On May 12, 2026, the Department of Justice reported having secured one of the largest customs-related False Claims Act recoveries to date — a $549.5 million settlement with two importers and four affiliated warehousing entities accused of evading antidumping and countervailing duties (AD/CVD) on Chinese-origin aluminum extrusions. According to DOJ, the defendants imported more than 2.2 million aluminum extrusions from China and disguised them as finished merchandise by spot-welding the extrusions together to give the appearance of functional pallets. By presenting the goods as finished pallets rather than extrusions, the importers sought to sidestep AD/CVD orders that would otherwise apply.
The False Claims Act imposes civil liability on importers who knowingly (1) make or use false records material to a duty obligation, or (2) conceal or improperly avoid an obligation to pay duties to the U.S. government. Damages can reach up to three times the amount withheld, plus additional penalties. The FCA's qui tam provisions also empower private whistleblowers to file suit on behalf of the United States and share in any recovery — a feature that has driven a growing pipeline of customs-fraud cases. The matter was handled by DOJ's Civil Division through its Trade Fraud Task Force, which targets tariff evasion and smuggling of prohibited goods. DOJ has reaffirmed that FCA actions remain a centerpiece of its strategy to combat import fraud.