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Thursday, October 31, 2024

US files suit against former LaJobi Inc. president over unpaid import duties

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Lisa O. Monaco Deputy Attorney General | Official Website

The United States has initiated a civil lawsuit against Lawrence Bivona, former President of LaJobi Inc., for allegedly avoiding the payment of antidumping duties on Chinese-manufactured children's bedroom furniture imported into the country. The legal action claims that Bivona made false statements to customs officials, thereby evading significant duty payments.

Importers are required to provide Customs and Border Protection (CBP) with all necessary information for assessing applicable duties, including antidumping duties. These duties serve as trade remedies to protect domestic industries from unfair foreign trade practices such as subsidies or sales below market value.

The complaint alleges that Bivona misrepresented the manufacturers of the imported furniture, claiming they were entities subject to lower duty rates around 7%, while failing to disclose they were actually subject to much higher rates of 216%.

“Anti-dumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” stated Principal Deputy Assistant Attorney General Brian M. Boynton. He emphasized the commitment to pursue those violating trade laws for unfair advantage.

Susan Thomas from CBP’s Cargo and Conveyance Security highlighted the significance of these penalties in supporting fair trade and protecting American jobs: “CBP’s antidumping and countervailing duties enforcement aims to mitigate harm by anti-competitive behavior and supports a level playing field for U.S. companies injured by unfair trade practices.”

Ivan J. Arvelo from Homeland Security Investigations (HSI) reiterated their dedication: “HSI is committed to working alongside CBP and partners to stop those who engage in fraud to circumvent U.S. trade laws.”

The lawsuit seeks over $7 million in unpaid import duties and more than $15 million in civil penalties. HSI Newark led the investigation with support from various CBP departments, highlighting inter-agency cooperation in enforcing U.S. importation laws.

Trial Counsel Daniel Hoffman is handling the case filed under United States v. Lawrence Bivona No. 24-00196 at the Court of International Trade.

In efforts against trade fraud like duty avoidance, the Justice Department has established a Trade Fraud Task Force, partnering with CBP and other agencies for compliance with U.S. trade laws.

The allegations remain unproven as there has been no determination of liability yet.

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