A settlement has been reached in a whistleblower class action lawsuit brought against Toyo Ink SC Holdings Co Ltd and various affiliated entities (Toyo Ink). They are accused of knowingly failing to pay antidumping and countervailing duties.
The whistleblower will receive a $7,875,000 share of the government’s recovery.
The initial whistleblower lawsuit was filed in October 2009. The government's complaint alleged Toyo Ink knowingly misrepresented, or caused to be misrepresented, the country of origin on documents presented to U.S. Customs and Border Protection to avoid paying duties, particularly antidumping and countervailing duties, on imports of the colorant carbazole violet pigment number 23 (CVP-23) between April 2002 and March 2010.
Specifically, the government alleged that Toyo Ink misrepresented Japan and Mexico as the countries of origin for its CVP-23 imports, rather than the People’s Republic of China (PRC) and India which were the company’s sources for raw CVP-23.Imports of CVP-23 from the PRC and India have been subject to these duties since 2004; there are no such duties on imports from Japan or Mexico. Although Toyo Ink’s CVP-23 from the PRC and India underwent a finishing process in Japan and Mexico before it was imported into the United States, the government alleged that this process was insufficient to constitute a substantial transformation to render these countries as the countries of origin.
