Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice
Harman International Industries, Inc., a major audio electronics company known for brands such as Harman Kardon, JBL, and Mark Levinson, has agreed to pay $11.8 million to resolve allegations that it avoided paying antidumping and countervailing duties on certain imports from China. The announcement was made by United States Attorney Jerome F. Gorgon Jr.
The case centers on the importation of heat sinks containing extruded aluminum from the People’s Republic of China between June 1, 2011 and March 31, 2023. These components are commonly used in the electronics industry for thermal control and were subject to significant antidumping and countervailing duties during this period. U.S. authorities alleged that Harman knowingly failed to pay these required duties when importing the products.
According to the U.S. Attorney’s Office, Harman not only avoided paying the necessary duties but also concealed its actions after being confronted about the failure.
“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 commented on the investigation: "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, performing the duties of Assistant Secretary of Enforcement and Compliance at the Department of Commerce, stated: “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.”
Acting Special Agent in Charge 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 resolution follows a whistleblower lawsuit filed under provisions that allow private individuals to sue on behalf of the government for false claims; such whistleblowers may receive part of any recovered funds as an incentive for reporting wrongdoing.
Assistant U.S. Attorney Anthony Gentner handled this matter for Michigan's Eastern District office as part of a coordinated effort among several federal agencies.
Authorities note that these are allegations only; there has been no determination or admission of liability by Harman.
Anyone with information about potential customs fraud can submit tips or complaints through www.help.cbp.gov/s/tip.
