16 April 2019
US$62.5 Million Penalty to Resolve Duty Evasion Charges
The U.S. Department of Justice reports that a U.S. company has agreed to pay US$62.5 million to settle allegations under the customs penalty statute that it was grossly negligent or negligent when it imported saccharin manufactured in mainland China and transshipped through Taiwan to evade a 329 percent antidumping duty. The DOJ states that this settlement resolves a lawsuit brought at the U.S. Court of International Trade and is the largest recovery under 19 USC 1592 ever reached in that court.
In this case the United States argued that the company evaded approximately US$36 million in AD duties and sought US$84 million in unpaid AD duties and penalties plus interest. The government alleged that the company failed to determine that its supplier in Taiwan was not a manufacturer but instead imported saccharin from mainland China for transshipment to the United States.