Chinese-Run Delivery Company Suspected of Smuggling

Packages are still piled up in an office of DCS. (Photo by Yiyi Huang via World Journal)

Customs in Fuzhou City, China, announced on April 11 that it has busted a smuggling group led by a Chinese American whose last name is Dong, and confiscated smuggled goods worth a total of 150 million RMB (just under US$21,800,000). This Mr. Dong happens to be the owner of DCS, a delivery company that left many clients in New York in a cold sweat in February amid the rumor that its owner had fled.

When the rumor started to spread, Mr. Ni, the New York head of DCS, denied it and said the company was operating normally. But after customs in Fuzhou made the announcement, people working for DCS declined to make any further comment on April 12. Meanwhile, people with knowledge [of the situation] said a newly opened delivery company has started to solicit business in the Chinese community in New York, and it is indeed still the same DCS.

This reporter checked the backgrounds of the two delivery companies and found their listed addresses are the same. But while the registered person associated with DCS is Mr. Dong, the new company does not list any name. So it is not certain that the two companies are the same one.

Lili Su, deputy administrative director of customs in Fuzhou, said Mr. Dong founded a global import and export company named DCS in the U.S. The company has offices in many cities in the country, including New York and Los Angeles. It looks like a normal logistics company. But indeed, it has been conducting a smuggling operation by hiring foot soldiers and via the delivery business. Customs in Fuzhou did a joint investigation with other government agencies and arrested Mr. Dong and 22 other suspects working under him.

In New York, some clients of the company realized something might have gone wrong after the packages they gave to DCS hadn’t arrived on time. And they were surprised to see that DCS had not stopped taking in packages and charging delivery fees. Mr. Ni, explained then that 600 packages the company delivered to China were held by customs for tax reasons, and his boss was working to solve the problem. But according to customs officials, altogether DCS still has 3,000 containers of goods held for tax reasons. The goods will be auctioned or destroyed.

Mr. Ni declined to comment on the announcement from customs in Fuzhou. The owner of a DCS collection point in Sunset Park said he was worried when he heard that DCS may be in trouble. But the company soon issued a memo saying it is determined to take care of the packages that have been in transit. If they aren’t delivered to the recipients eventually, the company will offer compensation to the clients. And the packages the company took in after the incident will be delivered normally. The agent said his shop works with several delivery companies including DCS. And it is the clients who decide which company they would like to go with.

People in the know said after DCS was put under the spotlight, a new delivery company started to do business in the Chinese community. And the owner is the same as DCS. The information has not been confirmed by the company. But public information of company registrations in New York shows that the two companies are registered with the same address.

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