Auto Parts Importer To Pay $8M Over Brake Pad Tariff Claims

By Jennifer Doherty (July 23, 2020, 5:36 PM EDT) -- The holding company behind several U.S. auto parts suppliers will pay $8 million to settle allegations that the company dodged brake pad tariffs dating back to 2006, the U.S. Department of Justice announced Thursday.

Two False Claims Act cases in Michigan and California brought by employees of CWD Holdings LLC subsidiaries accused the company of systematically subverting the 2.5% tariff on mounted disc brake pads by passing them off to U.S. Customs and Border Protection as unmounted brake pads, which are not subject to tariffs under the U.S. Harmonized Tariff Schedule.

"With this lawsuit and the accompanying resolution, CWD Holdings is...

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