Based on the news by Bloomberg, Dikun Yin, a former managing director of Gunvor Group Ltd received a 12-year prison sentence in China for his contribution to tariff avoidance on oil imports.
Yin was sentenced by a court in Guangdong, China, according to Gunvor and a document witnessed by Bloomberg News. The document presents, Yin was convicted of taking part in evading tariffs of around 378 million yuan (US$54 million) about 1.3 million tons of oil products that were imported to China.
Yin was held by Guangzhou police in May 2016. Based on a comment by Gunvor, it is not a party to the proceedings in China, it also was not the importer of record for the aforementioned oil, and Gunvor is not responsible to pay the relevant import taxes and duties. The company admitted that the applicable tariffs or duties associated with the transactions were implemented smoothly and properly in the Philippines.
“We contest this conclusion and the basis on which it was reached. This is a matter to be resolved between the relevant customs authorities of China and the Philippines. The Philippines customs authorities have confirmed relevant customs documentation was issued in full compliance with applicable customs rules and regulations,” spokesman Seth Pietras said.
Geneva-based Gunvor is one of the world’s leading independent oil trading firms, and Yin is not the only former employee of the company to face legal trouble.
In September, a former Gunvor’s oil trader handed suspended sentence for paying bribes to officials from the Republic of Congo and Ivory Coast. Switzerland’s federal prosecutor is investigating the company to see if the company properly supervise its employee.