Chainsaw Chain Importers Agree to Pay $500K Settlement Over Misclassified Imports Case
Two chainsaw chain and blade importers, TriLink Saw Chain and TriLink Global, agreed to pay $525,000 to settle allegations that the companies misclassified their imports, the U.S. Attorney's Office for the Northern District of Iowa said. The U.S. alleged that the importers purposely classified their chain saw chains and blades from September 2018 through June 2019 under the wrong Harmonized Tariff Schedule subheading to avoid paying Section 301 China tariffs -- a violation of the False Claims Act.
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“False classification of imported goods deprives the United States of tariffs that are due and owing under the law and results in unfair competition against law-abiding companies,” said Timothy Duax, acting U.S. attorney for the Northern District of Iowa. “We will continue to work with our federal partners to hold importers accountable to ensure that they do not avoid payment to the United States.”
The qui tam lawsuit stemmed from a whistleblower complaint alleging misclassification. As such, the whistleblower will get a cut of the settlement, though it is unclear how much. "This is a prime example of the vigilance of our CBP employees, and our use of a whole of government approach," said LaFonda Sutton-Burke, the Chicago director of field operations for CBP. "Entities that attempt to defraud the U.S. Government, the American people, and our economy will not succeed.”