Food Co. Faces $2.3M Fine For Non-NAFTA Peanuts

Law360, New York (December 17, 2010, 2:47 PM EST) -- The U.S. government is seeking as much as $2.3 million in penalties from a Texas food importer accused of falsely claiming that dozens of peanut orders were eligible for duty-free treatment because they came from Mexico.

Prosecutors alleged Thursday in the U.S. Court of International Trade that Brownsville, Texas-based Sweet Little Mexico Corp. tried to assert duty exemption under the North American Free Trade Agreement on 71 entries of peanuts it said came from Mexico but more likely came from Nicaragua and the U.S.

Despite attempts...
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