9th Cir. Orders Further Briefing on Whether Tariff Act Has Sole Means for Recovering Evaded AD Duties
The U.S. Court of Appeals for the 9th Circuit ordered parties in a False Claims Act case to file supplemental briefs on whether 19 U.S.C. 1592 has the exclusive means for recovering antidumping duties an importer illegally avoided paying via false statements, or whether the False Claims Act can also be used to recover the duties. Referred to as Section 592, the statute is the part of the Tariff Act of 1930 covering customs penalties for fraud, gross negligence and negligence. The court told the parties, including appellant Sigma Corp. and the U.S., to file the brief by June 26 (Island Industries Inc. v. Sigma Corp., 9th Cir. # 22-55063).
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The California trial court recently ruled that Sigma, along with other companies, violated the FCA with their welded outlet imports from China by failing to pay antidumping duties while submitting false information on the applicability and amount of duties owed (see 2202090071). The judgment came after a three-day jury trial wherein Sigma was ultimately found liable for over $24.2 million in damages and $1.8 million in civil monetary penalties.