US Government Joins False Claims Act Case Against Furniture Importer for AD Duty Evasion
The U.S. government filed a federal court complaint on Aug. 10 alleging a Florida importer of wooden bedroom furniture sought to evade antidumping duties and customs fees by misclassifying and undervaluing its furniture imports. Blue Furniture Solutions evaded “millions of dollars” in duties and fees by classifying its wooden bedroom furniture as metal and office furniture to avoid a 216.01% antidumping duty rate, and stating false values of its imports on entry documentation.
The government joins University Loft, an Indiana furniture company, in the False Claims Act lawsuit. University Loft stands to gain a portion of any judgment against Blue Furniture in the case. The company was in 2015 awarded $2.25 million out of a separate $15 million False Claims Act settlement involving another furniture importer that misclassified its bedroom furniture as office furniture (see 1512220062). The government may intervene in False Claims Act actions on behalf of the whistleblower.
According to the government’s complaint, Blue Furniture classified its furniture on entry documentation as metal household furniture under tariff schedule subheadings 9403.20.0018 and 9403.20.0020. The furniture actually consisted of bedroom sets, including dressers, beds and nightstands, classifiable in subheading 9403.50.9080 as wooden bedroom furniture and subject to AD duties. On packing lists, Blue Furniture described the furniture as file cabinets, storage cabinets, side tables, desk boards and book shelves, the government said. It included a second packing list with true descriptions of the furniture so installers would be able to match the furniture to its place in apartments, the complaint said.
When questioned by a customs broker on whether the furniture should be classified as wooden bedroom furniture, Blue Furniture’s owner falsely told the broker that the bed was metal, and switched to a different broker. He told yet another broker that a chest was metal, pointing to allegedly false descriptions on the packing list. “For future reference, if you have question[s] regarding materials please send to me directly,” he told the broker, according to the complaint. “The Chest was in fact made of laminated particle board/MDF with a metal frame, within the scope of the anti-dumping order,” the government said.
Blue Furniture also allegedly made false descriptions to CBP about the furniture, the complaint said. “In June 2015, a Blue shipment was stopped for inspection by Customs in Seattle. The Customs import specialist determined that chests and beds contained in the shipment were subject to the anti-dumping order. In furtherance of their scheme, defendants lied and caused others to lie to Customs officials about the items in the stopped shipment and later shipments,” it said. CBP discovered the discrepancy on that shipment and assessed AD duties, but Blue Furniture subsequently “doubled down on their scheme,” the complaint said.
Email ITTNews@warren-news.com for a copy of the complaint.