The Justice Department has initiated a civil lawsuit against Paul Bakhoum, the former Vice President for Operations at Ecosolargy Inc., a California-based corporation. The lawsuit accuses Bakhoum of making false statements to customs officials to evade paying duties on Chinese-manufactured solar panels imported into the United States.
Importers are required to provide Customs and Border Protection (CBP) with all necessary information to assess applicable duties, including harmonized tariff schedule (HTS), antidumping, and countervailing duties. These duties are essential for protecting domestic industries from unfair trade practices such as government subsidies or below-market sales.
The complaint alleges that Bakhoum misclassified the imported solar panels as LED lights. It further claims that he negligently misrepresented the HTS code and value of the panels and failed to apply the correct antidumping and countervailing duty rates.
“The Justice Department is committed to pursuing those who evade customs duties or otherwise engage in unfair trade practices that harm U.S. manufacturers,” stated Principal Deputy Assistant Attorney General Brian M. Boynton. “We will continue to employ all of our available tools to ensure that U.S. manufacturers are competing on a level playing field.”
Susan Thomas, Executive Director of CBP’s Cargo and Conveyance Security, Office of Field Operations, remarked, “CBP takes its trade mission of protecting the U.S. economy very seriously as we strive to maintain fair trade and preserve American jobs from predatory practices.”
The lawsuit seeks nearly $300,000 in import duties and approximately $800,000 in civil penalties.
CBP’s Electronics Center of Excellence and Expertise conducted the investigation, with enforcement by CBP and Homeland Security Investigations. Trial Counsel Daniel Hoffman from the Civil Division’s Commercial Litigation Branch handled the case.
Filed in the Court of International Trade under United States v. Paul Bakhoum No. 24-00188, this case is part of broader efforts by the Justice Department's Trade Fraud Task Force to combat trade fraud and ensure compliance with U.S. trade laws.
It is important to note that these claims are allegations only, with no determination of liability yet made.