Importers to Pay Over $3 Million Relating to Evaded Customs Duties
From the DOJ:
The Department of Justice announced that California-based C.R. Laurence Co. Inc., Florida-based Southeastern Aluminum Products Inc. and Texas-based Waterfall Group LLC have agreed to pay $2,300,000, $650,000 and $100,000, respectively, to resolve a lawsuit brought by the United States under the False Claims Act alleging that the companies engaged in schemes to evade customs duties on imports of aluminum extrusions from the People’s Republic of China (PRC). The companies sell shower doors and shower enclosures made with the PRC-manufactured aluminum extrusions.
The government’s complaint alleges that the above listed companies made false declarations to the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) to avoid paying antidumping and countervailing duties on aluminum extrusions imported from a manufacturer in China. The Department of Commerce assesses, and CBP collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. These three companies allegedly misrepresented that the “country of origin” of the aluminum extrusions was Malaysia, when the goods were manufactured in the China and merely shipped through Malaysia – a practice called “transshipping.” Imports of China-manufactured aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items from Malaysia.
From Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division:
“The nation’s customs laws are designed to protect domestic manufacturers from unfair competition abroad. The Department of Justice will pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
To read the entire press release: DOJ
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