CUSTOMS PROBES COMPLAINT OVER BRAZILIAN OJ PROCESSORS

A trade group representing Florida citrus growers has accused Brazilian orange juice processors of avoiding a federal tariff on imports.

U.S. Customs officials are investigating a complaint that alleges the companies are shipping juice to Canada for re-importation to the U.S., reported The Ledger, a newspaper in Lakeland, Fla.

Matt McGrath, a lawyer that represents Florida Citrus Mutual, told the paper that Customs officials indicated their investigation could take six to 12 months.

CitrusBR, the Brazilian processors' trade group, has denied the allegations.

"Brazilian orange juice exporters do not use its exportations to Canada as a way to avoid paying US federal tariff," Christian Lohbauer, CEO of the group, told The Ledger. "Some of those Canadian clients do export orange juice to the U.S.A., but already packed, as a final product. It is not something over the control or intended by the Brazilian industries."

Most Canadian and Mexican goods come into this country duty-free under the North American Free Trade Agreement, but other countries can't use that exception to avoid tariffs, the report said, citing Florida Citrus Mutual CEO Mike Sparks.