$3.1 Million Penalty for Duty Evasion and Mislabeling
Source
American Shipper
Post Date
04/01/2024
The Department of Justice reports that a New Jersey company has agreed to pay $3.1 million plus interest after its owner pleaded guilty to mislabeling imported hazardous chemicals and evading customs duties. According to a DOJ press release, the owner admitted that for more than five years he participated in a scheme to defraud through which he caused mislabeled chemicals, including hazardous chemicals, to enter the U.S. from China. This scheme resulted in an underpayment of $1.4 million in customs duties. The company itself was ged with violating the False Claims Act by conspiring with a Chinese vor to mislabel the chemicals and to use falsified documents submitted to the companys customs brokers. As part of the settlement the company admitted that it mislabeled the chemicals in connection with their importation into the U.S.
