DALLAS, TX – Allied Stone Inc., a Dallas-based supplier of countertops and cabinetry products, and its President, Jia “Jerry” Lim, have agreed to pay $12.4 million to resolve allegations that they evaded or conspired to evade U.S. duties on quartz surface products imported from China, the Department of Justice announced.
“This settlement reflects our commitment to hold accountable those who evade or conspire to evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for American manufacturers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by evading or conspiring with others to evade duties owed.”
The settlement addresses claims that between September 29, 2018, and February 7, 2023, Allied Stone and Lim misrepresented Chinese quartz products as other materials, such as marble or crystallized glass, to avoid paying required antidumping and countervailing duties. The allegations also state they failed to declare and pay the proper duties or ensure that third parties did so.
“This settlement reflects our commitment to hold accountable those who evade or conspire to evade duties owed on imported goods,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. Acting U.S. Attorney Nancy E. Larson for the Northern District of Texas added that the case underscores the federal government’s efforts to enforce trade compliance and protect U.S. businesses.
The resolution stems from a civil lawsuit filed under the whistleblower provision of the False Claims Act by relator Melinda Hemphill. Under the settlement, Hemphill will receive approximately $2.17 million.
U.S. Customs and Border Protection also participated in the investigation. Officials note that the claims are allegations, and no determination of liability has been made. The case was filed in the Northern District of Texas, captioned United States ex rel. Melinda Hemphill v. Allied Stone Inc., et al., No. 21-cv-2955.
