Pepsi executives charged for smuggling

14:08, March 25, 2010      

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Yesterday, executives from world-renowned multinational PepsiCo (China), Ltd were brought before a Guangzhou court on charges of smuggling.

One defendant, 37-year-old Huang Xuyi, was originally a procurement officer in Pepsi, and another defendant, Lin Dong, is former purchasing director of Pepsi. It is found that in April 2005, when Huang audited the Pepsi import declaration materials to be submitted to customs, he found that the U.S. supplier made mistakes about commodity code, which made the tariff rate dropped from 20% to 15%. Huang confirmed that the company had used the wrong commodity code for a long time.

Later, Huang reported this to the then head of Pepsi purchasing Lin, and Lin reported the situation to the purchasing department manager at the time Wang, whose case is handled separately. Wang decided to continue to use the mistaken product code.

To cover up the smuggling facts and evade Customs supervision, Huang suggested Lin contact the U. S. supplier and ask them to delete the code on the invoice. After Wang approved the decision, Lin arranged Hang to send an email to the supplier in the United States for this and the American supplier agreed.

The statistics show that from April 2005 to September 2007, Pepsi imported a total of one thousand tons of the above-mentioned products and evaded tax of 1.1 million yuan. The prosecutor believed that Pepsi, Huang and Lin committed the crime of smuggling ordinary goods.

By People's Daily Online
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