Manufacturer to Pay $1.1 Million for Violating False Claims Act in Connection to Chinese Aluminum Imports
The Department of Justice announced that Ohio-based Basco Manufacturing Co. has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by submitting false customs declarations to avoid paying duties on aluminum extrusions from China, according to a Jan. 14 Aluminum Extruders Council release. At the time of import, the extrusions were subject to combined antidumping and countervailing duties of more than 400 percent.
According to the DOJ, Basco allegedly engaged in a scheme to avoid duties by shipping the aluminum extrusions manufactured by Tai Shan in China through Malaysia: a practice called transshipping. The U.S. government alleges that Basco knew that the aluminum extrusions were merely repackaged in Malaysia and did not undergo a substantial transformation that may have justified changing the product's country of origin from China to Malaysia.
"The Aluminum Extruders Council applauds the DOJ for their work in this investigation," said Jeff Henderson, AEC Director of Member Services, in the release. "The U.S. domestic extrusion industry can be confident that the Federal Government is committed to defending existing antidumping and countervailing duty orders protecting our industry from the illegal and unfair trade practices of Chinese extruders. This is the second known circumvention case brought to justice by the DOJ. This should send a warning to anyone who intends to violate the government's orders that they will be found and prosecuted to the full extent of the law."