On October 7, the US Department of Justice announced that it has filed a civil fraud lawsuit against Uni-Tile & Marble, a Chinese building materials importer in the Northern California Bay Area, and its CEO, seeking to recover over $290 million in tariffs and fines.
The lawsuit was filed on September 28 at the US Court of International Trade against Uni-Tile & Marble Inc. and its CEO and CFO, Xin Mian Pan. The Department of Justice seeks to hold both defendants jointly liable to repay $67,922,260.09 in unpaid tariffs and an additional $222,537,664.95 in fraud penalties, plus interest.
The complaint alleges that from September 2018 to August 2023, the defendants made or induced substantial false statements or concealed vital information in the declaration of approximately 503 batches of goods imported from China to the US Customs and Border Protection (CBP). The goods involved include wooden cabinets and vanities, quartz countertops, ceramic tiles, leading to the underpayment of tariffs by the US government.
Assistant Attorney General of the Civil Division, Brett A. Shumate, stated in a press release that this lawsuit demonstrates the Justice Department’s commitment to enforcing trade laws and holding accountable those who evade responsibilities. The Justice Department will continue to utilize various enforcement tools to ensure US manufacturers and workers compete in a fair environment.
According to the complaint, Uni-Tile acted as the importer in around 372 declarations. The defendants allegedly transshipped Chinese-made goods through Malaysia, falsely claiming Malaysia as the origin during declaration by listing Malaysian companies as manufacturers. When CBP inspected these companies in Malaysia, no manufacturing activities were found. The defendants also allegedly undervalued declared goods or misclassified quartz products as granite, engineered stone, exempt from anti-dumping duties.
The complaint states that CBP initiated a Enforcement and Protection Act (EAPA) investigation in March 2022. Subsequently, the defendants switched to using several shell companies as importers instead of Uni-Tile, involving around 130 declarations. These shell companies were registered in Colorado and California, with some using identities stolen from others. CBP found Uni-Tile’s address in Hayward on container labels during inspections. Lab tests on the submitted stone materials showed the main component was quartz.
The complaint indicated that CBP issued a pre-penalty notice in December 2025, followed by a formal penalty and duty demand in February 2026, but the defendants have not paid anything to date. The insurance company acting as a surety has paid a total of $370,000 in bail, deducted from the amount sought by the Justice Department.
The fraud penalty amount is equal to the value of the implicated goods in the US, which is the legal maximum. Should the court not find fraud, the Justice Department alternatively seeks lower duties and fines based on gross negligence or ordinary negligence. The Department has requested a jury trial.
It is emphasized that the contents of the complaint are merely accusations, and the responsibility of the defendants has not been determined by the court.
This is not the first time Xin Mian Pan has faced repercussions in this case. The US Attorney’s Office for the Northern District of California announced on December 18, 2025, that a federal grand jury had indicted Xin Mian Pan, Uni-Tile, and their affiliated company Uni-Stone & Cabinet. Co-defendants in the same case include customs broker Hua Liang Xie, resident of China Jinhua Wang, and Shenzhen Top & Profit International Forwarding, a Shenzhen logistics company where Wang served as a manager. The defendants were charged with conspiracy, wire fraud, smuggling, and making false statements in importing goods. Xin Mian Pan and the two companies additionally faced charges of international money laundering.
In the criminal case, the defendants were accused of evading over $198 million in duties from around 520 batches of goods. An example from the indictment in February 2021 involved ceramic tiles shipped from Qingdao, transshipped through Malaysia, with a declared payment of only $2,853.99. The indictment stated that if the Chinese origin was truthfully declared, the anti-dumping and countervailing duties payable would be $227,296.74.
The civil complaint reveals that as of the end of September, the criminal case is still under trial. All defendants are presumed innocent until proven guilty.
The US Department of Commerce can impose anti-dumping (AD) and countervailing duties (CVD) on specific foreign imported goods. The former targets goods sold in the US below fair market prices, while the latter targets goods benefiting from substantial subsidies by foreign governments, allowing them to sell at lower prices. When both apply, it is referred to as a “combined tax rate.” According to Department of Justice documents, Chinese-made ceramic tiles have been subject to a combined tax rate of 689.50% since 2020.