Anyclo International Inc., Customs Duty Evasion, New Jersey 2019

Newark, New Jersey – In a shocking revelation, a South Korean clothing manufacturer has admitted to evading customs duties on clothing imported into the United States. Anyclo International Inc. pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging the company with evading customs duties.

The guilty plea comes after a thorough investigation by the Department of Homeland Security’s Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, and members of the Office of Trade, Regulatory Audit & Agency Advisory Services, under the supervision of Acting Field Director of the New York Office Teresa Halpin. The investigation found that Anyclo International Inc. evaded customs duties on clothing and apparel that it manufactured abroad and imported into the United States from October 5, 2012, to August 5, 2019.

As part of its plea agreement, Anyclo International Inc. was sentenced to a criminal fine of $250,000 and ordered to pay restitution to the United States in the amount of $2.05 million. The company also agreed to a civil settlement with the United States, which includes paying $2.05 million, plus interest, over 15 months to resolve its potential liability under the False Claims Act.

Anyclo International Inc. admitted that it perpetrated the scheme by preparing two invoices for the same shipments: an accurate invoice provided to U.S. purchasers, and a false invoice undervaluing the goods that Anyclo furnished to U.S. Customs. By falsely undervaluing its merchandise, Anyclo drastically underpaid customs duties that it owed based on the true value of those goods.

The civil settlement with Anyclo International Inc. resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Yang Sup Cha, will receive 18 percent of the civil settlement amount recovered by the United States pursuant to the False Claims Act.

Anyclo International Inc. pleaded guilty to evading customs duties, a serious offense that undermines the integrity of the U.S. tax system. The guilty plea and civil settlement serve as a reminder that companies will be held accountable for their actions and that the U.S. government will vigorously pursue those who attempt to evade customs duties.

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