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California firms to pay $1.8B for avoiding import duties

China aluminum
Posted at 12:38 PM, Apr 12, 2022
and last updated 2022-04-12 15:38:31-04

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.