U.S. Justice Department Secures $30 Million Settlement in Wanxiang Tariff Case

The U.S. Justice Department reached a settlement with Wanxiang America for improperly classified imports of auto parts, ending a decade-long litigation. Wanxiang will pay over $30 million in penalties but did not admit wrongdoing. The case involved false classifications to evade anti-dumping tariffs imposed since 1987.

The U.S. Justice Department announced Thursday that it has reached a significant settlement with Wanxiang America, the U.S. branch of the Chinese auto parts supplier. The settlement resolves a nearly decade-long litigation over unpaid import tariffs related to wheel hub assemblies and other automotive parts.

The litigation, which spanned over ten years, concluded with the U.S. government recovering all sought-after revenues alongside over $30 million in civil penalties. The Justice Department accused Wanxiang of misclassifying imported parts to avoid tariffs that were established under an anti-dumping order dating back to 1987.

The penalty follows a 2019 U.S. government demand for back tariffs and penalties totaling nearly $100 million after an audit was initiated in 2012. Despite the settlement, Wanxiang did not admit to any wrongdoing, and two U.S.-based attorneys representing the company have not responded to requests for comment.

(With inputs from agencies.)