2 March 2018
US$500,000 Penalty to Resolve Charges of AD Duty Evasion Involving Mainland Chinese Furniture
A U.S. company has agreed to pay US$500,000 to resolve allegations that it made false statements on customs declarations to avoid paying AD duties on wooden bedroom furniture from mainland China, the U.S. Department of Justice reports. The company was charged with violating the False Claims Act by misclassifying the imported goods, which were subject to a 216 percent AD duty, as non-bedroom furniture, which was not subject to AD duties, between 2009 and 2014. According to the DOJ, this settlement resolves a lawsuit filed by one of the company’s competitors under the whistle-blower provision of the FCA. That law allows whistle-blowers to receive a share of any funds recovered, which in this case will be approximately US$75,000. This is at least the fourth FCA case involving imports of wooden bedroom furniture to result in a penalty in the last two years.