Audio electronics giant Harman International Industries, Inc., whose brands include Harman Kardon®, JBL®, and Mark Levinson®, has agreed to a hefty $11.8 million settlement over allegations of customs duty evasion. The payment is intended to resolve claims that Harman skirted antidumping and countervailing duties on extruded aluminum from China, which is crucial in the manufacturing of thermal devices for electronics. In a straightforward delivery of the facts, the U.S. Attorney's Office for the Eastern District of Michigan reported the settlement yesterday.
According to a statement by U.S. Attorney Jerome F. Gorgon Jr., Harman has knowingly avoided these duties, which are meant to prevent unfair overseas competition and trade practices, for over a decade. After being confronted with its failure to pay required duties for the imported heat sinks, Harman allegedly concealed their deliberate evasion, failing to disclose this to the United States authorities. The electronics company, led by its portfolio of well-known brands, inappropriately managed to evade the antidumping and countervailing duties that sought to level the playing field for American companies.
Customs and Border Protection (CBP) was pivotal in bringing the company's transgressions to light, noted Acting Executive Assistant Commissioner Susan S. Thomas. Together with the Department of Justice (DOJ), they unearthed Harman's failure to comply with import duties, culminating in the multimillion-dollar settlement to resolve the civil liability under the False Claims Act and customs laws. Christopher Abbott, who is performing the duties and functions of the Assistant Secretary of Enforcement and Compliance at the Department of Commerce, hailed the vigilant effort of both DOJ and CBP in maintaining the integrity of AD/CVD orders and protecting American industries and their workforce.
Contributing to the resolution of these allegations was a whistleblower lawsuit, a tool that allows individuals to blow the whistle on fraud and partake in the recovery of funds, the press release detailed. The case, labeled United States ex rel. Jesrel Mitre v. Harman International Industries, Inc., has led to a whistleblower receiving $2,302,877.46 from the settlement. This marks a tangible outcome of the government's focused efforts to combat fraud and safeguard fair trade practices.
