Grosfillex Pays $4.9 Million for Dodging Aluminum Duties as U.S. Cracks Down on Trade Compliance

Key Takeaways

• Grosfillex Settlement: Grosfillex Inc. will pay $4.9 million to resolve allegations of evading duties on Chinese extruded aluminum by submitting false customs declarations and disguising parts as sham furniture kits.
• Whistleblower Reward: The case was brought under the False Claims Act by a former employee, who will receive over $960,000 from the settlement.
• Trend Toward Enforcement: The case follows a $6.8 million settlement involving Global Plastics LLC and Marco Polo International LLC, who voluntarily disclosed customs violations.
• Voluntary Disclosure Advantage: Unlike Grosfillex, MGI’s subsidiaries received more favorable treatment for their cooperation and remediation efforts.
• Compliance Pressure Mounts: The DOJ and CBP are signaling a heightened focus on trade and tariff compliance, using both enforcement and incentive mechanisms.

Deep Dive

As trade enforcement intensifies across the U.S., patio furniture company Grosfillex Inc. has agreed to pay $4.9 million to settle allegations it evaded antidumping and countervailing duties (AD/CVD) on aluminum components imported from China. The Justice Department announced the False Claims Act settlement Thursday, marking the second significant trade-related case in as many days.

Federal authorities say Grosfillex, based in Pennsylvania, knowingly misrepresented the nature of its imports to U.S. Customs and Border Protection (CBP), falsely claiming certain extruded aluminum furniture parts from the People’s Republic of China (PRC) were not subject to duties. In some instances, the company allegedly disguised these parts as sham furniture “kits” to skirt detection. In others, it failed to correct previously filed customs forms even after learning they were inaccurate.

“Antidumping and countervailing duties protect American companies from unfair subsidies and trade practices that harm domestic industries,” said Assistant Attorney General Brett Shumate. “Today’s settlement demonstrates that the Justice Department will continue to actively pursue those who knowingly fail to pay customs duties.”

The settlement stems from a whistleblower suit filed under the False Claims Act by Edward Wisner, a former Grosfillex employee. He will receive $962,662.74 as his share of the government’s recovery.

U.S. Attorney David Metcalf of the Eastern District of Pennsylvania noted that “this settlement should serve as a warning” that authorities are prepared to use all tools at their disposal to enforce fair trade rules. Homeland Security Investigations (HSI) and CBP also participated in the investigation, which uncovered what officials described as “intricate schemes to defraud the government.”

Trade and Tariff Compliance Under the Microscope

The Grosfillex resolution comes just a day after the Justice Department revealed a $6.8 million settlement with Global Plastics LLC and Marco Polo International LLC (two U.S. subsidiaries of MGI International LLC) for failing to pay customs duties on plastic resin imports from China.

But in contrast to the more combative posture in the Grosfillex case, MGI voluntarily disclosed the violations in 2024, conducted an internal probe, shared its findings with the government, and overhauled its compliance program. Those steps helped the company earn credits under DOJ guidelines and avoid more severe penalties.

Assistant Attorney General Shumate emphasized the dual-track approach, “When importers fail to pay customs duties owed, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking appropriate remedial measures.”

CBP’s Susan S. Thomas called the MGI resolution “a win for honest businesses and the American taxpayer,” reinforcing that voluntary compliance can yield better outcomes for companies caught in violation.

The two cases, taken together, illustrate a broader uptick in enforcement under the False Claims Act targeting trade and tariff violations. As geopolitical tensions rise and supply chain scrutiny deepens, U.S. regulators appear increasingly focused on ensuring a level playing field for domestic manufacturers, whether through settlements, whistleblower-led cases, or incentivized self-disclosure.

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