Evolutions Flooring Inc., based in South San Francisco, California, and its owners, Mengya Lin and Jin Qian, have agreed to pay $8.1 million to settle allegations of evading customs duties on multilayered wood flooring imported from China. The settlement reflects the company's and owners' ability to pay.
Importers entering goods into the United States must declare the country of origin, value, applicable duties, and amount owed. U.S. Customs and Border Protection (CBP) collects these duties, including antidumping and countervailing duties set by the Department of Commerce and Section 301 duties imposed by the Office of the United States Trade Representative.
The allegations against Evolutions include knowingly evading customs duties such as antidumping, countervailing, and Section 301 duties on products imported between September 1, 2019, and July 31, 2022. It is alleged that false information was submitted regarding manufacturers' identities and countries of origin.
Acting United States Attorney Joseph McNally stated: “The outcome of this case demonstrates that our office and its CBP partners will continue to safeguard the nation’s economic well-being.” Acting Assistant Attorney General Yaakov M. Roth added: “The department will pursue those who seek an unfair advantage in U.S. markets.”
Director Cheryl M. Davies from CBP's Los Angeles Field Office noted CBP's role in providing expertise during the investigation: “Through its efforts...CBP contributed to a successful outcome in this matter.”
The lawsuit was filed by Urban Global LLC under the False Claims Act's whistleblower provision in the Central District of California. Urban Global LLC will receive approximately $1,215,000 from the settlement proceeds.
Assistant United States Attorney Sheng-Wen D. Jui and Senior Trial Counsel Christelle Klovers handled this case with support from various government divisions.
It is important to note that these claims are allegations only; no liability has been determined.