Clothing importer, manufacturer to pay $13 million fine for evading customs duties

Clothing importer, manufacturer to pay $13 million fine for evading customs duties

A China-based clothing manufacturer agreed to pay more than $13 million for engaging in a double invoicing scheme to defraud the United States out of millions of dollars in customs duties. The civil settlement is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) and U.S. Customs and Border Protection (CBP).

Motives Far East and Motives China Limited admitted to and accepted responsibility for under-reporting the value of its imported merchandise and agreed to pay nearly $13.4 million to the United States under the False Claims Act.

ICE HSI Special Agent-in-Charge Angel M. Melendez said:

“Motives disguised the true value of goods imported into the United States to cheat the government out of millions of dollars in customs duties.  This scheme backfired, now Motives will pay millions for trying to skirt America’s customs laws.  Trade fraud threatens the U.S. economy and restricts competitiveness of U.S. industry in the world markets.  HSI and CBP maintain a zero-tolerance policy when it comes to these types of predatory and unfair trade practices.”

To read the entire news release: ICE