Graphics Card Maker, XFX, Busted in China: Website Taken Down As Customs Authorities Seize Over 5000 Illegal Cards Worth Over 3 Million USD
It looks like the graphics card maker, XFX, has come under serious trouble with Chinese customs authorities for tax evasion, reports MyDrivers.
XFX China In Trouble As Customs Authority Seize Over 5000 Graphics Cards Worth Over 3 Million USD For Being Mislabeled
The report states that graphics card maker, XFX, who has its main HQ in the US but also operates through a sub-division based in various regions, including China, has come under serious trouble with the customs authority of China. It is said that the graphics card maker illegally mislabeled the specifications and names of their graphics cards, a tactic that can be used to evade taxes & lower the cost of their products that can than 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 rounds up to around 20 million RMB or 3.15 Million in USD. Since they were not the correct models, the entire supply of graphics cards was seized & sent for further inspection in accordance with the law.
While there was no confirmation if XFX China was directly involved in this but a shipment this large must have some involvement from the graphics card maker. As a matter of fact, the Chinese portal of XFX has already been taken down for several days along with its official store over at the popular T-Mall retail outlet.
Furthermore, it is reported that tactics like these aren't new within the Asian Pacific market. A total of 150,000 new and used graphics cards have been imported within the region using very similar methods. XFX has also been at the forefront of selling its standard graphics cards directly to crypto miners for increased profits instead of shipping them to retailers and distributors where they were needed the most.
News Source: Videocardz