A Dallas countertop supplier settled $12.4 million with the Department of Justice (DOJ), after claims it evaded duties on imported Chinese stone for years.
Allied Stone Inc. and its President Jia “Jerry” Lim agreed to settle claims they violated the False Claims Act by “knowingly and improperly evading, or conspiring to evade” duties to the American government on quartz imported from China, the DOJ announced August 19.
The violations allegedly took place from September 29, 2018, to February 7, 2023.
Importers must declare the country of origin of goods entering the United States, the value of the goods, whether they are subject to duties, and the amount of duties owed. The U.S. Customs and Border Protection (CBP) collects these duties, including those that cover antidumping and countervailing.
Antidumping duties are meant to protect against foreign companies “dumping” goods on U.S. markets at prices below cost, while countervailing duties are intended to offset subsidies by foreign governments, such as those from China.
The settlement states that Allied Stone and Lim knowingly misrepresented or conspired to misrepresent quartz imports as different goods, subject to lesser duties.
“The United States also alleged that Allied Stone and Mr. Lim failed to declare and pay, and failed to ensure that others (including manufacturers and third-party entities serving as the official importers of record) were declaring and paying, applicable antidumping and countervailing duties owed to the United States on entries of Chinese quartz surface products,” the press release read.
The settlement stems from a civil lawsuit – United States ex rel. Melinda Hemphill v. Allied Stone Inc., et al. – filed by realtor Melinda Hemphill under the whistleblower provision of the False Claims Act. The law allows private parties to sue on behalf of the government and share part of the government’s settlement. Hemphill will receive close to $2.17 million as a result.
“Providing false information to CBP violates the law, and it is imperative that violators face consequences,” said Susan Thomas, acting executive assistant commissioner of CBP’s Office of Trade, in the release. “CBP will always work alongside the Department of Justice to ensure a level playing field for U.S. businesses.”
Similarly, two importers from America’s Northeast – Global Plastics LLC and Marco Polo International LLC – settled $6.8 million for False Claims Act violations, dodging duties on Chinese plastic, as The Dallas Express reported in July.