CENTRIC PARTS TO PAY $8 MILLION TO RESOLVE ALLEGATIONS PAY US IMPORT DUTIES ON BRAKE PADS – AFTER WHISTLEBLOWERS DENOUNCED IT AND DESPITE FILING FOR BANKRUPTCY

A news release from US Immigration and Customs Enforcement on 22 July announced that CWD LLC, which operates under the name Centric Parts, a Delaware corporation, has agreed to pay $8 million to resolve allegations that it violated the False Claims Act and the Tariff Act of 1930 by knowingly underpaying customs duties owed to the US on imported brake pads. The allegations were that, from 2007 to 2017, Centric Parts falsely claimed on entry documents that mounted brake pads, which carry a 2.5% tariff, were unmounted brake pads, which require no duty payment – and that when confronted with the misclassifications in 2017, company officials decided to conceal and not disclose the past false entry documents to US Customs & Border Protection. 2 “whistleblowers,” will receive a total of $1.48 million as their share of the settlement. Although Centric Parts has filed for bankruptcy protection, the bankruptcy court entered an order confirming the company’s plan of reorganization that explicitly provides the settlement debt is non-dischargeable and will be paid by the reorganised company.

https://www.ice.gov/news/releases/centric-parts-pay-8-million-resolve-allegations-failing-pay-united-states-millions

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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