Wanxiang Settlement Concludes Decade-long Tariff Litigation

The U.S. Justice Department settled with Wanxiang America, a Chinese auto parts supplier, over unpaid import tariffs on wheel hub assemblies. After a decade of litigation, the U.S. collected over $30 million in civil penalties. Wanxiang did not admit wrongdoing but had misclassified the imports to avoid antidumping tariffs.

WASHINGTON, Dec 18 – The U.S. Justice Department announced a settlement with Wanxiang America, a Chinese auto parts supplier, over disputes related to import tariffs.

The resolution marks the end of nearly ten years of legal proceedings, with the U.S. successfully recovering over $30 million in civil penalties and lost revenue. The settlement concerns misclassified wheel hub assemblies imported by Wanxiang, resulting in underpaid customs fees.

Despite these findings, Wanxiang America did not admit any wrongdoing, although it failed to declare these imported parts under the antidumping tariff order, leading to significant financial penalties.