By: Najla Alexander
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A company based in the People’s Republic of China, along with three businesses in New Jersey and New York, entered into settlement agreements with the United States, admitting they took steps to avoid paying customs duties. U.S. Attorney Philip R. Sellinger reported Monday.
According to the admissions and contentions of the United States in the settlement agreements:
United Silica Products Inc. (USP) is based in Franklin, New Jersey.
From July 22, 2015, and Oct. 6, 2020, USP purchased specific merchandise manufactured by Noble Brand Holdings Ltd. (Noble) in China officials report.
In connection with the sale of its products, Noble generated two sets of invoices – one that showed the amount paid by USP and another, a false invoice that undervalued the products sold to USP.
Noble provided USP with the invoices showing the amount paid and sent the fraudulent invoices to Argos Express Ltd., a New York-based freight forwarding company officials say.
Argos then provided the fraudulent invoices to USP’s New York-based customs broker, United Way International Inc., to make customs declarations on USP’s behalf.
In entering goods into the United States, customs brokers and importers of record are required to provide true and accurate disclosures concerning the value of the imported goods, according to officials.
In the settlement agreements, the companies admitted that the false statements on the customs forms reduced the customs duties paid to the United States authorities say.
Officials say, in the settlement agreements announced today, Noble agreed to pay $500,000; USP and its owner, Lynnmarie Boccuzzo, agreed to pay $20,000 and $5,000, respectively; Argos and United Way agreed to pay $15,000 each.
The payments resolve the parties’ potential liability under, among other statutes, the False Claims Act.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in New York, with the investigation leading to the settlement, officials report.