by millionairemind » Wed Jun 30, 2010 7:10 pm
Jun 30, 2010
'Honey-laundering' busted
Honey-laundering is just one of many unsavoury practices that have besmirched China's vast honey industry and raised complaints from competing American beekeepers. -- PHOTO: AP
BEIJING - BUSINESSMAN Yan Yongxiang was trying to get around stiff US levies on imports of cheap Chinese honey. So he sent 15 shipping containers of cut-rate honey to the Philippines, where it was relabelled and sent on to the United States.
It is called honey-laundering, and the subterfuge let Yan skirt US$656,515 (S$917,647) in taxes before he was caught in a bust and pleaded guilty.
Yan's factory in central China's Henan province even filtered the metals and pollen from the honey so that US tests would not show it came from China, according to the 60-year-old's plea agreement. Now he awaits sentencing in a US jail.
Honey-laundering is just one of many unsavoury practices that have besmirched China's vast honey industry and raised complaints from competing American beekeepers. China produces more honey than anywhere else in the world, about 300,000 tonnes a year or about 25 per cent of the global total. But stocks are tainted with a potentially dangerous antibiotic and cheaper honeys are increasingly getting passed off as more expensive varieties.
Earlier this month, the US Food and Drug Administration seized 64 drums of Chinese honey tainted with chloramphenicol, an antibiotic, at a warehouse in Philadelphia. Last year, the agency said two Chinese honey shipments were found to contain the drug, which is approved for medical use but banned in food products because in rare cases it can cause aplastic anemia, a potentially fatal illness.
Experts say quality problems are hard to avoid in a business dominated by small manufacturers, many of whom are poor and uneducated. US Senator Charles Schumer of New York has called for a federal standard for pure honey similar to guidelines already established for olive oil to help combat fakes or blends. Honey fraud and honey-laundering are part of a controversial debate over whether or not the US needs heavy subsidies to protect its homegrown honey industry. -- AP
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