Category Archives: furniture

Importer and company executives pay $5.2 million penalty under the FCA.

April 26, 2020 By in ADD/CVD, Attorney, DOJ, furniture, international trade, qui tam, Uncategorized, whistleblower Tags: , , , , , , , , , Leave a comment
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The DOJ recently announced a $5.2 million settlement from importer, Blue Furniture Solutions, LLC, based on alleged importation of merchandise into the United States using false descriptions and invoices that claimed the merchandise was not within the scope of the antidumping duties on wooden bedroom furniture from China.

A whistleblower under the FCA’s qui tam provisions exposed Blue Furniture Solution’s intentional misrepresentations totaling $1.7 million in antidumping payments. The US Department of Justice (DOJ) intervened under the FCA.

One year later, on April 20, 2020, the DOJ announced the $.52 million settlement – in which the company pays $4.7 million and executives pay $550,000 for personal liability. Information on this case can be found in the following: United States ex rel. University Loft Company v. Blue Furniture Solutions, LLTC et al., No. 15-CV-588-LY (W.D. Tex.). The related criminal matter appeared under the case name United States v. Zeng, No. 19-CR-64-DCN (D.S.C.).

If you believe an importer is misrepresenting their customs entry to save on AD duties, or if you are a subject of an FCA investigation, contact experienced customs and trade law attorney David Hsu at 832-896-6288 by phone or text; or email attorney.dave@yahoo.com.

Vietnamese Furniture makers win in Trump’s trade war.

July 5, 2019 By in ADD/CVD, furniture, transshipment, Uncategorized Tags: , , , , , , Leave a comment
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A Bloomberg article highlights one of the winners in Trump’s trade war with China – that being Vietnamese furniture manufacturers.

With imports of Chinese furniture subject to a 25% duty in addition to any applicable anti-dumping or countervailing duties, furniture companies in Vietnam are cashing in as the tariff-free alternative to Chinese manufacturing.

The Bloomberg article quotes, the CEO of Xuan Hoa Vietnam Joint Stock Co., a furniture company that has seen a boom in international visitors – including Ikea. Xuan Hoa is a long time Ikea manufacturer (past 17 years) and their ability to produce cheaper than China is only increasing under the trade war.

In addition to not being subject to 301 duties or AD/CVD duties, the Bloomberg article cites labor costs half of what they are in China and lower electricity costs as it is subsidized by the government. Vietnam’s shared border with China also allows for the ease of materials and components.

If you are a furniture importer from China and want to learn how to save on import duties, contact trade and customs attorney by mobile/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

Blue Furniture Solutions reach plea deal on lying to avoid paying tariffs.

April 14, 2019 By in ADD/CVD, furniture, Uncategorized Tags: , , Leave a comment
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Jeff Zeng, President of Blue Furniture Solutions in Miramar, Florida signed a plea agreement in March admitting his participation in a plan to avoid payment of tariffs.

As you are aware – furniture from China, especially wooden bedroom furniture is subject to antidumping and countervailing duties. Most importers attempt to avoid the duties by shipping the goods from China to Vietnam/Malaysia/Indonesia and relabeling the boxes as any other country but China – a practice known as transshipment.

However, Blue Furniture Solutions and instead tried to get around the duties (as high as 216% percent) by submitting customs forms mislabeling their furniture. Most likely they reported the country of origin as some place other than China.

If you are a furniture importer and are interested in looking at ways to save on duties – there are some ways our firm can help. Email antidumping and countervailing duty attorney David at attorney.dave@yahoo.com or call/text 832.896.6288 for a free, confidential consultation.