The Department of Justice reports that a U.S. company has agreed to pay $765,000 for an alleged failure to pay marking duties on imported goods.
The Tariff Act of 1930 requires companies that import foreign products into the U.S. to mark the country of origin on those products. Importers that fail to do so are subject to a 10 percent ad valorem duty.
According to a DOJ press release, the settlement resolves allegations that from 2011 through 2019 the company failed to mark imported pharmaceutical products with the appropriate country of origin, and thereafter violated the False Claims Act by knowingly avoiding the marking duties owed for those imports. DOJ notes that the settlement includes the resolution of claims brought by a private entity under provisions of the FCA that allow a private party to file an action on behalf of the U.S. and receive a portion of any recovery.
“The False Claims Act protects the public fisc by imposing liability not only on those who knowingly submit false claims to the United States, but also on those who knowingly avoid obligations owed to the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to ensure that importers properly pay all amounts due under our customs laws.” U.S. Attorney Brit Featherston added that the DOJ “will continue to pursue aggressively those who seek to avoid their duties and obligations under the law.”
For more information on preventing or responding to duty evasion, please contact Kristen Smith at (202) 730-4965.
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