Ford Settles with DOJ for $365 Million Over Alleged Tariff Violations

Automaker Ford has agreed to pay $365 million to resolve allegations brought forth by the US Department of Justice (DOJ) regarding violations of federal tariff laws. The settlement comes after accusations that Ford understated the value of its Transit Connect vehicles to avoid higher import duties. The DOJ announced that the settlement has addressed the allegations, which revolved around suspicions of a scheme to circumvent increased tariffs by misclassifying cargo vans imported from Turkey between April 2009 and March 2013.

Acting Associate Attorney General Benjamin C. Mizer hailed the settlement as a significant step in holding companies accountable for misclassifying imports to evade rightful duties. He emphasized that such actions undermine trade laws and harm American taxpayers. Importantly, the settlement does not constitute an admission of wrongdoing on Ford’s part but instead resolves the allegations brought against the company by the US government.

The DOJ specifically accused Ford of engaging in a multi-year scheme involving the importation of cargo vans into the US from Turkey. Prosecutors alleged that the company presented customs officers with misleading features, such as “sham rear seats,” to falsely categorize the vans as passenger vehicles. According to the DOJ, these temporary modifications were aimed at avoiding the 25 percent duty rate applicable to cargo vehicles, instead of paying the lower duty rate of 2.5 percent for passenger vehicles.

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized that importers have a duty to accurately declare the nature of their products and pay the appropriate duties. He stated that the government will not tolerate attempts to evade duties through deceptive practices. The settlement underscores the commitment of US Customs and Border Protection (CBP) to enforce customs laws fairly. Senior officials highlighted the importance of collaboration between CBP and the DOJ in safeguarding US revenue and ensuring compliance with trade regulations.

The resolution of this case represents one of the largest customs penalty settlements in recent history, signaling the government’s resolve to hold corporations accountable for violating trade laws. It serves as a reminder to companies of the consequences of attempting to evade duties through fraudulent means. Moving forward, the DOJ and CBP will continue to monitor importers closely and take decisive action against those found to be engaging in unlawful practices. The settlement also underscores the importance of transparency and integrity in international trade, promoting fair competition and safeguarding the interests of all stakeholders involved.