More NAFTA Penalty Action

Apparently, it is not just Ford that has come under scrutiny from Customs and Border Protection for NAFTA certification.

Here is the text of a press release that pretty much speaks for itself:

WASHINGTON -- U.S. Customs and Border Protection in San Diego has reached a $10 million settlement with Pioneer Speakers, Inc. for violations of Nafta rules and record-keeping requirements. The settlements are in lieu of fines totaling more than $46 million that accrued against Pioneer in two unspecified years, according to a Customs press release. Customs said that Pioneer provided false claims for preferential treatment for speakers imported from Mexico. The speakers were assembled from parts made in another country, so do not qualify for Nafta duty preference. Pioneer also failed to keep proper records on the imports, Customs said.

A million here, a million there, pretty soon these penalties get to be real money.

Like so much else in this business, there has got to be an interesting story behind this case. I wish I knew what it is.

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