How to respond if caught for fictitious re-export trade?

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My friend's company was caught for fictitious re-export trade. They thought they could earn more money at the time, so they engaged in some fraudulent operations. Now people have been taken away for investigation, and the company is in disarray. I want to ask, what should be done in this situation? Will they face very severe penalties? How can we minimize losses as much as possible and ensure the matter is resolved properly?
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Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

First, stay calm. Fictitious re-export trade is an illegal act. Once caught, a professional lawyer should be immediately hired. Lawyers can provide professional legal advice to the company according to the law and protect the legitimate rights and interests of the company and relevant personnel during the investigation.

References: What Exactly is an Export Agency Trading Platform? Come and Find Out!
Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

Quickly organize company-related business documents, including contracts, files, etc., as these might be helpful for the case. At the same time, communicate well with employees to ensure everyone's statements are consistent and not to speak carelessly.

Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

Try to contact experienced people in the industry for consultation, to see if there are cases of similar situations being handled, and learn from others' experiences. But don't blindly trust unsubstantiated advice.

Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

Pay attention to the progress of the investigation and provide information as required by law enforcement agencies. In addition, be prepared to deal with potential public opinion impacts, plan public relations strategies in advance, and prevent the incident from causing too much damage to the company's reputation.

Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

First, stabilize internal morale within the company and prevent employees from panicking and resigning. At the same time, consider how to adjust the business model under the premise of legality and compliance to reduce the impact of this incident on the company's future operations.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

You can consult some legal aid organizations to understand the approximate legal consequences and directions for response, which helps to be prepared and respond better later on.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

When cooperating with the investigation, pay attention to keeping records of information requested by law enforcement agencies. If there are unreasonable requests during the process, these records can protect the company's rights and interests.

Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

Analyze the reasons why the company was caught for fictitious re-export trade, whether it was due to internal management loopholes or a lack of understanding of policies, for subsequent improvements and to prevent recurrence.

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

Within the scope permitted by law, try to communicate with law enforcement agencies, expressing the company's willingness to rectify, and strive for lenient treatment.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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