A U.S. company and two of its officers will pay a total of $1 million in penalties for evading customs duties on imported gold jewelry.
According to information from the U.S. Attorney’s Office for the District of New Jersey, from Jan. 1, 2017, through March 31, 2020, the company was the importer of record on 82 customs entries, each of which consisted of jewelry manufactured in foreign countries. The company was thus responsible for ensuring it provided truthful and accurate disclosures to U.S. Customs and Border Protection, through its authorized customs broker, concerning the total value of the imports.
However, the owners caused the company to provide the broker with commercial invoices that failed to include the cost of the gold, jewels, or other components of the jewelry and instead set forth only the cost of making the jewelry. This undervaluation allowed the company to evade paying $401,852 in customs duties.
As part of a settlement agreement the company will pay $800,000 and the two owners will pay $100,000 each.
In addition, with respect to two CBP seizures of the company’s goods, the company has 30 days to mark the goods with the country of origin and then file any additional entry documents needed. It will also pay the storage fees associated with the seized goods. Once these steps are taken CBP will dismiss its administrative forfeiture proceedings against these goods and release them.
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