In 2008, French customs found that during three years some 13.5 million liters, or about 3.6 million gallons, of mislabeled wine had been sold to Gallo.

The producers and traders were accused of deliberately mislabeling the wine with a more expensive variety of grape.

The producers and traders in France were claiming their “ordinary” wines were in fact

Photo Courtesy Robert S. Donovan

PinotNoir – giving them an extra profit of around 43 euro per liter.

According to SmartMoney’s article on the case, French customs officials figured outthe scam once they realized that the amount of Pinot Noir being sold to Gallo exceeded the amount produced in the entire region.

The author, Ryan Sager, goes on to ask, “But would anyone have figured it out otherwise?  The scheme ran for years. But, as one French winemaker’s lawyer sniffed to the BBC: “Not a single American consumer complained.” Sager continues to analyze recent studies comparing enjoyment of wine to price – very interesting article, especially for wine lovers.

So, what is the penalty for this misrepresentation? The court in Ducasse, France, which decided the case, gave the following punishments:

• Claude Courset of the Ducasse wine traders was given a six-month suspended prison sentence and has to pay a fine of 45,000 euros. The prosecutor had asked for a tough prison sentence.
• Five other people were sentenced to fines of between 3,000 and 6,000 euros and the remaining six for less than that.
• The Sieur d’Arques trading firm of Limoux was ordered to pay 180,000 euros in penalties.

A spokesperson for E. & J. Gallo stated, “We are deeply disappointed to learn today that our supplier Sieru d’Arques has been found guilty of selling falsely labeled French Pinot Noir as recently as March of 2008.”

The EU has agreed to cut tariffs on imported bananas from Latin American countries. With removal of preferential treatment to former colonies, growers throughout Latin America hope to export more of their yellow fruit to Europe. As part of the Agreement, the US will also settle its WTO dispute with the EU over bananas.

From the New York Times:

The European Union initialed a deal on Tuesday to resolve a dispute over banana imports dating back more than 15 years, ending the longest trade battle in its history as a bloc and potentially opening the way for progress in other areas.

After losing several cases at the World Trade Organization, the European Union agreed to cut the tariff applied to Latin American bananas, thereby reducing the preferential treatment given to growers in former colonies in the Caribbean and Africa.

The move could open opportunities for producers in Ecuador and other Latin American nations to increase exports to the European Union, the world’s biggest trading bloc.

The deal Tuesday was initialed by the European Union, the United States and Latin American, African and Caribbean nations. As part of the agreement, Washington said it would settle its W.T.O. dispute with the Europeans over bananas.

Lonely walnuts and ice cream have been seen rejoicing throughout the land.

Read more details, including the specifics on the tariff paid per ton and the history of the dispute, at the New York Times:
Pact Ends Long Trade Fight Over Bananas.

Thanksgiving is not all about the turkey – please consider a Turkeyless Thanksgiving and save a life in the process. Check out the Adopt-a-Turkey project! It’s a sponsored adoption… so you won’t have to take the turkey home!

Don’t gobble the gobblers,

Lauren

A WTO spokesperson said the two countries remain in very close competition, and it’s too soon to tell if China or Germany will be the largest exporter for the entire year of 2009 – it depends on exchange rates and the rate of economic recovery in each country.

For more information visit the Journal of Commerce or the World Trade Organization.

On July 29th, CBP Officers intercepted a shipment of counterfeit sunglasses, bearing logos resembling Coach, Chanel, and D&G. The shipment consisted of 43,480 pairs of sunglasses, with a total domestic value of $12,146- Which would be about 28 cents per pair. Talk about a deal!

Had they been authentic, the value of the sunglasses is approximately $8 million – or $184 per pair. I imagine there are some very fashionably bespectacled CBP officers in LA now!

Although CBP is typically associated with protecting our borders from danger, they are also tasked with enforcing our customs regulations – including regulations against the import of counterfeit goods. The penalties of violating these regulations can range from revocation of import privileges, to fines and even imprisonment.

For more details on this bust, visit the CBP News Release.

Know Your Suppliers & Customers

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When the insects were discovered in May 2008 at the Mohnton post office, an investigation by Immigration and Customs Enforcement and other agencies led to the arrest of Marc T. Dilullo, 36, of Exeter Township. He pleaded guilty in April to importing the bugs illegally from Taiwan and received three months probation and a $5,000 fine.

How much does it cost just to purchase the bugs and ship them to the US, anyway?

I’m sure Mr. Dilullo had carefully laid plans, researching just the right kind of enormous insects to make his pets/minions. All were unraveled by one curious postal worker:

Two dozen exotic beetles discovered last year by a Berks County postal worker who heard scratching inside a box marked ”toys, gifts and jellies” …

Put that on your toast!

Although they are technically illegal immigrants, the insects have received gainful employment and will be working at the Smithsonian to demonstrate  animal diversity and threats to the natural balance.

(Glad they found a good home that is not underneath someone’s shoe.)

Auditors from the Government Accountability Office (GOA), who posed as representatives from a fictitious company, were able to purchase sensitive technology equipment such as night-vision scopes that U.S. soldiers use in Iraq and Afghanistan, hardware to detonate nuclear weapons, sensors used in improvised explosive devices, and gyro chips for guided missiles and military aircraft.

During its investigation from May 2008 to June 2009, GAO also was able to purchase an F-16 engine-monitoring system computer, which the Air Force uses in single-engine aircraft to monitor engine performance, said Gregory Kutz, managing director of forensic audits and special investigations at GAO, in his testimony before the House Subcommittee on Oversight and Investigations on Thursday.

Due to the fact that there are few restrictions on domestic sales of dual-use technology, which serve both commercial and military purposes, obtaining these items is fairly easy. The manufacturers only asked that the undercover agents sign forms verifying the products would not be used illegally or for terrorist plots.

The undercover agents were then able to send nonfunctional look-alike items via FedEx to a country in southeast Asia with known terrorist ties. Current laws such as the Arms Export Control Act and the Export Administration Act focus on preventing foreign nationals from purchasing and receiving sensitive military technology.

The GOA also performed a similar drill in April, and were able to purchase technology online on eBay, Craigslist, etc. According to the GOA:

Preventing the illegal export of sensitive items used in nuclear weapons, IEDs, and other military applications requires stopping the purchase of the items at the source “because once sensitive items make it into the hands of terrorists or foreign government agents, the shipment and transport out of the United States is unlikely to be detected,” the report noted.

The lessons:

• Know your customers!
• Know your suppliers!
• Importers must be careful too – even when selling domestically.
• Audit trails are always helpful.
• New legislation could be coming soon.

Read the complete article at Nextgov.

“Bra marketers make bogus claims of cancer prevention: officials”

The Vietnamese importer of a type of bra made in Taiwan has been exaggerating the manufacturer’s claims of the bra’s health-giving properties without government approval, according to a health ministry official.

… Trinh Van Ngoc, head of Hanoi Market Management Agency, said he was aware that some products being sold by multi-level marketing companies violated the law by carrying false claims or not having a certificate of origin.

He said he would inspect the trading of the nano bras.

Not only is this seller making ridiculous claims about their product, but they also don’t have proper trade compliance. Although I suppose that is to be expected from an unscrupulous company.

But, it does illustrate a point: Know your suppliers!

Check out the complete article to read the rest of the outrageous claims the sellers of this product were making.

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