Jewelry Importer to Pay $400,000 to Resolve False Claims Act Allegations Concerning Unpaid Customs Duties on Chinese Earrings

BOSTON – A former jewelry importer, TSI Accessories Group, Inc. (TSI), will pay $402,637 to resolve allegations that it violated the False Claims Act by failing to pay customs duties on sterling silver earring imports from China.

Under customs laws, duties on sterling silver earrings imported from China vary based on the value of the jewelry—the more expensive the earrings, the lower the duty rate. An earring’s value is calculated per earring (rather than each pair of earrings or collection of earrings).

Between 2012 and 2015, TSI imported display cards of sterling silver earrings from China for resale at department stores. The display cards often included multiple pairs of earrings. The government contends that TSI improperly concealed the number and value of these imports from U.S. Customs and Border Protection by describing on import records the number of display cards imported, rather than the number of individual earrings. TSI’s misstatements increased the declared value of the imports, allowing TSI to pay a lower duty than it should have based on the value of each earring.

https://www.justice.gov/usao-ma/pr/jewelry-importer-pay-400000-resolve-false-claims-act-allegations-concerning-unpaid