[050417.EN.LOG] Yusen Ordered by Japanese Authority to Shut Down Customs Operations

THE authorities in Japan have ordered Yusen Logistics Co., the logistics arm of NYK Lines, to completely suspend its customs clearance operations in the country for more than two months for violating the Customs Brokerage Act by making false declarations.

The Tokyo-based company said the punishment was levied last week by the Customs in Tokyo, Nagoya, Osaka, and Hakodate. Yusen Logistics said that its nine customs clearance service offices in Japan, including two in Tokyo, will all suspend operations for 71 days from April 6 to June 15, according to IHS Media.

"We would like to express our profound apologies for causing our customers and other stakeholders significant inconvenience and concern," the company said in a statement.

While apologising over the case, Yusen Logistics played down the impact of the administrative punishment on its financial results and assured its customers that Yusen Keihin Trans Co., its subsidiary, will continue to conduct clearance operations on its behalf.

Yusen Logistics has voluntarily surrendered its certification as an authorised customs broker under the Authorised Economic Operator (AEO) system and executives concerned will voluntarily take a pay cut to clarify their management responsibility, the company said.

The company said that it would work to ensure such digressions do not occur again.

An in-house investigation revealed in July 2015 that the company had made inappropriate declarations in its customs clearance operations for fresh fish imports by declaring types of fish that require catch certificates as types of fish that do not, according to Yusen Logistics.

Source : HKSG.