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Plastic Bag Importer Settles $7.3M Customs Fraud Case

New York-based RediBagUSA and Chief Executive Jeffrey Rabiea have agreed to pay $7.3 million to resolve a customs fraud investigation involving misrepresented country-of-origin declarations on imported plastic bags. The company falsely listed Hong Kong as the origin on customs entry forms for bags actually manufactured in China. This allowed it to circumvent a 77.5% antidumping duty imposed by the Commerce Department. Investigators found that RediBagUSA and Rabiea directed employees to conceal "Made in China" markings and instructed manufacturers to remove origin labels. The company also canceled orders upon learning customs inspections would occur. The settlement stems from a civil lawsuit filed by a former sales representative under whistleblower provisions. RediBagUSA manufactures reusable and single-use grocery bags, liners and industrial packaging products distributed nationally.