E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
Evolutions Flooring Inc., a flooring importer based in South San Francisco, California, and its owners Mengya Lin and Jin Qian have agreed to settle allegations of customs duties evasion. The settlement amount is $8.1 million, reflecting the company's ability to pay.
The allegations involve violations of the False Claims Act by allegedly evading customs duties on multilayered wood flooring imported from China between September 2019 and July 2022. These imports were subject to antidumping, countervailing, and Section 301 duties meant to protect U.S. industries.
U.S. Customs and Border Protection (CBP) collects these duties, which include measures against foreign companies selling products below cost or benefiting from government subsidies. Section 301 duties impose trade sanctions on countries violating U.S. trade agreements.
The United States alleged that Evolutions submitted false information about the manufacturers and origin of the imported goods. Acting United States Attorney Joseph McNally stated that this case highlights efforts to protect economic interests and ensure fair competition for legitimate businesses.
Acting Assistant Attorney General Yaakov M. Roth emphasized the importance of import duties as government revenue sources and tools for maintaining market fairness. CBP's Cheryl M. Davies credited her team with providing critical support during the investigation.
The lawsuit was filed by Urban Global LLC under the False Claims Act's whistleblower provision in the Central District of California (United States of America ex rel. Urban Global LLC v. Struxtur Inc., No. CV20-7217). Urban Global LLC will receive approximately $1,215,000 from the settlement proceeds.
This resolution resulted from collaboration among various legal divisions and CBP offices involved in regulatory audits and investigations related to industrial materials imports.
Assistant United States Attorney Sheng-Wen D. Jui and Senior Trial Counsel Christelle Klovers managed this case for their respective divisions.
It is important to note that these claims are only allegations; no liability has been determined.
