Marco Polo International LLC and its parent company MGI International LLC, based in Melville, New York, along with its subsidiary Global Plastics LLC in New Hampshire, recently reached a settlement with the U.S. Department of Justice to pay $6.8 million to resolve civil claims of violating the False Claims Act and evading tariffs while importing plastic resin from China.
According to regulations by the U.S. Customs and Border Protection (CBP), all importers are required to truthfully declare the country of origin, value, and duty payable on goods. MGI voluntarily disclosed to CBP and federal prosecutors in New Hampshire in 2024 that since May 2019, its subsidiaries Global Plastics and Marco Polo had incorrectly reported the country of origin and value when importing plastic resin from China, leading to tariff evasion.
The Department of Justice stated that MGI and its subsidiaries received lenient treatment due to their voluntary disclosure of errors, full cooperation with the investigation, and implementation of remedial measures such as internal disciplinary actions and enhanced compliance procedures. These actions earned them formal recognition by the Department of Commerce under the False Claims Act for “cooperation and voluntary disclosure”.
Assistant Attorney General for the Civil Division, Brett A. Shumate, said, “We will pursue companies that intentionally evade import duties to gain unfair trade advantages. However, as long as there is voluntary disclosure, cooperation with investigations, and correction of errors, the government will provide appropriate recognition.”
Acting U.S. Attorney for New Hampshire, Jay McCormack, also noted that this settlement highlights the government’s acknowledgment of responsible businesses and signals ongoing efforts to investigate tax evasion.
In another announcement by the Department of Justice yesterday (July 24th), Grosfillex Inc., a patio furniture manufacturer based in Pennsylvania, agreed to pay $4.9 million to settle allegations of evading antidumping (AD) and countervailing duties (CVD) on Chinese extruded aluminum products.
The company was accused of submitting false customs documents by packaging taxable Chinese extruded aluminum parts as “furniture kits”, disguising them as finished products to avoid taxes. Additionally, even after discovering inaccuracies in some customs filings, Grosfillex failed to proactively correct them.
This case originated from a whistleblower lawsuit filed by former employee Edward Wisner under the False Claims Act, and he will receive a reward of $962,662.
The Department of Justice emphasized that antidumping and countervailing duty measures are vital mechanisms to protect U.S. industries, and any company attempting to evade taxes unlawfully will face severe repercussions.
U.S. Customs urged individuals to report any clues related to customs fraud anonymously at www.help.cbp.gov/s/tip.