Allied Stone Inc. and its president will pay $12.4 million to settle allegations of evading import duties on Chinese quartz products.
DALLAS — Allied Stone Inc., a Dallas-based supplier of countertop and cabinetry products, and its president, Jia “Jerry” Lim, have agreed to pay a total of $12.4 million to resolve allegations that they violated the False Claims Act, the U.S. Department of Justice (DOJ) said in a press release.
The DOJ said the company violated the law by “knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States on quartz surface products imported from the People’s Republic of China (China).”
“This settlement reflects our commitment to hold accountable those who evade or conspire to evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for American manufacturers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by evading or conspiring with others to evade duties owed.”
When entering goods into the U.S., an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed, according to the DOJ. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce.
Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. During the relevant time period, quartz surface products from China were subject to both antidumping and countervailing duties.
According to the DOJ, the $12.4 million settlement resolves allegations that Allied Stone and Lim knowingly evaded or conspired to evade duties on Chinese quartz surface products that were imported between Sept. 29, 2018, and Feb. 7, 2023. The United States alleged that Allied Stone and Lim “misrepresented, caused to be misrepresented, or conspired in the misrepresentation of Chinese quartz surface products as other merchandise subject to lesser duties, such as marble or crystallized glass, to improperly avoid applicable antidumping and countervailing duties,” the DOJ said in its release.
The DOJ also said Allied Stone and Lim allegedly 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.
“Providing false information to CBP violates the law, and it is imperative that violators face consequences,” said acting Executive Assistant Commissioner Susan S. Thomas of the Office of Trade, U.S. Customs and Border Protection. “CBP will always work alongside the Department of Justice to ensure a level playing field for U.S. businesses.”
The settlement with Allied Stone and Lim resolves a civil lawsuit filed by relator Melinda Hemphill under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. As part of the resolution, Hemphill will receive approximately $2,170,875 of the settlement proceeds, the DOJ said.