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$500,000 Penalty to Resolve Charges of AD Duty Evasion

Thursday, February 08, 2018
Sandler, Travis & Rosenberg Trade Report

A U.S. company has agreed to pay $500,000 to resolve allegations that it made false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture from China, the Department of Justice reports. The company was charged with violating the False Claims Act by misclassifying the imported goods, which were subject to a 216 percent AD duty, as non-bedroom furniture, which was not subject to AD duties, between 2009 and 2014.

According to the DOJ, this settlement resolves a lawsuit filed by one of the company’s competitors under the whistleblower provision of the FCA. That law allows whistleblowers to receive a share of any funds recovered, which in this case will be approximately $75,000.

This is at least the fourth FCA case involving imports of wooden bedroom furniture to result in a penalty in the last two years.

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