A settlement has been reached in a whistleblower class action lawsuit brought against three importers, California-based C.R. Laurence Co. Inc., Florida-based Southeastern Aluminum Products Inc. and Texas-based Waterfall Group LLC. They are accused of engaging in schemes to evade customs duties on imports of aluminum extrusions from the People’s Republic of China.
According to the settlement, C.R. Laurence Co. Inc., Southeastern Aluminum Products Inc., and Texas-based Waterfall Group LLC have agreed to pay $2,300,000, $650,000 and $100,000, respectively. The whistleblower will receive $555,100 as his share of these settlements.
The government’s complaint alleged that C.R. Laurence, Southeastern and Waterfall made false declarations to the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) to avoid paying antidumping and countervailing duties on aluminum extrusions imported from manufacturer Tai Shan Golden Gain Aluminum Products Ltd. in the PRC. The Department of Commerce assesses, and CBP collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. C.R. Laurence, Southeastern, and Waterfall allegedly misrepresented that the “country of origin” of the aluminum extrusions was Malaysia, when the goods were manufactured in the PRC and merely shipped through Malaysia – a practice called “transshipping.” Imports of PRC-manufactured aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items from Malaysia.
The government’s complaint, filed in 2013, stemmed from a whistleblower lawsuit originally filed in 2011. The government alleges that C.R. Laurence, Southeastern and Waterfall purchased PRC-made aluminum extrusions imported by other domestic companies and caused or conspired with those importers to make false declarations to CBP to evade duties.
