Website taken down as customs authorities seize over 5,000 illegal cards worth over $3 million
It looks like graphics card maker XFX got into serious trouble with Chinese customs authorities for tax evasion, reports My Drivers.
XFX China Struggles As Customs Seize Over 5,000 Graphics Cards Worth Over $3 Million For Being Mislabeled
The report said graphics card maker, XFX, which is headquartered in the US but also operates through a sub-division based in various regions including China, has encountered serious problems with Chinese customs authorities. The graphics card maker is said to have illegally mislabeled the specifications and names of their graphics cards, a tactic that can be used to evade taxes and reduce the cost of their products which can then be sold to customers for increased profits .
The Chinese outlet reports that customs were able to seize 5840 graphics cards, all of which had mislabeled specifications. Their total value is around 20 million RMB or 3.15 million USD. Since these were not the correct models, the entire supply of graphics cards was seized and sent for further inspection in accordance with the law.
Although there is no confirmation if XFX China was directly involved in this, but a shipment of this size must have some involvement from the graphics card manufacturer. In fact, the Chinese portal of XFX has already been disassembled for several days with its official store in the famous outlet T-Mall.
Moreover, it is reported that such tactics are not new to the Asia-Pacific market. A total of 150,000 new and used graphics cards were imported into the region using very similar methods. XFX has also been at the forefront of selling its standard graphics cards directly to crypto miners to increase profits instead of shipping them to retailers and distributors where they are needed most.
News source: video cardz