Good day,
While this may not be new news to many of you, it’s a timely opportunity to remind everyone of the serious risks associated with misclassifying goods at U.S. Customs — especially in light of current tariff pressures. The below case came up in discussion in a trade forum I was reading, and the feeling of concern in the group due to US CBP actively increasing exams, document reviews, etc.
In August 2023, Houston-based importer Vivaldi Commercial was charged under the False Claims Act for mis-declaring Chinese quartz countertops as “crushed glass surfaces.” This misclassification was intended to sidestep antidumping and countervailing duties, resulting in $12.5 million in unpaid tariffs.
Key Takeaways:
- U.S. Customs and Border Protection (CBP) is actively investigating and prosecuting classification fraud.
- Misclassification — even if seemingly minor — can trigger audits, fines, and criminal charges.
- The current tariff environment increases scrutiny and risk for importers.
Best Practices to Stay Compliant:
- Use accurate HTS codes and material descriptions
- Maintain thorough documentation of product composition and origin
- Avoid shortcuts — the cost of noncompliance is steep
- Consult with HNM Customs Brokers if in doubt
Let this case serve as a clear reminder: U.S. Customs takes classification seriously.
If you have any questions or would like support reviewing your import documentation, we’re here to help.
Regards, Carl
Carl E Royer, LCB, CCS, CES
Compliance Manager
