The Department of Justice reports that a U.S. company and its president have agreed to pay a total of $12.4 million to resolve allegations that they violated the False Claims Act by knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties on quartz surface products imported from China. This is at least the fourth such penalty announced in recent months as enforcement efforts appear to be accelerating amid an unprecedented increase in U.S. import tariffs, including AD/CVD duties. A senior DOJ official has said that trade will be a priority for FCA enforcement under the Trump administration.
According to a DOJ press release, the company and its president were alleged to have misrepresented, caused to be misrepresented, or conspired in the misrepresentation of Chinese quartz surface products as other goods subject to lesser duties, such as marble or crystallized glass, to avoid applicable AD/CVD duties. The two were also charged with failing to declare and pay, and failing to ensure that others (including manufacturers and third-party entities serving as the official importers of record) were declaring and paying, applicable AD/CVD duties on Chinese quartz surface products.
The DOJ notes that this settlement resolves a civil lawsuit filed by a relator under the whistleblower provision of the FCA, which permits private parties to file suit on behalf of the U.S. government States for false claims and to share in a portion of the government’s recovery.
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