There has been an increase in customs fraud in recent years. Whistleblower attorney Jonathan Tycko explains how the qui tam process works when it comes to customs and tariffs fraud.
If you have information about such fraud, you may want to contact our whistleblower law firm to learn more on how you may expose the wrongdoing and become eligible for a potential whistleblower reward.
Watch the video or read the transcript below.
Speaker: Tycko & Zavareei LLP Partner Jonathan Tycko
What is Customs Fraud?
In recent years, we’ve seen an increase in the number and size of qui tam cases alleging customs fraud. This is because duties and tariffs have become an increasingly important policy tool for the government and because of increased compliance awareness within the shipping and logistics industries.
What Are the Types of Customs and Tariffs Fraud?
Customs fraud can take a number of different forms:
Evasion of Tariffs under AD/CVD Orders:
For example, evasion of tariffs imposed under anti-dumping or countervailing duty orders sometimes referred to as AD/CVD orders, either by trans-shipping the goods through third countries or by misclassifying the goods under the harmonized tariff schedule.
Evasion of Section 301 Tariffs:
Another example is evasion of Section 301 tariffs. Again, either through trans-shipping or misclassification under the HTS. Falsifying the value or quantity of imported goods can also violate the False Claims Act. And this usually involves the use of forged or altered invoices or other documents leading to the underpayment of duties.
Failure to Properly Mark the Country of Origin:
A final example is failing to properly mark imported goods with country of origin. Such failure to properly mark can lead to the imposition of marking duties which a False Claims Act qui tam lawsuit can recover.
Ready to Expose the Wrongdoing? Contact Us Today
Our firm has been a leader in this area of qui tam litigation. We understand the complicated world of international trade, shipping and logistics, and we can help you make your case to the Department of Justice in the courts.
If you have information about an importer evading duties or tariffs, contact us here at Tycko & Zavareei for a free and confidential evaluation.