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China authorities seize over 5,000 XFX graphics cards

XFX has found itself in the spotlight for dubious reasons this week. According to the China Customs Office, XFX has been accused of illegally importing graphics cards by mislabelling them, leading to over 5000 GPUs being seized.  

The post from China Customs Office was first reported by MyDrivers, which also noted that XFX China's website and the company's official T-mall store has been shut down. However, the XFX official JD store is still online. Authorities discovered that three graphics cards had fake labels , leading to a batch of over 5,000 GPUs being confiscated.

Image credit: MyDrivers

About 5840 graphics cards were confiscated after authorities found three cards had fake labels during an inspection. Following the finding, customs analysed the whole batch, where they found 5,840 graphics cards were mislabelled. In total, the graphics cards were valued at over 20 million yuan (£2,417,796). Looking at the photos, one of the cards looks to be the RX 6700 XT QCK model.

China Customs Office didn't share why XFX mislabelled the cards, but the most likely scenario was to reduce taxes and import duties by misidentifying them. Instead of labelling them correctly, XFX can reduce import and customs fees by identifying them as inferior cards with less value.

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KitGuru says: Some have speculated that a number of GPU brands have been doing this in order to sell cards to crypto farmers at favourable prices, but there has been no hard proof of this.

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