At iTRAC Global, we often explain to potential customers the high cost of failing to implement best practices for import and export compliance. We often explain that not having a clear understanding of all of the laws, procedures and obligations involved in compliance can lead to confiscation of goods, heavy fines or even jail time. One Colorado-based company is currently finding that out the hard way, facing up to $36.3 million in fines from the United States and Mexican governments.
Crocs, a popular company selling colorful shoes, underwent audits by both the United States Customs and Border Patrol (CBP) and the Mexican Federal Tax authority. The first estimates from the audit show that the company could owe $14.3 million to the US and $22 to Mexico. These estimates are based on the raw material value of Croc’s imports between January 2006 and July 2011.
Officials for the company have stated they are disputing the results of the CBP audit explaining, “We have responded that these projections are erroneous and provided arguments that demonstrate the amount due in connection with this matter is considerably less than the preliminary projection.” They have also claimed the Mexican audit is “unfounded and without merit” and claim to have “retained legal counsel to handle the matter.”
For more on how iTRAC Global can help with your entire import/export process, please contact us.
Read the full article on Crocs’ legal disputes in the Daily Camera.