According to a January 16, 2018 Department of Justice press release – Virginia based home furniture company, Bassett Mirror Company (Bassett) will pay $10.5 million to resolve allegations that Bassett violated the False Claims Act (FCA) by “knowingly making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC)”.

Wooden bedroom furniture from the People’s Republic Of China is covered under case number: A-570-890 and the scope includes:

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The product covered by the order is wooden bedroom furniture. Wooden bedroom furniture is generally, but not exclusively, designed, manufactured, and offered for sale in coordinated groups, or bedrooms, in which all of the individual pieces are of approximately the same style and approximately the same material and/or finish. The subject merchandise is made substantially of wood products, including both solid wood and also engineered wood products made from wood particles, fibers, or other wooden materials such as plywood, oriented strand board, particle board, and fiberboard, with or without wood veneers, wood overlays, or laminates, with or without non-wood components or trim such as metal, marble, leather, glass, plastic, or other resins, and whether or not assembled, completed, or finished.
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Since 2004, imports of wooden beddroom furniture from China have been subject to dumping duties and the current PRC rate is 216 percent.

The US Department of Justice alleged that for a five year period (2009 to 2014), Bassett evaded payment of antidumping duties owed by misclassifying the furniture as non-bedroom furniture on import documents. By classifying imports as “non-bedroom furniture”, Bassett avoiding paying the duty rate of 216%.

In general, antidumping duties are imposed against foreign companies for “dumping” products into the US market at prices below cost. Most of the foreign companies are located in “non market economy” countries such as People’s Republic of China and the Socialist Republic of Vietnam. By imposing anti dumping duties on goods, the US Department of Commerce is attempting to protect US businesses and “level the playing field” for domestically manufactured products.

Given the current administration in the White House, we can expect the Department of Justice, CBP, and Commerce to further strengthen their enforcement of antidumping duties for any and all goods entering the US.

If you are not sure whether your imports from China are considered “wooden bedroom furniture, or if you have been alleged to violate the false claims act by misclassifying imports, avoiding payment of duties or any other import and export related claim from the US government, contact David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com immediately. There is no cost for the initial consultation and in most instances, time limits to take action are running – don’t miss your chance, contact us today.