California firms to pay $1.8B for avoiding import duties
LOS ANGELES (AP) — Federal prosecutors say six Southern California companies have been ordered to pay $1.8 billion in restitution after evading import duties on aluminum from China and participating in a scheme to artificially inflate the revenues of a Chinese company.
The U.S. Attorney's Office says the scam involved raw aluminum extrusions that were spot-welded together to appear as finished and functional pallets.
Prosecutors say the firms lied to U.S. Customs and Border Protection to avoid paying $1.8 billion in anti-dumping and related duties on extruded aluminum.
Finished aluminum products such as pallets are not subject to the same duties.
