California Companies Affiliated with Chinese Billionaire “Uncle Liu” Found Guilty of Fraudulent Scheme to Dodge U.S. Customs Duties on Aluminum Imports, Ordered to Pay $1.8B in Restitution

Extruded aluminum imports fraudulently misclassified as warehouse pallets to evade anti-dumping and countervailing (AC/CVD) duties A group of California companies affiliated with Chinese Billionaire Liu Zhongtian—known as “Uncle Liu” or “Big Boss”—have been ordered to pay the U.S. government $1.83 billion in restitution after having been convicted of a scheme to evade customs duties on imports of Chinese aluminum.  The judgment is

Linde AG used incorrect Harmonized Tariff Schedule (HTS) codes and failed to declare “assists” on steel products imported from China The German firm Linde AG has agreed to pay $22.2 million to resolve allegations it knowingly dodged U.S. customs duties on imports of steel components from China. The qui tam whistleblower who exposed the fraud—the company’s former logistics coordinator—will receive a whistleblower

Centric Parts of California evaded 2.5% tariff by misclassifying “mounted” brake pads as “unmounted.” In yet another False Claims Act settlement involving customs fraud and tariff enforcement, California aftermarket auto parts supplier CWD Holdings, LLC – which does business as Centric Parts – has agreed to pay $8 million to revolve claims it knowingly evaded import duties owed on imported brake pads. 

Former employee blows the whistle, receives reward In another False Claims Act settlement involving trade fraud, the owner of New York jewelry wholesaler Anaya Gems Inc. has agreed to pay $415,000 to resolve allegations relating to import duty evasion.  The former employee who blew the whistle on the scheme by filing a qui tam lawsuit received 22% of the recovery as a reward.

Downstream wholesaler allegedly turned a blind eye to suppliers’ import fraud while receiving goods at below-market prices. Whistleblowers reap rewards. The increased use of the False Claims Act to combat import duty evasion has alarmed importers — as it well should! Liability under the False Claims Act can be significant — three times damages plus penalties for each false entry