South Korean Clothing Importer to Pay Over $2 Million to Settle FCA Claims on Duty Avoidance

South Korean company Anyclo International pleaded guilty to evading customs duties on clothing it imported, agreeing to a civil settlement with the U.S. under which it will pay $2.05 million to the U.S. in restitution, the U.S. Attorney's Office for the District of New Jersey announced. A $250,000 criminal fine also was levied. Anyclo will pay the settlement, plus interest, over 15 months to resolve potential charges under the False Claims Act.

The company admitted that from 2012 to 2019, it evaded the customs duties on clothing by drawing up two invoices for the same entries: an accurate one and a false one. The accurate one was sent to U.S. buyers and the false one was forwarded to CBP, leading to undervalued imports. Whistleblower Yang Sup Cha will get 18% of the settlement amount recovered, the U.S. Attorney's Office said.