United States v. Arturo Huizar-Velazquez

We address sentencing issues relating to evasion of duties.

FACTS

Arturo Huizar-Velazquez pleaded guilty to importing wire hangers without paying the proper duties. In 2008, the United States imposed antidumping duties on Chinese steel wire hangers to combat perceived “dumping” in the United States. Wire hangers from exporters who did not apply for and receive separate rates were subject to a “PRC-Wide” rate of 187.25 percent. Huizar-Velazquez evaded these duties by purchasing hangers in China, importing them to the United States for shipment to Mexico, and then repackaging the hangers in Mexico and stamping them “Made in Mexico” so that he could then sell them duty-free in the United States, under the North American Free Trade Agreement.

The 55-count indictment alleged, inter alia, conspiracy to defraud the United States by interference with governmental functions and entry of goods by means of false statements. The district court applied Sentencing Guidelines § 2C 1.1 and accepted the government’s position that Huizar-Velazquez illegally avoided approximately $8.5 million in tax and interest. The district court sentenced Huizar-Ve-lazquez to 70 months’ imprisonment…