A New York-based pharmaceutical distributor is resolving allegations of False Claims Act violations.
Danco Laboratories LLC has agreed to pay $765,000 to resolve allegations relating to failure to pay customs duties, the U.S. Justice Department said in an April 12 news release. The company is alleged to have failed to pay marking duties on imported pharmaceutical products which would identify their country of origin.
“The False Claims Act protects the public fisc by imposing liability not only on those who knowingly submit false claims to the United States, but also on those who knowingly avoid obligations owed to the United States," Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said in the release. "This settlement demonstrates the department’s commitment to ensure that importers properly pay all amounts due under our customs laws.”
Companies that import goods from abroad into the United States are required under the Tariff Act of 1930 to label the nation of origin on those goods. Importers are charged a 10% ad valorem levy if their goods are not marked, according to the news release.
Danco is alleged to have failed to mark imported pharmaceutical products 2011-19, the release said. This was in an effort to avoid paying the marking duties.
“Our office is committed to ensuring that importers are transparent with consumers and comply with customs laws and the False Claims Act. We will continue to pursue aggressively those who seek to avoid their duties and obligations under the law,” U.S. Attorney Brit Featherston said in the release.
“The United States has required imported goods to be marked with their country of origin for generations, so American consumers can use that information in their purchasing decisions," U.S. Customs and Border Protection New York Field Office Director Frank Russo said in the release. "CBP takes the marking laws very seriously, and is pleased to work with our partners to ensure importers adhere to all customs laws.”
