A major supplier of countertops and cabinetry in Dallas, Texas, Allied Stone Inc., along with its President, Jia “Jerry” Lim, has agreed to pay $12.4 million to settle allegations that they intentionally evaded import duties on quartz surface products from China.
The case highlights the U.S. government’s ongoing crackdown on companies that attempt to skirt rules designed to protect American manufacturers.
Justice Department Emphasizes Accountability
Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division stressed that the settlement reinforces the department’s commitment to holding businesses accountable.
“This settlement reflects our commitment to hold accountable those who evade or conspire to evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for American manufacturers,” Shumate said.
He added that the DOJ will aggressively pursue anyone trying to gain an unfair advantage in U.S. markets.
Northern Texas Authorities Highlight Trade Compliance
Acting U.S. Attorney Nancy E. Larson for the Northern District of Texas echoed the message, noting the importance of trade compliance.
“This case demonstrates that the United States Attorney’s Office for the Northern District of Texas and its partners will use every tool available to ensure compliance with our nation’s trade policy, including customs, duties, and tariffs on foreign imports meant to level the playing field,” Larson explained.
She emphasized that U.S. companies cannot ignore the evasion of customs duties.
Customs Officials Stress Legal Obligations
From the customs side, Susan S. Thomas, acting Executive Assistant Commissioner of the Office of Trade at U.S. Customs and Border Protection (CBP), underscored the seriousness of providing false information to authorities.
“Providing false information to CBP violates the law, and it is imperative that violators face consequences,” Thomas said.
She added that CBP works closely with the DOJ to maintain fair competition for U.S. businesses.
How Import Duties Work
Importers entering goods into the U.S. must declare key details, including the country of origin, value, and any duties owed.
CBP collects these duties, which can include antidumping and countervailing duties set by the Department of Commerce.
Antidumping duties prevent foreign companies from selling products at unfairly low prices, while countervailing duties counteract subsidies from foreign governments.
Quartz surface products from China were subject to both types of duties during the period in question.
Allegations Against Allied Stone and Jerry Lim
The settlement addresses claims that Allied Stone and Lim intentionally evaded duties between September 29, 2018, and February 7, 2023.
The government alleged that the company misrepresented Chinese quartz products as lower-duty items like marble or crystallized glass to avoid paying the correct fees.
The allegations also include failing to declare and pay the appropriate antidumping and countervailing duties and failing to ensure that other parties involved in importing the goods did so properly.
Whistleblower’s Role in the Case
The lawsuit was originally filed under the False Claims Act by whistleblower Melinda Hemphill, who is entitled to a portion of the settlement.
Under the law, private parties can bring claims on behalf of the U.S. government for false claims.
Hemphill will receive roughly $2.17 million as part of this settlement.
The case is officially titled United States ex rel. Melinda Hemphill v. Allied Stone Inc., et al., No. 21-cv-2955 (N.D. Tex.).
Collaboration Leads to Resolution
The successful resolution came through a joint effort among the DOJ’s Civil Division, the U.S. Attorney’s Office for the Northern District of Texas, and CBP offices, including the Office of Associate Chief Counsel, Gulf Southwest Region, and Trade Regulatory Audit within CBP’s Office of Trade.
Trial attorneys Gavin Thole, Najib Gazi, and Richard Guiltinan were directly involved in handling the case.
No Determination of Liability
It’s important to note that the settlement resolves allegations only.
No court determination of liability has been made against Allied Stone or Jia Lim.
