An agreement to pay USD 11.8 million by Harman International Industries, Inc., has surfaced for settling the allegations of violating the False Claims Act and other statutes. This allegation came by evading the antidumping and countervailing duties on goods which are made of extruded aluminium from China.
The audio electronics company works for automakers, enterprises globally and consumers. Not only this, the firm’s portfolio brands include Harman Kardon, Mark Levinson and JBL. The allegation time span includes June 1, 2011, through March 31, 2023, which has been resolved with the settlement offer.
Harman is alleged to have knowingly imported heat sinks which contained extruded aluminium from the People’s Republic of China without paying the deemed fees. Upon confrontation by the US about its failure to pay the required fees for the heat sinks, the audio firm had concealed and decided not to divulge its awareness of avoiding the AD/CVD to the US.
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As per the US, an importer needs to declare, among other things, whether the goods imported are entitled to any duties, along with the amount of duties owed. This is assessed and collected by the Department of Commerce, US Customs and Border Protection, and the antidumping and countervailing duties on American companies.
The implication of antidumping duties provides a shield against foreign companies that are deemed to be “dumping” goods into the US territory at a very low cost. On the other hand, the countervailing duties are applied to offset foreign government subsidies. In this scenario, the most common thermal controlling devices in the electronics industry, the heat sinks containing extruded aluminium, are subjected to the antidumping and countervailing duties.
United States Attorney Gorgon stated, “For more than a decade, Harman knowingly evaded duties designed to prevent unfair foreign subsidies and trade practices. But we will use the law to protect our American companies against cheaters. And when we catch them, they will pay for it.”
The settlement to resolve the allegation came after a lawsuit was filed under the False Claims Act. This act enables any private parties to file a suit on behalf of the US to highlight any false claims and share in a portion of the government’s recovery.
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Acting Executive Assistant Commissioner Susan S. Thomas, of CBP’s Office of Trade, commented, “CBP played a critical role in assisting with DOJ’s investigation concerning Harman’s failure to pay antidumping and countervailing duties on imported electronic components, resulting in a settlement of USD 11.8 million to resolve its civil liability under the False Claims Act and the customs laws. This case underscores CBP’s commitment to enforcing the customs and trade laws and ensuring the protection of revenue to promote the US economic security.”
For this case, the resolution came about through a collaborative effort involving the US Department of Justice, US Customs and Border Protection and the US Department of Commerce. Additionally, to handle this matter, the Assistant US Attorney Anthony Gentner from the US Attorney’s Office for the Eastern District of Michigan was charged.
Christopher Abbott, performing the duties and functions of the Assistant Secretary of Enforcement and Compliance at the Department of Commerce, stated, “We commend the sustained effort and diligence of the DOJ and CBP in maintaining the integrity of AD/CVD orders. Their work ensures that American industries and workers receive the relief they are entitled to under the law.”
The focus on this issue directly resonates with the government’s commitment to fighting against fraud, waste and abuse and one of the most potent weapons in this battle is the False Claims Act.
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