www.gray-robinson.com 38 th international precious metals conference june 7 th, 2014- june 10 th,...

www.gray-robinson.com

38th International Precious Metals Conference

June 7th, 2014- June 10th, 2014JW Marriot Grande Lakes Resorts and Spa

Orlando, Florida

Speaker: Peter Quinter


Peter Quinter, Chair

Customs and International Trade Law GroupGrayRobinson, P.A.

(954) 270-1864

[email protected]: Peter.Quinter1

Miami, Florida

Contact Information

mailto:[email protected]


Gold, U.S. Customs and Money Laundering –

What is the Connection?

www.gray-robinson.com 4

Do you have questions about importing/exporting?

http://www.grcustomslaw.com


United States District Court for the Southern District of Florida

United States of America vs.

Natalie Ladin and Jed Ladin


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.


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.


Bank Secrecy Act

PATRIOT Act

FINCEN


Allegation• Trade based money laundering

• Undervaluation of gold imports

• Overpayment for foreign seller for gold imports


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


• 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


Harmonized Tariff Schedule of the United States

Chapter 71Natural 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.


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


U.S. Customs Entry Requirements

1. Value

2. Country of Origin

3. Description

4. Tariff Classification


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


CBP Seizure Process

• Notice of Detention• Notice of Seizure from CBP Fines,

Penalties, and Forfeitures office


30 Days to Respond

• 4 Options

– File a petition– Claim and cost bond– Abandonment– Offer in compromise


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”.


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


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.


Currency Seizures


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


Peter Quinter, Chair

Customs and International Trade Law GroupGrayRobinson, P.A.

(954) 270-1864

[email protected]: Peter.Quinter1

Miami, Florida

Contact Information

mailto:[email protected]

www.gray-robinson.com 38 th international precious metals conference june 7 th, 2014- june 10 th,...

Documents

gold imports slide

peter quinter slide

jed ladin slide

tariff classification

forfeitures office slide

actual price paid slide

purchase of foreign

united states chapter