WASHINGTON — The Coalition for a Prosperous America (CPA) strongly supports Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL), the leaders of the House Select Committee on the CCP, and Congresswoman Ashely Hinson (R-IA) for introducing the bipartisan Protecting American Industry and Labor from International Trade Crimes Act of 2024.
This bipartisan legislation aims to combat international trade crimes by directing the Department of Justice (DOJ) to establish a new trade crime unit within the Criminal Division dedicated to prosecuting international trade crimes. With an initial annual budget of $20M, this division will greatly increase the U.S. government’s capabilities to detect, investigate, and prosecute trade crimes such as transshipment, misclassification, and undervaluation, as well as other trade-related crimes. The legislation requires the Attorney General to submit an annual report to Congress assessing the DOJ’s efforts, statistics on trade-related crimes, and fund utilization.
Companies based in the People’s Republic of China (PRC) frequently commit crimes violating U.S. trade laws including fraud and duty evasion, which benefit the PRC’s non-market economy and undermine U.S. companies and American workers. Countless Americans have lost their jobs due to this criminal activity. Despite the large volume of trade crime-related cases, the DOJ is severely lacking the necessary resources to prosecute these crimes.
“Right now, CPA member companies including those in the auto aftermarket industry are forced to compete with Chinese and other foreign entities that are committing trade fraud and other criminal activities that are directly harming U.S. producers and American workers,” said Michael Stumo, CEO of CPA. “Earlier this year, DHS raided Sunsong North America in Moraine, Ohio, the U.S. subsidiary of China’s Qingdao Sunsong, an automobile parts manufacturer that is currently under investigation by federal authorities for trade fraud.”
To learn more about the Sunsong case, listen to a recent investigative report conducted by NPR on Planet Money.
The legal consequences for trade fraud include up to 20 years in prison for complicit individuals along with millions in fines. In addition to criminal consequences, civil penalties for trade fraud include fines equal to 1x the domestic value of all the goods shipped illegally, back payment of all unpaid tariffs, interest, and other fines.
Original co-sponsors of this bill include House Republican Conference Chairwoman Elise Stefanik (R-NY), House Appropriations Committee Ranking Member Rosa DeLauro (D-CT), as well as Representatives Darin LaHood (R-IL), Glenn Ivey (D-LA), Nate Moran (R-TX), Ted Lieu (D-CA), Ben Cline (R-VA), Haley Stevens (D-MI), Kevin Kiley (R-CA), Deborah Ross (D-NC), and Lou Correa (D-CA).
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy. These include key sectors such as the auto aftermarket, among others. If you are interested in learning more, please contact us. All communication is treated as strictly confidential.
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