Background

The Department of Justice reports that a U.S. importer, along with two Chinese companies and two individuals, has agreed to pay $2.5 million to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China.

According to a DOJ press release, this settlement resolves allegations that the company, its owner, its customs broker, and two Chinese suppliers conspired to underreport the value of imported goods. Specifically, the federal government alleged that (1) invoices were created and submitted to U.S. Customs and Border Protection containing false, lower values for the goods the company received from China and (2) a second set of correct invoices (not submitted to CBP) were used to ensure the company paid its Chinese suppliers for the actual value of the goods.

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