credit: SeeMonterey.com
The United States has collected more than $53 million from Wanxiang America Corporation to settle a long-running civil penalty lawsuit alleging the misclassification of Chinese-made automotive components to evade customs and antidumping duties, announced by the Justice Department.
The settlement, which concludes nearly a decade of litigation, includes recovery of all revenue the government said was owed as well as more than $30 million in civil penalties. Wanxiang America is the U.S. importing arm of Wanxiang Group Corporation, a Chinese multinational manufacturer and supplier of automotive parts.
According to the lawsuit, Wanxiang violated federal customs law over a five-year period by making false statements to U.S. Customs and Border Protection when importing automotive components, including tapered roller bearings and wheel hub assemblies that incorporate those bearings.
During the period at issue, wheel hub assemblies containing tapered roller bearings from China were subject to a Department of Commerce antidumping duty order. Except for certain designated exporters, imports covered by the order were subject to a China-wide antidumping duty rate of 92.84 percent. Federal authorities said Wanxiang was aware of the order but falsely classified its wheel hub assemblies and failed to disclose that the products were subject to antidumping duties.
The government also alleged that Wanxiang misclassified multiple categories of automotive parts and accessories under incorrect tariff provisions, resulting in the significant underpayment of customs and antidumping duties.
