Perfectus Aluminum agrees to $549M settlement over customs duty allegations
Authorities claimed the imported products were spot-welded together to resemble pallets but were not actually sold or used commercially as functional products.
SEATTLE (Scrap Monster): Perfectus Aluminum and several related businesses have agreed to pay a combined USD 549.5 million to resolve allegations tied to unpaid customs duties on aluminium extrusions imported from China.
The settlement involves Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC and four affiliated warehousing companies. US authorities alleged the companies knowingly avoided antidumping and countervailing duties that applied to Chinese aluminium extrusion products entering the country.
According to the US Department of Justice, the case centered on more than 2.2 million aluminium extrusions imported between 2011 and 2014. Investigators alleged the products were falsely declared as finished aluminium pallets rather than raw extrusions subject to duties.
Authorities claimed the imported products were spot-welded together to resemble pallets but were not actually sold or used commercially as functional products.
The settlement resolves civil claims brought under the False Claims Act following whistleblower lawsuits filed by individuals including Aluminum Extruders Council.
US officials said the duties were originally imposed to counter unfair pricing and foreign subsidies tied to Chinese aluminium products.
Todd Blanche said the case reflects the government’s focus on enforcing trade laws and protecting domestic manufacturers.
US Customs and Border Protection also played a major role in the investigation, with officials stating that duty evasion harms businesses operating within trade rules and affects economic security.
The civil settlement follows earlier criminal proceedings connected to the case. In 2021, a federal jury convicted the companies on charges including conspiracy to defraud the United States.
Part of the settlement proceeds returned to Customs and Border Protection will also be shared with whistleblowers involved in bringing the case forward under US law.
The investigation was coordinated through the Department of Justice’s Trade Fraud Task Force, which focuses on customs fraud, tariff evasion and trade-related enforcement actions.
Courtesy: www.alcircle.com