listings. The AFI Annual is distributed around the globe; take advantage of this free opportunity be ensuring your listing information is correct. Consider making your company stand out by enhancing your listing.

Ads in the AFI Annual can help grow your business. For as little as $199 you can tell the world about your company. Please contact Diane Davis at AFI for more information.

Olive Symposium at AFI Convention: Something new at this year’s AFI Convention; a half-day olive industry symposium. Representatives from producing countries and U.S. government officials will be among the speakers as we cover various issues impacting the sector. The symposium is tentatively scheduled to run from 9:30 a.m.-2:30 p.m. Look for complete details soon.

Travel and Sponsorship Details for AFI Convention: Make your travel plans soon to attend the AFI Convention. For information, visit www.afius.org.

Sponsorships are a great way to put your company’s name in front of everyone receiving information about the AFI Convention. For information, visit www.afius.org.

AFI Calendar

February 9 – AFI Board of Directors Meeting, Lyndhurst, N.J.

April 21-23 – SIAL Canada, Montreal, Canada. AFI will have a booth and will host a reception at 6 p.m. April 22.

April 29-May 1 – AFI Convention, Delray Beach Marriott, Delray Beach, Fla.

June 25 – North American Olive Oil Association Meeting, New York, NY