Car Part Importer to Pay Over $53M to Settle Customs Penalty Suit
Importer Wanxiang America agreed to pay over $53 million to settle claims that the company unlawfully avoided antidumping duties on its car part entries, DOJ announced. The settlement was filed at the Court of International Trade and resolves the government's customs penalty case against Wanxiang in which it was seeking $97 million from the company (see 2512180043).
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At issue in the case were various entries of car parts, including universal joints, wheel hub assemblies, radial ball bearings, tapered roller bearings and other parts and accessories, which were made between 2007 and 2012. The U.S. alleged that the goods were subject to the AD order on tapered roller bearings from China and subject to a 92.84% cash deposit rate, since the exporter, Wanxiang Qianchao, was subject to the all-others rate (see 2207140032).
The U.S. said it collected "all the lost revenue it sought and over $30 million in civil penalties."
Assistant Attorney General Brett Shumate said DOJ "is committed to pursuing those individuals and companies who evade customs and antidumping duties or otherwise engage in unfair trade practices that harm U.S. manufacturers." Susan Thomas, acting executive assistant commissioner for CBP's Office of Trade, said misclassification and "other illicit methods used to evade the payment of lawfully-owed duties undermine the American economy by harming legitimate U.S. businesses."
Counsel for Wanxiang declined to comment.