Eli Lilly agreed to pay over $29 million without admitting or denying allegations that it violated the Foreign Corrupt Practices Act (FCPA) through improper payments to foreign government officials to win millions of dollars of business in Russia, Brazil, China, and Poland, said the Securities and Exchange Commission in a press release. Eli Lilly used a Russian subsidiary to pay millions of dollars to third parties chosen by government customers or distributors that rarely provided any services and in some cases funneled money to government officials, according to the SEC complaint against the pharmaceutical company. Transactions with offshore or government-affiliated entities did not receive specialized or closer review for possible FCPA violations, said the SEC. Paperwork was accepted at face value and little was done to assess whether the terms or circumstances surrounding a transaction suggested the possibility of foreign bribery, it said.
The Court of International Trade sustained the International Trade Administration’s decision to include plaintiffs Jiangsu Changbao Steel Tube and Jiangsu Changbao Precision Tube as part of the China-wide entity, with an AD rate of 99.14 percent, in the antidumping investigation of oil country tubular goods from China (A-570-943). The ITA had found that misrepresentations by company officials during an on-site verification, as well as discrepancies in the company’s accounting programs, impeached the credibility of all statements made by Changbao officials and supported by Changbao’s accounting records. The ITA then disregarded all submissions by Changbao during the investigation, including the company’s separate rate application, resulting in the China-wide rate.
An Iranian corporation, its subsidiaries and several of its officers and business partners have been charged in Alexandria, Va., accused of allegedly exporting more than $30 million in computer goods from U.S. companies to Iran in violation of trade sanctions imposed on Iran, the Justice Department said.
The Court of International Trade denied Millenium Lumber’s motion to dismiss a penalty action seeking $1.8 million in liquidated damages for the failure to get the necessary licenses to import softwood lumber from Canada. Millenium argued the government failed to exhaust its administrative remedies because CBP didn’t complete administrative proceedings to mitigate the penalty before bringing suit to collect the penalties. Relying on its past precedent, CIT said CBP mitigation proceedings are voluntary and discretionary, and so are not a prerequisite for liquidated damages actions.
The Court of International Trade ordered a refund, with interest, of antidumping duty cash deposits paid by U.S. importer AMS Associates (d/b/a Shapiro Packaging), after finding the International Trade Administration violated its regulations by retroactively suspending liquidation of entries of laminated woven sacks from China (A-570-916) in what was in effect a scope inquiry. The ITA had conducted the scope inquiry during the 2008-09 administrative review of the AD duty order, in response to concerns that importers were avoiding AD duties by entering merchandise made with third-country fabric. CIT also found the ITA is permitted to conduct scope inquiries during administrative reviews.
The Court of Appeals for the Federal Circuit reversed and remanded the International Trade Administration’s calculation of Jiangsu Jianghai’s separate rate from the antidumping duty investigation of 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) from China (A-570-934). CAFC said the ITA acted arbitrarily when it built a penalty to deter noncompliance into Jiangsu Jinghai’s non-individual separate rate, even though the company cooperated. Judge Reyna dissented, arguing that CAFC improperly expanded Jiangsu Jianghai’s arguments and applied the wrong standard of review, and said the decision will have “grave consequences” on the application of U.S. antidumping statutes.
Japan-based Toyo Ink SC Holdings Co. and affiliates will pay $45 million, plus interest, to settle allegations that they violated the False Claims Act by knowingly failing to pay antidumping and countervailing duties, said the Justice Department. DOJ alleged the company misrepresented the country of origin on documents submitted to CBP to avoid paying antidumping and countervailing duties on its imports of carbazole violet pigment number 23 (CVP-23).
The Court of International Trade affirmed CBP’s Harmonized Tariff Schedule classification of R.T. Foods’ tempura vegetables from Thailand as vegetable preparations in Chapter 20, rather than as miscellaneous edible preparations in Chapter 21. CBP’s classification as vegetables specifically described the product, so it could not instead be classified in R.T. Foods’ preferred catch-all edible preparations provision, CIT said.
A New Jersey man was arrested Dec. 14 for the illegal import and trafficking of narwhal tusks (whale tusk) and associated money laundering crimes, the Justice Department said. A federal grand jury in Bangor, Maine, returned an indictment Nov. 14 that was partially unsealed upon the arrest of Andrew L. Zarauskas of Union, N.J. The indictment also names Jay G. Conrad of Lakeland, Tenn., who was summoned to appear in the District of Maine on Jan. 3, 2013. The indictment charges Conrad and Zarauskas with conspiracy, money laundering conspiracy, smuggling and money laundering violations for buying narwhal tusks knowing the tusks had been illegally imported into the United States, as well as selling or attempting to sell the tusks after their illegal importation. Zarauskas was arrested this morning at his home in Union.
Bon-Ton Stores of York, Pa., agreed to pay a civil penalty of $450,000 to resolve Consumer Product Safety Commission allegations that it knowingly failed to report to CPSC immediately that its children’s hooded jackets and sweatshirts were sold with drawstrings through the hood. The CPSC said children’s upper outerwear with drawstrings pose a strangulation hazard to children. CPSC and three U.S. importers announced recalls of children’s jackets and sweatshirts with drawstrings through the hood on February 18, March 10 and May 27, 2010. Bon-Ton was a retailer of about 800 total jackets and sweatshirts in all three recalls. In agreeing to the settlement, Bon-Ton denies CPSC staff allegations that it knowingly violated the law.