China has been flooding overseas markets with a large number of low-priced goods, causing losses to related industries around the world and sparking high levels of concern and worry in the international community. The United States is rigorously implementing anti-dumping duties on Chinese goods and cracking down on tax evasion by importers.
On Thursday, October 31, the U.S. Department of Justice filed a civil lawsuit against Lawrence Bivona, former president of children’s furniture importer LaJobi Inc., accusing him of evading anti-dumping duties on Chinese-made children’s furniture. The lawsuit demanded him to pay $7 million in unpaid taxes and imposed civil penalties of over $15 million, totaling approximately $22 million.
According to a statement from the Department of Justice, Bivona provided false information when declaring to Customs and Border Protection (CBP), deliberately concealing the actual manufacturer of the furniture in an attempt to avoid a 216% anti-dumping duty rate. He falsely claimed that the furniture was produced by manufacturers subject to a tax rate of only 7% or lower.
When goods enter the United States, importers are responsible for providing all necessary information for CBP to assess the applicable taxes on the imported goods, including anti-dumping duties.
Anti-dumping duties are a trade remedy measure aimed at protecting domestic industries from unfair trade practices by foreign companies and countries, such as government subsidies or dumping at prices below market value.
To combat China’s unfair trade practices, such as dumping at low prices, the United States imposed anti-dumping duties on Chinese furniture since 2004.
Brian M. Boynton, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice, stated, “Anti-dumping duties play a crucial role in combatting illegal trade practices and protecting American manufacturers. We will continue to hold accountable those who seek to obtain unfair advantages by violating trade laws.”
The case is currently pending in the U.S. Court of International Trade under the case number United States v. Lawrence Bivona, number 24-00196.
In addition, the Department of Justice has established a Trade Fraud Task Force to combat trade fraud, including import tax evasion, and works closely with CBP and other enforcement agencies to ensure compliance with U.S. trade laws.
The case is still in the charging stage, and there has been no final judgment on Bivona’s liability.
Susan Thomas, Executive Director of the CBP Office of Trade and Transportation Security, emphasized the importance of enforcing anti-dumping duties, stating that these civil penalties not only protect the U.S. economy but also uphold fair trade and prevent predatory behavior from damaging the U.S. job market.
Ivan J. Arvelo, Assistant Director of Global Trade Investigations at Homeland Security Investigations (HSI), stated that HSI will continue to work with CBP and other agencies to combat any attempts to evade U.S. trade regulations through fraudulent activities.