BGI Group, doing business as U.S. Cabinet Depot has been found to have evaded tariff duties on wooden cabinets and vanities made in Mainland China. This will subject a large portion of imports of wooden cabinets from Vietnam to tariffs as high as 83.89%. According to the American Kitchen Cabinet Alliance, BGI’s Groups supplier HOCA Vietnam was established by a company in China named Hangzhou HOCA Kitchen & Bath Products, that HOCA Vietnam was importing components from China and incorporating them into RTA cabinets in Vietnam. According to an informant. HOCA Vietnam did not have the production capabilities to produce a volume of cabinets that it was exporting to the United States. The important data showed that HOCA Vietnam had been importing Chinese cabinet doors and frames into Vietnam from its Chinese affiliate. One report estimated that BGI Group imported over $40 million of cabinets from Vietnam in 2020 alone. The importer may be liable for millions of dollars of unpaid duties.
JEFFREY NEWMAN REPRESENTS WHISTLEBLOWERS INCLUDING IN CUSTOMS FRAUD CASES. jeff@jeffnewmanlaw.com. 617-823-3217
