UPS fined US$247m for ship­ping il­le­gal cig­a­rettes

New Straits Times - - Business World -

NEW YORK: A fed­eral judge or­dered United Par­cel Ser­vice Inc (UPS) to pay nearly US$247 mil­lion (RM1.05 bil­lion) for “il­le­gally ship­ping” large vol­umes of untaxed cig­a­rettes, a court fil­ing showed on Thurs­day.

The rul­ing by District Judge Kather­ine For­rest of Man­hat­tan jus­ti­fied the amount, say­ing the court was con­vinced “mod­est penal­ties “would not make a suf­fi­cient cor­po­rate impact”.

The fed­eral judge in March held UPS li­able for hav­ing il­le­gally shipped hun­dreds of thou­sands of car­tons of untaxed cig­a­rettes in New York, de­priv­ing the state and New York City of mil­lions of dol­lars of taxes.

Mean­while, UPS on Thurs­day an­nounced plans to form a joint ven­ture agree­ment with Chi­nese ex­press de­liv­ery firm SF Hold­ings, lay­ing the ground­work to ex­pand ship­ping ser­vices from China to the United States.

The joint ven­ture, which is sub­ject to Chi­nese reg­u­la­tory ap­proval, will ini­tially fo­cus on ship­ping goods from China to the US, with planned ex­pan­sion to the rest of the world.

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