UPS fined US$247m for shipping illegal cigarettes
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.