$62.5 Million Penalty to Resolve Duty Evasion Charges
The Department of Justice reports that a U.S. company has agreed to pay $62.5 million to settle allegations under the customs penalty statute that it was grossly negligent or negligent when it imported saccharin manufactured in China and transshipped through Taiwan to evade a 329 percent antidumping duty. The DOJ states that this settlement resolves a lawsuit brought at the Court of International Trade and is the largest recovery under 19 USC 1592 ever reached in that court.
In this case the U.S. argued that the company evaded approximately $36 million in AD duties and sought $84 million in unpaid AD duties and penalties plus interest. The government alleged that the company failed to determine that its supplier in Taiwan was not a manufacturer but instead imported saccharin from China for transshipment to the U.S.