Shanghai-listed food retailer Sanjiang Shopping Club said that its food division is subject to a fine of 5.9 million yuan ($951,613) for smuggling, but the company said that the penalty will not affect its daily operation.
Zhejiang-based Sanjiang received the penalty notice from the local customs authorities on Thursday, stating that nearly 6 million yuan would be confiscated - equal to the value of the smuggled goods.
According to the notice, the company illegally manipulated and artificially lowered the prices of imported products so as to evade customs duties from July 2010 to June 2011.
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