Harman International Industries, Inc., a major audio electronics manufacturer known for brands such as Harman Kardon, JBL, and Mark Levinson, has agreed to pay $11.8 million to resolve allegations that it evaded U.S. customs duties on certain imported goods from China.
According to the United States Attorney’s Office for the Eastern District of Michigan, the settlement addresses claims that between June 1, 2011 and March 31, 2023, Harman knowingly imported heat sinks containing extruded aluminum from China without paying required antidumping and countervailing duties (AD/CVD). These duties are designed to protect American companies from unfair trade practices by foreign firms selling products at below-market prices or benefiting from government subsidies.
The Department of Commerce is responsible for assessing these duties while U.S. Customs and Border Protection (CBP) collects them. The government alleged that when Harman was confronted about not paying the necessary AD/CVD on these imports, the company concealed its actions rather than disclosing them.
“For more than a decade, Harman knowingly evaded duties designed to prevent unfair foreign subsidies and trade practices,” said United States Attorney Gorgon. “But we will use the law to protect our American companies against cheaters. And when we catch them, they will pay for it.”
Acting Executive Assistant Commissioner Susan S. Thomas of CBP’s Office of Trade stated: “CBP played a critical role in assisting with DOJ’s investigation concerning Harman’s failure to pay antidumping and countervailing duties on imported electronic components, resulting in a settlement of $11.8 million to resolve its civil liability under the False Claims Act and the customs laws. This case underscores CBP’s commitment to enforcing the customs and trade laws and ensuring the protection of revenue to promote U.S. economic security.”
Christopher Abbott from the Department of Commerce commented: “We commend the sustained effort and diligence of DOJ and CBP in maintaining the integrity of AD/CVD orders. Their work ensures that American industries and workers receive the relief they are entitled to under the law.”
Laura Barsczewsk from the Department of Commerce Office of Inspector General added: “This settlement reflects the strong partnership between the Department of Commerce OIG, our law enforcement partners, and the Department of Justice to ensure the integrity of U.S. trade laws and hold companies accountable when they circumvent duties designed to protect American industries. We will continue to work together to uphold integrity in public service.”
The case originated from a whistleblower lawsuit filed under provisions allowing private parties to sue on behalf of the government regarding false claims; such whistleblowers may receive part of any recovery obtained by authorities. In this instance, whistleblower Jesrel Mitre will receive over $2.3 million as part of this settlement.
Assistant U.S. Attorney Anthony Gentner led this matter for Michigan’s Eastern District with coordination among several federal agencies including DOJ, CBP, and Commerce.
Authorities noted that combating fraud remains a key focus area for federal enforcement efforts; individuals can report suspected customs fraud through official channels at www.help.cbp.gov/s/tip.
The settlement resolves allegations only; there has been no determination or admission of liability by Harman.
