GRIMY TIMES EXCLUSIVE — Samsung C&T America, Inc. (SCTA), a subsidiary of the Korean conglomerate Samsung C&T Corporation, has agreed to pay $1 million to settle a civil lawsuit filed by the United States government. The charges stem from SCTA’s alleged misclassification and underpayment of customs duties on imported footwear between May 2016 and December 2018.
The settlement resolves claims that SCTA, through its importation and sale of overseas-manufactured footwear, violated the False Claims Act by inaccurately describing goods and not paying full customs duties. This fraudulent practice is said to have allowed SCTA to avoid millions in legal tariffs.
Under the agreement approved by U.S. District Judge Paul G. Gardephe, SCTA admitted its wrongdoings, including misclassification of footwear on entry documents and failure to verify information provided to customs brokers. U.S. Attorney Damian Williams emphasized the commitment to combatting customs fraud, stating that his office is “committed to holding companies accountable when they misclassify goods and evade paying their legally required duties.”
AnnMarie R. Highsmith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s Office of Trade, highlighted the gravity of customs duty avoidance, noting it gives an unfair advantage over honest American businesses.
CBP Director of Field Operations Francis J. Russo praised the collaborative efforts of CBP import specialists, regulatory auditors, HSI investigators, and the Southern District of New York’s U.S. Attorney’s Office in uncovering SCTA’s misclassification practices.
HSI Special Agent in Charge Ivan J. Arvelo stressed that HSI will hold accountable organizations engaging in improper trade practices, ensuring that those who deny the government vital revenues face consequences.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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