U.S. Attorney for the Southern District of Florida, Markenzy Lapointe, alongside Bruce Murley, the Acting Director of Field Operations for U.S Customs and Border Protection's (CBP) San Francisco/Portland Field Office, recently disclosed a significant legal settlement. A womenswear company, Alexis, LLC, agreed to pay $7.6 million to settle claims it underreported the value of imported women's apparel, a maneuver that skirted full customs duties.

The settlement hashed out in a civil qui tam lawsuit to which the United States intervened for settlement purposes, is a heavy financial blow to Alexis, LLC—but not an admission of guilt, as observed in a statement from the Department of Justice. Instead, it reflects a resolution for actions between January 1, 2015, and December 31, 2022, in which the False Claims Act (FCA) was violated via the underpayment of duties on merchandise. Alexis LLC and its management fully cooperated with the investigation, which included voluntarily submitting information to the U.S. government that revealed pertinent facts and evidence for this case.

The allegations against Alexis, LLC first emerged from a whistleblower case filed in federal court in Miami. Although Alexis, LLC, disputed the claims, the matter was put to rest following the settlement agreement struck on August 8. As part of measures to avoid future misconduct, Alexis LLC has implemented updated compliance procedures and has focused on employee training to tighten internal controls.

Customs duties are a fundamental aspect of international trade, helping to enforce laws related to importing merchandise into the United States, as per the Harmonized Tariff Schedule of the United States (HTSUS). Lapointe emphasized the importance of holding entities accountable, stating, "As this settlement demonstrates, the United States Attorney’s Office for the Southern District of Florida, along with our CBP partners, will, while continuing to hold accountable entities that engage in improper trade practices and deny our government vital revenues, work to resolve such matters in the interests of justice," according to a Department of Justice report. Further, Murley praised the investigative efforts of CBP employees and pledged ongoing collaboration with agencies to protect U.S. economic interests.

Alexis, LLC admitted to incorrectly valuing imported goods, including incorrectly allocating "Assists" like fabric and clothing trims, and incorrectly categorizing items according to HTSUS codes. Assistant U.S. Attorney James A. Weinkle led the case, highlighting the complexity of international trade compliance and the vulnerability to human error and intentional miscalculation.