The Issue
Valued as a natural, healthful and delicious food, honey has long been treasured by Americans. Growing demand for honey has for some time been fulfilled by both domestic and imported sources, most of high quality and ethical origins. But sustaining quality honey supplies to U.S. customers and consumers is increasingly challenging. Because of growing demand, and damage to U.S. bee colonies from colony collapse disorder, an increasing amount of honey must be imported.
U.S. antidumping duties and quality controls are in place to protect U.S. consumers – and honey companies – from often cheaper and less regulated honey products from abroad. However, some honey brokers and importers illegally circumvent these restrictions, selling honey to U.S. companies that is of questionable origin and which threatens the U.S. honey industry by undercutting fair market prices and damaging honey's reputation for purity and safety. Specifically, honey originating from China is being transshipped through other countries to avoid U.S. trade duties. True Source Honey, LLC estimates that the U.S. lost up to $100 million in 2008 and $106 million in 2009 in uncollected duties because of illegal honey imports.
In fact, some Chinese supply chain service providers indicate on their Web site that they work as intermediaries to "switch documents reasonably" and "issue CO [Country of Origin] of Malaysia, Vietnam, Indonesia, [and] Bangladesh in order to avoid tariff barriers."
As honey companies are undercut by these illegal imports, ethical U.S. companies and beekeepers find it harder to compete. Quality U.S. honey operations are essential not just to produce high-quality honey supplies, but also for the honeybees needed to pollinate dozens of fruit, vegetable and seed crops across the United States.
And strides have been made to protect the honey supply. In addition to our outreach to the Food and Drug Administration to establish a legal definition of honey, states like Florida and California approved legislation in 2009 to address the need for a honey standard. But there's more we can do.
Don't Take Our Word For It
- Seattle Post-Intelligencer
- Country of origin no guarantee on cheap imports
In the U.S., where demand for imported honey is soaring, traders are resorting to elaborate schemes to dodge tariffs and health safeguards in order to dump cheap honey on the market. - Experts call for better U.S. standards
How to keep adulterated or contaminated honey from reaching American store shelves?
- Country of origin no guarantee on cheap imports
- Southern Shrimp Alliance Press Release
- GAO Study Links Duty Circumvention with Evasion of Food Safety Laws
FDA is working with Customs and Border Protection and the Department of Homeland Security to target commodities that pose health and safety risks through Operation Guardian, which is an enforcement initiative to deal with imported substandard, tainted, and counterfeit products. Operation Guardian's efforts have led to seizures of such commodities as pharmaceuticals, steel components, honey, shrimp, and toys.
- GAO Study Links Duty Circumvention with Evasion of Food Safety Laws
- Washington Post
- Swarming to arrest honey importers
The recent crackdown of importers trying to smuggle honey into the U.S. market at prices that undercut domestic producers leads to the arrest of individuals involved in laundering honey to avoid tariffs.
- Swarming to arrest honey importers
Government Reports
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U.S. Department of Justice
- November 5, 2010 News Release: Honey importer sentenced to 30 months in prison and ordered to pay more than $5M in restitution.
- Plea agreement by Chung Po Liu (8/26/10): According to the U.S. Attorney's Office, Liu admits that from 2005 to 2008 he imported 22 shipments of re-labeled Chinese honey. Under the plea terms, Liu must forfeit twice his gross profit – $400,000 – and four seized honey shipments. Prosecutors will ask that he be sentenced to two years in prison.
- October 29, 2009 News Release: Chinese honey supplier pleads guilty to conspiracy to evade U.S. restrictions on imported honey
- August 19, 2009 News Release: Chinese national pleads guilty in scheme to defraud U.S. over honey imports. False paperwork used to hide Chinese origin of honey; one shipment tainted with banned chemical
- May 6, 2009: Washington man and Chinese national charged in honey import conspiracy; Illegal import scheme cost United States millions.
- U.S. Immigration and Customs Enforcement
- February 17, 2011: A Chinese business agent for several honey import companies was arrested in Los Angeles Tuesday on federal charges filed in Chicago for allegedly conspiring to illegally import Chinese-origin honey that was falsely identified to avoid U.S. anti-dumping duties.
- April 1, 2010: April Honey importer arrested for allegedly conspiring to evade US import duties for Chicago office of German food distributor.
- December 17, 2008: Operation Guardian is a multi-agency effort to combat the increasing importation of substandard, tainted and counterfeit products that pose a health and safety risk to consumers.
- May 27, 2008: Two Chicago executives were arrested on federal charges.
- U.S. Department of Agriculture
- Historical data on U.S. honey production, imports and exports (Excel spreadsheet)
- Historical data on US honey imports by country (Excel spreadsheet)
- About Colony Collapse Disorder
- Government Accountability Office (GAO)
Honey was cited as one of the commodities of concern in this GAO report on seafood fraud. - U.S. Department of Health & Human Services
References "Action Plan for Import Safety: A Roadmap for Continual Improvement"
