Furniture Seller Settles AD/CV Duty Evasion Suit for $15 Million
Z Gallerie, an upscale furniture retailer, agreed to pay $15 million to the U.S. government as part of a settlement related to allegations of antidumping duty evasion, said the Justice Department in a news release (here). Z Gallerie, which sells…
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furniture in stores and over the Internet, allegedly "engaged in a scheme to evade customs duties on imports" of wooden bedroom furniture from China, in violation of the False Claims Act," said DOJ. As an example of the alleged fraud, the DOJ said the company "sold certain Bassett Mirror Company products, including a six-drawer dresser and three-drawer chest, as part of a bedroom collection; however, these goods were misidentified on CBP documents, using descriptions such as 'grand chests' and 'hall chests,' in order to avoid paying antidumping duties on wooden bedroom furniture." Such settlements are likely to increase as "streamlined processes" for duty evasion allegations take effect a result of the Trade Facilitation and Trade Enforcement Act, said CBP Commissioner Gil Kerlikowske. The allegations originally came from Kelly Wells, an e-commerce furniture retailer, who will receive $2.4 million of the settlement under the qui tam provisions of the False Claims Act, said DOJ. "The claims resolved by this settlement are allegations only; there has been no determination of liability," DOJ said.